Page:United States Statutes at Large Volume 101 Part 2.djvu/831

 PUBLIC LAW 100-203—DEC. 22, 1987

101 STAT. 1330-37

"(B) 0.3 percent of original principal amount of loans that are insured by that agency and that are outstanding at the end of such preceding fiscal year; "(C) an amount which, when combined with all other parts of total agency reserves, equals 0.4 percent of such original principal amount; "(D) $500,000; or "(E) the amount required to comply with the reserve requirements of a State law as in effect on October 17, 1986. "(2)

RECOVERY OF EXCESS CASH RESERVES.—The Secretary

shall, not later than March 31, 1988, determine for each guaranty agency the maximum cash reserve permitted under paragraph (1) for fiscal year 1986. Subject to paragraphs (3) and (4), if the Secretary determines that any guaranty agency had, at the end of fiscal year 1986, a cash reserve that exceeded such maximum, the Secretary shall direct the agency to eliminate such excess by any one or more of the following methods, as selected by the guaranty agency: "(A) by repaying any advances to such agency made by the Secretary under this section that are not required to be repaid under subsection (d); '(B) by withholding and canceling claims for reimbursement otherwise payable under section 428(c)(1); "(C) by reducing the amount of payments for which application will be made by such agency under section 428(f); or "(D) by any other method of reducing payments from or increasing payments to the Federal Government, including payment of additional reinsurance fees in addition to the fees required by section 428(c)(9), as proposed by the agency and agreed to by the Secretary. "(3) APPEALS BASED ON SPECIAL CIRCUMSTANCES.—(A) If

the

Secretary determines, on the basis of an application from a guaranty agency, that— "(i) the agency's financial position has deteriorated significantly since the end of the preceding fiscal year; "(ii) significant changes in the economic circumstances (such as a change in agency current cash reserves) or the loan insurance program render the limitations of paragraph (1) inadequate for the continued functioning of the agency; or "(iii) in recovering funds as required by this subsection, a guaranty agency would be compelled to violate contractual obligations existing on the date of enactment of this subsection that require a specified level of reserve funds to be maintained by such agency; the Secretary may waive, in whole or in part, the imposition of the remedies required by paragraph (2) for such agency. "(B) The Secretary shall respond to request for waivers from guaranty agencies in an expedited manner and, except for unusual circumstances or with the consent of the guaranty agency, shall resolve such request within 6 weeks of submission. "(4) RECOVERY LIMITS.—The Secretary shall not require a total reduction of cash reserves for all guaranty agencies in excess of $250,000,000 during fiscal year 1988. If the total of cash reserves of all guaranty agencies exceeds the maximum amounts permitted under paragraph (1) by more than $250,000,000, the

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