§ 635i-6. — Debt reduction; Enterprise for the Americas Initiative.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC635i-6]
TITLE 12--BANKS AND BANKING
CHAPTER 6A--EXPORT-IMPORT BANK OF THE UNITED STATES
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 635i-6. Debt reduction; Enterprise for the Americas
Initiative
(a) Definitions
For purposes of this section--
(1) the term ``eligible country'' means a country designated by
the President in accordance with subsection (b) of this section;
(2) the term ``Facility'' means the entity established in the
Department of the Treasury by section 1738 of title 7; and
(3) the term ``IMF'' means the International Monetary Fund.
(b) Eligibility for benefits under the Facility
(1) Requirements
To be eligible for benefits from the Facility under this
section, a country must--
(A) be a Latin American or Caribbean country;
(B) have in effect, have received approval for, or, as
appropriate in exceptional circumstances, be making significant
progress toward--
(i) an IMF standby arrangement, extended IMF
arrangement, or an arrangement under the structural
adjustment facility or enhanced structural adjustment
facility or, in exceptional circumstances, an IMF monitored
program or its equivalent; and
(ii) as appropriate, structural or sectoral adjustment
loans from the International Bank for Reconstruction and
Development or the International Development Association;
(C) have put in place major investment reforms in
conjunction with an Inter-American Development Bank loan or
otherwise be implementing, or making significant progress
toward, an open investment regime; and
(D) if appropriate, have agreed with its commercial bank
lenders on a satisfactory financing program, including, as
appropriate, debt or debt service reduction.
(2) Eligibility determinations
The President shall determine whether a country is an eligible
country for purposes of paragraph (1).
(c) Loans eligible for sale, reduction, or cancellation
(1) Authority to sell, reduce, or cancel certain loans
Notwithstanding any other provision of law, the President may,
in accordance with this section, sell to any eligible purchaser any
loan or portion thereof made before January 1, 1992, to any eligible
country or any agency thereof pursuant to this subchapter, or, on
receipt of payment from an eligible purchaser, reduce or cancel such
loan or portion thereof, only for the purpose of facilitating--
(A) debt-for-equity swaps, debt-for-development swaps, or
debt-for-nature swaps; or
(B) a debt buy-back by an eligible country of its own
qualified debt, only if the eligible country uses an additional
amount of the local currency of the eligible country, equal to
not less than 40 percent of the price paid for such debt by such
eligible country, or the difference between the price paid for
such debt and the face value of such debt, to support activities
that link conservation and sustainable use of natural resources
with local community development, and child survival and other
child development activities, in a manner consistent with
sections 1738f through 1738k of title 7,
if the sale, reduction, or cancellation would not contravene any
term or condition of any prior agreement relating to such loan.
(2) Terms and conditions
Notwithstanding any other provision of law, the President shall,
in accordance with this section, establish the terms and conditions
under which loans may be sold, reduced, or canceled pursuant to this
section.
(3) Treatment under securities laws
The filing of a registration statement under the Securities Act
of 1933 [15 U.S.C. 77a et seq.] shall not be required with respect
to the sale or offer for sale by the Bank of a loan or any interest
therein pursuant to this section. For purposes of the Securities Act
of 1933, the Bank shall not be deemed to be an issuer or underwriter
with respect to any subsequent sale or other disposition of such
loan (or any interest therein) or any security received by an
eligible purchaser pursuant to any debt-for-equity swap, debt-for-
development swap, or debt-for-nature swap.
(4) Administration
The Facility shall notify the Bank of purchasers that the
President has determined to be eligible, and shall direct the Bank
to carry out the sale, reduction, or cancellation of a loan pursuant
to this section. The Bank shall make an adjustment in its accounts
to reflect the sale, reduction, or cancellation.
(5) Limitations
The authorities of this subsection may be exercised only to such
extent as provided for in advance in appropriations Acts, as
necessary to implement the Federal Credit Reform Act of 1990 [2
U.S.C. 661 et seq.].
(d) Deposit of proceeds
The proceeds from the sale, reduction, or cancellation of any loan
sold, reduced, or canceled pursuant to this section shall be deposited
in the United States Government account or accounts established for the
repayment of such loan.
(e) Eligible purchasers
A loan may be sold pursuant to subsection (c)(1)(A) of this section
only to a purchaser who presents plans satisfactory to the President for
using the loan for the purpose of engaging in debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
(f) Debtor consultation
Before the sale to any eligible purchaser, or any reduction or
cancellation pursuant to this section, of any loan made to an eligible
country, the President shall consult with the country concerning the
amount of loans to be sold, reduced, or canceled and their uses for
debt-for-equity swaps, debt-for-development swaps, or debt-for-nature
swaps.
(g) Authorization of appropriations
For the sale, reduction, and cancellation of loans or portions
thereof pursuant to this section, there are authorized to be
appropriated to the President such sums as may be necessary, which are
authorized to remain available until expended.
(July 31, 1945, ch. 341, Sec. 12, formerly Sec. 18, as added and
renumbered Sec. 12, Pub. L. 102-429, title I, Secs. 108, 121(c)(6), Oct.
21, 1992, 106 Stat. 2191, 2199; Pub. L. 107-189, Sec. 24(b)(5), June 14,
2002, 116 Stat. 709.)
References in Text
The Securities Act of 1933, referred to in subsec. (c)(3), is title
I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which is
classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A of
Title 15, Commerce and Trade. For complete classification of this Act to
the Code, see section 77a of Title 15 and Tables.
The Federal Credit Reform Act of 1990, referred to in subsec.
(c)(5), is title V of Pub. L. 93-344, as added Pub. L. 101-508, title
XIII, Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-609, which is
classified generally to subchapter III (Sec. 661 et seq.) of chapter 17A
of Title 2, The Congress. For complete classification of this Act to the
Code, see Short Title of 1990 Amendment note set out under section 621
of Title 2 and Tables.
Prior Provisions
A prior section 12 of act July 31, 1945, ch. 341, was classified to
section 635i of this title, prior to repeal by Pub. L. 102-429,
Sec. 121(c)(1).
Amendments
2002--Subsec. (a)(1). Pub. L. 107-189 substituted ``subsection (b)
of this section'' for ``section (b) of this section''.
