§ 1738o. — Sale of qualified debt to eligible countries.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1738o]
TITLE 7--AGRICULTURE
CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
SUBCHAPTER VI--ENTERPRISE FOR THE AMERICAS INITIATIVE
Sec. 1738o. Sale of qualified debt to eligible countries
(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.
(c) Appropriations requirement
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.
(July 10, 1954, ch. 469, title VI, Sec. 616, as added Pub. L. 102-532,
Sec. 2, Oct. 27, 1992, 106 Stat. 3509.)
Section Referred to in Other Sections
This section is referred to in sections 1738p, 1738r of this title.
