§ 1723. — Generation and use of foreign currencies by private voluntary organizations and cooperatives.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1723]
TITLE 7--AGRICULTURE
CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
SUBCHAPTER III--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS
Sec. 1723. Generation and use of currencies by private voluntary
organizations and cooperatives
(a) Local sale and barter of commodities
An agreement entered into between the Administrator and a private
voluntary organization or cooperative to provide food assistance through
such organization or cooperative under this subchapter may provide for
the sale or barter in 1 or more recipient countries, or 1 or more
countries in the same region, of the commodities to be provided under
such agreement.
(b) Minimum level of local sales
In carrying out agreements of the type referred to in subsection (a)
of this section, the Administrator shall permit private voluntary
organizations and cooperatives to sell, 1 \1\ or more recipient
countries, or in 1 or more countries in the same region, an amount of
commodities equal to not less than 15 percent of the aggregate amounts
of all commodities distributed under non-emergency programs under this
subchapter for each fiscal year, to generate proceeds to be used as
provided in this section.
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\1\ So in original. Probably should be ``in 1''.
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(c) Description of intended uses
A private voluntary organization or cooperative submitting a
proposal to enter into a non-emergency food assistance agreement under
this subchapter shall include in such proposal a description of the
intended uses of any proceeds that may be generated through the sale, in
1 or more recipient countries, or in 1 or more countries in the same
region, of any commodities provided under an agreement entered into
between the Administrator and the organization or cooperative.
(d) Use
Proceeds generated from any partial or full sale or barter of
commodities by a private voluntary organization or cooperative under a
non-emergency food assistance agreement under this subchapter may--
(1) be used to transport, store, distribute, and otherwise
enhance the effectiveness of the use of agricultural commodities
provided under this subchapter;
(2) be used to implement income-generating, community
development, health, nutrition, cooperative development,
agricultural, and other developmental activities within 1 or more
recipient countries or within 1 or more countries in the same
region; or
(3) be invested, and any interest earned on such investment may
be used, for the purposes for which the assistance was provided to
that organization, without further appropriation by Congress.
(July 10, 1954, ch. 469, title II, Sec. 203, 68 Stat. 458; May 28, 1956,
ch. 327, title II, Sec. 208(c), 70 Stat. 201; Pub. L. 85-128, Sec. 1(3),
Aug. 13, 1957, 71 Stat. 345; Pub. L. 86-341, title I, Sec. 3, Sept. 21,
1959, 73 Stat. 606; Pub. L. 86-472, ch. VI, Sec. 601(b), May 14, 1960,
74 Stat. 140; Pub. L. 87-128, title II, Sec. 202(1), Aug. 8, 1961, 75
Stat. 307; Pub. L. 88-638, Sec. 1(13), (14), Oct. 8, 1964, 78 Stat.
1037; Pub. L. 89-808, Sec. 2(C), Nov. 11, 1966, 80 Stat. 1535; Pub. L.
95-88, title II, Sec. 209, Aug. 3, 1977, 91 Stat. 548; Pub. L. 98-473,
title III, Sec. 305, Oct. 12, 1984, 98 Stat. 2195; Pub. L. 101-624,
title XV, Sec. 1512, Nov. 28, 1990, 104 Stat. 3638; Pub. L. 104-127,
title II, Sec. 208, Apr. 4, 1996, 110 Stat. 954; Pub. L. 107-171, title
III, Sec. 3003, May 13, 2002, 116 Stat. 281.)
Amendments
2002--Pub. L. 107-171, Sec. 3003(1), struck out ``foreign'' before
``currencies'' in section catchline.
Subsec. (a). Pub. L. 107-171, Sec. 3003(2), substituted ``1 or more
recipient countries, or 1 or more countries'' for ``the recipient
country, or in a country''.
Subsec. (b). Pub. L. 107-171, Sec. 3003(3), substituted ``1 or more
recipient countries, or in 1 or more countries'' for ``in recipient
countries, or in countries'' and struck out ``foreign currency'' before
``proceeds''.
Subsec. (c). Pub. L. 107-171, Sec. 3003(4), struck out ``foreign
currency'' before ``proceeds'' and substituted ``1 or more recipient
countries, or in 1 or more countries'' for ``the recipient country, or
in a country''.
Subsec. (d). Pub. L. 107-171, Sec. 3003(5)(A), substituted
``Proceeds'' for ``Foreign currencies'' in introductory provisions.
Subsec. (d)(2). Pub. L. 107-171, Sec. 3003(5)(B), substituted
``income-generating'' for ``income generating'' and ``1 or more
recipient countries or within 1 or more countries'' for ``the recipient
country or within a country''.
Subsec. (d)(3). Pub. L. 107-171, Sec. 3003(5)(C), inserted comma
after ``invested'' and after ``investment may be used''.
1996--Subsec. (a). Pub. L. 104-127, Sec. 208(1), inserted ``, or in
a country in the same region,'' after ``in the recipient country''.
Subsec. (b). Pub. L. 104-127, Sec. 208(2), inserted ``or in
countries in the same region,'' after ``in recipient countries,'' and
substituted ``15 percent'' for ``10 percent''.
Subsec. (c). Pub. L. 104-127, Sec. 208(3), inserted ``or in a
country in the same region,'' after ``recipient country,''.
Subsec. (d)(2). Pub. L. 104-127, Sec. 208(4), inserted ``or within a
country in the same region'' after ``recipient country''.
1990--Pub. L. 101-624 amended section generally, substituting
present provisions for provisions relating to the payment of costs and
charges by the Commodity Credit Corporation for packaging, enrichment,
preservation, processing, transportation, handling, and other incidental
charges relating to commodities.
1984--Pub. L. 98-473 inserted following cl. (4): ``in the case of
commodities for urgent and extraordinary relief requirements, including
pre-positioned commodities, transportation costs from designated points
of entry or ports of entry abroad to storage and distribution sites and
associated storage and distribution costs;''.
1977--Pub. L. 95-88 substituted ``transportation from United States
ports to designated points of entry abroad in the case (1) of landlocked
countries, (2) where ports cannot be used effectively because of natural
or other disturbances, (3) where carriers to a specific country are
unavailable, or (4) where a substantial savings in costs or time can be
effected by the utilization of points of entry other than ports'' for
``, or, in the case of landlocked countries, transportation from United
States ports to designated points of entry abroad''.
1966--Pub. L. 89-808 reenacted, with linguistic changes, existing
provisions for payment of costs and charges, included costs of
acquisition, packaging, enrichment, preservation, fortification,
processing, handling, other incidents, struck out provisions for
authorization of appropriations for reimbursement of CCC, limitation on
amount, and use of funds for purchase of foreign currencies, now covered
by section 1724 of this title, and deleted other provisions for use of
agencies, organizations, and facilities in making transfers, now covered
by section 1722 of this title, and provision for transfer of funds from
the CCC to such other Federal agency designated by the President for
payment of ocean freight costs or for purchase of foreign currencies
under this subchapter.
1964--Pub. L. 88-638 substituted ``1965''; for ``1961'', ``1966''
for ``1964'', and ``$400,000,000'' for ``$300,000,000'', inserted ``or
donated under said section 1431, or section 1431b or 1697 of this
title'', provisions authorizing use of funds available under subchapter
III, not exceeding $7,500,000 annually, to purchase foreign currencies
accruing under subchapter II in order to meet costs designed to assure
that commodities available under subchapters I or III are used to carry
out more effectively the purposes for which such commodities are made
available or to promote activities to alleviate the causes of the need
for such assistance, provided that such funds are used to supplement,
not substitute for, funds normally available for such purposes from
other non-United States Government sources, and ``or for the purchase of
foreign currencies'' after ``ocean freight costs''.
1961--Pub. L. 87-128 substituted authorization provision for period
beginning January 1, 1961, and ending December 31, 1964, for
authorization provision beginning January 1, 1960, and ending December
31, 1961, and made the annual limitation applicable to the amount
programed rather than to the amount spent.
1960--Pub. L. 86-472 authorized payment for transportation from
United States ports to designated points of entry abroad in the case of
landlocked countries, and permitted the payment of charges for general
average contributions arising out of the ocean transport of transferred
commodities.
1959--Pub. L. 86-341 amended first sentence generally. Prior to
amendment, first sentence read as follows: ``Not more than $800,000,000
(including the Corporation's investment in such commodities) shall be
expended for all such transfers and for other costs authorized by this
subchapter.''
1957--Pub. L. 85-128 increased limitation on expenditures from
$500,000,000 to $800,000,000.
1956--Act May 28, 1956, increased limitation on expenditures from
$300,000,000 to $500,000,000, and authorized payment of ocean freight
charges.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-624 effective Jan. 1, 1991, see section
1513 of Pub. L. 101-624, set out as a note under section 1691 of this
title.
Effective Date of 1977 Amendment
Amendment by Pub. L. 95-88 effective Oct. 1, 1977, see section 215
of Pub. L. 95-88, set out as a note under section 1702 of this title.
Effective Date of 1966 Amendment
Amendment by Pub. L. 89-808 effective Jan. 1, 1967, see section 5 of
Pub. L. 89-808, set out as a note under section 1691 of this title.
Effective Date of 1964 Amendment
Section 1(13) of Pub. L. 88-638 provided that the substitution of
``1965'' for ``1961'', ``1966'' for ``1964'', and ``$400,000,000'' for
``$300,000,000'' are not effective until Jan. 1, 1965.
Effective Date of 1959 Amendment
Section 3 of Pub. L. 86-341 provided that the amendment made by that
section is effective Jan. 1, 1960.
