§ 1736e. — Debt forgiveness.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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.''
