Page:United States Statutes at Large Volume 110 Part 1.djvu/569

 PUBLIC LAW 104-106—FEB. 10, 1996 110 STAT. 545 "(7) The term 'United States' includes the Commonwealth of Puerto Rico. "§ 2872. General authority "In addition to any other authority provided under this chapter for the acquisition or construction of military family housing or military unaccompanied housing, the Secretary concerned may exercise any authority or any combination of authorities provided under this subchapter in order to provide for the acquisition or construction by private persons of the following: "(1) Family housing units on or near military installations within the United States and its territories and possessions. "(2) Military unaccompanied housing units on or near such military installations. "§ 2873. Direct loans and loan guarantees "(a) DIRECT LOANS.— (1) Subject to subsection (c), the Secretary concerned may make direct loans to persons in the private sector in order to provide funds to such persons for the acquisition or construction of housing units that the Secretary determines are suitable for use as military family housing or as military unaccompanied housing. "(2) The Secretary concerned shall establish such terms and conditions with respect to loans made under this subsection as the Secretary considers appropriate to protect the interests of the United States, including the period and frequency for repayment of such loans and the obligations of the obligors on such loans upon default. "(b) LOAN GUARANTEES. — (1) Subject to subsection (c), the Secretary concerned may guarantee a loan made to any person in the private sector if the proceeds of the loan are to be used by the person to acquire, or construct housing units that the Secretary determines are suitable for use as military family housing or as military unaccompanied housing. "(2) The amount of a guarantee on a loan that may be provided under paragraph (1) may not exceed the amount equal to the lesser of— "(A) the amount equal to 80 percent of the value of the project; or "(B) the amount of the outstanding principal of the loan. "(3) The Secretary concerned shall establish such terms and conditions with respect to guarantees of loans under this subsection as the Secretary considers appropriate to protect the interests of the United States, including the rights and obligations of obligors of such loans and the rights and obligations of the United States with respect to such guarantees. " (c) LIMITATION ON DIRECT LOAN AND GUARANTEE AUTHORITY.— Direct loans and loan guarantees may be made under this section only to the extent that appropriations of budget authority to cover their cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) are made in advance, or authority is otherwise provided in appropriation Acts. If such appropriation or other authority is provided, there may be established a financing account (as defined in section 502(7) of such Act (2 U.S.C. 661a(7))), which shall be available for the disbursement of direct loans or payment of claims for payment on loan guarantees under this

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