--- kind: "section" citation: "22 U.S.C. § 2431e" title: "22" title_heading: "Foreign Relations and Intercourse" number: "2431e" heading: "Reduction of debt owed to United States as result of credits extended under title I of Food for Peace Act" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/22/2431e" units: - "Chapter 32 — Foreign Assistance" - "Subchapter IV — Debt Reduction for Developing Countries with Tropical Forests" --- # §2431e. Reduction of debt owed to United States as result of credits extended under title I of Food for Peace Act - (a) **Authority to reduce debt—** - (1) **Authority—** Notwithstanding any other provision of law, the President may reduce the amount owed to the United States (or any agency of the United States) that is outstanding as of January 14, 2019, as a result of any credits extended under title I of the Food for Peace Act ([7 U.S.C. 1701](/usc/7/1701.md) et seq.) to a country eligible for benefits from the [Facility](/usc/22/2431a.md?p=8). - (2) **Authorization of appropriations—** - (A) **In general—** For the cost (as defined in [section 661a(5) of title 2](/usc/2/661a.md?p=5)) for the reduction of any debt pursuant to this section, there are authorized to be appropriated to the President— - (i) $25,000,000 for fiscal year 1999; - (ii) $50,000,000 for fiscal year 2000; and - (iii) $50,000,000 for fiscal year 2001. - (B) **Limitation—** The authority provided by this section shall be available only to the extent that appropriations for the cost (as defined in [section 661a(5) of title 2](/usc/2/661a.md?p=5)) 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)](#a) shall be accomplished at the direction of the [Facility](/usc/22/2431a.md?p=8) by the exchange of a new obligation for obligations of the type referred to in [subsection (a)](#a) outstanding as of the date specified in [subsection (a)(1)](#a-1). - (2) **Exchange of obligations—** - (A) **In general—** The [Facility](/usc/22/2431a.md?p=8) shall notify the [Commodity](/usc/22/2403.md?p=c) Credit Corporation of an [agreement](/usc/22/2431a.md?p=7) entered into under [paragraph (1)](#b-1) with an [eligible country](/usc/22/2431a.md?p=6) to exchange a new obligation for outstanding obligations. - (B) **Additional requirement—** At the direction of the [Facility](/usc/22/2431a.md?p=8), the old obligations that are the subject of the [agreement](/usc/22/2431a.md?p=7) shall be canceled and a new debt obligation shall be established for the country relating to the [agreement](/usc/22/2431a.md?p=7), and the [Commodity](/usc/22/2403.md?p=c) Credit Corporation shall make an adjustment in its accounts to reflect the debt reduction. - (c) **Additional terms and conditions—** - (1) The following additional terms and conditions shall apply to the reduction of debt under [subsection (a)(1)](#a-1) in the same manner as such terms and conditions apply to the reduction of debt under section 604(a)(1) of the Food for Peace Act [[7 U.S.C. 1738c(a)(1)](/usc/7/1738c.md?p=a-1)]: - (A) The provisions relating to repayment of principal under section 605 of such Act [[7 U.S.C. 1738d](/usc/7/1738d.md)]. - (B) The provisions relating to interest on new obligations under section 606 of such Act [[7 U.S.C. 1738e](/usc/7/1738e.md)]. - (2) In addition to the application of the provisions relating to repayment of principal under section 605 of the Food for Peace Act [[7 U.S.C. 1738d](/usc/7/1738d.md)] to the reduction of debt under [subsection (a)(1)](#a-1) (in accordance with paragraph (1)(A) of this subsection), repayment of principal on a new obligation established under [subsection (b)](#b) may be made in the local currency of the [beneficiary country](/usc/22/2431a.md?p=3) and deposited in the [Conservation Fund](/usc/22/2431a.md?p=9) of the country in the same manner as the provisions relating to payment of interest on new obligations under [section 606](/usc/7/606.md) of such Act [[7 U.S.C. 1738e](/usc/7/1738e.md)]. ## Source credit (Pub. L. 87–195, pt. V, § 807, as added Pub. L. 105–214, § 1, July 29, 1998, 112 Stat. 888; amended Pub. L. 108–323, § 3(b), Oct. 6, 2004, 118 Stat. 1219; Pub. L. 110–246, title III, § 3001(b)(1), (2)(Q), June 18, 2008, 122 Stat. 1820; Pub. L. 115–440, §§ 6, 9(b)(3), Jan. 14, 2019, 132 Stat. 5582, 5584.) ## Notes ### Editorial Notes ### References in Text The Food for Peace Act, referred to in subsec. (a)(1), is act July 10, 1954, ch. 469, 68 Stat. 454. Title I of the Act is classified generally to subchapter II (§ 1701 et seq.) of chapter 41 of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of Title 7 and Tables. ### Amendments 2019—Subsec. (a)(1). Pub. L. 115–440, § 6, substituted “outstanding as of January 14, 2019,” for “outstanding as of January 1, 1998,”. Subsec. (c)(2). Pub. L. 115–440, § 9(b)(3), substituted “Conservation Fund” for “Tropical Forest Fund”. 2008—Pub. L. 110–246 substituted “Food for Peace Act” for “Agricultural Trade Development and Assistance Act of 1954” in section catchline and wherever appearing in subsecs. (a)(1) and (c). 2004—Subsec. (c). Pub. L. 108–323 designated existing provisions as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1), and added par. (2). ### Statutory Notes and Related Subsidiaries ### Effective Date of 2008 Amendment Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture. ### Executive Documents ### Delegation of Functions For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. For delegation of functions of President under subsec. (a) of this section, see section 1 of Ex. Ord. No. 13345, July 8, 2004, 69 F.R. 41901, set out as a note under section 1738 of Title 7, Agriculture.