    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 116-332
    116th Congress

    An Act

    To authorize the Secretary of State to make direct loans under section
    23 of the Arms Export Control Act, and for other purposes. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Eastern European Security Act''.
    SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that it is in the national security
    interest of the United States to--
    (1) deter aggression against North Atlantic Treaty
    Organization (NATO) allies by Russia or any other adversary;
    (2) assist NATO allies in acquiring and deploying modern,
    NATO interoperable military equipment and reducing their
    dependence on Russian or former Soviet-era defense articles;
    (3) ensure that NATO allies meet alliance defense
    commitments, including through adequate investments in national
    defense;
    (4) supplement existing grant assistance to key allies
    through foreign military financing loans, at rates competitive
    with those already available on commercial markets, to purchase
    NATO-interoperable military equipment; and
    (5) work to maintain and strengthen the democratic
    institutions and practices of all NATO allies, in accordance
    with the goals of Article 2 of the North Atlantic Treaty.
    SEC. 3. FOREIGN MILITARY LOAN AUTHORITY.

    (a) <>  In General.--Beginning in
    fiscal year 2021, subject to the notification requirements under
    subsection (b) and to the availability of appropriations, the President,
    acting through the Secretary of State, is authorized--
    (1) to make direct loans under section 23 of the Arms Export
    Control Act (22 U.S.C. 2763) to NATO member countries that
    joined the alliance after March 1, 1999, notwithstanding the
    minimum interest rate required by subsection (c)(1) of such
    section; and
    (2) to charge fees for such loans under paragraph (1), which
    shall be collected from borrowers in accordance with section
    502(7) of the Congressional Budget Act of 1974, and which may be
    used to cover the costs of such loans as defined in section 502
    of the Congressional Budget Act of 1974.

    [[Page 5112]]

    (b) <>  Notification.--A loan may
    not be made under the authority provided by subsection (a) unless the
    Secretary of State submits to the appropriate congressional committees a
    certification, not fewer than fifteen days before entering into an
    agreement to make such loan, that--
    (1) the recipient country is making demonstrable progress
    toward meeting its defense spending commitments in accordance
    with the 2014 NATO Wales Summit Declaration; and
    (2) the government of such recipient country is respecting
    that country's constitution and upholds democratic values such
    as freedom of religion, freedom of speech, freedom of the press,
    the rule of law, and the rights of religious minorities.

    (c) Repayment.--A loan made under the authority provided by
    subsection (a) shall be repaid in not more than 12 years, but may
    include a grace period of up to 1 year on the repayment of the
    principal.
    (d) Appropriate Congressional Committees Defined.--In this Act, the
    term ``appropriate congressional committees'' means--
    (1) the Committee on Foreign Affairs and the Committee on
    Appropriations of the House of Representatives; and
    (2) the Committee on Foreign Relations and the Committee on
    Appropriations of the Senate.

    Approved January 13, 2021.

    LEGISLATIVE HISTORY--H.R. 2444:
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    CONGRESSIONAL RECORD:
    Vol. 166 (2020):
    Mar. 9, considered and passed House.
    Vol. 166 (2021):
    Jan. 1, considered and passed
    Senate.