§ 661c. — Budgetary treatment.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 2USC661c]
TITLE 2--THE CONGRESS
CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS
SUBCHAPTER III--CREDIT REFORM
Sec. 661c. Budgetary treatment
(a) President's budget
Beginning with fiscal year 1992, the President's budget shall
reflect the costs of direct loan and loan guarantee programs. The budget
shall also include the planned level of new direct loan obligations or
loan guarantee commitments associated with each appropriations request.
(b) Appropriations required
Notwithstanding any other provision of law, new direct loan
obligations may be incurred and new loan guarantee commitments may be
made for fiscal year 1992 and thereafter only to the extent that--
(1) new budget authority to cover their costs is provided in
advance in an appropriations Act;
(2) a limitation on the use of funds otherwise available for the
cost of a direct loan or loan guarantee program has been provided in
advance in an appropriations Act; or
(3) authority is otherwise provided in appropriation Acts.
(c) Exemption for mandatory programs
Subsections (b) and (e) of this section shall not apply to a direct
loan or loan guarantee program that--
(1) constitutes an entitlement (such as the guaranteed student
loan program or the veterans' home loan guaranty program); or
(2) all existing credit programs of the Commodity Credit
Corporation on November 5, 1990.
(d) Budget accounting
(1) The authority to incur new direct loan obligations, make new
loan guarantee commitments, or modify outstanding direct loans (or
direct loan obligations) or loan guarantees (or loan guarantee
commitments) shall constitute new budget authority in an amount equal to
the cost of the direct loan or loan guarantee in the fiscal year in
which definite authority becomes available or indefinite authority is
used. Such budget authority shall constitute an obligation of the credit
program account to pay to the financing account.
(2) The outlays resulting from new budget authority for the cost of
direct loans or loan guarantees described in paragraph (1) shall be paid
from the credit program account into the financing account and recorded
in the fiscal year in which the direct loan or the guaranteed loan is
disbursed or its costs altered.
(3) All collections and payments of the financing accounts shall be
a means of financing.
(e) Modifications
An outstanding direct loan (or direct loan obligation) or loan
guarantee (or loan guarantee commitment) shall not be modified in a
manner that increases its costs unless budget authority for the
additional cost has been provided in advance in an appropriations Act.
(f) Reestimates
When the estimated cost for a group of direct loans or loan
guarantees for a given credit program made in a single fiscal year is
reestimated in a subsequent year, the difference between the reestimated
cost and the previous cost estimate shall be displayed as a distinct and
separately identified subaccount in the credit program account as a
change in program costs and a change in net interest. There is hereby
provided permanent indefinite authority for these reestimates.
(g) Administrative expenses
All funding for an agency's administration of a direct loan or loan
guarantee program shall be displayed as distinct and separately
identified subaccounts within the same budget account as the program's
cost.
(Pub. L. 93-344, title V, Sec. 504, as added Pub. L. 101-508, title
XIII, Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-612; amended Pub. L.
105-33, title X, Sec. 10117(b), Aug. 5, 1997, 111 Stat. 693.)
Prior Provisions
A prior section 504 of Pub. L. 93-344, title V, July 12, 1974, 88
Stat. 322, was classified to section 1020a of former Title 31, prior to
repeal by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068.
Amendments
1997--Subsec. (b)(1). Pub. L. 105-33, Sec. 10117(b)(1), amended par.
(1) generally. Prior to amendment, par. (1) read as follows:
``appropriations of budget authority to cover their costs are made in
advance;''.
Subsec. (b)(2). Pub. L. 105-33, Sec. 10117(b)(2), substituted ``has
been provided in advance in an appropriations Act'' for ``is enacted''.
Subsec. (c). Pub. L. 105-33, Sec. 10117(b)(3), substituted
``Subsections (b) and (e)'' for ``Subsection (b)''.
Subsec. (d)(1). Pub. L. 105-33, Sec. 10117(b)(4), substituted
``modify outstanding direct loans (or direct loan obligations) or loan
guarantees (or loan guarantee commitments)'' for ``directly or
indirectly alter the costs of outstanding direct loans and loan
guarantees''.
Subsec. (e). Pub. L. 105-33, Sec. 10117(b)(5), amended heading and
text of subsec. (e) generally. Prior to amendment, text read as follows:
``A direct loan obligation or loan guarantee commitment shall not be
modified in a manner that increases its cost unless budget authority for
the additional cost is appropriated, or is available out of existing
appropriations or from other budgetary resources.''
Section Referred to in Other Sections
This section is referred to in section 661d of this title; title 10
section 4555; title 16 section 1854; title 22 sections 2195, 2197; title
31 section 3711; title 42 sections 254b, 4822; title 45 section 822.
