7 USC 1704 – Use of local currency payment
(a) In general
Agreements under this subchapter may provide that the Secretary shall use payments made in local currencies by the developing country or private entity in accordance with this section.
(b) Special account
Terms Used In 7 USC 1704
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- developing country: means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels. See 7 USC 1732
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Secretary: means the Secretary of Agriculture, unless otherwise specified in this chapter. See 7 USC 1732
Foreign currencies received by the Secretary under this subchapter shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section.
(c) Activities
The proceeds from the payments referred to in subsection (a) may be used in the appropriate developing country, through agreements with recipient governments, private voluntary organizations, and cooperatives, for the following:
(1) Agricultural development
To support—
(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management;
(B) credit policies for private-sector agriculture development;
(C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services;
(D) programs to control rodents, insects, weeds, and other animal or plant pests; and
(E) the improvement of the trade capacity of the recipient country.
(2) Agricultural business development loans
To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for development of agricultural businesses and agricultural trade capacity in such appropriate developing countries.
(3) Agricultural facilities loans
To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of agricultural products.
(4) Trade promotion
To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs to promote agricultural products produced in appropriate developing countries) that the Secretary determines to be appropriate.
(5) Private sector agricultural trade development
To conduct private sector agricultural trade development activities in the appropriate developing country, as determined appropriate by the Secretary.
(6) Research
To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the appropriate developing country.
(7) United States obligations
To make payments of United States obligations (including obligations entered into pursuant to other laws).
(8) Safe water and sanitation
To provide assistance under section 2152h 1 of title 22 to promote good health, economic development, poverty reduction, women’s empowerment, conflict prevention, and environmental sustainability by increasing affordable and equitable access to safe water and sanitation.
(d) Fiscal requirements regarding use of local currencies
(1) Exemption
Section 1306 of title 31 shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c).
(2) Use of currencies by other agencies
Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used.