32 CFR 274.4

§ 274.4 U.S. guaranty.

United States · 32 CFR — National Defense · Status: effective

Cite this

Citation: 32 CFR 274.4, § 274.4 U.S. guaranty, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/146308
Permanent ID: ys:prov:146308@1
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Full text

Under section 24 of the Foreign Military Sales Act (22 U.S.C. 2764), any individual, corporation, partnership, or other juridical entity (excluding U.S. Government agencies) will be guaranteed against political and credit risks of nonpayment arising out of their financing of credit sales of defense articles and defense services to friendly countries and international organizations. Section 24 explicitly provides that guarantees thereunder are backed by the full faith and credit of the United States. Fees in the amount of one-fourth of 1 percent of the amount of credits agreed upon shall be charged for such guaranties.

Legislative history

This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.