7 U.S.C. § 1738e — Interest of new obligations

Page 1027 TITLE 7—AGRICULTURE § 1738e that meet investment reform and other policy conditions provided for in this subchapter. (July 10, 1954, ch. 469, title VI, § 602, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3658.) § 1738b. Eligibility for benefits under Facility (a) Requirements To be eligible for benefits from the Facility under this subchapter, a country shall— (1) be a Latin American or Caribbean coun- try; (2) have in effect or have received approval for, or, as appropriate in exceptional cir- cumstances, be making significant progress towards the establishment of— (A) an International Monetary Fund (here- after referred to in this subchapter as the ‘‘IMF’’) standby arrangement, extended IMF arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or in excep- tional circumstances, an IMF-monitored program or its equivalent; and (B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development (hereafter referred to in this subchapter as the ‘‘World Bank’’) or the International De- velopment Association (hereafter referred to in this subchapter as the ‘‘IDA’’); (3) have placed into effect major investment reforms in conjunction with an Inter-Amer- ican Development Bank (hereafter referred to as the ‘‘IDB’’) loan or otherwise be imple- menting, or making significant progress to- wards an open investment regime; and (4) if appropriate, have agreed with its com- mercial bank lenders on a satisfactory financ- ing program, including, as appropriate, debt or debt service reduction. (b) Eligibility determination The President shall determine whether a coun- try is an eligible country for purposes of sub- section (a). (July 10, 1954, ch. 469, title VI, § 603, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3658; amended Pub. L. 102–237, title III, § 302, Dec. 13, 1991, 105 Stat. 1855.) Editorial Notes AMENDMENTS 1991—Subsec. (a)(3). Pub. L. 102–237 inserted hyphen between ‘‘Inter’’ and ‘‘American’’. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under subsec. (b) 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 this title. § 1738c. Reduction of certain debt (a) Authority to reduce debt (1) In general Notwithstanding any other provision of law, the President may reduce the amount owed to the United States or any agency of the United States, and outstanding as of January 1, 1990, as a result of any credits extended under sub- chapter II to a country eligible for benefits from the Facility. (2) Availability of appropriations The authorities under this section may be exercised only to the extent provided for in ad- vance in appropriation Acts. (b) Limitation A debt reduction authorized under subsection (a) shall be accomplished, at the direction of the Facility, through the exchange of a new obliga- tion under this subchapter for obligations of the type referred to in subsection (a) outstanding as of January 1, 1990. (c) Exchange of obligations The Facility shall notify the Commodity Cred- it Corporation of an agreement entered into under subsection (b) with an eligible country to exchange a new obligation for outstanding obli- gations. At the direction of the Facility, the old obligations that are the subject of the agree- ment may be canceled and a new debt obligation may be established for the country relating to the agreement. The Commodity Credit Corpora- tion shall make an adjustment in its accounts to reflect a debt reduction under this section. (July 10, 1954, ch. 469, title VI, § 604, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3658; amended Pub. L. 102–237, title III, § 303, Dec. 13, 1991, 105 Stat. 1855.) Editorial Notes AMENDMENTS 1991—Subsec. (a)(2). Pub. L. 102–237 substituted ‘‘Availability’’ for ‘‘Avaliability’’ in heading. Executive Documents DELEGATION OF FUNCTIONS 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 this title. § 1738d. Repayment of principal (a) Currency of payment The principal amount owed under each new obligation issued under section 1738c of this title shall be repaid in United States dollars. (b) Deposit of payments Principal repayments on new obligations issued under section 1738c of this title shall be deposited in Commodity Credit Corporation ac- counts. (July 10, 1954, ch. 469, title VI, § 605, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3659.) § 1738e. Interest of new obligations (a) Rate of interest New obligations issued to an eligible country under section 1738c of this title shall bear inter- est at a concessional rate. Page 1028 TITLE 7—AGRICULTURE § 1738f (b) Currency of payment, deposits (1) United States dollars An eligible country to which a new obliga- tion has been issued under section 1738c of this title that has not entered into an agreement under section 1738f of this title, shall be re- quired to pay interest on such obligation in United States dollars which shall be deposited in Commodity Credit Corporation accounts. (2) Local currency If an eligible country to which a new obliga- tion has been issued under section 1738c of this title has entered into an agreement under sec- tion 1738f of this title, interest under such ob- ligation may be paid in the local currency of the eligible country and deposited into an En- vironmental Fund as provided for in section 1738g of this title. Such interest shall be the property of the eligible country until such time as it is disbursed under section 1738g of this title. Such local currencies shall be used for the purposes specified in the agreement en- tered into under section 1738f of this title. (c) Interest previously paid If an eligible country to which a new obliga- tion has been issued under section 1738c of this title enters into an agreement under section 1738f of this title subsequent to the date on which interest first becomes due on such new obligation, any interest paid on such new obliga- tion prior to such agreement being entered into shall not be redeposited into the Fund estab- lished for the eligible country under section 1738g(a) of this title but shall be deposited into Commodity Credit Corporation accounts. (July 10, 1954, ch. 469, title VI, § 606, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3659; amended Pub. L. 102–237, title III, § 304, Dec. 13, 1991, 105 Stat. 1855.) Editorial Notes AMENDMENTS 1991—Subsec. (c). Pub. L. 102–237 inserted ‘‘accounts’’ after ‘‘Corporation’’. § 1738f. Environmental framework agreements (a) Authority The President is authorized to enter into an environmental framework agreement with each country eligible for benefits from the Facility concerning the operation and use of an Enter- prise for the Americas Environmental Fund (hereafter referred to in this subchapter as the ‘‘Environmental Fund’’) established under sec- tion 1738g of this title for that country. The President shall consult with the Board estab- lished under section 1738i of this title when en- tering into such agreements. (b) Requirements An environmental framework agreement en- tered into under this section shall— (1) require the eligible country to establish an Environmental Fund; (2) require the eligible country to make in- terest payments under section 1738g(a) of this title into the Environmental Fund; (3) require the eligible country to make prompt disbursements from the Environ- mental Fund to the body described in sub- section (c); (4) where appropriate, seek to maintain the value of the local currency resources deposited into the appropriate Environmental Fund in terms of United States dollars; (5) specify, in accordance with section 1738k of this title, the purposes for which the Envi- ronmental Fund may be used; and (6) contain reasonable provisions for the en- forcement of the terms of the agreement. (c) Administering body Funds disbursed from the Environmental Fund in an eligible country shall be administered by a body constituted under the laws of the coun- try. Such body shall— (1) be composed of— (A) one or more representatives appointed by the President; (B) one or more representatives appointed by the eligible country; and (C) representatives from a broad range of environmental and local community devel- opment nongovernmental organizations of the host country; the majority of which shall be local represent- atives from nongovernmental organizations, and scientific or academic bodies; (2) receive proposals for grant assistance from local organizations, and make grants to such organizations in accordance with the pri- orities agreed upon in the framework agree- ment and consistent with the overall purposes of section 1738k of this title; (3) be responsible for the management of the program and oversight of grant activities funded from resources of the Environmental Fund; (4) be subject to fiscal audits by an inde- pendent auditor on an annual basis; (5) present an annual program for review by the Board established under section 1738i of this title each year; (6) present an annual report on the activities undertaken during the previous year to the Chairman of the Board established under sec- tion 1738i of this title, and the government of the eligible country each year; and (7) have any grant over $100,000 be subject to veto by the United States and the government of the eligible country. (July 10, 1954, ch. 469, title VI, § 607, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3659; amended Pub. L. 102–237, title III, § 305, Dec. 13, 1991, 105 Stat. 1855.) Editorial Notes AMENDMENTS 1991—Subsec. (a). Pub. L. 102–237 moved closing quotation marks in parenthetical phrase from after ‘‘Environmental’’ to after ‘‘Fund’’. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see section 2 of Ex. Ord. No. 13345, July 8, 2004,