Page:United States Statutes at Large Volume 112 Part 1.djvu/915

 PUBLIC LAW 105-214-^JULY 29, 1998 112 STAT. 889 "(B) LIMITATION.— The authority provided by this section shall be available only to the extent that appropriations for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990) of the modification of any debt pursuant to this section are made in advance. "(b) IMPLEMENTATION OF DEBT REDUCTION.— "(1) IN GENERAL. — Any debt reduction pursuant to subsection (a) shall be accomplished at the direction of the Facility by the exchange of a new obligation for obligations of the type referred to in subsection (a) outstanding as of the date specified in subsection (a)(1). "(2) EXCHANGE OF OBLIGATIONS. — Notification. " (A) IN GENERAL.— The Facility shall notify the Commodity Credit Corporation of an agreement entered into under paragraph (1) with an eligible country to exchange a new obligation for outstanding obligations. "(B) ADDITIONAL REQUIREMENT.— At the direction of the Facility, the old obligations that are the subject of the agreement shall be canceled and a new debt obligation shall be established for the country relating to the agreement, and the Commodity Credit Corporation shall make an adjustment in its accounts to reflect the debt reduction. "(c) ADDITIONAL TERMS AND CONDITIONS.— The following Applicability. additional terms and conditions shall apply to the reduction of debt under subsection (a)(1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1738c): "(1) The provisions relating to repayment of principal under section 605 of such Act. "(2) The provisions relating to interest on new obligations under section 606 of such Act. "SEC. 808. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE SWAPS AND 22 USC 243If. DEBT BUYBACKS. "(a) LOANS AND CREDITS ELIGIBLE FOR SALE, REDUCTION, OR CANCELLATION. — "(1) DEBT-FOR-NATURE SWAPS.— "(A) IN GENERAL,—Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible purchaser described in subparagraph (B) any concessional loans described in section 806(a)(1) or any credits described in section 807(a)(1), or on receipt of payment from an eligible purchaser described in subparagraph (B), reduce or cancel such loans (or credits) or portion thereof, only for the purpose of facilitating a debt-for-nature swap to support eligible activities described in section 809(d). "(B) ELIGIBLE PURCHASER DESCRIBED. — A loan or credit may be sold, reduced, or canceled under subparagraph (A) only to a purchaser who presents plans satisfactory to the President for using the loan or credit for the purpose of engaging in debt-for-nature swaps to support eligible activities described in section 809(d). "(C) CONSULTATION REQUIREMENT.—Before the sale President. under subparagraph (A) to smy eligible purchaser described in subparagraph (B), or any reduction or cancellation under

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