§1323 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The law lets the Federal unemployment account get repayable advances (loans) as needed to run the programs under this part. Those loans must be paid back to the Treasury’s general fund by transfers from the Federal unemployment account when the Secretary of the Treasury, after consulting the Secretary of Labor, decides the account has enough money. Each repayment reduces the outstanding loan balance. If, after applying sections 1101(f)(3) and 1102(a) to any excess in the employment security administration account at the end of a fiscal year, some excess remains, up to the amount of the outstanding advances it will be transferred to the general fund and used to reduce the advances. Advances bear interest equal to the average rate on interest‑bearing U.S. debt at the end of the month before the advance; if that average isn’t a multiple of 1/8 of 1 percent, the rate is rounded down to the next lower 1/8‑percent multiple.

Title 42, §1323

The Public Health and Welfare — Source: USLM XML via OLRC

There are hereby authorized to be appropriated to the Federal unemployment account, as repayable advances, such sums as may be necessary to carry out the purposes of this subchapter. Amounts appropriated as repayable advances shall be repaid by transfers from the Federal unemployment account to the general fund of the Treasury, at such times as the amount in the Federal unemployment account is determined by the Secretary of the Treasury, in consultation with the Secretary of Labor, to be adequate for such purpose. Any amount transferred as a repayment under this section shall be credited against, and shall operate to reduce, any balance of advances repayable under this section. Whenever, after the application of section 1101(f)(3) and 1102(a) of this title with respect to the excess in the employment security administration account as of the close of any fiscal year, there remains any portion of such excess, so much of such remainder as does not exceed the balance of advances made pursuant to this section shall be transferred to the general fund of the Treasury and shall be credited against, and shall operate to reduce, such balance of advances. Amounts appropriated as repayable advances for purposes of this subsection shall bear interest at a rate equal to the average rate of interest, computed as of the end of the calendar month next preceding the date of such advance, borne by all interest bearing obligations of the United States then forming part of the public debt; except that in cases in which such average rate is not a multiple of one-eighth of 1 percent, the rate of interest shall be the multiple of one-eighth of 1 percent next lower than such average rate.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those comprising the first sentence of this section were contained in section 1322(c), act Aug. 14, 1935, ch. 531, title XII, § 1202(c), as added Aug. 5, 1954, ch. 657, § 3, 68 Stat. 672, prior to amendment by Pub. L. 86–778.

Amendments

1987—Pub. L. 100–203 struck out “(without interest)” after “account, as repayable advances” and “, without interest,” after “shall be repaid”, and inserted sentence at end relating to amounts appropriated as repayable advances for purposes of this subsection. 1983—Pub. L. 98–135 inserted provision requiring that amounts appropriated as repayable advances be repaid, without interest, by transfers from the Federal unemployment account to the general fund of the Treasury, at such times as the amount in the Federal unemployment account is determined by the Secretary of the Treasury, in consultation with the Secretary of Labor, to be adequate for such purpose, and that any amount transferred as a repayment under this section be credited against, and operate to reduce, any balance of advances repayable under this section. 1970—Pub. L. 91–373 inserted reference to section 1102(a) of this title. 1960—Pub. L. 86–778 amended section generally, substituting provisions relating to repayable advances to the Federal unemployment account for former provision defining “Governor” and now incorporated in section 1324 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

of 1987 AmendmentAmendment by Pub. L. 100–203 applicable to advances made on or after Dec. 22, 1987, see section 9155(d) of Pub. L. 100–203, set out as a note under section 1103 of this title. Retransfer of Amounts Transferred From Federal Unemployment Account to Employment Security Administration Account as of

September 30, 1983 Pub. L. 98–135, title II, § 205(b), Oct. 24, 1983, 97 Stat. 861, provided that: “Any amounts transferred from the Federal unemployment account to the employment security administration account as of

September 30, 1983, shall be transferred back to the Federal unemployment account.”

§1323 Repayable advances to Federal unemployment account