§ 2540. Establishment of loan guarantee program
(a)
Establishment.—
In order to meet the national security objectives in section
2501
(a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring a lender against losses of principal or interest, or both principal and interest, arising out of the financing of the sale or long-term lease of defense articles, defense services, or design and construction services to a country referred to in subsection (b).
(b)
Covered Countries.—
The authority under subsection (a) applies with respect to the following countries:
(1)
A member nation of the North Atlantic Treaty Organization (NATO).
(2)
A country designated as of March 31, 1995, as a major non-NATO ally pursuant to section
2350a
(i)(3) of this title, as in effect on that date.
(3)
A country in Central Europe that, as determined by the Secretary of State—
(A)
has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989; or
(B)
is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government.
(4)
A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.
(c)
Authority Subject to Provisions of Appropriations.—
The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.