10 U.S.C. § 4975 — Definitions

Page 2938 TITLE 10—ARMED FORCES § 4975 ‘‘(b) EFFECTIVE DATE.—Paragraph (2) of section 2540c(d) of title 10, United States Code [now 10 U.S.C. 4974(d)(2)], as added by subsection (a), shall take effect on October 1, 2000. ‘‘(c) LIMITATION PENDING SUBMISSION OF REPORT.—The Secretary of Defense may not exercise the authority provided by paragraph (2) of section 2540c(d) of title 10, United States Code [now 10 U.S.C. 4974(d)(2)], as added by subsection (a), until the Secretary submits to Con- gress a report on the operation of the Defense Export Loan Guarantee Program under [former] subchapter V of chapter 148 of title 10, United States Code [see chap- ter 385 of this title]. The report shall include the fol- lowing: ‘‘(1) A discussion of the effectiveness of the loan guarantee program in furthering the sale of United States defense articles, defense services, and design and construction services to nations that are speci- fied in section 2540(b) of such title [now 10 U.S.C. 4971(b)], to include a comparison of the loan guar- antee program with other United States Government programs that are intended to contribute to the sale of United States defense articles, defense services, and design and construction services and other com- parisons the Secretary determines to be appropriate. ‘‘(2) A discussion of the requirements and resources (including personnel and funds) for continued admin- istration of the loan guarantee program by the De- fense Department, to include— ‘‘(A) an itemization of the requirements nec- essary and resources available (or that could be made available) to administer the loan guarantee program for each of the following entities: the De- fense Security Cooperation Agency, the Depart- ment of Defense International Cooperation Office, and other Defense Department agencies, offices, or activities as the Secretary may specify; and ‘‘(B) for each such activity, agency, or office, a comparison of the use of Defense Department per- sonnel exclusively to administer, manage, and over- see the program with the use of contracted com- mercial entities to administer and manage the pro- gram. ‘‘(3) Any legislative recommendations that the Sec- retary believes could improve the effectiveness of the program. ‘‘(4) A determination made by the Secretary of De- fense indicating which Defense Department agency, office, or other activity should administer, manage, and oversee the loan guarantee program to increase sales of United States defense articles, defense serv- ices, and design and construction services, such de- termination to be made based on the information and analysis provided in the report.’’ § 4975. Definitions In this subchapter: (1) The terms ‘‘defense article’’, ‘‘defense services’’, and ‘‘design and construction serv- ices’’ have the meanings given those terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794). (2) The term ‘‘cost’’, with respect to a loan guarantee, has the meaning given that term in section 502 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a). (Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 477, § 2540d; re- numbered § 4975, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.) Editorial Notes AMENDMENTS 2021—Pub. L. 116–283 renumbered section 2540d of this title as this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title. SUBCHAPTER II—CRITICAL INFRASTRUC- TURE PROTECTION LOAN GUARANTEES Sec. 4981. Establishment of loan guarantee program. 4982. Fees charged and collected. 4983. Administration. 4984. Transferability, additional limitations, and definition. 4985. Reports. § 4981. Establishment of loan guarantee program (a) ESTABLISHMENT.—In order to meet the na- tional security objectives in section 4811(a) of this title, the Secretary of Defense shall estab- lish a program under which the Secretary may issue guarantees assuring lenders against losses of principal or interest, or both principal and in- terest, for loans made to qualified commercial firms to fund, in whole or in part, any of the fol- lowing activities: (1) The improvement of the protection of the critical infrastructure of the commercial firms. (2) The refinancing of improvements pre- viously made to the protection of the critical infrastructure of the commercial firms. (b) QUALIFIED COMMERCIAL FIRMS.—For pur- poses of this section, a qualified commercial firm is a company or other business entity (in- cluding a consortium of such companies or other business entities, as determined by the Sec- retary) that the Secretary determines— (1) conducts a significant level of its re- search, development, engineering, and manu- facturing activities in the United States; (2) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is in- corporated in a country the government of which— (A) encourages the participation of firms so owned or controlled in research and devel- opment consortia to which the government of that country provides funding directly or provides funding indirectly through inter- national organizations or agreements; and (B) affords adequate and effective protec- tion for the intellectual property rights of companies incorporated in the United States; (3) provides technology products or services critical to the operations of the Department of Defense; (4) meets standards of prevention of cyberterrorism applicable to the Department of Defense; and (5) agrees to submit the report required under section 4985 of this title. (c) LOAN LIMITS.—The maximum amount of loan principal guaranteed during a fiscal year