
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1727e]

 
                          TITLE 7--AGRICULTURE
 
        CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
 
                 SUBCHAPTER III-A--FOOD FOR DEVELOPMENT
 
Sec. 1727e. Use of local currency proceeds


(a) In general

    The local currency proceeds of sales pursuant to section 1727c(2) of 
this title shall be used in the recipient country for specific economic 
development purposes, including--
        (1) the promotion of specific policy reforms to improve food 
    security and agricultural development within the country and to 
    promote broad-based, equitable, and sustainable development;
        (2) the establishment of development programs, projects, and 
    activities that promote food security, alleviate hunger, improve 
    nutrition, and promote family planning, maternal and child health 
    care, oral rehydration therapy, and other child survival objectives 
    consistent with section 2151b(c)(2) of title 22, relating to the 
    Child Survival Fund;
        (3) the promotion of increased access to food supplies through 
    the encouragement of specific policies and programs designed to 
    increase employment and incomes within the country;
        (4) the promotion of free and open markets through specific 
    policies and programs;
        (5) support for United States private voluntary organizations 
    and cooperatives and encouragement of the development and 
    utilization of indigenous nongovernmental organizations;
        (6) the purchase of agricultural commodities (including 
    transportation and processing costs) produced in the country--
            (A) to meet urgent or extraordinary relief requirements in 
        the country or in neighboring countries; or
            (B) to develop emergency food reserves;

        (7) the purchase of goods and services (other than agricultural 
    commodities and related services) to meet urgent or extraordinary 
    relief requirements;
        (8) the payment, to the extent practicable, of the costs of 
    carrying out the program authorized in subchapter V of this chapter;
        (9) private sector development activities designed to further 
    the policies set forth in section 1691 of this title, including 
    loans to financial intermediaries for use in making loans to private 
    individuals, cooperatives, corporations, or other entities;
        (10) activities of the Peace Corps that relate to agricultural 
    production;
        (11) the development of rural infrastructure such as roads, 
    irrigation systems, and electrification to enhance agricultural 
    production;
        (12) research on malnutrition and its causes, as well as 
    research relating to the identification and application of policies 
    and strategies for targeting resources made available under this 
    section to address the problem of malnutrition; and
        (13) support for research (including collaborative research 
    which is mutually beneficial to the United States and the recipient 
    country), education, and extension activities in agricultural 
    sciences.

Section 1306 of title 31 shall not apply to the use under this 
subsection of local currency proceeds that are owned by the United 
States.

(b) Support of nongovernmental organizations

    To the extent practicable, not less than 10 percent of the amounts 
contained in an account established for a recipient country under 
section 1727d(a) of this title shall be used by such country to support 
the development and utilization of nongovernmental organizations and 
cooperatives that are active in rural development, agricultural 
education, sustainable agricultural production, other measures to assist 
poor people, and environmental protection projects within such country.

(c) Investment of local currencies by nongovernmental organizations

    A nongovernmental organization may invest local currencies that 
accrue to that organization as a result of assistance under subsection 
(a) of this section, and any interest earned on such investment may be 
used for the purpose for which the assistance was provided to that 
organization without further appropriation by the Congress.

(d) Support for certain educational institutions

    If the Administrator determines that local currencies deposited in a 
special account pursuant to this subchapter are not needed for any of 
the activities prescribed in paragraphs (1) through (13) of subsection 
(a) of this section or for any other specific economic development 
purpose in the recipient country, the Administrator may use those 
currencies to provide support for any institution (other than an 
institution whose primary purpose is to provide religious education) 
located in the recipient country that provides education in agricultural 
sciences or other disciplines for a significant number of United States 
nationals (who may include members of the United States Armed Forces or 
the Foreign Service or dependents of such members).

(July 10, 1954, ch. 469, title III, Sec. 306, as added Pub. L. 95-88, 
title II, Sec. 211(a)(2), Aug. 3, 1977, 91 Stat. 551; amended Pub. L. 
96-53, title II, Sec. 207(a), Aug. 14, 1979, 93 Stat. 369; Pub. L. 101-
624, title XV, Sec. 1512, Nov. 28, 1990, 104 Stat. 3643; Pub. L. 104-
127, title II, Sec. 211(a), Apr. 4, 1996, 110 Stat. 955.)


                            Prior Provisions

    A prior section 306 of act July 10, 1954, ch. 469, title III, as 
added Sept. 21, 1959, Pub. L. 86-341, title I, Sec. 11, 73 Stat. 608, 
enacted section 1695 of this title, prior to repeal by Pub. L. 89-808, 
Sec. 2(D), Nov. 11, 1966, 80 Stat. 1535.


                               Amendments

    1996--Subsec. (b). Pub. L. 104-127 amended heading and struck out 
``indigenous'' before ``nongovernmental'' in text.
    1990--Pub. L. 101-624 amended section generally, substituting 
present provisions for provisions requiring submission of annual report 
by recipient countries to President on activities and progress of Food 
for Development Program.
    1979--Pub. L. 96-53 inserted provisions relating to detailed 
description of the use of the commodities.


                    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 1979 Amendment

    Amendment by Pub. L. 96-53 effective Oct. 1, 1979, see section 
512(a) of Pub. L. 96-53, set out as a note under section 2151 of Title 
22, Foreign Relations and Intercourse.


                             Effective Date

    Section effective Oct. 1, 1977, see section 215 of Pub. L. 95-88, 
set out as an Effective Date of 1977 Amendment note under section 1702 
of this title.


                        Use of Foreign Currencies

    Foreign currencies accruing to United States under this subchapter 
may be used for purposes set forth in this section, see Ex. Ord. No. 
12752, Sec. 2(b)(1), Feb. 25, 1991, 56 F.R. 8255, set out as a note 
under section 1691 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1727d of this title.
