§1848 — Title 15 Commerce and Trade | U.S. Code

Summary

Creates an emergency loan guarantee fund in the Treasury. The Board will run the fund. The fund pays the Board’s expenses and pays what the Board owes under this chapter. Money not needed right away can be invested in U.S. government-backed bonds. The Board must charge a guarantee fee for each loan it guarantees and put those fees into the fund. When the Board must pay under a guarantee, it will use the fund. If the fund has too little money, the Board may issue notes or other IOUs to the Secretary of the Treasury with the Secretary’s approval. The Secretary will set the interest rate based on the average market yield of similar U.S. securities from the prior month and must buy those notes. The Secretary may use money from sales of securities under chapter 31 of title 31 to make those purchases, and the uses allowed under that chapter are expanded to include buying these notes.

Title 15, §1848

Commerce and Trade — Source: USLM XML via OLRC

(a)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)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 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