§1706. Debt-for-health-and-protection swap
(a) Definition
For purposes of this section, the term "debt-for-health-and-protection swap" means the voluntary cancellation of the foreign debt of the government of a foreign country in exchange for-
(1) the making available by such country, to a grantee under subsection (b) of this section, local currencies (including through the issuance of bonds) to be used only for eligible projects involving the research, study, prevention, or control of animal and plant pests and diseases in that country; or
(2) the financial and policy commitment of such country to research, study, prevent, or control animal and plant pests and diseases in that country.
(b) Assistance for commercial debt swap
(1) Grants
The Secretary is authorized to furnish assistance in the form of grants, on such terms and conditions as the Secretary determines to be necessary and appropriate, to United States and foreign nongovernmental organizations, including colleges and universities, for the purchase of discounted external commercial debt of a foreign government (on the secondary market) to be canceled under the terms of an agreement that is entered into by the Secretary with that government as part of a debt-for-health-and-protection swap.
(2) Interest on grants
The recipient of a grant under this section (or any subgrantee of such recipient) may retain the interest earned on the proceeds of any resulting debt-for-health-and-protection swap if such recipient (or subgrantee) disburses such funds for approved program purposes, and such interest need not be deposited in the Treasury of the United States and is not subject to further appropriations by Congress.
(3) Reinvestment of interest
Interest accrued in accordance with paragraph (2) shall be reinvested by the recipient of the grant under this section in an approved project in the host country or used for the establishment of an endowment for the purpose for which the grant was provided.
(c) Eligible projects
(1) Mutual benefit
The Secretary shall ensure that a debt-for-health-and-protection swap under this section is designed to be of mutual benefit to both the agricultural sector of the United States and the agricultural sector of the recipient country.
(2) Identification of immediate areas of need
In cooperation with the Agency for International Development, international organizations, domestic or foreign nongovernmental organizations, colleges, and universities, the Secretary shall attempt to identify those areas which, because of their imminent threat to agriculture, are in particular need of immediate attention in terms of supporting and promoting the prevention or control of plant and animal pests and diseases in the Western Hemisphere.
(d) Terms and conditions of exchange
(1) Regulations
Not later than 180 days after November 28, 1990, the Secretary shall issue regulations to implement this section. Such regulations shall include provisions-
(A) that describe the general terms and conditions necessary for any proposed exchange to gain approval under paragraph (2); and
(B) to protect against the use of any assistance provided under subsection (b) of this section that is contrary to the provisions of this section.
(2) Other assistance
Grants made under this section are intended to supplement, and not to be a substitute for, any assistance that is otherwise available to a foreign country from the Department of Agriculture.
(3) Prohibition
The Department of Agriculture is prohibited from accepting any title or interest in any project or program under this section, or any interest accrued on the amount of the grant, as a condition of the debt-for-health-and-protection swap.
(e) Authorization of appropriations
There are authorized to be appropriated such sums as may be necessary to carry out this section.
(Pub. L. 101 624, title XV, §1517, Nov. 28, 1990,
Codification
Section was enacted as part of the Mickey Leland Food for Peace Act, and also as part of the Agricultural Development and Trade Act of 1990 and the Food, Agriculture, Conservation, and Trade Act of 1990, and not as part of the Agricultural Trade Development and Assistance Act of 1954 which comprises this chapter.
Prior Provisions
A prior section 1706, acts July 10, 1954, ch. 469, title I, §106,