7 U.S.C. § 5621 — Direct credit sales program
submitted 36 years ago by Pub. L. 95-501 to r/title-7-AGRICULTURE · 499 words · no verdicts yet
The Commodity Credit Corporation may finance commercial exports of agricultural commodities on short- or intermediate-term credit. The section lists allowed uses, required terms, and limits on sales to countries unable to service the debt.
(a) Short-term program. The Corporation may finance commercial export sales from private stocks for credit terms of no more than three years.
(b) Intermediate-term program. Subject to (c), it may finance such sales for terms of at least three and no more than ten years, in a way that directly benefits United States* agricultural producers.
(c) Determinations. It may finance a sale under (b) only if the Secretary* finds it will (1) develop, expand, or maintain the importing country as a long-term market for commercial United States agricultural sales and exports without displacing normal commercial sales; (2) improve the country’s long-term ability to buy and use United States commodities; or (3) otherwise promote those exports. “On a long-term basis” in (1) and (2) does not apply to sales to the independent states of the former Soviet Union.
(d) Use. (1) Financing may be used to (A) increase exports; (B) compete with foreign exports; (C) help countries meet food and fiber needs, especially (i) developing countries and (ii) emerging-market countries pursuing policies promoting economic freedom, private domestic food production, and efficient domestic markets; and (D) other purposes the Secretary finds appropriate and consistent with (c). (2) It may not be used for foreign aid, foreign policy, or debt rescheduling. Cargo-preference laws do not apply.
(e) Credit terms. Every contract must require (1) repayment in dollars with interest at a rate the Secretary finds appropriate; and (2) if needed to protect United States interests, an initial buyer payment when the commodity is sold or shipped.
(f) Restrictions. The Corporation may not finance a sale to a country the Secretary finds cannot adequately service* the related debt.
To promote the sale of agricultural commodities, the Commodity Credit Corporation may finance the commercial export sale of such commodities from privately owned stocks on credit terms for not to exceed a 3-year period.
Subject to subsection (c), to promote the sale of agricultural commodities the Commodity Credit Corporation may finance the commercial export sales of agricultural commodities from privately owned stocks on credit terms for a period of not less than 3 years nor in excess of 10 years in a manner that will directly benefit United States* agricultural producers.
The Commodity Credit Corporation shall not finance an export sale under subsection (b) unless the Secretary* determines that such sale will—
develop, expand, or maintain the importing country as a foreign market, on a long-term basis, for the commercial sale and export of United States agricultural commodities, without displacing normal commercial sales;
improve the capability of the importing country to purchase and use, on a long-term basis, United States agricultural commodities; or
otherwise promote the export of United States agricultural commodities.
The reference in paragraphs (1) and (2) to “on a long-term basis” shall not apply in the case of determinations with respect to sales to the independent states of the former Soviet Union.
The Commodity Credit Corporation may use export sales financing authorized under this section—
to increase exports of agricultural commodities;
to compete against foreign agricultural exports;
to assist countries in meeting their food and fiber needs, particularly—
developing countries; and
countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and
for such other purposes as the Secretary determines appropriate consistent with the provisions of subsection (c).
Export sales financing authorized under this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales financed under this section.
Any contract for the financing of exports by the Commodity Credit Corporation under this section shall include—
a requirement that repayment shall be made in dollars with interest accruing thereon as determined appropriate by the Secretary; and
a requirement, if the Secretary determines such requirement appropriate to protect the interests of the United States, that an initial payment be made by the purchaser at the time of sale or shipment of the agricultural commodity* that is subject to the contract.
The Commodity Credit Corporation may not make export sales financing authorized under this section available in connection with sales of an agricultural commodity to any country that the Secretary determines cannot adequately service* the debt associated with such sale.
Source credit: (Pub. L. 95–501, title II, § 201, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3672; amended Pub. L. 102–511, title VII, § 707(a)–(c), Oct. 24, 1992, 106 Stat. 3350, 3351; Pub. L. 104–127, title II, § 277(c)(2), Apr. 4, 1996, 110 Stat. 979.)
- 1990Enacted · Pub. L. 95-501 · 104 Stat. 3672
- 1992Amended · Pub. L. 102-511 · 106 Stat. 3350, 3351
- 1996Amended · Pub. L. 104-127 · 110 Stat. 979
A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-501 on 1990-11-28.
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