22 U.S.C. § 2431f — Authority to engage in debt-for-nature

Page 955 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2431f into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. (B) Additional requirement At the direction of the Facility, the old obligations that are the subject of the agree- ment shall be canceled and a new debt obli- gation shall be established for the country relating to the agreement, and the Com- modity Credit Corporation shall make an ad- justment in its accounts to reflect the debt reduction. (c) Additional terms and conditions (1) The following additional terms and condi- tions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of the Food for Peace Act [7 U.S.C. 1738c(a)(1)]: (A) The provisions relating to repayment of principal under section 605 of such Act [7 U.S.C. 1738d]. (B) The provisions relating to interest on new obligations under section 606 of such Act [7 U.S.C. 1738e]. (2) In addition to the application of the provi- sions relating to repayment of principal under section 605 of the Food for Peace Act [7 U.S.C. 1738d] to the reduction of debt under subsection (a)(1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under subsection (b) may be made in the local currency of the bene- ficiary country and deposited in the Conserva- tion Fund of the country in the same manner as the provisions relating to payment of interest on new obligations under section 606 of such Act [7 U.S.C. 1738e]. (Pub. L. 87–195, pt. V, § 807, as added Pub. L. 105–214, § 1, July 29, 1998, 112 Stat. 888; amended Pub. L. 108–323, § 3(b), Oct. 6, 2004, 118 Stat. 1219; Pub. L. 110–246, title III, § 3001(b)(1), (2)(Q), June 18, 2008, 122 Stat. 1820; Pub. L. 115–440, §§ 6, 9(b)(3), Jan. 14, 2019, 132 Stat. 5582, 5584.) Editorial Notes REFERENCES IN TEXT The Food for Peace Act, referred to in subsec. (a)(1), is act July 10, 1954, ch. 469, 68 Stat. 454. Title I of the Act is classified generally to subchapter II (§ 1701 et seq.) of chapter 41 of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of Title 7 and Tables. AMENDMENTS 2019—Subsec. (a)(1). Pub. L. 115–440, § 6, substituted ‘‘outstanding as of January 14, 2019,’’ for ‘‘outstanding as of January 1, 1998,’’. Subsec. (c)(2). Pub. L. 115–440, § 9(b)(3), substituted ‘‘Conservation Fund’’ for ‘‘Tropical Forest Fund’’. 2008—Pub. L. 110–246 substituted ‘‘Food for Peace Act’’ for ‘‘Agricultural Trade Development and Assist- ance Act of 1954’’ in section catchline and wherever ap- pearing in subsecs. (a)(1) and (c). 2004—Subsec. (c). Pub. L. 108–323 designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), and added par. (2). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effec- tive Date note under section 8701 of Title 7, Agri- culture. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. For delegation of functions of President under subsec. (a) of this section, see section 1 of Ex. Ord. No. 13345, July 8, 2004, 69 F.R. 41901, set out as a note under sec- tion 1738 of Title 7, Agriculture. § 2431f. Authority to engage in debt-for-nature swaps and debt buybacks (a) Loans and credits eligible for sale, reduction, or cancellation (1) Debt-for-nature swaps (A) In general Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser described in subparagraph (B) any concessional loans described in section 2431d(a)(1) of this title or any credits de- scribed in section 2431e(a)(1) of this title, or on receipt of payment from an eligible pur- chaser described in subparagraph (B), reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt-for-nature swap to support eligible ac- tivities described in section 2431g(d) of this title. (B) Eligible purchaser described A loan or credit may be sold, reduced, or canceled under subparagraph (A) only to a purchaser who presents plans satisfactory to the President for using the loan or credit for the purpose of engaging in debt-for-nature swaps to support eligible activities described in section 2431g(d) of this title. (C) Consultation requirement Before the sale under subparagraph (A) to any eligible purchaser described in subpara- graph (B), or any reduction or cancellation under such subparagraph (A), of any loan or credit made to an eligible country, the President shall consult with the country concerning the amount of loans or credits to be sold, reduced, or canceled and their uses for debt-for-nature swaps to support eligible activities described in section 2431g(d) of this title. (D) Authorization of appropriations For the cost (as defined in section 661a(5) of title 2) for the reduction of any debt pur- suant to subparagraph (A), amounts author- ized to be appropriated under sections 2431d(a)(2), 2431e(a)(2), and 2431d(d) of this title shall be made available for such reduc- tion of debt pursuant to subparagraph (A). (2) Debt buybacks Notwithstanding any other provision of law, the President may, in accordance with this Page 956 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2431g section, sell to any eligible country any concessional loans described in section 2431d(a)(1) of this title or any credits described in section 2431e(a)(1) of this title, or on receipt of payment from an eligible country, reduce or cancel such loans (or credits) or portion there- of, only for the purpose of facilitating a debt buyback by an eligible country of its own qualified debt, only if the eligible country uses an additional amount of the local currency of the eligible country, equal to not less than the lessor of 40 percent of the price paid for such debt by such eligible country, or the difference between the price paid for such debt and the face value of such debt, to support eligible ac- tivities described in section 2431g(d) of this title. (3) Limitation The authority provided by paragraphs (1) and (2) shall be available only to the extent that appropriations for the cost (as defined in section 661a(5) of title 2) of the modification of any debt pursuant to such paragraphs are made in advance. (4) Terms and conditions Notwithstanding any other provision of law, the President shall, in accordance with this section, establish the terms and conditions under which loans and credits may be sold, re- duced, or canceled pursuant to this section. (5) Administration (A) In general The Facility shall notify the adminis- trator of the agency primarily responsible for administering subchapter I of this chap- ter or the Commodity Credit Corporation, as the case may be, of eligible purchasers de- scribed in paragraph (1)(B) that the Presi- dent has determined to be eligible under paragraph (1), and shall direct such agency or Corporation, as the case may be, to carry out the sale, reduction, or cancellation of a loan pursuant to such paragraph. (B) Additional requirement Such agency or Corporation, as the case may be, shall make an adjustment in its ac- counts to reflect the sale, reduction, or can- cellation. (C) United States Government representation on the administering body One or more individuals appointed by the United States Government shall serve in an official capacity on the administering body that oversees the implementation of grants arising from a debt-for-nature swap or debt buyback regardless of whether the United States is a party to any agreement between the eligible purchaser and the government of the beneficiary country. (b) Deposit of proceeds The proceeds from the sale, reduction, or can- cellation of any loan sold, reduced, or canceled pursuant to this section shall be deposited in the United States Government account or accounts established for the repayment of such loan. (Pub. L. 87–195, pt. V, § 808, as added Pub. L. 105–214, § 1, July 29, 1998, 112 Stat. 889; amended Pub. L. 107–26, § 2(b), Aug. 17, 2001, 115 Stat. 206; Pub. L. 115–440, § 7, Jan. 14, 2019, 132 Stat. 5582.) Editorial Notes AMENDMENTS 2019—Subsec. (a)(5)(C). Pub. L. 115–440 added subpar. (C). 2001—Subsec. (a)(1)(D). Pub. L. 107–26 substituted ‘‘to be appropriated under sections 2431d(a)(2), 2431e(a)(2), and 2431d(d) of this title’’ for ‘‘to appropriated under sections 2431d(a)(2) and 2431e(a)(2) of this title’’. Statutory Notes and Related Subsidiaries REFERENCES TO SUBCHAPTER I DEEMED TO INCLUDE CERTAIN PARTS OF SUBCHAPTER II References to subchapter I of this chapter are deemed to include parts IV (§ 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and sections 2348c and 2349aa–5 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. For delegation of functions of President under subsec. (a) of this section, see section 1 of Ex. Ord. No. 13345, July 8, 2004, 69 F.R. 41901, set out as a note under sec- tion 1738 of Title 7, Agriculture. § 2431g. Conservation Agreement (a) Authority The Secretary of State is authorized, in con- sultation with other appropriate officials of the Federal Government, to enter into a Conserva- tion Agreement with any eligible country con- cerning the operation and use of the Fund for that country. (b) Contents of Agreement The requirements contained in section 2430g(b) of this title (relating to contents of an agree- ment) shall apply to an Agreement in the same manner as such requirements apply to an Amer- icas Framework Agreement. (c) Administering body (1) In general Amounts disbursed from the Fund in each beneficiary country shall be administered by a body constituted under the laws of that coun- try. (2) Composition (A) In general The administering body shall consist of— (i) one or more individuals appointed by the United States Government to serve in an official capacity; (ii) one or more individuals appointed by the government of the beneficiary coun- try; and (iii) individuals who represent a broad range of— (I) environmental nongovernmental or- ganizations of, or active in, the bene- ficiary country;