Qualified Debt Law and Legal Definition

According to 7 USCS § 1738r (Title 7, Agriculture; Chapter 41, Agricultural Trade Development and Assistance Enterprise for the Americas Initiative), the term "qualified debt" means “any obligation, or portion of such obligation, of an eligible country to pay for purchases of United States agricultural commodities guaranteed by the Commodity Credit Corporation under export credit guarantee programs authorized pursuant to section 5(f) of the Commodity Credit Corporation Charter Act [15 USCS § 714c] or section 4(b) of the Food for Peace Act of 1966--

(1) in which the Commodity Credit Corporation obtained a legal right or interest, as a result of assignment or subrogation, not later than September 1, 1992; and

(2) the payment of which obligation has been, not later than September 1, 1992, rescheduled in accordance with principles set forth in an Agreed Minute of the Paris Club.

Such term includes the obligation to pay any interest which was due or accrued not later than September 1, 1992, and unpaid as of the date of a debt sale pursuant to section 616 [7 USCS § 1738o] or a debt sale, reduction, or cancellation pursuant to section 617 [7 USCS § 1738p] (as the case may be).”