
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: 7USC1738p]

 
                          TITLE 7--AGRICULTURE
 
        CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
 
          SUBCHAPTER VI--ENTERPRISE FOR THE AMERICAS INITIATIVE
 
Sec. 1738p. Sale, reduction, or cancellation of qualified debt 
        to facilitate certain debt swaps
        

(a) Authority to sell, reduce, or cancel qualified debt

    For the purpose of facilitating eligible debt swaps, the President, 
in accordance with this section--
        (1) may sell to an eligible purchaser (as determined pursuant to 
    subsection (c)(1) of this section) any qualified debt of an eligible 
    country; or
        (2) may reduce or cancel eligible debt of an eligible country 
    upon receipt of payment from an eligible payor (as determined under 
    subsection (c)(2) of this section).

(b) Terms and conditions

    The President shall establish the terms and conditions under which 
qualified debt may be sold, reduced, or canceled pursuant to this 
section.

(c) Eligible purchasers and eligible payors

                          (1) Sales of debt

        Qualified debt may be sold pursuant to subsection (a)(1) of this 
    section only to a purchaser who presents plans satisfactory to the 
    President for using the debt for the purpose of engaging in eligible 
    debt swaps.

                (2) Reduction or cancellation of debt

        Qualified debt may be reduced or cancelled pursuant to 
    subsection (a)(2) of this section only if the payor presents plans 
    satisfactory to the President for using such reduction or 
    cancellation for the purpose of facilitating eligible debt swaps.

(d) Debtor consultation and right of first refusal

                          (1) Consultation

        Before selling, reducing, or canceling any qualified debt of an 
    eligible country pursuant to this section, the President should 
    consult with that country concerning, among other things, the amount 
    of debt to be sold, reduced, or canceled and the uses of such debt 
    for eligible debt swaps.

                     (2) Right of first refusal

        The qualified debt of an eligible country may be sold, reduced, 
    or cancelled pursuant to this section only if that country has been 
    offered the opportunity to purchase that debt pursuant to section 
    1738o of this title and has not accepted that offer.

(e) Limitation

    In the aggregate, not more than 40 percent of the qualified debt of 
an eligible country may be sold, reduced, or cancelled under this 
section or sold under section 1738o of this title.

(f) Administration

    The Facility shall notify the Commodity Credit Corporation of 
purchasers and payors the President has determined to be eligible under 
subsection (c) of this section, and shall direct the corporation to 
carry out the sale, reduction, or cancellation of a qualified debt 
pursuant to this section. The Commodity Credit Corporation shall make an 
adjustment in its accounts to reflect such sale, reduction, or 
cancellation.

(g) 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.

(h) Deposit of proceeds

    The proceeds from the sale, reduction, or cancellation of qualified 
debt pursuant to this section shall be deposited in the United States 
Government account or accounts established for the repayment of such 
debt.

(i) Eligible debt swaps

    As used in this section, the term ``eligible debt swap'' means a 
debt-for-development swap or debt-for-nature swap.

(July 10, 1954, ch. 469, title VI, Sec. 617, as added Pub. L. 102-532, 
Sec. 2, Oct. 27, 1992, 106 Stat. 3510.)

                  Section Referred to in Other Sections

    This section is referred to in section 1738r of this title.
