Page:United States Statutes at Large Volume 103 Part 2.djvu/204

 103 STAT. 1214 PUBLIC LAW 101-167—NOV. 21, 1989 22 USC 2396. 22 USC 2764 note. 22 USC 2764 note. Securities. Public debt. and section 636(g) of that Act is amended by inserting immediately after the phrase "for the purposes of part 11" the phrase "or the Arms Export Control Act". FOREIGN MILITARY SALES DEBT REFORM Funds made available by the Foreign Operations, Export Financ- ing, and Related Programs Appropriations Act, 1988, for obligation and expenditure after October 1, 1988, subject to a Presidential budget request, under the heading "Foreign Military Sales Debt Reform", subsection (b) "Interest Rate Reduction" shall be avail- able, subject to the same conditions and provisos, only after October 1, 1990: Provided, That such subsection and subsection (a) under such heading are amended by striking "ten" in all places in which that word appears and inserting in lieu thereof "eight". GUARANTY RESERVE FUND If during fiscal year 1990 the funds available in the Guaranty Reserve Fund (Fund) are insufficient to enable the Secretary of Defense (Secretary) to discharge his responsibilities, as guarantor of loans guaranteed pursuant to section 24 of the Arms Export Control Act (AECA) or pursuant to the Foreign Operations, Export Financ- ing, and Related Programs Appropriations Act, 1988, under the heading "Foreign Military Sales Debt Reform", the Secretary shall issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary of the Treasury. Such notes or obligations may be redeemed by the Secretary from appropriations and other funds available, including repayments by the borrowers of amounts paid pursuant to guaran- tees issued under section 24 of the AECA. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding marketable obligations of the United States of com- parable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes or other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, and the purposes for which securities may be issued under the Second Liberty Bond Act are extended to include any purchase of such notes or obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this heading. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. SPECIAL DEFENSE ACQUISITION FUND (LIMITATION ON OBLIGATIONS) Not to exceed $280,000,000 may be obligated pursuant to section 51(c)(2) of the Arms Export Control Act for the purposes of the Special Defense Acquisition Fund during fiscal year 1990, to remain available for obligation until September 30, 1992: Provided, That section 632(d) of the Foreign Assistance Act of 1961 shall be ap- plicable to the transfer to countries pursuant to chapter 2 of part II

�