{"identifier":"/us/usc/t7/s1738p","title":7,"num":"\u00a7\u202f1738p.","heading":"Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps","text":"\u00a7\u202f1738p.\nSale, reduction, or cancellation of qualified debt to facilitate certain debt swaps\n(a)\nAuthority to sell, reduce, or cancel qualified debt\nFor the purpose of facilitating eligible debt swaps, the President, in accordance with this section\u2014\n(1) may sell to an eligible purchaser (as determined pursuant to subsection (c)(1)) any qualified debt of an eligible country; or\n(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)).\n(b)\nTerms and conditions\nThe President shall establish the terms and conditions under which qualified debt may be sold, reduced, or canceled pursuant to this section.\n(c)\nEligible purchasers and eligible payors\n(1)\nSales of debt\nQualified 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.\n(2)\nReduction or cancellation of debt\nQualified 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.\n(d)\nDebtor consultation and right of first refusal\n(1)\nConsultation\nBefore 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.\n(2)\nRight of first refusal\nThe 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 1738\no\n(e)\nLimitation\nIn 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 1738\no\n(f)\nAdministration\nThe 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.\n(g)\nAppropriations requirement\nThe authorities provided by this section may be exercised only in such amounts and to such extent as is provided in advance in appropriations Acts.\n(h)\nDeposit of proceeds\nThe 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.\n(i)\nEligible debt swaps\nAs used in this section, the term \u201celigible debt swap\u201d means a debt-for-development swap or debt-for-nature swap.","url":"https://projectusc.org/usc/t7/s1738p.html","content":[{"t":"sec","id":"/us/usc/t7/s1738p","children":[{"t":"num","text":"\u00a7\u202f1738p."},{"t":"heading","text":"Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps"},{"t":"subsec","id":"/us/usc/t7/s1738p/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Authority to sell, reduce, or cancel qualified debt"},{"t":"chapeau","text":"For the purpose of facilitating eligible debt swaps, the President, in accordance with this section\u2014"},{"t":"para","id":"/us/usc/t7/s1738p/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" may sell to an eligible purchaser (as determined pursuant to subsection (c)(1)) any qualified debt of an eligible country; or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t7/s1738p/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" may reduce or cancel eligible debt of an eligible country upon receipt of payment from an eligible payor (as determined under subsection (c)(2)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Terms and conditions"},{"t":"content","children":[{"t":"p","text":"The President shall establish the terms and conditions under which qualified debt may be sold, reduced, or canceled pursuant to this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Eligible purchasers and eligible payors"},{"t":"para","id":"/us/usc/t7/s1738p/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Sales of debt"},{"t":"content","children":[{"t":"p","text":"Qualified 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t7/s1738p/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Reduction or cancellation of debt"},{"t":"content","children":[{"t":"p","text":"Qualified 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Debtor consultation and right of first refusal"},{"t":"para","id":"/us/usc/t7/s1738p/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Consultation"},{"t":"content","children":[{"t":"p","text":"Before 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t7/s1738p/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Right of first refusal"},{"t":"content","children":[{"t":"p","text":"The 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 1738","children":[{"t":"text","text":"o","tail":" of this title and has not accepted that offer."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Limitation"},{"t":"content","children":[{"t":"p","text":"In 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 1738","children":[{"t":"text","text":"o","tail":" of this title."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Administration"},{"t":"content","children":[{"t":"p","text":"The 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Appropriations requirement"},{"t":"content","children":[{"t":"p","text":"The authorities provided by this section may be exercised only in such amounts and to such extent as is provided in advance in appropriations Acts.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Deposit of proceeds"},{"t":"content","children":[{"t":"p","text":"The 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s1738p/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Eligible debt swaps"},{"t":"content","children":[{"t":"p","text":"As used in this section, the term \u201celigible debt swap\u201d means a debt-for-development swap or debt-for-nature swap.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"}]}]}