§1738c — Title 7 Agriculture | U.S. Code

Summary

The President can cut debts owed to the United States or its agencies that existed on January 1, 1990 because of credits given under subchapter II to countries that qualify for Facility benefits. This can only happen if Congress has provided money and approval beforehand in appropriation Acts. The Facility carries out the cut by swapping the old obligations for a new obligation under the subchapter. The Facility must tell the Commodity Credit Corporation about the swap, and the Corporation will cancel the old debts if directed and update its accounts to show the new, reduced debt.

Title 7, §1738c

Agriculture — Source: USLM XML via OLRC

(a)(1)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 subchapter II to a country eligible for benefits from the Facility.

(2)The authorities under this section may be exercised only to the extent provided for in advance in appropriation Acts.

(b)A debt reduction authorized under subsection (a) shall be accomplished, at the direction of the Facility, through the exchange of a new obligation under this subchapter for obligations of the type referred to in subsection (a) outstanding as of January 1, 1990.

(c)The Facility shall notify the Commodity Credit Corporation of an agreement entered into under subsection (b) with an eligible country to exchange a new obligation for outstanding obligations. At the direction of the Facility, the old obligations that are the subject of the agreement may be canceled and a new debt obligation may be established for the country relating to the agreement. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect a debt reduction under this section.

Notes & Related Subsidiaries

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 section 1738 of this title.

§1738c Reduction of Certain Debt