7 U.S.C. § 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”).
USC Subchapter VI
USC Subchapter VI
in effect7 U.S.C. § 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.
7 U.S.C. § 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 determinationThe President shall determine whether a country is an eligible country for purposes of subsection (a).
7 U.S.C. § 1738c Reduction of certain debt
(a) Authority to reduce debt(1) In generalNotwithstanding 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 appropriationsThe authorities under this section may be exercised only to the extent provided for in advance in appropriation Acts.
(b) LimitationA 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 obligationsThe 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.
7 U.S.C. § 1738d Repayment of principal
(a) Currency of paymentThe principal amount owed under each new obligation issued under section 1738c of this title shall be repaid in United States dollars.
(b) Deposit of paymentsPrincipal repayments on new obligations issued under section 1738c of this title shall be deposited in Commodity Credit Corporation accounts.
7 U.S.C. § 1738e Interest of new obligations
(a) Rate of interestNew obligations issued to an eligible country under section 1738c of this title shall bear interest at a concessional rate.
(b) Currency of payment, deposits(1) United States dollarsAn eligible country to which a new obligation has been issued under section 1738c of this title that has not entered into an agreement under section 1738f of this title, shall be required to pay interest on such obligation in United States dollars which shall be deposited in Commodity Credit Corporation accounts. (2) Local currencyIf an eligible country to which a new obligation has been issued under section 1738c of this title has entered into an agreement under section 1738f of this title, interest under such obligation may be paid in the local currency of the eligible country and deposited into an Environmental Fund as provided for in section 1738g of this title. Such interest shall be the property of the eligible country until such time as it is disbursed under section 1738g of this title. Such local currencies shall be used for the purposes specified in the agreement entered into under section 1738f of this title.
(c) Interest previously paidIf an eligible country to which a new obligation has been issued under section 1738c of this title enters into an agreement under section 1738f of this title subsequent to the date on which interest first becomes due on such new obligation, any interest paid on such new obligation prior to such agreement being entered into shall not be redeposited into the Fund established for the eligible country under section 1738g(a) of this title but shall be deposited into Commodity Credit Corporation accounts.
7 U.S.C. § 1738f Environmental framework agreements
(a) AuthorityThe President is authorized to enter into an environmental framework agreement with each country eligible for benefits from the Facility concerning the operation and use of an Enterprise for the Americas Environmental Fund (hereafter referred to in this subchapter as the “Environmental Fund”) established under section 1738g of this title for that country. The President shall consult with the Board established under section 1738i of this title when entering into such agreements.
(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.
7 U.S.C. § 1738g Enterprise for the Americas environmental funds
(a) EstablishmentAn eligible country shall, under the terms of an environmental framework agreement entered into under section 1738f of this title, establish an Environmental Fund to receive payments in local currency pursuant to section 1738f(b)(1) of this title.
(b) InvestmentAmounts deposited into an Environmental Fund shall be invested until disbursed. Notwithstanding any other provision of law, any return on such investment may be retained by the Environmental Fund and need not be deposited to the account of the Commodity Credit Corporation and may be retained without further appropriation by Congress.
7 U.S.C. § 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.
7 U.S.C. § 1738i Enterprise for the Americas Board
(a) EstablishmentThere is established a board to be known as the “Enterprise for the Americas Board” (hereafter referred to in this subchapter as the “Board”).
(b) Membership and chairperson(1) MembershipThe 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) ChairpersonThe Board shall be headed by a chairperson who shall be appointed by the President from among the representatives appointed under paragraph (1)(A).
(c) ResponsibilitiesThe 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.
7 U.S.C. § 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.
7 U.S.C. § 1738k Eligible activities and grantees
(a) Eligible entitiesActivities 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) RegulationAll activities of the type referred to in subsection (a) shall, where appropriate, include initiatives that link conservation of natural resources with local community development.
(c) Setting of prioritiesAppropriate activities and priorities relating to the use of an Environmental Fund shall be set by local nongovernmental organizations within the appropriate eligible country.
(d) GrantsGrants 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) PriorityIn providing assistance from an Environmental Fund, the body established under section 1738f(c) of this title within the eligible country shall give priority to projects that are run by nongovernmental organizations and other private entities, and that involve local communities in their planning and execution.
7 U.S.C. § 1738l Encouraging multilateral debt donations
(a) Encouraging donations from official creditorsThe President should actively encourage other official creditors of an eligible country to provide debt reduction to such eligible country.
(b) Encouraging donations from other sourcesThe President shall make every effort to insure that programs established through Environmental Funds are able to receive donations from private and public entities, and private creditors of the eligible country.
7 U.S.C. § 1738m Annual report to Congress
(a) In generalNot 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 11 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 reportNo later than December 15 of each fiscal year, each member of the Board shall be entitled to receive a copy of the report required under subsection (a). Each member of the Board may prepare and submit supplemental views to the President on the implementation of this subchapter by December 31 for inclusion in the annual report when it is transmitted to Congress pursuant to this section.
7 U.S.C. § 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.
7 U.S.C. § 1738o Sale of qualified debt to eligible countries
(a) In general(1) AuthorizationThe 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 fundsFor 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 fundsThe 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 conditionsThe 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 requirementThe 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 inapplicableA 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 FacilityA 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 proceedsThe 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 consultationBefore 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.
7 U.S.C. § 1738p Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps
(a) Authority to sell, reduce, or cancel qualified debtFor 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 conditionsThe President shall establish the terms and conditions under which qualified debt may be sold, reduced, or canceled pursuant to this section.
(c) Eligible purchasers and eligible payors(1) Sales of debtQualified debt may be sold pursuant to subsection (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 debtQualified 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) ConsultationBefore 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 eligible debt swaps. (2) Right of first refusalThe qualified debt of an eligible country may be sold, reduced, or cancelled pursuant to this section only if that country has been offered the opportunity to purchase that debt pursuant to section 1738o of this title and has not accepted that offer.
(e) LimitationIn the aggregate, not more than 40 percent of the qualified debt of an eligible country may be sold, reduced, or cancelled under this section or sold under section 1738o of this title.
(f) AdministrationThe Facility shall notify the Commodity Credit 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 requirementThe authorities provided by this section may be exercised only in such amounts and to such extent as is provided in advance in appropriations Acts.
(h) Deposit of proceedsThe proceeds from the sale, reduction, or cancellation of qualified debt pursuant to this section shall be deposited in the United States Government account or accounts established for the repayment of such debt.
(i) Eligible debt swapsAs used in this section, the term “eligible debt swap” means a debt-for-development swap or debt-for-nature swap.
7 U.S.C. § 1738q Notification to congressional committees
(a) Notice of negotiationsThe 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 negotiation for debt relief under this subchapter.
(b) Transmittal of text of agreementsThe Secretary of State shall transmit to the designated congressional committees a copy of the text of any agreement with any foreign government 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 reportThe 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 committeesAs used in this section, the term “designated congressional committees” means the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
7 U.S.C. § 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) 11 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).