Page:United States Statutes at Large Volume 100 Part 2.djvu/254

 100 STAT. 1356

PUBLIC LAW 99-498—OCT. 17, 1986 making payments under the State's insurance obligations under such program. "(2) AMOUNT OF ADVANCES.—(A) Except

as provided

in

subparagraph (B), the amount to be advanced to each such State shall be equal to 10 percent of the principal amount of loans made by lenders and insured by such agency on those loans on which the first payment of principal became due during the fiscal year immediately preceding the fiscal year in which the advance is made. "(B) The amount of any advance determined according to subparagraph (A) of this paragraph shall be reduced by— "(i) the amount of any advance or advances made to such I State pursuant to this subsection at an earlier date; and "(ii) the amount of the unspent balance of the advances made to a State pursuant to subsection (a). Notwithstanding subparagraph (A) and the preceding sentence of this subparagraph, but subject to subparagraph (D) of this paragraph, the amount of any advance to a State described in paragraph (5)(A) for the first year of its eligibility under such paragraph, and the amount of any advance to any State described in paragraph (5)(B) for each year of its eligibility under such paragraph, shall not be less than $50,000. "(C) For the purpose of subparagraph (B), the unspent balance of the advances made to a State pursuant to subsection (a) shall be that portion of the balance of the State's reserve fund (remaining at the time of the State's first request for an advance pursuant to this subsection) which bears the same ratio to such balance as the Federal advances made and not returned by such State, pursuant to subsection (a), bears to the total of all past contributions to such reserve funds from all sources (other than interest on investment of any portion of the reserve fund) contributed since the date such State executed an agreement pursuant to section 4280t)). "(D) If the sums appropriated for any fiscal year for paying the amounts determined under subparagraphs (A) and (B) are not sufficient to pay such amounts in full, then such amounts shall be reduced— "(i) by ratably reducing that portion of the amount allocated to each State which exceeds $50,000; and "(ii) if further reduction is required, by equally reducing the $50,000 minimum allocation of each State. If additional sums become available for paying such amounts for any fiscal year during which the preceding sentence has been applied, such reduced amounts shall be increased on the same basis as they were reduced. "(3) USE OF EARNINGS FOR INSURANCE OBLIGATIONS.—The earnings, if any, on any investments of advances received pursuant to this subsection must be used for making payments under the State's insurance obligations. "(4) REPAYMENT OF ADVANCES.—Advances made by the Secretary under this subsection shall, subject to subsection (d), be repaid within such period as the Secretary may deem to be appropriate and shall be deposited in the fund established by section 431. "(5) LIMITATION ON NUMBER OF ADVANCES.—Advances puisu-

ant to this subsection shall be made to a State—

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