7 U.S.C. § 1738c: Reduction of certain debt

Summary

The President may reduce debts owed to the United States or its agencies from credits under subchapter II to countries eligible for Facility benefits that were outstanding on January 1, 1990. Congress must provide funds in advance in appropriation Acts. At the Facility's direction, old obligations are exchanged for a new obligation; the Facility notifies the Commodity Credit Corporation, which cancels the old debts, creates the new obligation, and updates accounts.

Title 7, §1738c

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(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 subchapter 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 advance 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 obligation 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 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