7 U.S.C. § 1738o : US Code - Section 1738O: Sale of qualified debt to eligible countries

Search 7 U.S.C. § 1738o : US Code - Section 1738O: Sale of qualified debt to eligible countries

(a) In general
(1) Authorization
The President may sell to an eligible country 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 "Environmental 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 Environmental Fund for the Border.
(3) Establishment and operation of environmental funds
The President should advise eligible countries on the
procedures required to establish and operate the Environmental
Funds required 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
appropriations Acts.
(d) Certain prohibitions inapplicable
A sale of debt under this section shall not be considered
assistance for purposes of any provision 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 Facility. 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 account or accounts established by the
Commodity 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
concerning such sale. The topics addressed in the consultation
shall include the amount of qualified debt involved in the
transaction and the uses to which funds made available as a result
of the sale shall be applied.