§53716 Deposit Fund

Summary

Creates a deposit fund in the Treasury where the Secretary or Administrator can hold an obligor’s cash as collateral for a government guarantee. The obligor and the Secretary or Administrator must sign an agreement that sets the rules for depositing, withdrawing, keeping, using, and reinvesting the cash. The agreement must include required terms, give the United States a security interest in the deposits, and may include any extra protections the government needs. The Secretary or Administrator may invest fund money in U.S. government securities that match needed timing. Extra cash can be left uninvested and earns interest paid by the Treasury. No withdrawals are allowed without the Secretary’s or Administrator’s OK. Income may be paid under the agreement, but the Secretary or Administrator can keep deposits and any earnings to recover losses if the obligor defaults.