Page:United States Statutes at Large Volume 104 Part 2.djvu/1018

 104 STAT. 1388-610 PUBLIC LAW 101-508 —NOV. 5, 1990 "TITLE V—CREDIT REFORM Federal Credit Reform Act of 1990. 2 USC 621 note. "SEC. 500. SHORT TITLE. "This title may be cited as the 'Federal Credit Reform Act of 1990'. 2 USC 661. " SEC. 501. PURPOSES. 'The purposes of this title are to— "(1) measure more accurately the costs of Federal credit programs; "(2) place the cost of credit programs on a budgetary basis equivalent to other Federal spending; "(3) encourage the delivery of benefits in the form most appropriate to the needs of beneficiaries; and "(4) improve the allocation of resources among credit programs and between credit and other spending programs. 2 USC 661a. "SEC. 502. DEFINITIONS. 'For purposes of this title— "(1) The term 'direct loan' means a disbursement of funds by the Government to a non-Federal borrower under a contract that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in, a loan made by another lender. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price support loans of the Commodity Credit Corporation, "(2) The term 'direct loan obligation' meems a binding agreement by a Federal agency to make a direct loan when specified conditions are fulfilled by the borrower. "(3) The term 'loan guarantee' means any guarantee, insurance, or other pledge with respect to the payment of all or a part of the principal or interest on any debt obligation of a non- Federal borrower to a non-Federal lender, but does not include the insurance of deposits, shares, or other withdrawable accounts in financial institutions. "(4) The term 'loan guarantee commitment' means a binding agreement by a Federal agency to make a loan guarantee when specified conditions are fulfilled by the borrower, the lender, or any other party to the guarantee agreement. "(5)(A) 'The term 'cost' means the estimated long-term cost to the Government of a direct loan or loan guarantee, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays. "(B) The cost of a direct loan shall be the net present value, at the time when the direct loan is disbursed, of the following cash flows: "(i) loan disbursements; "(ii) repayments of principal; and "(iii) payments of interest and other payments by or to the Government over the life of the loan after adjusting for estimated defaults, prepayments, fees, penalties and other recoveries. "(C) The cost of a loan guarantee shall be the net present value when a guaranteed loan is disbursed of the cash flow from—

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