---
kind: "section"
citation: "7 U.S.C. § 1738c"
title: "7"
title_heading: "Agriculture"
number: "1738c"
heading: "Reduction of certain debt"
release: "119-102"
url: "https://uscodex.org/usc/7/1738c"
units:
  - "Chapter 41 — Food for Peace"
  - "Subchapter VI — Enterprise for the Americas Initiative"
---

# §1738c. Reduction of certain debt

- (a) **Authority to reduce debt—**
  - (1) **In general—** Notwithstanding any other provision of law, the President may reduce the amount owed to the [United States](/usc/7/6402.md?p=8) or any agency of the [United States](/usc/7/6402.md?p=8), and outstanding as of January 1, 1990, as a result of any credits extended under subchapter II to a country eligible for benefits from the Facility.
  - (2) **Availability of appropriations—** The [authorities](/usc/7/2009aa.md?p=1) under this section may be exercised only to the extent provided for in advance in appropriation Acts.
- (b) **Limitation—** A debt reduction authorized under [subsection (a)](#a) shall be accomplished, at the direction of the Facility, through the exchange of a new obligation under this subchapter for obligations of the type referred to in [subsection (a)](#a) outstanding as of January 1, 1990.
- (c) **Exchange of obligations—** The Facility shall notify the [Commodity](/usc/7/1a.md?p=9) Credit [Corporation](/usc/7/1502.md?p=b-5) of an agreement entered into under [subsection (b)](#b) with an eligible country to exchange a new obligation for outstanding obligations. At the direction of the Facility, the old obligations that are the subject of the agreement may be canceled and a new debt obligation may be established for the country relating to the agreement. The [Commodity](/usc/7/1a.md?p=9) Credit [Corporation](/usc/7/1502.md?p=b-5) shall make an adjustment in its accounts to reflect a debt reduction under this section.

## Source credit

(July 10, 1954, ch. 469, title VI, § 604, as added Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3658; amended Pub. L. 102–237, title III, § 303, Dec. 13, 1991, 105 Stat. 1855.)

## Notes

### Editorial Notes

### Amendments

1991—Subsec. (a)(2). Pub. L. 102–237 substituted “Availability” for “Avali­ability” in heading.

### Executive Documents

### Delegation of Functions

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 this title.