§2279aa–10 — Title 12 Banks and Banking | U.S. Code

Summary

The Corporation will guarantee securities backed by pools of qualified loans. When it issues a guarantee, it must charge the certified facility a fee of no more than ½ of 1 percent of the pool’s initial principal. Starting in the second year, it may charge up to ½ of 1 percent each year on the principal remaining in the pool. The Corporation must set these fees based on the risk and use actuarial methods. The Comptroller General may review and report to Congress about the fees. Part of the fees must go into a separate reserve to cover guarantee losses. The Corporation may not borrow from the Treasury for these guarantees until that reserve is used up. The Corporation may also charge reasonable fees to recover its administrative costs.

Title 12, §2279aa–10

Banks and Banking — Source: USLM XML via OLRC

(a)The Corporation shall provide guarantees for securities representing interests in, or obligations backed by, pools of qualified loans through commitments issued by the Corporation providing for guarantees.

(b)(1)At the time a guarantee is issued by the Corporation, the Corporation shall assess the certified facility a fee of not more than ½ of 1 percent of the initial principal amount of each pool of qualified loans.

(2)Beginning in the second year after the date the guarantee is issued under paragraph (1), the Corporation may, at the end of each year, assess the certified facility an annual fee of not more than ½ of 1 percent of the principal amount of the loans then constituting the pool.

(3)The Corporation shall establish such fees on the amount of risk incurred by the Corporation in providing the guarantees with respect to which such fee is assessed, as determined by the Corporation. Fees assessed under paragraphs (1) and (2) shall be established on an actuarially sound basis.

(4)The Comptroller General of the United States may review, and submit to the Congress a report regarding, the actuarial soundness and reasonableness of the fees established by the Corporation under this subsection.

(c)(1)So much of the fees assessed under this section as the Board determines to be necessary shall be set aside by the Corporation in a segregated account as a reserve against losses arising out of the guarantee activities of the Corporation.

(2)The Corporation may not issue obligations to the Secretary of the Treasury under section 2279aa–13 of this title in order to meet the obligations of the Corporation with respect to any guarantees provided under this subchapter until the reserve established under paragraph (1) has been exhausted.

(d)The Corporation may impose charges or fees in reasonable amounts in connection with the administration of its activities under this subchapter to recover its costs for performing such administration.

Editorial Notes

Amendments

1996—Subsec. (b)(4). Pub. L. 104–316 substituted “Review” for “Annual review” in heading and “may review” for “shall annually review” in text.

§2279aa–10 Funding for guarantee; reserves of Corporation

Summary

Title 12, §2279aa–10

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata