Procurement for cash sales

Except as otherwise provided in this section, the President may, without requirement for charge to any appropriation or contract authorization otherwise provided, enter into contracts for the procurement of defense articles or defense services for sale for United States dollars to any foreign country or international organization if such country or international organization provides the United States Government with a dependable undertaking (1) to pay the full amount of such contract which will assure the United States Government against any loss on the contract, and (2) to make funds available in such amounts and at such times as may be required to meet the payments required by the contract, and any damages and costs that may accrue from the cancellation of such contract, in advance of the time such payments, damages, or costs are due. Interest shall be charged on any net amount by which any such country or international organization is in arrears under all of its outstanding unliquidated dependable undertakings, considered collectively. The rate of interest charged shall be a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding short-term obligations of the United States as of the last day of the month preceding the net arrearage and shall be computed from the date of net arrearage.

( Pub. L. 90–629 , ch. 2, § 22, Oct. 22, 1968 , 82 Stat. 1323 ; Pub. L. 93–189, § 25(3) , Dec. 17, 1973 , 87 Stat. 730 ; Pub. L. 94–329, title II, § 207 , June 30, 1976 , 90 Stat. 738 ; Pub. L. 95–384, § 17 , Sept. 26, 1978 , 92 Stat. 740 ; Pub. L. 96–533, title I, § 105(b)(2) , Dec. 16, 1980 , 94 Stat. 3134 ; Pub. L. 104–107, title V, § 531A(a) , Feb. 12, 1996 , 110 Stat. 731 ; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1223] , Nov. 29, 1999 , 113 Stat. 1536 , 1501A–498.)