2 U.S.C. § 661c — Budgetary treatment

Page 214 TITLE 2—THE CONGRESS § 661c (e) Historical credit program costs The Director shall review, to the extent pos- sible, historical data and develop the best pos- sible estimates of adjustments that would con- vert aggregate historical budget data to credit reform accounting. (f) Administrative costs The Director and the Director of the Congres- sional Budget Office shall each analyze and re- port to Congress on differences in long-term ad- ministrative costs for credit programs versus grant programs by January 31, 1992. Their re- ports shall recommend to Congress any changes, if necessary, in the treatment of administrative costs under credit reform accounting. (Pub. L. 93–344, title V, § 503, as added Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–611.) Editorial Notes PRIOR PROVISIONS A prior section 503 of Pub. L. 93–344, title V, July 12, 1974, 88 Stat. 321, was classified to section 701 of former Title 31, prior to repeal and reenactment in section 1552(a) of Title 31, Money and Finance, by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068, the first sec- tion of which enacted Title 31. § 661c. Budgetary treatment (a) President’s budget Beginning with fiscal year 1992, the Presi- dent’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 commit- ments associated with each appropriations re- quest. (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 ex- tent 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 ad- vance in an appropriations Act; or (3) authority is otherwise provided in appro- priation Acts. (c) Exemption for mandatory programs Subsections (b) and (e) shall not apply to a di- rect loan or loan guarantee program that— (1) constitutes an entitlement (such as the guaranteed student loan program or the vet- erans’ home loan guaranty program); or (2) all existing credit programs of the Com- modity Credit Corporation on November 5, 1990. (d) Budget accounting (1) The authority to incur new direct loan ob- ligations, make new loan guarantee commit- ments, 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 fi- nancing account. (2) The outlays resulting from new budget au- thority for the cost of direct loans or loan guar- antees described in paragraph (1) shall be paid from the credit program account into the fi- nancing 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 financ- ing accounts shall be a means of financing. (e) Modifications An outstanding direct loan (or direct loan ob- ligation) 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 ad- vance in an appropriations Act. (f) Reestimates When the estimated cost for a group of direct loans or loan guarantees for a given credit pro- gram 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 ac- count as a change in program costs and a change in net interest. There is hereby provided perma- nent 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, § 504, as added Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–612; amended Pub. L. 105–33, title X, § 10117(b), Aug. 5, 1997, 111 Stat. 693.) Editorial Notes 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, § 5(b), Sept. 13, 1982, 96 Stat. 1068. AMENDMENTS 1997—Subsec. (b)(1). Pub. L. 105–33, § 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, § 10117(b)(2), substituted ‘‘has been provided in advance in an appropriations Act’’ for ‘‘is enacted’’. Subsec. (c). Pub. L. 105–33, § 10117(b)(3), substituted ‘‘Subsections (b) and (e)’’ for ‘‘Subsection (b)’’. Subsec. (d)(1). Pub. L. 105–33, § 10117(b)(4), substituted ‘‘modify outstanding direct loans (or direct loan obliga- tions) or loan guarantees (or loan guarantee commit- ments)’’ for ‘‘directly or indirectly alter the costs of outstanding direct loans and loan guarantees’’. Subsec. (e). Pub. L. 105–33, § 10117(b)(5), amended head- ing and text of subsec. (e) generally. Prior to amend- ment, text read as follows: ‘‘A direct loan obligation or Page 215 TITLE 2—THE CONGRESS § 661d 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.’’ § 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 commit- ments, such sums as may be necessary to pay the cost associated with such direct loan obliga- tions 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 ac- counts The Secretary of the Treasury shall borrow from, receive from, lend to, or pay to the financ- ing accounts such amounts as may be appro- priate. The Secretary of the Treasury may pre- scribe forms and denominations, maturities, and terms and conditions for the transactions de- scribed above, except that the rate of interest charged by the Secretary on lending to financ- ing accounts (including amounts treated as lending to financing accounts by the Federal Fi- nancing Bank (hereinafter in this subsection re- ferred 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 bor- rower 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 di- rect loan pursuant to section 661a(5) of this title. All such amounts shall be credited to the appro- priate financing account. The Bank is author- ized 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 pay- ments by an agency shall be considered adminis- trative expenses subject to section 661c(g) of this title. This subsection shall apply to transactions related to direct loan obligations or loan guar- antee commitments made on or after October 1, 1991. The authorities described above shall not be construed to supersede or override the au- thority of the head of a Federal agency to ad- minister and operate a direct loan or loan guar- antee program. All of the transactions provided in this subsection shall be subject to the provi- sions of subchapter II of chapter 15 of title 31. Cash balances of the financing accounts in ex- cess of current requirements shall be main- tained in a form of uninvested funds and the Secretary of the Treasury shall pay interest on these funds. (d) Authorization for liquidating accounts (1) Amounts in liquidating accounts shall be available only for payments resulting from di- rect loan obligations or loan guarantee commit- ments made prior to October 1, 1991, for— (A) interest payments and principal repay- ments to the Treasury or the Federal Financ- ing Bank for amounts borrowed; (B) disbursements of loans; (C) default and other guarantee claim pay- ments; (D) interest supplement payments; (E) payments for the costs of foreclosing, managing, and selling collateral that are cap- italized or routinely deducted from the pro- ceeds of sales; (F) payments to financing accounts when re- quired for modifications; (G) administrative expenses, if— (i) amounts credited to the liquidating ac- count would have been available for admin- istrative expenses under a provision of law in effect prior to October 1, 1991; and (ii) no direct loan obligation or loan guar- antee commitment has been made, or any modification of a direct loan or loan guar- antee 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 re- ceipts as soon as practicable after the end of the fiscal year. (3) If funds in liquidating accounts are insuffi- cient to satisfy obligations and commitments of such accounts, there is hereby provided perma- nent, indefinite authority to make any pay- ments required to be made on such obligations and commitments. (e) Authorization of appropriations for imple- mentation expenses There are authorized to be appropriated to ex- isting accounts such sums as may be necessary for salaries and expenses to carry out the re- sponsibilities under this subchapter. (f) Reinsurance Nothing in this subchapter shall be construed as authorizing or requiring the purchase of in- surance or reinsurance on a direct loan or loan guarantee from private insurers. If any such re- insurance 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 as- sistance provided by a direct loan or a loan guarantee. (Pub. L. 93–344, title V, § 505, as added Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104