7 U.S.C. § 1727e | Use of local currency proceeds

(a)

In general

section 1727c(2) of this titleThe local currency proceeds of sales pursuant to shall be used in the recipient country for specific economic development purposes, including—

(1)

the promotion of specific policy reforms to improve food security and agricultural development within the country and to promote broad-based, equitable, and sustainable development;

(2)

section 2151b(c)(2) of title 22 the establishment of development programs, projects, and activities that promote food security, alleviate hunger, improve nutrition, and promote family planning, maternal and child health care, oral rehydration therapy, and other child survival objectives consistent with , relating to the Child Survival Fund;

(3)

the promotion of increased access to food supplies through the encouragement of specific policies and programs designed to increase employment and incomes within the country;

(4)

the promotion of free and open markets through specific policies and programs;

(5)

support for United States private voluntary organizations and cooperatives and encouragement of the development and utilization of indigenous nongovernmental organizations;

(6)

the purchase of agricultural commodities (including transportation and processing costs) produced in the country—

(A)

to meet urgent or extraordinary relief requirements in the country or in neighboring countries; or

(B)

to develop emergency food reserves;

(7)

the purchase of goods and services (other than agricultural commodities and related services) to meet urgent or extraordinary relief requirements;

(8)

the payment, to the extent practicable, of the costs of carrying out the program authorized in subchapter V;

(9)

section 1691 of this title private sector development activities designed to further the policies set forth in , including loans to financial intermediaries for use in making loans to private individuals, cooperatives, corporations, or other entities;

(10)

activities of the Peace Corps that relate to agricultural production;

(11)

the development of rural infrastructure such as roads, irrigation systems, and electrification to enhance agricultural production;

(12)

research on malnutrition and its causes, as well as research relating to the identification and application of policies and strategies for targeting resources made available under this section to address the problem of malnutrition; and

(13)

support for research (including collaborative research which is mutually beneficial to the United States and the recipient country), education, and extension activities in agricultural sciences.

Section 1306 of title 31 shall not apply to the use under this subsection of local currency proceeds that are owned by the United States.

(b)

Support of nongovernmental organizations

section 1727d(a) of this titleTo the extent practicable, not less than 10 percent of the amounts contained in an account established for a recipient country under shall be used by such country to support the development and utilization of nongovernmental organizations and cooperatives that are active in rural development, agricultural education, sustainable agricultural production, other measures to assist poor people, and environmental protection projects within such country.

(c)

Investment of local currencies by nongovernmental organizations

A nongovernmental organization may invest local currencies that accrue to that organization as a result of assistance under subsection (a), and any interest earned on such investment may be used for the purpose for which the assistance was provided to that organization without further appropriation by the Congress.

(d)

Support for certain educational institutions

If the Administrator determines that local currencies deposited in a special account pursuant to this subchapter are not needed for any of the activities prescribed in paragraphs (1) through (13) of subsection (a) or for any other specific economic development purpose in the recipient country, the Administrator may use those currencies to provide support for any institution (other than an institution whose primary purpose is to provide religious education) located in the recipient country that provides education in agricultural sciences or other disciplines for a significant number of United States nationals (who may include members of the United States Armed Forces or the Foreign Service or dependents of such members).

July 10, 1954, ch. 469 Pub. L. 95–88, title II, § 211(a)(2)Aug. 3, 197791 Stat. 551 Pub. L. 96–53, title II, § 207(a)Aug. 14, 197993 Stat. 369 Pub. L. 101–624, title XV, § 1512Nov. 28, 1990104 Stat. 3643 Pub. L. 104–127, title II, § 211(a)Apr. 4, 1996110 Stat. 955 (, title III, § 306, as added , , ; amended , , ; , , ; , , .)

Editorial Notes

Prior Provisions

act July 10, 1954, ch. 469, title III Sept. 21, 1959Pub. L. 86–341, title I, § 1173 Stat. 608 section 1695 of this title Pub. L. 89–808, § 2(D)Nov. 11, 196680 Stat. 1535 A prior section 306 of , as added , , , enacted , prior to repeal by , , .

Amendments

Pub. L. 104–1271996—Subsec. (b). amended heading and struck out “indigenous” before “nongovernmental” in text.

Pub. L. 101–6241990— amended section generally, substituting present provisions for provisions requiring submission of annual report by recipient countries to President on activities and progress of Food for Development Program.

Pub. L. 96–531979— inserted provisions relating to detailed description of the use of the commodities.

Statutory Notes and Related Subsidiaries

Effective Date of 1990 Amendment

Pub. L. 101–624Jan. 1, 1991section 1513 of Pub. L. 101–624 section 1691 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1979 Amendment

Pub. L. 96–53Oct. 1, 1979section 512(a) of Pub. L. 96–53 section 2151 of Title 22Amendment by effective , see , set out as a note under , Foreign Relations and Intercourse.

Effective Date

Oct. 1, 1977section 215 of Pub. L. 95–88 section 1702 of this titleSection effective , see , set out as an Effective Date of 1977 Amendment note under .

Executive Documents

Use of Foreign Currencies

Feb. 25, 1991section 1691 of this titleForeign currencies accruing to United States under this subchapter may be used for purposes set forth in this section, see Ex. Ord. No. 12752, § 2(b)(1), , 56 F.R. 8255, set out as a note under .