**(a) In general** The President shall establish a program under this subchapter to provide for the sale of agricultural commodities to developing countries and private entities for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this subchapter. Such program shall be implemented by the Secretary.
**(b) General authority** To carry out the policies and accomplish the objectives described in [section 1691 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1691&num=0&edition=prelim), the Secretary may negotiate and execute agreements with developing countries and private entities to finance the sale and exportation of agricultural commodities to such countries and entities.
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Source location: Title 7, Chapter 41, § 1703; chapter-041-food-for-peace.md
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**(a) In general** The President shall establish a program under this subchapter to provide for the sale of agricultural commodities to developing countries and private entities for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this subchapter. Such program shall be implemented by the Secretary.
**(b) General authority** To carry out the policies and accomplish the objectives described in [section 1691 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1691&num=0&edition=prelim), the Secretary may negotiate and execute agreements with developing countries and private entities to finance the sale and exportation of agricultural commodities to such countries and entities.
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Federal law — U.S. Code and appendices · legal_authorities
§ 1703. Terms and conditions of sales
(a) Payment
(1) Dollars
Except as provided in paragraph (2), agree-
ments under this subchapter shall require that
payment for agricultural commodities be
made in dollars.
(2) Local currencies
(A) In general
The Secretary may permit payment under
an agreement under this subchapter in the
local currency of the appropriate country in
order to use the proceeds from such pay-
ments to carry out activities under section
1704 of this title.
(B) Rates of exchange
Payments in local currency shall be at
rates of exchange that are no less favorable
than the highest exchange rate legally ob-
tainable in the country and that are no less
favorable than the highest exchange rate ob-
tainable by any other country.
(b) Interest
Such agreements shall provide that interest
accrue on the payment deferred under such
agreement at a concessional rate as determined
appropriate by the Secretary.
(c) Duration
Payments required under such agreements
may be made in reasonable annual amounts over
the period (not more than 30 years from the date
of the last delivery of commodities in each year
under such agreement) specified in the agree-
ment.
(d) Deferral of payments
The Secretary may defer the date on which
the developing country or private entity is re-
quired to begin making payment, under such
agreements, for a period of not in excess of 5
years after the date of the last delivery of com-
modities in each year under the agreement, and
interest shall be computed from the date of such
last delivery.
(e) Delivery of commodities
Delivery of the commodities shall be made in
accordance with the terms of the agreement.
(July 10, 1954, ch. 469, title I, § 103, 68 Stat. 456;
Aug. 12, 1955, ch. 873, § 1, 69 Stat. 721; May 28