Page:United States Statutes at Large Volume 111 Part 1.djvu/718

 Ill STAT. 694 PUBLIC LAW 105-33—AUG. 5, 1997 (2) In subsection (b)(2), strike "is enacted" and insert "has been provided in advance in an appropriations Act". (3) In subsection (c), strike "Subsection (b)" and insert "Subsections (b) and (e)". ^ (4) In subsection (d)(1), strike "directly or indirectly alter the costs of outstanding direct loans and loan guarantees" and insert "modify outstanding direct loans (or direct loan obligations) or loan guarantees (or loan guarantee commitments)". (5) Amend subsection (e) to read as follows: "(e) MODIFICATIONS. — An outstanding direct loan (or direct loan obligation) or loan guarantee (or loan guarantee commitment) shall not be modified in a manner that increases its costs unless budget authority for the additional cost has been provided in advance in an appropriations Act.". (c) SECTION 505. —Section 505 of the Federal Credit Reform 2 USC 66ld. Act of 1990 is amended as follows: (1) In subsection (c), by inserting before the period at the end of the second sentence the following: ", except that the rate of interest charged by the Secretary on lending to financing accounts (including amounts treated as lending to financing accounts by the Federal Financing Bank (hereinafter in this subsection referred to as the 'Bank') pursuant to section 406(b)) and the rate of interest paid to financing accounts on uninvested balances in financing accounts shall be the same as the rate determined pursuant to section 502(5)(E). For guaranteed loans financed by the Bank and treated as direct loans by a Federal agency pursuant to section 406(b), any fee or interest surcharge (the amount by which the interest rate charged exceeds the rate determined pursuant to section 502(5)(E)) that the Bank charges to a private borrower pursuant to section 6(c) of the Federal Financing Bank Act of 1973 shall be considered a cash flow to the Government for the purposes of determining the cost of the direct loan pursuant to section 502(5). All such amounts shall be credited to the appropriate financing account. The Bank is authorized to require reimbursement from a Federal agency to cover the administrative expenses of the Bank that are attributable to the direct loans financed for that agency. All such payments by an agency shall be considered administrative expenses sub- Applicability, ject to section 504(g). This subsection shall apply to transactions related to direct loan obligations or loan guarantee commitments made on or after October 1, 1991". (2) In subsection (c), by striking "supercede" and inserting "supersede". (3) By amending subsection (d) to read as follows: " (d) AUTHORIZATION FOR LIQUIDATING ACCOUNTS. — (1) Amounts in liquidating accounts shall be available only for payments resulting from direct loan obligations or loan guarantee commitments made prior to October 1, 1991, for— "(A) interest payments and principal repayments to the Treasury or the Federal Financing Bank for amounts borrowed; "(B) disbursements of loans; "(C) default and other guarantee claim payments; "(D) interest supplement payments;

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