§51320 Acceptance of guarantees with gifts for major projects

Summary

Allows the Maritime Administrator to accept a “qualified guarantee” from donors to finish a major project for the United States Merchant Marine Academy. If accepted, that guarantee counts as federal authority to obligate and spend money for the project so work can go forward even if other funds (not counting the guarantee) are not yet enough. The Administrator must wait 30 days after sending Congress a report about the proposed guarantee before accepting it. The Administrator may not use a qualified guarantee and appropriated funds together in the same contract or transaction. Major project = a project estimated to cost at least $1,000,000 to buy, build, renovate, or repair property. Major United States commercial bank = an FDIC‑insured bank, headquartered in the U.S., and large enough as the Maritime Administrator decides. Major United States investment management firm = a broker/dealer, investment adviser, or a qualifying major bank that holds others’ investment assets and is large enough as the Administrator decides. Qualified guarantee = a written donor promise tied to a donation that covers a large part of the cost and promises to add money if other donors fall short, and it must be backed by either an irrevocable standby letter of credit from a major U.S. commercial bank or by a qualified account control agreement. Qualified account control agreement = an agreement among the donor, the Maritime Administrator, and a major investment firm that keeps enough funds available, gives the Academy a top-priority security interest, requires the account to hold at least 130% of the guaranteed amount, and calls for selling noncash assets and investing proceeds in Treasury bills if the account value falls below that level.