7 U.S.C. § 1738p — Sale, reduction, or cancellation of quali-

Page 1031 TITLE 7—AGRICULTURE § 1738p basis to review the operation of the Facility under this subchapter and the eligibility of countries for benefits from the Facility under this subchapter. (July 10, 1954, ch. 469, title VI, § 615, as added Pub. L. 102–237, title III, § 331, Dec. 13, 1991, 105 Stat. 1858.) § 1738o. Sale of qualified debt to eligible coun- tries (a) In general (1) Authorization The President may sell to an eligible coun- try up to 40 percent of such country’s qualified debt, only if an amount of the local currency of such country (other than the price paid for the debt) equal to— (A) not less than 40 percent of the price paid for such debt by such eligible country, or (B) the difference between the price paid for such debt and the face value of such debt; whichever is less, is used by such country through an Environmental Fund for eligible activities described in section 1738k of this title. (2) Environmental funds For purposes of this section, the term ‘‘Envi- ronmental Fund’’ means an Environmental Fund established under section 1738g of this title. In the case of Mexico, such fund may be designated as the Good Neighbor Environ- mental Fund for the Border. (3) Establishment and operation of environ- mental funds The President should advise eligible coun- tries on the procedures required to establish and operate the Environmental Funds re- quired to be established under paragraph (1). (b) Terms and conditions The President shall establish the terms and conditions, including the amount to be paid by the eligible country, under which such country’s qualified debt may be sold under this section. (c) 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 appropria- tions Acts. (d) Certain prohibitions inapplicable A sale of debt under this section shall not be considered assistance for purposes of any provi- sion of law limiting assistance to a country. (e) Implementation by Facility A sale of debt authorized under this section shall be accomplished at the direction of the Fa- cility. The Facility shall direct the Commodity Credit Corporation to carry out such sale. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect the sale. (f) Deposit of proceeds The proceeds from a sale of qualified debt under this section shall be deposited in the ac- count or accounts established by the Com- modity Credit Corporation for the repayment of such debt by the eligible country. (g) Debtor consultation Before any sale of qualified debt may occur under this section, the President should consult with the eligible country’s government con- cerning such sale. The topics addressed in the consultation shall include the amount of quali- fied debt involved in the transaction and the uses to which funds made available as a result of the sale shall be applied. (July 10, 1954, ch. 469, title VI, § 616, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3509.) § 1738p. Sale, reduction, or cancellation of quali- fied 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 de- termined pursuant to subsection (c)(1)) 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 sub- section (c)(2)). (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 sec- tion. (c) Eligible purchasers and eligible payors (1) Sales of debt Qualified debt may be sold pursuant to sub- section (a)(1) 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) 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 eligi- ble 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 of- fered 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 Page 1032 TITLE 7—AGRICULTURE § 1738q 1 See References in Text note below. sold, reduced, or cancelled under this section or sold under section 1738o of this title. (f) Administration The Facility shall notify the Commodity Cred- it Corporation of purchasers and payors the President has determined to be eligible under subsection (c), 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 appropria- tions Acts. (h) Deposit of proceeds The proceeds from the sale, reduction, or can- cellation of qualified debt pursuant to this sec- tion shall be deposited in the United States Gov- ernment 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, § 617, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3510.) § 1738q. Notification to congressional committees (a) Notice of negotiations The Secretary of State and the Secretary of the Treasury shall, in every feasible instance, notify the designated congressional committees not less than 15 days prior to any formal nego- tiation for debt relief under this subchapter. (b) Transmittal of text of agreements The Secretary of State shall transmit to the designated congressional committees a copy of the text of any agreement with any foreign gov- ernment which would result in any debt relief under this subchapter no less than 30 days prior to its entry into force, together with a detailed justification of the interest of the United States in the proposed debt relief. (c) Annual report The Secretary of State or the Secretary of the Treasury, as appropriate, shall submit to the designated congressional committees not later than February 1 of each year a consolidated statement of the budgetary implications of all debt relief agreements entered into force under this subchapter during the preceding fiscal year. (d) Designated congressional committees As used in this section, the term ‘‘designated congressional committees’’ means the Com- mittee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. (July 10, 1954, ch. 469, title VI, § 618, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3511.) § 1738r. ‘‘Qualified debt’’ defined As used in sections 1738o, 1738p, and 1738q of this title, the term ‘‘qualified debt’’ means any obligation, or portion of such obligation, of an eligible country to pay for purchases of United States agricultural commodities guaranteed by the Commodity Credit Corporation under export credit guarantee programs authorized pursuant to section 714c(f) of title 15 or section 1707a(b) 1 of this title— (1) in which the Commodity Credit Corpora- tion obtained a legal right or interest, as a re- sult of assignment or subrogation, not later than September 1, 1992; and (2) the payment of which obligation has been, not later than September 1, 1992, re- scheduled in accordance with principles set forth in an Agreed Minute of the Paris Club. Such term includes the obligation to pay any in- terest which was due or accrued not later than September 1, 1992, and unpaid as of the date of a debt sale pursuant to section 1738o of this title or a debt sale, reduction, or cancellation pursu- ant to section 1738p of this title (as the case may be). (July 10, 1954, ch. 469, title VI, § 619, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3511.) Editorial Notes REFERENCES IN TEXT Section 1707a of this title, referred to in text, was re- pealed by Pub. L. 101–624, title XV, § 1574, Nov. 28, 1990, 104 Stat. 3702. See section 5621 et seq. of this title. CHAPTER 42—AGRICULTURAL COMMODITY SET-ASIDE Sec. 1741. Maximum and minimum quantities for set- aside; ‘‘commodity set-aside’’ defined. 1742. Determination of commodity value for set- aside. 1743. Reduction of set-aside. 1744. Sale of commodities in set-aside; exemption from pricing limitations. 1745. Computation of carryover. 1746. Records and accounts. 1747. Authorization of appropriations; determina- tion of value of transferred commodity. 1748. Annual reports by agricultural attache´s. 1749. Attache´ educational program. § 1741. Maximum and minimum quantities for set-aside; ‘‘commodity set-aside’’ defined The Commodity Credit Corporation shall, as rapidly as the Secretary of Agriculture shall de- termine to be practicable, set aside within its inventories not more than the following max- imum quantities and not less than the following minimum quantities of agricultural commod- ities or products thereof heretofore or hereafter acquired by it from 1954 and prior years’ crops and production in connection with its price sup- port operations: Commodity Maximum quantity Minimum quantity Wheat (bushels) ...................... 500,000,000 400,000,000 Upland cotton (bales) .............. 4,000,000 3,000,000 Cottonseed oil (pounds) .......... 500,000,000 0 Butter (pounds) ....................... 200,000,000 0 Nonfat dry milk solids (pounds) ............................... 300,000,000 0