Page:United States Statutes at Large Volume 108 Part 1.djvu/394

 108 STAT. 368 PUBLIC LAW 103-233—APR. 11, 1994 Federal Register, publication. Effective date. 42 USC 5318 note. issuance of a notice implementing this subsection. A grantee may receive as a grant under this subsection— "(1) 33 percent of such unexpended amounts if— "(A) the grantee agrees to expend not less than onehalf of the amount received for activities authorized pursuant to section 108(q) and to expend such funds in conjunction with a loan guarantee made under section 108 at least equal to twice the amount of the funds received; and "(B)(i) the remainder of the amount received is used for economic development activities eligible under title I of this Act; and "(ii) except when waived by the Secretary in the case of a severely distressed jurisdiction, not more than onehalf of the costs of activities under subparagraph (B) are derived from such unexpended amounts; or "(2) 25 percent of such unexpended amounts if— "(A) the grantee agrees to expend such funds for economic development activities eligible under title I of this Act; and "(B) except when waived by the Secretary in the case of a severely distressed jurisdiction, not more than onehalf of the costs of such activities are derived from such unexpended amount.". (2) IMPLEMENTATION.—Not later than 10 days after the date of enactment of this Act, the Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this subsection. SEC. 233. GUARANTEE OF OBLIGATIONS BACKED BY SECTION 108 LOANS. Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding after subsection (q) (as added by section 232(a)(1) of this Act) the following new subsection: "(r) GUARANTEE OF OBLIGATIONS BACKED BY LOANS.— "(1) AUTHORITY. — The Secretmy may, upon such terms and conditions as the Secretary considers appropriate, guarantee the timely payment of the principal of and interest on such trust certificates or other obligations as may— "(A) be offered by the Secretary or by any other offeror approved for purposes of this subsection by the Secretary; and "(B) be based on and backed by a trust or pool composed of notes or other obligations guaranteed or eligible for guarantee by the Secretary under this section. "(2) FULL FAITH AND CREDIT.—To the same extent as provided in subsection (f), the full faith and credit of the United States is pledged to the payment of all amounts that may be required to be paid under any guarantee made by the Secretary under this subsection. "(3) SUBROGATION.— If the Secretary pays a claim under a guarantee made under this section, the Secretary shall be subrogated for all the rights of the holder of the guaranteed certificate or obligation with respect to such certificate or obligation.

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