7 U.S.C. § 1738o — Sale of qualified debt to eligible countries

submitted 72 years ago by Pub. L. 102-532 to r/title-7-AGRICULTURE · 413 words · no verdicts yet

in plain englishAI-generated · not legal advice

The President may sell up to 40 percent of an eligible country’s qualified debt if the country uses a required amount of local currency through an Environmental Fund for eligible activities. The section also sets sale terms, congressional funding limits, accounting, proceeds, and consultation rules.

(a) General rule.—(1) The President may sell an eligible country up to 40 percent of its “qualified debt” only if the country uses local currency, excluding the debt’s purchase price, through an Environmental Fund for section 1738k activities. The amount used must be at least 40 percent of the price paid or the difference between the price and the debt’s face value, whichever is less. (2) “Environmental Fund” means one established under section 1738g. In Mexico, it may be called the Good Neighbor Environmental Fund for the Border. (3) The President should advise eligible countries about establishing and operating the required Funds. (b) Terms.—The President must set the terms and conditions, including the price, for the sale. (c) Appropriations.—The authority may be used only in amounts and to the extent provided in advance by appropriations Acts. (d) The sale is not assistance for laws limiting assistance to a country. (e) The Facility directs the sale and directs the Commodity Credit Corporation to make it. The Corporation must adjust its accounts. (f) Sale proceeds go into the Corporation account or accounts for the country’s debt repayment. (g) Before a sale, the President should consult the country’s government about the sale, including the debt amount and the uses of the resulting funds.

the actual law source: uscode.house.gov ↗public domain

(a) In general

(1) Authorization

The President may sell to an eligible country up to 40 percent of such country’s qualified debt, only if an amount of the local currency of such country (other than the price paid for the debt) equal to—

(A)

not less than 40 percent of the price paid for such debt by such eligible country, or

(B)

the difference between the price paid for such debt and the face value of such debt;

whichever is less, is used by such country through an Environmental Fund for eligible activities described in section 1738k of this title.

(2) Environmental funds

For purposes of this section, the term “Environmental Fund” means an Environmental Fund established under section 1738g of this title. In the case of Mexico, such fund may be designated as the Good Neighbor Environmental Fund for the Border.

(3) Establishment and operation of environmental funds

The President should advise eligible countries on the procedures required to establish and operate the Environmental Funds required to be established under paragraph (1).

(b) Terms and conditions

The President shall establish the terms and conditions, including the amount to be paid by the eligible country, under which such country’s qualified debt may be sold under this section.

The authorities provided by this section may be exercised only in such amounts and to such extent as is provided in advance in appropriations Acts.

(d) Certain prohibitions inapplicable

A sale of debt under this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country.

(e) Implementation by Facility

A sale of debt authorized under this section shall be accomplished at the direction of the Facility. The Facility shall direct the Commodity Credit Corporation to carry out such sale. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect the sale.

(f) Deposit of proceeds

The proceeds from a sale of qualified debt under this section shall be deposited in the account or accounts established by the Commodity Credit Corporation for the repayment of such debt by the eligible country.

(g) Debtor consultation

Before any sale of qualified debt may occur under this section, the President should consult with the eligible country’s government concerning such sale. The topics addressed in the consultation shall include the amount of qualified debt involved in the transaction and the uses to which funds made available as a result of the sale shall be applied.

Source credit: (July 10, 1954, ch. 469, title VI, § 616, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3509.)

history & why it existsrecord from the source credit

1954Enacted · Pub. L. 102-532 · 106 Stat. 3509

A history note hasn’t been published yet. The record shows enactment by Pub. L. 102-532 on 1954-07-10.

all 0 arguments · sorted by: best

no arguments yet — make the first case