Page:United States Statutes at Large Volume 100 Part 1.djvu/139

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 103

obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled. "(3) Any amount of budget authority (and contract authority) that becomes available during any fiscal year as a result of the forgiveness of any loan, note, or obligation under this subsection shall be rescinded.". SEC. 3005. RURAL HOUSING AUTHORIZATIONS.

Subsection (a)(1) of section 513 of the Housing Act of 1949 is amended to read as follows: "(a)(1) The Secretary may insure and guarantee loans under this title during fiscal year 1986 in an aggregate amount not to exceed $2,146,600,000, of which— "(A) $1,209,600,000 shall be for loans under section 502; "(B) $17,000,000 shall be for loans under section 504; "(C) $19,000,000 shall be for loans under section 514; "(D) $900,000,000 shall be for loans under section 515; and "(E) $1,000,000 shall be for loans under section 524.".

42 USC 1483.

42 USC 1472. 42 USC 1474. 42 USC 1484. 42 USC 1485. 42 USC I490a.

SEC. 3006. MANAGEMENT OF INSURED AND GUARANTEED RURAL HOUSING LOANS. (a) SALE OF INSURED AND GUARANTEED LOANS TO PUBLIC.—Section

517(c) of the Housing Act of 1949 is amended by adding at the end 42 USC 1487. thereof the following new sentence: "Any loan made and sold by the Secretary under this section after the date of the enactment of the Housing and Community Development Reconciliation Amendments of 1985 (and any loan made by other lenders under this title that is insured or guaranteed in accordance with this section, is purchased by the Secretary, and is sold by the Secretary under this section after such date) shall be sold to the public and may not be sold to the Federal Financing Bank, unless such sale to the Federal Financing Bank is required to service transactions under this title between the Secretary and the Federal Financing Bank occurring on or before such date.". (b) INTEREST SUBSIDY ON INSURED AND GUARANTEED LOANS O F -

FERED FOR SALE TO PUBLIC.—Section 517(d) of the Housing Act of

1949 is amended— (1) by inserting "(1)" after the subsection designation; and (2) by adding at the end thereof the following new paragraph: "(2) Each loan made by the Secretary or other lenders under this title that is insured or guaranteed in accordance with this subsection shall, when offered for sale to the public, be accompanied by an agreement by the Secretary to pay to the holder of such loan (through an agreement to purchase such loan or through such other means as the Secretary determines to be appropriate) the difference between the rate of interest paid by the borrower of such loan and the market rate of interest (as determined by the Secretary) on obligations having comparable periods to maturity on the date of such sale.". (c) PROTECTION OF BORROWERS UNDER LOANS SOLD TO PUBLIC.—

Section 517(d) of the Housing Act of 1949, as amended by subsection (b) of this section, is amended by adding at the end thereof the following new paragraph: "(3) Each loan made by the Secretary or other lenders under this title that is insured or guaranteed in accordance with this subsection shall, when offered for sale to the public, be accompanied by

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