§ 1738p. — Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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.
