§ 2796d. — Loan of materials, supplies, and equipment for research and development purposes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2796d]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39--ARMS EXPORT CONTROL
SUBCHAPTER VI--LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR
COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES
Sec. 2796d. Loan of materials, supplies, and equipment for
research and development purposes
(a) Loan or gift transactions; written agreement; covered programs
(1) Except as provided in subsection (c) of this section, the
Secretary of Defense may loan to a country that is a NATO or major non-
NATO ally materials, supplies, or equipment for the purpose of carrying
out a program of cooperative research, development, testing, or
evaluation. The Secretary may accept as a loan or a gift from a country
that is a NATO or major non-NATO ally materials, supplies, or equipment
for such purpose.
(2) Each loan or gift transaction entered into by the Secretary
under this section shall be provided for under the terms of a written
agreement between the Secretary and the country concerned.
(3) A program of testing or evaluation for which the Secretary may
loan materials, supplies, or equipment under this section includes a
program of testing or evaluation conducted solely for the purpose of
standardization, interchangeability, or technical evaluation if the
country to which the materials, supplies, or equipment are loaned agrees
to provide the results of the testing or evaluation to the United States
without charge.
(b) Reimbursement of consumed materials, etc.
The materials, supplies, or equipment loaned to a country under this
section may be expended or otherwise consumed in connection with any
testing or evaluation program without a requirement for reimbursement of
the United States if the Secretary--
(1) determines that the success of the research, development,
test, or evaluation depends upon expending or otherwise consuming
the materials, supplies, or equipment loaned to the country; and
(2) approves of the expenditure or consumption of such
materials, supplies, or equipment.
(c) Prohibitions
The Secretary of Defense may not loan to a country under this
section any material if the material is a strategic and critical
material and if, at the time the loan is to be made, the quantity of the
material in the National Defense Stockpile (provided for under section
98b of title 50) is less than the quantity of such material to be
stockpiled, as determined by the President under section 98b(a) of title
50.
(d) ``NATO ally'' defined
For purposes of this section, the term ``NATO ally'' means a member
country of the North Atlantic Treaty Organization (other than the United
States).
(Pub. L. 90-629, ch. 6, Sec. 65, as added Pub. L. 100-456, div. A, title
X, Sec. 1003(a), Sept. 29, 1988, 102 Stat. 2038; amended Pub. L. 102-25,
title VII, Sec. 705(d)(2), Apr. 6, 1991, 105 Stat. 120; Pub. L. 104-164,
title I, Sec. 147(a)(3)(B), July 21, 1996, 110 Stat. 1435.)
Amendments
1996--Subsec. (d). Pub. L. 104-164 struck out ``or major non-NATO''
after ``NATO'' and ``or a foreign country other than a member nation of
NATO designated as a major non-NATO ally under section 2350a(i)(3) of
title 10'' after ``(other than the United States)''.
1991--Subsec. (d). Pub. L. 102-25 substituted ``section 2350a(i)(3)
of title 10'' for ``section 2767a of this title''.
