7 USC 1723 - Generation and Use of Currencies by Private Voluntary Organizations and Cooperatives

(a) Local sale and barter of commodities

An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this subchapter may provide for the sale or barter in 1 or more recipient countries, or 1 or more countries in the same region, of the commodities to be provided under such agreement.

(b) Minimum level of local sales

In carrying out agreements of the type referred to in subsection (a) of this section, the Administrator shall permit private voluntary organizations and cooperatives to sell, in 1 or more recipient countries, or in 1 or more countries in the same region, an amount of commodities equal to not less than 15 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this subchapter for each fiscal year, to generate proceeds to be used as provided in this section.

(c) Description of intended uses

A private voluntary organization or cooperative submitting a proposal to enter into a non-emergency food assistance agreement under this subchapter shall include in such proposal a description of the intended uses of any proceeds that may be generated through the sale, in 1 or more recipient countries, or in 1 or more countries in the same region, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative.

(d) Use

Proceeds generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this subchapter may—

(1) be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this subchapter;

(2) be used to implement income-generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within 1 or more recipient countries or within 1 or more countries in the same region; or

(3) be invested, and any interest earned on such investment may be used, for the purposes for which the assistance was provided to that organization, without further appropriation by Congress.

(July 10, 1954, ch. 469, title II, §203, 68 Stat. 458; May 28, 1956, ch. 327, title II, §208(c), 70 Stat. 201; Pub. L. 85–128, §1(3), Aug. 13, 1957, 71 Stat. 345; Pub. L. 86–341, title I, §3, Sept. 21, 1959, 73 Stat. 606; Pub. L. 86–472, ch. VI, §601(b), May 14, 1960, 74 Stat. 140; Pub. L. 87–128, title II, §202(1), Aug. 8, 1961, 75 Stat. 307; Pub. L. 88–638, §1(13), (14), Oct. 8, 1964, 78 Stat. 1037; Pub. L. 89–808, §2(C), Nov. 11, 1966, 80 Stat. 1535; Pub. L. 95–88, title II, §209, Aug. 3, 1977, 91 Stat. 548; Pub. L. 98–473, title III, §305, Oct. 12, 1984, 98 Stat. 2195; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3638; Pub. L. 104–127, title II, §208, Apr. 4, 1996, 110 Stat. 954; Pub. L. 107–171, title III, §3003, May 13, 2002, 116 Stat. 281; Pub. L. 110–246, title III, §3009, June 18, 2008, 122 Stat. 1824.)

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Last modified: October 26, 2015