1. U.S. Code
  2. title 7
  3. chapter 41
  4. subchapter VI
  5. § 1738p

Collapse to view only § 1738p. Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps

§ 1738. Establishment of Facility

There is established in the Department of the Treasury an entity to be known as the “Enterprise for the Americas Facility” (hereafter referred to in this subchapter as the “Facility”).

(July 10, 1954, ch. 469, title VI, § 601, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3658.)

CITE AS: 7 USC 1738

§ 1738a. Purpose

The purpose of this subchapter is to encourage and support improvement in the lives of the people of Latin America and the Caribbean through market-oriented reforms and economic growth with inter-related actions to promote debt reduction, investment reforms, and community-based conservation and sustainable use of the environment. The Facility will support such objectives through the administration of debt reduction operations relating to those countries 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.)

CITE AS: 7 USC 1738a

§ 1738b. Eligibility for benefits under Facility
(a) RequirementsTo be eligible for benefits from the Facility under this subchapter, a country shall—
(1) be a Latin American or Caribbean country;
(2) have in effect or have received approval for, or, as appropriate in exceptional circumstances, be making significant progress towards the establishment of—
(A) an International Monetary Fund (hereafter 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 exceptional 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 Development Association (hereafter referred to in this subchapter as the “IDA”);
(3) have placed into effect major investment reforms in conjunction with an Inter-American Development Bank (hereafter referred to as the “IDB”) loan or otherwise be implementing, or making significant progress towards an open investment regime; and
(4) if appropriate, have agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction.
(b) Eligibility determination
(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.)

CITE AS: 7 USC 1738b

§ 1738c. Reduction of certain debt
(a) Authority to reduce debt
(1) In general
(2) Availability of appropriations
(b) Limitation
(c) Exchange of obligations
(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.)

CITE AS: 7 USC 1738c

§ 1738d. Repayment of principal
(a) Currency of payment
(b) Deposit of payments
(July 10, 1954, ch. 469, title VI, § 605, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990,

CITE AS: 7 USC 1738d

§ 1738e. Interest of new obligations
(a) Rate of interest
(b) Currency of payment, deposits
(1) United States dollars
(2) Local currency
(c) Interest previously paid
(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.)

CITE AS: 7 USC 1738e

§ 1738f. Environmental framework agreements
(a) Authority
(b) RequirementsAn environmental framework agreement entered into under this section shall—
(1) require the eligible country to establish an Environmental Fund;
(2) require the eligible country to make interest payments under section 1738g(a) of this title into the Environmental Fund;
(3) require the eligible country to make prompt disbursements from the Environmental Fund to the body described in subsection (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 Environmental Fund may be used; and
(6) contain reasonable provisions for the enforcement of the terms of the agreement.
(c) Administering bodyFunds disbursed from the Environmental Fund in an eligible country shall be administered by a body constituted under the laws of the country. 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 development nongovernmental organizations of the host country;
the majority of which shall be local representatives 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 priorities agreed upon in the framework agreement 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 independent 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 section 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.)

CITE AS: 7 USC 1738f

§ 1738g. Enterprise for the Americas environmental funds
(a) Establishment
(b) Investment
(July 10, 1954, ch. 469, title VI, § 608, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3660.)

CITE AS: 7 USC 1738g

§ 1738h. Disbursement of environmental funds

Funds in an Environmental Fund shall be disbursed only pursuant to a framework agreement entered into pursuant to section 1738f of this title.

(July 10, 1954, ch. 469, title VI, § 609, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3661.)

CITE AS: 7 USC 1738h

§ 1738i. Enterprise for the Americas Board
(a) Establishment
(b) Membership and chairperson
(1) Membership
The Board shall be composed of—
(A) six representatives from the United States Government, at least one of whom shall be a representative of the Department of Agriculture; and
(B) five representatives from private nongovernmental environmental, child survival and child development, community development, scientific, and academic organizations with experience and expertise in Latin America and the Caribbean, at least one of whom shall be a representative from a child survival and child development organization;
to be appointed by the President.
(2) Chairperson
(c) Responsibilities
The Board shall—
(1) advise the President on the negotiations for the environmental framework agreements described in subsections (a) and (b) of section 1738f of this title;
(2) ensure, in consultation with the government of the appropriate eligible country, with nongovernmental organizations of such eligible country, and if appropriate, of the region, and with environmental, scientific, and academic leaders of such eligible country and, as appropriate, of the region, that a suitable body referred to in section 1738f(c) of this title is identified; and
(3) review the programs, operations, and fiscal audits of the bodies referred to in section 1738f(c) of this title.
(July 10, 1954, ch. 469, title VI, § 610, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3661; amended Pub. L. 102–237, title III, § 339, Dec. 13, 1991, 105 Stat. 1861; Pub. L. 102–549, title VI, § 603, Oct. 28, 1992, 106 Stat. 3669.)

CITE AS: 7 USC 1738i

§ 1738j. Oversight

The President may designate appropriate United States agencies to review the implementation of programs under this subchapter and the fiscal audits relating to such programs. Such oversight shall not constitute active management of an Environmental Fund.

(July 10, 1954, ch. 469, title VI, § 611, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3661.)

CITE AS: 7 USC 1738j

§ 1738k. Eligible activities and grantees
(a) Eligible entities
Activities eligible to receive assistance through the framework agreements entered into under section 1738f of this title, shall include—
(1) activities of the type described in the Global Environmental Protection Assistance Act of 1989 (22 U.S.C. 2281 et seq.);
(2) agriculture-related activities, including those that provide for the biological prevention and control of animal and plant pests and diseases, to benefit the environment; and
(3) local community initiatives that promote conservation and sustainable use of the environment.
(b) Regulation
(c) Setting of priorities
(d) Grants
Grants may be made by the body referred to in section 1738f(c) of this title from the Environmental Fund for environmental purposes to—
(1) host country nongovernmental environmental, conservation, development, educational, and indigenous peoples organizations;
(2) other appropriate local or regional entities; or
(3) in exceptional circumstances, the government of the eligible country.
(e) Priority
(July 10, 1954, ch. 469, title VI, § 612, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3661; amended Pub. L. 102–237, title III, § 306, Dec. 13, 1991, 105 Stat. 1856.)

CITE AS: 7 USC 1738k

§ 1738l. Encouraging multilateral debt donations
(a) Encouraging donations from official creditors
(b) Encouraging donations from other sources
(July 10, 1954, ch. 469, title VI, § 613, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3662.)

CITE AS: 7 USC 1738l

§ 1738m. Annual report to Congress
(a) In general
Not later than December 31 of each fiscal year, the President shall prepare and submit to the Speaker of the House of Representatives and the President Pro Tempore of the Senate an annual report concerning the operation of the Facility for the prior fiscal year. This report shall include—
(1) a description of the activities undertaken by the Facility during the previous fiscal year;
(2) a description of any Enviromental 1
1 So in original. Probably should be “Environmental”.
Framework Agreement entered into under this subchapter;
(3) a report on what Environmental Funds have been established under this subchapter and on the operations of such Funds; and
(4) a description of any grants that have been extended by administering bodies pursuant to an Enviromental 1 Framework Agreement under this subchapter.
(b) Supplemental views in annual report
(July 10, 1954, ch. 469, title VI, § 614, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3662; as amended Pub. L. 102–237, title III, § 330, Dec. 13, 1991, 105 Stat. 1858; Pub. L. 102–532, § 3, Oct. 27, 1992, 106 Stat. 3512.)

CITE AS: 7 USC 1738m

§ 1738n. Consultations with Congress

The President shall consult with the appropriate congressional committees on a periodic 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.)

CITE AS: 7 USC 1738n

§ 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
(3) Establishment and operation of environmental funds
(b) Terms and conditions
(c) Appropriations requirement
(d) Certain prohibitions inapplicable
(e) Implementation by Facility
(f) Deposit of proceeds
(g) Debtor consultation
(July 10, 1954, ch. 469, title VI, § 616, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3509.)

CITE AS: 7 USC 1738o

§ 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)) 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)).
(b) Terms and conditions
(c) Eligible purchasers and eligible payors
(1) Sales of debt
(2) Reduction or cancellation of debt
(d) Debtor consultation and right of first refusal
(1) Consultation
(2) Right of first refusal
(e) Limitation
(f) Administration
(g) Appropriations requirement
(h) Deposit of proceeds
(i) Eligible debt swaps
(July 10, 1954, ch. 469, title VI, § 617, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3510.)

CITE AS: 7 USC 1738p

§ 1738q. Notification to congressional committees
(a) Notice of negotiations
(b) Transmittal of text of agreements
(c) Annual report
(d) Designated congressional committees
(July 10, 1954, ch. 469, title VI, § 618, as added Pub. L. 102–532, § 2, Oct. 27, 1992, 106 Stat. 3511.)

CITE AS: 7 USC 1738q

§ 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
1 See References in Text note below.
of this title—
(1) in which the Commodity Credit Corporation obtained a legal right or interest, as a result 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, rescheduled in accordance with principles set forth in an Agreed Minute of the Paris Club.
Such term includes the obligation to pay any interest 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 pursuant 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.)

CITE AS: 7 USC 1738r