Page:United States Statutes at Large Volume 99 Part 2.djvu/366

 99 STAT. 1476

7 USC 1708. President of U.S. Prohibition.

President of U.S.

Loans. Corporations.

Loans.

PUBLIC LAW 99-198—DEC. 23, 1985

private and voluntary organizations, proceeds may be granted to defray the startup costs of becoming a financial intermediary. Such proceeds shall not be used to promote the production of commodities or the products thereof that will compete, as determined by the President, in world markets with similar commodities or the products thereof produced in the United States.". (h) Such Act is amended by inserting after section 107 (7 U.S.C. 1707) the following new section: "SEC. 108. (a)(1) In order to foster and encourage the development of private enterprise institutions and infrastructure as the base for the expansion, promotion, and improvement of the production of food and other related goods and services within a developing country and pursuant to an agreement for the sale of agricultural commodities entered into under this title, the President may enter into an agreement with a financial intermediary located or operating in such country under which the President shall lend to such financial intermediary foreign currency that accrues as a result of commodity sales to such country under a sales agreement entered into under this title after the date of enactment of the Food Security Act of 1985, Procurement and other contracting requirements, normally applicable to appropriated funds, shall not apply to such foreign currency. "(2) Prior to loaning the foreign currencies as provided in this section, the President shall take such steps as may be necessary to assure that the availability of such foreign currencies to financial intermediaries is adequately publicized within the purchasing country. "(b) To be eligible to obtain foreign currency under this section, a financial intermediary must enter into an agreement with the President under which the intermediary agrees to use such currency to make loans to private individuals, cooperatives, corporations, or other entities within a developing country, at reasonable rates of interest, for the purpose of financing— "(1) productive, private enterprise investment within such } country, including such investment in projects carried out by cooperatives, nonprofit voluntary organizations, and other entities found to be qualified by the President; "(2) private enterprise facilities for aiding the utilization and distribution, and increasing the consumption of and markets for. United States agricultural commodities and the products thereof; or "(3) private enterprise support of self-help measures and projects. "(c) An agreement entered into under this section shall specify the terms and conditions under which the foreign currency shall be used and subsequently repaid, including the following terms and conditions: "(1) A financial intermediary shall, to the maximum extent feasible, give preference to the financing of agricultural related private enterprise with the funds provided under this section. "(2)(A) A financial intermediary shall repay a loan made under this section, plus accrued interest, at such times and in such manner as will permit conversion of such foreign currency to dollars in accordance with the schedule for such conversion. "(B) A financial intermediary may repay a loan made under ^ this section prior to the repa3mient date specified in such agreement. .^ ?

�