Page:United States Statutes at Large Volume 110 Part 1.djvu/500

 110 STAT. 476 PUBLIC LAW 104-106—FEB. 10, 1996 "(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. "(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. "§ 2540a. Transferability "A guarantee issued under this subchapter shall be fully and freely transferable. "§ 2540b. Limitations " (a) TERMS AND CONDITIONS OF LOAN GUARANTEES.—In issuing a guarantee under this subchapter for a medium-term or longterm loan, the Secretary may not offer terms and conditions more beneficial than those that would be provided to the recipient by the Export-Import Bank of the United States under similar circumstances in conjunction with the provision of guarantees for nondefense articles and services. "(b) LOSSES ARISING FROM FRAUD OR MISREPRESENTATION.— No payment may be made under a guarantee issued under this subchapter for a loss arising out of fraud or misrepresentation for which the party seeking payment is responsible. "(c) No RIGHT OF ACCELERATION. — The Secretary of Defense may not accelerate any guaranteed loan or increment, and may not pay any amount, in respect of a guarantee issued under this subchapter, other than in accordance with the original payment terms of the loan. "§ 2540c. Fees charged and collected "(a) EXPOSURE FEES.— The Secretary of Defense shall charge a fee (known as 'exposure fee') for each guarantee issued under this subchapter. "(b) AMOUNT OF EXPOSURE FEE. —To the extent that the cost of the loan guarantees under this subchapter is not otherwise provided for in appropriations Acts, the fee imposed under subsection (a) with respect to a loan guarantee shall be fixed in an amount that is sufficient to meet potential liabilities of the United States under the loan guarantee. "(c) PAYMENT TERMS. —The fee under subsection (a) for each guarantee shall become due as the guarantee is issued. In the case of a guarantee for a loan which is disbursed incrementally, and for which the guarantee is correspondingly issued incrementally

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