DSCA Policy Memo 26-23 Bank Letters of Credit Memorandum of Understanding Templates has been posted.

Effective immediately, this memorandum establishes templates for Memoranda of Understanding (MOUs) between the DSCA and foreign partners regarding the use of Bank Letters of Credit (BLOCs) in the SAMM. Under the BLOC program, DSCA permits the use of a Letter of Credit (LC) - a type of third-party loan funding from a commercial bank, Export Credit Agency, or other lending institution - to cover liabilities on Foreign Military Sales (FMS) cases.

This memo:

• Updates C9.7.1.2.5.2. Memorandum of Understanding
• Adds Figure C9.F3. Memorandum of Understand Template for a Bank Letter of Credit to make Routine Payments
• Adds Figure C9.F4. Memorandum of Understand Template for a Bank Letter of Credit to Supplement National Funds
• Adds associated terms to the SAMM Glossary
• Renumbers remaining figures in Chapter 9.