7 USC 5621 – Direct credit sales program
(a) Short-term program
To promote the sale of agricultural commodities, the Commodity Credit Corporation may finance the commercial export sale of such commodities from privately owned stocks on credit terms for not to exceed a 3-year period.
(b) Intermediate-term program
Terms Used In 7 USC 5621
- agricultural commodity: means any agricultural commodity, food, feed, fiber, or livestock (including livestock as it is defined in section 1471(2) of this title and insects), and any product thereof. See 7 USC 5602
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- independent states of the former Soviet Union: means the following: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. See 7 USC 5602
- Secretary: means the Secretary of Agriculture. See 7 USC 5602
- Service: means the Foreign Agricultural Service of the Department of Agriculture. See 7 USC 5602
- United States: includes each of the States, the District of Columbia, Puerto Rico, and the territories and possessions of the United States. See 7 USC 5602
Subject to subsection (c), to promote the sale of agricultural commodities the Commodity Credit Corporation may finance the commercial export sales of agricultural commodities from privately owned stocks on credit terms for a period of not less than 3 years nor in excess of 10 years in a manner that will directly benefit United States agricultural producers.
(c) Determinations
The Commodity Credit Corporation shall not finance an export sale under subsection (b) unless the Secretary determines that such sale will—
(1) develop, expand, or maintain the importing country as a foreign market, on a long-term basis, for the commercial sale and export of United States agricultural commodities, without displacing normal commercial sales;
(2) improve the capability of the importing country to purchase and use, on a long-term basis, United States agricultural commodities; or
(3) otherwise promote the export of United States agricultural commodities.
The reference in paragraphs (1) and (2) to “on a long-term basis” shall not apply in the case of determinations with respect to sales to the independent states of the former Soviet Union.
(d) Use of program
(1) General uses
The Commodity Credit Corporation may use export sales financing authorized under this section—
(A) to increase exports of agricultural commodities;
(B) to compete against foreign agricultural exports;
(C) to assist countries in meeting their food and fiber needs, particularly—
(i) developing countries; and
(ii) countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and
(D) for such other purposes as the Secretary determines appropriate consistent with the provisions of subsection (c).
(2) General restrictions
Export sales financing authorized under this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales financed under this section.
(e) Terms of credit assistance
Any contract for the financing of exports by the Commodity Credit Corporation under this section shall include—
(1) a requirement that repayment shall be made in dollars with interest accruing thereon as determined appropriate by the Secretary; and
(2) a requirement, if the Secretary determines such requirement appropriate to protect the interests of the United States, that an initial payment be made by the purchaser at the time of sale or shipment of the agricultural commodity that is subject to the contract.
(f) Restrictions
The Commodity Credit Corporation may not make export sales financing authorized under this section available in connection with sales of an agricultural commodity to any country that the Secretary determines cannot adequately service the debt associated with such sale.