
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: 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.
