15 U.S.C. § 1848: Emergency loan guarantee fund

Summary

An emergency loan guarantee fund is created in the Treasury to pay the Board’s expenses and to cover its loan guarantees. Money not needed right away can be invested in U.S. government bonds or bonds fully guaranteed by the U.S. The Board must charge a fee for each loan it guarantees and put those fees into the fund. If the fund can’t pay a claim, the Board may issue notes to the Secretary of the Treasury, who must buy them. The Secretary sets the interest rate by looking at the prior month’s average market yields and may use proceeds from sales under chapter 31 of title 31 to buy the notes.

Title 15, §1848

Commerce and Trade, Source: USLM XML via OLRC

(a)Establishment; use; investment

There is established in the Treasury an emergency loan guarantee fund to be administered by the Board. The fund shall be used for the payment of the expenses of the Board and for the purpose of fulfilling the Board’s obligations under this chapter. Moneys in the fund not needed for current operations may be invested in direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States or any agency thereof.

(b)Guarantee fee; deposits in fund

The Board shall prescribe and collect a guarantee fee in connection with each loan guaranteed by it under this chapter. Sums realized from such fees shall be deposited in the emergency loan guarantee fund.

(c)Payments; issuance of notes or other obligations when fund moneys insufficient: forms and denominations, maturities, terms and conditions, interest rate; public debt transaction

Payments required to be made as a consequence of any guarantee by the Board shall be made from the emergency loan guarantee fund. In the event that moneys in the fund are insufficient to make such payments, in order to discharge its responsibilities, the Board is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Board with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31 and the purposes for which securities may be issued under that chapter are extended to include any purchase of such notes and obligations.

Notes & Related Subsidiaries

Editorial Notes

Codification In subsec. (c), “chapter 31 of title 31” and “that chapter” substituted for “the Second Liberty Bond Act, as amended,” and “that Act”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

§1848 Emergency Loan Guarantee Fund

Summary

Title 15, §1848

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata