§ 661d. — Authorizations.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 2USC661d]
TITLE 2--THE CONGRESS
CHAPTER 17A--CONGRESSIONAL BUDGET AND FISCAL OPERATIONS
SUBCHAPTER III--CREDIT REFORM
Sec. 661d. Authorizations
(a) Authorization of appropriations for costs
There are authorized to be appropriated to each Federal agency
authorized to make direct loan obligations or loan guarantee
commitments, such sums as may be necessary to pay the cost associated
with such direct loan obligations or loan guarantee commitments.
(b) Authorization for financing accounts
In order to implement the accounting required by this subchapter,
the President is authorized to establish such non-budgetary accounts as
may be appropriate.
(c) Treasury transactions with financing accounts
The Secretary of the Treasury shall borrow from, receive from, lend
to, or pay to the financing accounts such amounts as may be appropriate.
The Secretary of the Treasury may prescribe forms and denominations,
maturities, and terms and conditions for the transactions described
above, except that the rate of interest charged by the Secretary on
lending to financing accounts (including amounts treated as lending to
financing accounts by the Federal Financing Bank (hereinafter in this
subsection referred to as the ``Bank'') pursuant to section 655(b) \1\
of this title) and the rate of interest paid to financing accounts on
uninvested balances in financing accounts shall be the same as the rate
determined pursuant to section 661a(5)(E) of this title. For guaranteed
loans financed by the Bank and treated as direct loans by a Federal
agency pursuant to section 655(b) \1\ of this title, any fee or interest
surcharge (the amount by which the interest rate charged exceeds the
rate determined pursuant to section 661a(5)(E) of this title) that the
Bank charges to a private borrower pursuant to section 2285(c) of title
12 shall be considered a cash flow to the Government for the purposes of
determining the cost of the direct loan pursuant to section 661a(5) of
this title. All such amounts shall be credited to the appropriate
financing account. The Bank is authorized to require reimbursement from
a Federal agency to cover the administrative expenses of the Bank that
are attributable to the direct loans financed for that agency. All such
payments by an agency shall be considered administrative expenses
subject to section 661c(g) of this title. This subsection shall apply to
transactions related to direct loan obligations or loan guarantee
commitments made on or after October 1, 1991. The authorities described
above shall not be construed to supersede or override the authority of
the head of a Federal agency to administer and operate a direct loan or
loan guarantee program. All of the transactions provided in this
subsection shall be subject to the provisions of subchapter II of
chapter 15 of title 31. Cash balances of the financing accounts in
excess of current requirements shall be maintained in a form of
uninvested funds and the Secretary of the Treasury shall pay interest on
these funds.
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\1\ See References in Text note below.
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(d) Authorization for liquidating accounts
(1) Amounts in liquidating accounts shall be available only for
payments resulting from direct loan obligations or loan guarantee
commitments made prior to October 1, 1991, for--
(A) interest payments and principal repayments to the Treasury
or the Federal Financing Bank for amounts borrowed;
(B) disbursements of loans;
(C) default and other guarantee claim payments;
(D) interest supplement payments;
(E) payments for the costs of foreclosing, managing, and selling
collateral that are capitalized or routinely deducted from the
proceeds of sales;
(F) payments to financing accounts when required for
modifications;
(G) administrative expenses, if--
(i) amounts credited to the liquidating account would have
been available for administrative expenses under a provision of
law in effect prior to October 1, 1991; and
(ii) no direct loan obligation or loan guarantee commitment
has been made, or any modification of a direct loan or loan
guarantee has been made, since September 30, 1991; or
(H) such other payments as are necessary for the liquidation of
such direct loan obligations and loan guarantee commitments.
(2) Amounts credited to liquidating accounts in any year shall be
available only for payments required in that year. Any unobligated
balances in liquidating accounts at the end of a fiscal year shall be
transferred to miscellaneous receipts as soon as practicable after the
end of the fiscal year.
(3) If funds in liquidating accounts are insufficient to satisfy
obligations and commitments of such accounts, there is hereby provided
permanent, indefinite authority to make any payments required to be made
on such obligations and commitments.
(e) Authorization of appropriations for implementation expenses
There are authorized to be appropriated to existing accounts such
sums as may be necessary for salaries and expenses to carry out the
responsibilities under this subchapter.
(f) Reinsurance
Nothing in this subchapter shall be construed as authorizing or
requiring the purchase of insurance or reinsurance on a direct loan or
loan guarantee from private insurers. If any such reinsurance for a
direct loan or loan guarantee is authorized, the cost of such insurance
and any recoveries to the Government shall be included in the
calculation of the cost.
(g) Eligibility and assistance
Nothing in this subchapter shall be construed to change the
authority or the responsibility of a Federal agency to determine the
terms and conditions of eligibility for, or the amount of assistance
provided by a direct loan or a loan guarantee.
(Pub. L. 93-344, title V, Sec. 505, as added Pub. L. 101-508, title
XIII, Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-613; amended Pub. L.
105-33, title X, Sec. 10117(c), Aug. 5, 1997, 111 Stat. 694.)
References in Text
Section 655(b) of this title, referred to in subsec. (c), was in the
original ``section 406(b)'' and was translated as reading ``section
405(b)'', meaning section 405(b) of Pub. L. 93-344, to reflect the
probable intent of Congress because of context and because section 406
does not contain a subsec. (b).
Prior Provisions
A prior section 505 of Pub. L. 93-344, title V, July 12, 1974, 88
Stat. 322, repealed sections 66 and 81 of this title.
Amendments
1997--Subsec. (c). Pub. L. 105-33, Sec. 10117(c)(2), substituted
``supersede'' for ``supercede''.
Pub. L. 105-33, Sec. 10117(c)(1), inserted before period at end of
second sentence ``, except that the rate of interest charged by the
Secretary on lending to financing accounts (including amounts treated as
lending to financing accounts by the Federal Financing Bank (hereinafter
in this subsection referred to as the `Bank') pursuant to section 655(b)
of this title) and the rate of interest paid to financing accounts on
uninvested balances in financing accounts shall be the same as the rate
determined pursuant to section 661a(5)(E) of this title. For guaranteed
loans financed by the Bank and treated as direct loans by a Federal
agency pursuant to section 655(b) of this title, any fee or interest
surcharge (the amount by which the interest rate charged exceeds the
rate determined pursuant to section 661a(5)(E) of this title) that the
Bank charges to a private borrower pursuant to section 2285(c) of title
12 shall be considered a cash flow to the Government for the purposes of
determining the cost of the direct loan pursuant to section 661a(5) of
this title. All such amounts shall be credited to the appropriate
financing account. The Bank is authorized to require reimbursement from
a Federal agency to cover the administrative expenses of the Bank that
are attributable to the direct loans financed for that agency. All such
payments by an agency shall be considered administrative expenses
subject to section 661c(g) of this title. This subsection shall apply to
transactions related to direct loan obligations or loan guarantee
commitments made on or after October 1, 1991''.
Subsec. (d). Pub. L. 105-33, Sec. 10117(c)(3), amended heading and
text of subsec. (d) generally. Prior to amendment, text read as follows:
``If funds in liquidating accounts are insufficient to satisfy the
obligations and commitments of said accounts, there is hereby provided
permanent, indefinite authority to make any payments required to be made
on such obligations and commitments.''
Section Referred to in Other Sections
This section is referred to in title 22 section 2197.
