Page:United States Statutes at Large Volume 110 Part 2.djvu/630

 110 STAT. 1422 PUBLIC LAW 104-164—JULY 21, 1996 Sec. 154. Eligibility of Panama under the Arms Export Control Act. Sec. 155. Publication of arms sales certifications. Sec. 156. Release of information. Sec. 157. Repeal of termination of provisions of the Nuclear Proliferation Prevention Act of 1994; Presidential determinations. TITLE II—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES Sec. 201. Authority to transfer naval vessels. Sec. 202. Costs of transfers. Sec. 203. Expiration of authority. Sec. 204. Repair and refurbishment of vessels in United States shipyards. TITLE I—DEFENSE AND SECURITY ASSISTANCE CHAPTER 1—MILITARY AND RELATED ASSISTANCE SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILITARY FINANC- ING PROGRAM. Section 31(c) of the Arms Export Control Act (22 U.S.C. 2771(c)) is amended to read as follows: "(c) Loans available under section 23 shall be provided at rates of interest that are not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturities.". SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOREIGN MILL TARY FINANCING PROGRAM. (a) AUDIT OF CERTAIN PRIVATE FIRMS. —Section 23 of the Arms Export Control Act (22 U.S.C. 2763) is amended by adding at the end the following new subsection: "(f) For each fiscal year, the Secretary of Defense, as requested by the Director of the Defense Security Assistance Agency, shall conduct audits on a nonreimbursable basis of private firms that have entered into contracts with foreign governments under which defense articles, defense services, or design and construction services are to be procured by such firms for such governments from financing under this section.". (b) NOTIFICATION REQUIREMENT WITH RESPECT TO CASH FLOW FINANCING. — Section 23 of such Act (22 U.S.C. 2763), as amended by this Act, is further amended by adding at the end the following new subsection: "(g)(1) For each country and international organization that has been approved for cash flow financing under this section, any letter of offer and acceptance or other purchase agreement, or any amendment thereto, for a procurement of defense articles, defense services, or design and construction services in excess of $100,000,000 that is to be financed in whole or in part with funds made available under this Act or the Foreign Assistance Act of 1961 shall be submitted to the congressional committees specified in section 634A(a) of the Foreign Assistance Act of 1961 in accordance with the procedures applicable to reprogramming notifications under that section. "(2) For purposes of this subsection, the term 'cash flow financing* has the meaning given such term in subsection (d) of section 25, as added by section 112(b) of Public Law 99-83.". (c) LIMITATIONS ON USE OF FUNDS FOR DIRECT COMMERCIAL CONTRACTS. —Section 23 of such Act (22 U.S.C. 2763), as amended

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