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10 USC § 4973 - Limitations 

---
identifier: "/us/usc/t10/s4973"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 4973 - Limitations"
title_number: 10
title_name: "ARMED FORCES"
section_number: "4973"
section_name: "Limitations"
chapter_number: 389
chapter_name: "LOAN GUARANTEE PROGRAMS"
subchapter_number: "I"
subchapter_name: "DEFENSE EXPORT LOAN GUARANTEES"
part_number: "V"
part_name: "ACQUISITION"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540b; renumbered § 4973, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)"
---

# § 4973. Limitations

**(a)** **Terms and Conditions of Loan Guarantees.—** In issuing a guarantee under this subchapter for a medium-term or long-term 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.

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**Source Credit**: (Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540b; renumbered § 4973, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)

## Editorial Notes

### Amendments

2021— renumbered  as this section.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by  effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as a note preceding .