22 USC § 2777 - Fiscal provisions relating to foreign military sales credits

---
identifier: "/us/usc/t22/s2777"
source: "usc"
legal_status: "official_prima_facie"
title: "22 USC § 2777 - Fiscal provisions relating to foreign military sales credits"
title_number: 22
title_name: "FOREIGN RELATIONS AND INTERCOURSE"
section_number: "2777"
section_name: "Fiscal provisions relating to foreign military sales credits"
chapter_number: 39
chapter_name: "ARMS EXPORT CONTROL"
subchapter_number: "III"
subchapter_name: "MILITARY EXPORT CONTROLS"
positive_law: false
currency: "119-84"
last_updated: "2026-03-26"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 90–629, ch. 3, § 37, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 93–189, § 25(11), Dec. 17, 1973, 87 Stat. 731; Pub. L. 96–533, title I, §§ 104(b), 105(e)(1), Dec. 16, 1980, 94 Stat. 3133, 3135.)"
---


# § 2777. Fiscal provisions relating to foreign military sales credits

**(a)** **Permissible uses of cash payments under sections 2761, 2762, 2763, and 2769** section 2763 of this title

Cash payments received under sections 2761, 2762, and 2769 of this title and advances received under  shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties.

**(b)** **Transfer of funds to miscellaneous receipts of Treasury** section 2763 of this titlesection 2764(b) of this titlesection 2764(b) of this title

Amounts received from foreign governments and international organizations as repayments for credits extended pursuant to , amounts received from the disposition of instruments evidencing indebtedness under  (excluding such portion of the sales proceeds as may be required at the time of disposition to be obligated as a reserve for payment of claims under guaranties issued pursuant to , which sums are made available for such obligations), and other collections (including fees and interest) shall be transferred to the miscellaneous receipts of the Treasury.

**(c)** **Credit of funds to reserve under section 2764(c)** section 2764(c) of this titlesection 2764 of this title

Notwithstanding the provisions of subsection (b), to the extent that any of the funds constituting the reserve under  are paid out for a claim arising out of a loan guaranteed under , amounts received from a foreign government or international organization after the date of such payment, with respect to such claim, shall be credited to such reserve, shall be merged with the funds in such reserve, and shall be available for any purpose for which funds in such reserve are available.

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**Source Credit**: (Pub. L. 90–629, ch. 3, § 37, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 93–189, § 25(11), Dec. 17, 1973, 87 Stat. 731; Pub. L. 96–533, title I, §§ 104(b), 105(e)(1), Dec. 16, 1980, 94 Stat. 3133, 3135.)

## Editorial Notes

### Amendments

1980—Subsec. (a). , inserted reference to .

Subsec. (c). , added subsec. (c).

1973—Subsec. (b).  inserted provisions relating to indebtedness under  and exclusions of portions of the sales proceeds required at the time of disposition as a reserve for payment of claims under guaranties issued under .

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective , see , set out as a note under .