SEC. 204. CONDITIONS RELATING TO COMBINED LEASE-
SALE TRANSFERS.
A transfer of a vessel on a combined lease-sale basis
authorized by section 201 shall be made in accordance
with the following requirements:
(1) The President may initially transfer the ves-
sel by lease, with lease payments suspended for the
term of the lease, if the country entering into the
lease for the vessel simultaneously enters into a for-
eign military sales agreement for the transfer of title
to the vessel.
(2) The President may not deliver to the pur-
chasing country title to the vessel until the purchase
price of the vessel under such a foreign military
sales agreement is paid in full.
(3) Upon payment of the purchase price in full
under such a sales agreement and delivery of title to
the recipient country, the President shall terminate
the lease.
(4) If the purchasing country fails to make full
payment of the purchase price in accordance with
the sales agreement—
(A) the sales agreement shall be imme-
diately terminated;
(B) the suspension of lease payments
under the lease shall be vacated; and
(C) the United States shall be entitled to
retain all funds received on or before the date
of the termination under the sales agreement,
up to the amount of lease payments due and
payable under the lease and all other costs re-
quired by the lease to be paid to that date.
(5) If a sales agreement is terminated pursuant
to paragraph (4), the United States shall not be re-
quired to pay any interest to the recipient country
on any amount paid to the United States by the re-
cipient country under the sales agreement and not
retained by the United States under the lease.
SEC. 205. FUNDING OF CERTAIN COSTS OF TRANSFERS.
There is authorized to be appropriated to the Defense
Vessels Transfer Program Account such funds as may be
necessary to cover the costs (as defined in section 502 of
the Congressional Budget Act of 1974 (2 U.S.C. 661a))
of the lease-sale transfers authorized by section 201.
Funds appropriated pursuant to the authorization of ap-
propriations under preceding sentence for the purpose de-
scribed in such sentence may not be available for any other
purpose.
SEC. 206. REPAIR AND REFURBISHMENT IN UNITED STATES
SHIPYARDS.
To the maximum extent practicable, the President
shall require, as a condition of the transfer of a vessel
under section 201, that the country to which the vessel
is transferred have such repair or refurbishment of the
vessel as is needed, before the vessel joins the naval forces
of that country, performed at a shipyard located in the
United States, including a United States Navy shipyard.
SEC. 207. SENSE OF CONGRESS REGARDING TRANSFER OF
NAVAL VESSELS ON A GRANT BASIS.
It is the sense of Congress that naval vessels author-
ized under section 201 of this Act to be transferred to
foreign countries on a grant basis under section 516 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j)
should be so transferred only if the United States receives
appropriate benefits from such countries for transferring
the vessel on a grant basis.
SEC. 208. EXPIRATION OF AUTHORITY.
The authority granted by section 201 of this Act shall
expire 2 years after the date of enactment of this Act.
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