Page:United States Statutes at Large Volume 99 Part 2.djvu/367

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1477


 * . "(3) To be eligible to receive financing from a financial

intermediary under this section, an entity or venture must— "(A) be owned, directly or indirectly, by citizens of the developing country or any other country eligible to participate in a sales agreement entered into under this title, except that up to 49 percent of such ownership interest may J be held by citizens of the United States; and ,t "(B) not be owned or controlled, in whole or in part, by \'-. the government or any governmental subdivision of the developing country. "(4)(A) The rate of interest charged on funds loaned to a financial intermediary under this section shall be such rate as is determined by the President gmd the intermediary. "(B) In the case of a cooperative or nonprofit voluntary Grants. ! agency that is acting as a financial intermediary, the President may charge a lower rate of interest on funds loaned to such intermediary under this section than is charged to other types of intermediaries or make a grant from currencies received from sales made under section 101(a)(3) of this Act to defray the Ante, p. 1474. startup costs of becoming a financial intermediary. "(5) No currency made available under this section may be Prohibition. used to promote the production of agricultural commodities or the products thereof that will compete, as determined by the President, in world markets with similar agricultural commod• ities or the products thereof produced in the United States. 5 ^ "(6) The President may not require a developing country to Prohibition. guarantee the repayment of a loan made to a financial Loans. intermediary under this section as a condition of receipt of such loan.

"(7) A financial intermediary shall teike such steps as may be Loans, necessary to publicize in the developing country the availability of loan funds under this section. "(d)(1) AH currencies repaid by financial intermediaries under agreements entered into under this section shall be deposited and accounted for in accordance with section 105. Ante, p. 1475. "(2) Currencies repaid by financial intermediaries shall, as determined by the President— "(A) be used to finance additional productive, private enterprise investment under agreements with financial intermediaries entered into under this section; "(B) be used for the development of new markets for United States agricultural commodities; "(C) be used for the payment of United States obligations (including obligations entered into pursuant to other laws of the United States); or "(D) be converted to dollars. "(3) Section 1306 of title 31, United States Code, shall apply to currencies used for the purpose specified in paragraph (2)(C). "(e)(1) Any agreement entered into under this section and section 106(b)(4) shall be subject to periodic audit to determine whether the Ante, p. 1475. terms and conditions of the agreement are being fulfilled. "(2) Not later than 180 days after the end of each fiscal year, the President of U.S. President shall report to the House of Representatives and the (Committee on Agriculture, Nutrition, and Forestry and the Committee on Foreign Relations of the Senate on the activities carried out

under this section and section 106(b)(4) during the preceding fiscal year, including an evaluation of the impact of investment under this

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