
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: 7USC1736e]

 
                          TITLE 7--AGRICULTURE
 
        CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
 
           SUBCHAPTER IV--GENERAL AUTHORITIES AND REQUIREMENTS
 
Sec. 1736e. Debt forgiveness


(a) Authority

    The President, taking into account the financial resources of a 
country, may waive payments of principal and interest that such country 
would otherwise be required to make to the Commodity Credit Corporation 
under dollar sales agreements under subchapter II of this chapter if--
        (1) that country is a least developed country; and
        (2) either--
            (A) an International Monetary Fund standby agreement is in 
        effect with respect to that country;
            (B) a structural adjustment program of the International 
        Bank for Reconstruction and Development or of the International 
        Development Association is in effect with respect to that 
        country;
            (C) a structural adjustment facility, enhanced structural 
        adjustment facility, or similar supervised arrangement with the 
        International Monetary Fund is in effect with respect to that 
        country; or
            (D) even though such an agreement, program, facility, or 
        arrangement is not in effect, the country is pursuing national 
        economic policy reforms that would promote democratic, market-
        oriented, and long term economic development.

(b) Request for debt relief by President

    The President may provide debt relief under subsection (a) of this 
section only if a notification is submitted to Congress at least 10 days 
prior to providing the debt relief. Such a notification shall--
        (1) specify the amount of official debt the President proposes 
    to liquidate; and
        (2) identify the countries for which debt relief is proposed and 
    the basis for their eligibility for such relief.

(c) Appropriations action required

    The aggregate amount of principal and interest waived under this 
section may not exceed the amount approved for such purpose in an Act 
appropriating funds to carry out this chapter.

(d) Limitation on new credit assistance

    If the authority of this section is used to waive payments otherwise 
required to be made by a country pursuant to this chapter, the President 
may not provide any new credit assistance for that country under this 
chapter during the 2-year period beginning on the date such waiver 
authority is exercised, unless the President provides to the Congress, 
before the assistance is provided, a written justification for the 
provision of such new credit assistance.

(e) Applicability

    The authority of this section applies with respect to credit sales 
agreements entered into before November 28, 1990.

(July 10, 1954, ch. 469, title IV, Sec. 411, as added Pub. L. 91-524, 
title VII, Sec. 704, Nov. 30, 1970, as added Pub. L. 93-86, Sec. 1(26), 
Aug. 10, 1973, 87 Stat. 237; amended Pub. L. 101-624, title XV, 
Sec. 1512, Nov. 28, 1990, 104 Stat. 3654; Pub. L. 102-237, title III, 
Secs. 322, 326, 336, Dec. 13, 1991, 105 Stat. 1857, 1859.)


                               Amendments

    1991--Subsec. (a). Pub. L. 102-237, Sec. 326, substituted 
``subchapter II of this chapter'' for ``this subchapter'' in 
introductory provisions.
    Subsec. (b). Pub. L. 102-237, Sec. 336, inserted ``at least 10 days 
prior to providing the debt relief'' before period at end of first 
sentence.
    Subsec. (e). Pub. L. 102-237, Sec. 322, substituted ``November 28, 
1990'' for ``the date of enactment of this Act''.
    1990--Pub. L. 101-624 amended section generally, substituting 
present provisions for provisions prohibiting assistance under 
subchapters II, III and III-A of this chapter to North Vietnam after 
July 1, 1973, unless specifically authorized by Act of Congress.


                    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.

                         Delegation of Functions

    Functions of President under this section delegated to Secretary of 
Agriculture, in consultation with Food Assistance Policy Council and 
Department of the Treasury, by section 4(d) of Ex. Ord. No. 12752, Feb. 
25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this 
title.


    Renegotiation of Payment Terms of Loans for Sale of Agricultural 
                               Commodities

    Pub. L. 102-27, title II, Apr. 10, 1991, 105 Stat. 147, provided 
that: ``Title I of the Public Law 480 [7 U.S.C. 1701 et seq.] program 
allowed for the repayment of loans for the sale of agricultural 
commodities in foreign or local currencies until December 31, 1971. 
Since that time, until the law was changed in the 1985 farm bill 
[probably means Pub. L. 99-198, see Tables for classification], all 
sales have been on dollar credit terms. In view of the present financial 
situation, it is impossible for many countries to repay their loans in 
dollars. Therefore, the President may use the authority in section 411 
and section 604 of the Agricultural Trade Development and Assistance Act 
of 1954 [7 U.S.C. 1736e, 1738c] to renegotiate the payment on Public Law 
480 debt in eligible countries in Latin America, the Caribbean and sub-
Saharan Africa.''
