10 USC Subtitle A, PART IV, CHAPTER 148, SUBCHAPTER VII: CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES
Result 1 of 1
   
 

TEXT OF PART V OF SUBTITLE A (3001 ET SEQ.), EFFECTIVE JANUARY 1, 2022, CURRENTLY SET OUT AS A PREVIEW

10 USC Subtitle A, PART IV, CHAPTER 148, SUBCHAPTER VII: CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES
From Title 10—ARMED FORCESSubtitle A—General Military LawPART IV—SERVICE, SUPPLY, AND PROCUREMENTCHAPTER 148—NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII—CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

Sec.
2541.
Establishment of loan guarantee program.
2541a.
Fees charged and collected.
2541b.
Administration.
2541c.
Transferability, additional limitations, and definition.
2541d.
Reports.

        

Repeal of Subchapter

Pub. L. 116–283, div. A, title XVIII, §§1801(d), 1881(a), Jan. 1, 2021, 134 Stat. 4151, 4293, provided that, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, chapter 148 of this title, and therefore this subchapter, is repealed. See Effective Date of Repeal note below.

Effective Date of Repeal

Repeal effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.

§2541. Establishment of loan guarantee program

(a) Establishment.—In order to meet the national security objectives in section 2501(a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring lenders against losses of principal or interest, or both principal and interest, for loans made to qualified commercial firms to fund, in whole or in part, any of the following activities:

(1) The improvement of the protection of the critical infrastructure of the commercial firms.

(2) The refinancing of improvements previously made to the protection of the critical infrastructure of the commercial firms.


(b) Qualified Commercial Firms.—For purposes of this section, a qualified commercial firm is a company or other business entity (including a consortium of such companies or other business entities, as determined by the Secretary) that the Secretary determines—

(1) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States;

(2) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which—

(A) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and

(B) affords adequate and effective protection for the intellectual property rights of companies incorporated in the United States;


(3) provides technology products or services critical to the operations of the Department of Defense;

(4) meets standards of prevention of cyberterrorism applicable to the Department of Defense; and

(5) agrees to submit the report required under section 2541d of this title.


(c) Loan Limits.—The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed $10,000,000, with respect to all borrowers.

(d) Goals and Standards.—The Secretary shall prescribe regulations setting forth goals for the use of the loan guarantees provided under this section and standards for evaluating whether those goals are met by each entity receiving such loan guarantees.

(e) Authority Subject to Provisions of Appropriations.—The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.

(Added Pub. L. 106–398, §1 [[div. A], title X, §1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A-258.)

Transfer of Subchapter and Section

Pub. L. 116–283, div. A, title XVIII, §§1801(d), 1873(b), (c), Jan. 1, 2021, 134 Stat. 4151, 4290, provided that, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, this subchapter is transferred to chapter 389 of this title, as added by section 1873(a) of Pub. L. 116–283, inserted after subchapter I, and redesignated as subchapter II, and this section is redesignated as section 4981 of this title. See Effective Date of 2021 Amendment note below.

Prior Provisions

A prior section 2541 was renumbered section 2551 of this title.

Another prior section 2541 was renumbered section 2539b of this title.

Effective Date of 2021 Amendment

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

§2541a. Fees charged and collected

(a) Fee Required.—The Secretary of Defense shall assess a fee for providing a loan guarantee under this subchapter.

(b) Amount of Fee.—The amount of the fee shall be not less than 75 percent of the amount incurred by the Secretary to provide the loan guarantee.

(c) Special Account.—(1) Such fees shall be credited to a special account in the Treasury.

(2) Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.

(3)(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attributable to the administration of the program under this subchapter, the Secretary may use amounts currently available for operations and maintenance for Defense-wide activities, not to exceed $500,000 in any fiscal year, for those expenses.

(B) The Secretary shall, from funds in the special account established under paragraph (1), replenish operations and maintenance accounts for amounts expended under subparagraph (A).

(Added Pub. L. 106–398, §1 [[div. A], title X, §1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A-259.)

Transfer of Subchapter and Section

Pub. L. 116–283, div. A, title XVIII, §§1801(d), 1873(b), (c), Jan. 1, 2021, 134 Stat. 4151, 4290, provided that, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, this subchapter is transferred to chapter 389 of this title, as added by section 1873(a) of Pub. L. 116–283, inserted after subchapter I, and redesignated as subchapter II, and this section is redesignated as section 4982 of this title. See Effective Date of 2021 Amendment note below.

Effective Date of 2021 Amendment

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

§2541b. Administration

(a) Agreements Required.—The Secretary of Defense may enter into one or more agreements, each with an appropriate Federal or private entity, under which such entity may, under this subchapter—

(1) process applications for loan guarantees;

(2) administer repayment of loans; and

(3) provide any other services to the Secretary to administer this subchapter.


(b) Treatment of Costs.—The costs of such agreements shall be considered, for purposes of the special account established under section 2541a(c), to be costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.

(Added Pub. L. 106–398, §1 [[div. A], title X, §1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A-259.)

Transfer of Subchapter and Section

Pub. L. 116–283, div. A, title XVIII, §§1801(d), 1873(b), (c), Jan. 1, 2021, 134 Stat. 4151, 4290, provided that, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, this subchapter is transferred to chapter 389 of this title, as added by section 1873(a) of Pub. L. 116–283, inserted after subchapter I, and redesignated as subchapter II, and this section is redesignated as section 4983 of this title. See Effective Date of 2021 Amendment note below.

Effective Date of 2021 Amendment

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

§2541c. Transferability, additional limitations, and definition

The following provisions of subchapter VI of this chapter apply to guarantees issued under this subchapter:

(1) Section 2540a, relating to transferability of guarantees.

(2) Subsections (b) and (c) of section 2540b, providing limitations.

(3) Section 2540d(2), providing a definition of the term "cost".

(Added Pub. L. 106–398, §1 [[div. A], title X, §1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A-260; amended Pub. L. 107–107, div. A, title X, §1048(a)(24), Dec. 28, 2001, 115 Stat. 1224.)

Renumbering of Section

Pub. L. 116–283, div. A, title XVIII, §§1801(d), 1873(b), (c), Jan. 1, 2021, 134 Stat. 4151, 4290, provided that, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, this subchapter is transferred to chapter 389 of this title, as added by section 1873(a) of Pub. L. 116–283, inserted after subchapter I, and redesignated as subchapter II, and this section is redesignated as section 4984 of this title. See Effective Date of 2021 Amendment note below.

Amendments

2001Pub. L. 107–107 substituted "subchapter" for "subtitle" in two places in introductory provisions.

Effective Date of 2021 Amendment

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

§2541d. Reports

The Secretary of Defense shall require each qualified commercial firm for which a loan is guaranteed under this subchapter to submit to the Secretary a report on the improvements financed or refinanced with the loan. The report shall include an assessment of the value of the improvements for the protection of the critical infrastructure of that commercial firm. The Secretary shall prescribe the time for submitting the report.

(Added Pub. L. 106–398, §1 [[div. A], title X, §1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A-260; amended Pub. L. 108–136, div. A, title X, §1031(a)(25), Nov. 24, 2003, 117 Stat. 1598.)

Transfer of Subchapter and Section

Pub. L. 116–283, div. A, title XVIII, §§1801(d), 1873(b), (c), Jan. 1, 2021, 134 Stat. 4151, 4290, provided that, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, this subchapter is transferred to chapter 389 of this title, as added by section 1873(a) of Pub. L. 116–283, inserted after subchapter I, and redesignated as subchapter II, and this section is redesignated as section 4985 of this title. See Effective Date of 2021 Amendment note below.

Prior Provisions

Prior sections 2542 to 2550 were renumbered sections 2552 to 2560 of this title, respectively.

Amendments

2003Pub. L. 108–136 struck out subsec. (a) designation and heading and struck out subsec. (b) which directed that the Secretary of Defense annually submit to Congress a report on the loan guarantee program under this subchapter.

Effective Date of 2021 Amendment

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.