Page:United States Statutes at Large Volume 114 Part 1.djvu/896

 114 STAT. 860 PUBLIC LAW 106-280—OCT. 6, 2000 (FFG 21). Such transfers shall be on a combined lease-sale basis under sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761). The authority granted by this subsection is in addition to that granted under section 1018(a)(9) of Public Law 106-65. SEC. 602. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF TRANSFERRED EXCESS DEFENSE ARTICLES. The value of naval vessels authorized under section 601 to be transferred on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 232Ij) shall not be included in the aggregate annual value of transferred excess defense articles which is subject to the aggregate annual limitation set forth in section 516(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(g)). SEC. 603. COSTS OF TRANSFERS. Any expense of the United States in connection with a transfer authorized by this title shall be charged to the recipient. SEC. 604. CONDITIONS RELATING TO COMBINED LEASE-SALE TRANS- FERS. A transfer of a vessel on a combined lease-sale basis authorized by section 601 shall be made in accordance with the following requirements: (1) The President may initially transfer the vessel by lease, with lease payments suspended for the term of the lease, if the country entering into the lease for the vessel simultaneously enters into a foreign military sales agreement for the transfer of title to the vessel. (2) The President may not deliver to the purchasing country title to the vessel until the purchase price of the vessel under such a foreign military sales agreement is paid in full. (3) Upon payment of the purchase price in full under such a sales agreement and delivery of title to the recipient country, the President shall terminate the lease. (4) If the purchasing country fails to make full payment of the purchase price in accordance with the sales agreement by the date required under the sales agreement— (A) the sales agreement shall be immediately terminated; (B) the suspension of lease payments under the lease shall be vacated; and (C) the United States shall be entitled to retain all funds received on or before the date of the termination under the sales agreement, up to the amount of the lease payments due and payable under the lease and all other costs required by the lease to be paid to that date. (5) If a sales agreement is terminated pursuant to paragraph (4), the United States shall not be required to pay any interest to the recipient country on any amount paid to the United States by the recipient country under the sales agreement and not retained by the United States under the lease. SEC. 605. FUNDING OF CERTAIN COSTS OF TRANSFERS. There are authorized to be appropriated to the Defense Vessels Transfer Program Account such funds as may be necessary to cover the costs (as defined in section 502 of the Congressional

�