§ 1727e. — Use of local currency proceeds.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[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.
