; and (2) the Secretary of Defense shall terminate the contract. 7. Taiwan critical munitions acquisition fund (a) Establishment There shall be established in the Treasury of the United States a revolving fund to be known as the Taiwan Critical Munitions Acquisition Fund (in this section referred to as the Fund ). (b) Purpose Subject to the availability of appropriations, amounts in the Fund shall be made available by the Secretary of Defense— (1) to ensure that adequate stocks of critical munitions necessary for a denial defense are available to allies and partners of the United States in advance of a potential operation to defend the autonomy and territory of Taiwan; and (2) to finance the acquisition of critical munitions necessary for a denial defense in advance of the transfer of such munitions to foreign countries for such a potential operation. (c) Additional authority Subject to the availability of appropriations, the Secretary of Defense may also use amounts made available to the Fund— (1) to keep on continuous order munitions that the Secretary of Defense considers critical due to a reduction in current stocks as a result of the drawdown of stocks provided to the government of one or more foreign countries; or (2) with the concurrence of the Secretary of State, to procure munitions identified as having a high-use rate. (d) Deposits (1) In general The Fund shall consist of each of the following: (A) Collections from sales made under letters of offer (or transfers made under the Foreign Assistance Act of 1961 ( 22 U.S.C. 2151 et seq. )) of munitions acquired using amounts made available from the Fund pursuant to this section, representing the value of such items calculated, as applicable, in accordance with— (i) subparagraph (B) or (C) of section 21(a)(1) of the Arms Export Control Act ( 22 U.S.C. 2761(a)(1) ); (ii) section 22 of the Arms Export Control Act ( 22 U.S.C. 2762 )