123STA T . 33 59PUBLIC LA W 111 – 11 7—DE C.1 6, 2 0 09 thepric ep a i dfo r su ch de b ta n d the face v a l ue of such debt , to support activities that lin k conservation and sustainable use of natural resources w ith local co m munit y development, and child survival and other child develop - ment, in a manner consistent with sections 70 7 throu g h 7 1 0ofthe F oreign A ssistance Act of 1 96 1, if the sale, reduction, or cancellation would not contravene any term or condition of any prior agreement relating to such loan .(2)TERMSANDCO ND IT IONS. —N otwithstanding any other provision of law, the P resident shall, in accordance with this section, establish the terms and conditions under which loans may be sold, reduced, or canceled pursuant to this section. ( 3 ) ADMINISTRATION.—The Facility, as defined in section 702( 8 ) of the Foreign Assistance Act of 1961, shall notify the administrator of the agency primarily responsible for admin- istering part I of the Foreign Assistance Act of 1961 of pur- chasers that the President has determined to be eligible, and shall direct such agency to carry out the sale, reduction, or cancellation of a loan pursuant to this section
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d, That such agency shall make ad j ustment in its accounts to reflect the sale, reduction, or cancellation. ( 4 ) L IMITATION.—The authorities of this subsection shall be available only to the e x tent that appropriations for the cost of the modification, as defined in section 5 02 of the C ongressional B udget Act of 1974, are made in advance. (b) D E P OSIT O F PROCEEDS.—The proceeds from the sale, reduc- tion, or cancellation of any loan sold, reduced, or canceled pursuant to this section shall be deposited in the U nited S tates G overnment account or accounts established for the repayment of such loan. (c) EL I G I B LEP U RC H ASERS.—A loan may be sold pursuant to subsection (a)(1)(A) only to a purchaser who presents plans satisfac- tory to the President for using the loan for the purpose of engaging in debt-for-e q uity swaps, debt-for-development swaps, or debt-for- nature swaps. (d) DEBTOR CONSULTATIONS.—Before the sale to any eligible purchaser, or any reduction or cancellation pursuant to this section, of any loan made to an eligible country, the President should consult with the country concerning the amount of loans to be sold, reduced, or canceled and their uses for debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps. (e) A V AILABILIT Y OF FUNDS.—The authority provided by sub- section (a) may be used only with regard to funds appropriated by this Act under the heading ‘ ‘Debt R estructuring ’ ’. SPECIAL DEBT RELIEF FOR THE POOREST SEC. 7033. (a) AUTHORITY TO REDUCE DEBT.—The President may reduce amounts owed to the United States (or any agency of the United States) by an eligible country as a result of— (1) guarantees issued under sections 221 and 222 of the Foreign Assistance Act of 1961
(2) credits extended or guarantees issued under the Arms Export Control Act; or (3) any obligation or portion of such obligation, to pay for purchases of United States agricultural commodities guaran- teed by the Commodity Credit Corporation under export credit guarantee programs authori z ed pursuant to section 5(f) of the Notif i ca tio n.Pres i d ent. D eter m ination. President.
