10 U.S.C. § 4971: Establishment of loan guarantee program

In order to meet the national security objectives in section 4811(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). A member nation of the North Atlantic Treaty Organization (NATO). 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. has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989 ; or is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government. A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993 . 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.