Attachment 1
Security Assistance Management Manual (SAMM), E-Change 458
Updates to Appendix 6 and Table C9.T11.

1. Update Appendix 6, LOA Notes Listing, to read as follows:

   Risk Assessed Payment Schedules (RAPS) Standard Note

   Note Usage
   FMS: Yes BPC: No Mandatory for FMS LOAs when the Term of Sale of Risk Assessed Payment Schedule (RAPS) has been approved. This note should be included beneath the payment schedule. Mandatory for Amendments and Modifications when RAPS remains a valid Term of Sale.
   References
   See Section C9.8.4.
   Note Input Responsibility
   CWD
   Note Text
   "Risk Assessed Payment Schedules (RAPS) are authorized under Section 22 of the Arms Export Control Act. The RAPS on this Letter of Offer and Acceptance was calculated and approved by DSCA's Country Financial Management (CFM) division. The initial deposit or due with amendment acceptance amount is front loaded to include the highest projected termination liability amount, and the payment schedule requires payments one year in advance of expected financial requirements, in order to mitigate risk to the U.S. Government. The U.S. Government reserves the right to bill for additional amounts if, during the execution phase, actual costs materialize at a rate that cannot be supported by the LOA's stated payment schedule. CFM must be notified and provide written approval prior to any payment schedule adjustments via a LOA modification or amendment. Any questions or concerns regarding RAPS should be addressed to CFM."

2. Update Table C9.T11. Terms of Sale to read as follows:

   Term of Sale	Application
   Cash with Acceptance	Used when the initial cash deposit equals the amount in the "Estimated Total Costs" line of the LOA.   Used for FMSO I even though the initial deposit is less than "Estimated Total Costs" (it must equal the FMSO I Part A value). Used if the purchaser is not authorized Dependable Undertaking, unless specific DSCA approval is obtained.
   Cash Prior to Delivery	Used if the purchaser is authorized Dependable Undertaking and the USG authorizes purchaser cash payment in advance of delivery of defense articles and rendering of defense services and design and construction services from DoD resources. AECA, sections 21(b) and 29 (22 U.S.C. 2761(b) and (22 U.S.C. 2769) apply.
   Dependable Undertaking	Used if the purchaser is authorized in accordance with AECA section 22.
   Risk Assessed Payment Schedule	Approved by the DSCA Chief Financial Officer on a case-by-case basis. Authorized in accordance with AECA section 22.
   Payment on Delivery	The USG issues bills to the purchaser at the time of delivery of defense articles or rendering of defense services from DoD resources. The first sentence of AECA, section 21(d) (22 U.S.C. 2761(d)) applies. The IA may use this term only pursuant to a written statutory determination by the Director, DSCA, who must find it in the national interest to do so. If AECA, section 21(d) is applicable based on Director or Deputy Director, DSCA action, modify to read "Payment 60 days after Delivery." If AECA, section 21(d) is applicable based on Presidential action, modify to read "Payment 120 days after Delivery."
   FMS Credit	This term applies to an FMS case financed with repayable FMF funds, or partly repayable FMF funds, extended or guaranteed by the Department of Defense under AECA, sections 23 (22 U.S.C. 2763) and 24 (22 U.S.C. 2764) or under other legislation.
   MAP Merger	Applies to FMS cases financed with MAP Merger funds (FAA, section 503 (22 U.S.C. 2311)).
   FMS Credit (Non-Repayable)	Applies to FMS cases financed with non-repayable FMF funds. If the case is financed wholly with these non-repayable funds, the LOA qualifies for pricing benefits (i.e., exclusion of military salaries and NC of research, development, and production of MDE) as provided in FAA, section 503(a)(3) (22 U.S.C. 2311(a)(3)) and AECA, section 21€ (22 U.S.C. 2761€).
   EDA Grant	Applies to Excess Defense Article - non-reimbursable grant transfers as provided in FAA section 516 (22 U.S.C. 2312j).