§51320 Acceptance of Guarantees with Gifts for Major Projects

Summary

Allows the Maritime Administrator to accept a “qualified guarantee” from one or more donors to finish a major project for the United States Merchant Marine Academy. The guarantee is a written pledge, tied to a donation that covers a big part of the project, to pay any extra money needed if other donors don’t provide enough. The guarantee counts as spending authority so project funds can be used even if other money is not yet in hand. The Administrator must send Congress a report and wait 30 days before accepting the guarantee. The Administrator cannot use a qualified guarantee and appropriated (Congressional) funds in the same contract or deal. Major project = a project expected to cost at least $1,000,000 for buying, building, renovating, or repairing property. Major United States commercial bank = a U.S.-headquartered, FDIC‑insured bank with assets the Administrator considers large enough. Major United States investment management firm = a broker/dealer, an investment adviser, or a qualifying bank that holds investment assets for others in an amount the Administrator considers large enough. Qualified guarantee must be backed either by an irrevocable standby letter of credit from a major U.S. commercial bank for the guarantee amount or by a qualified account control agreement. Qualified account control agreement = an agreement with the donor, the Administrator, and a major investment firm that keeps enough money available, gives the Academy a top-priority security interest, requires the account hold at least 130% of the guaranteed amount, and if the account drops below that, noncash assets must be sold and the proceeds put into Treasury bills under section 3104 of title 31.