Page:United States Statutes at Large Volume 118.djvu/680

 118 STAT. 650 PUBLIC LAW 108–232—MAY 28, 2004 ‘‘(i) ORDINARY RULES INAPPLICABLE.—Except as provided under clause (ii) and paragraph (5), a quali fied high loss reserve PCL that makes the election described in subparagraph (A) with respect to a cal endar quarter shall not be required to make contribu tions to its loss reserve during such quarter. ‘‘(ii) BASED ON LOSS.—A qualified high loss reserve PCL that makes the election described in subparagraph (A) with respect to any calendar quarter shall, before the last day of such quarter, make such contributions to its loss reserve as are necessary to ensure that the amount of the loss reserve of the PCL is— ‘‘(I) not less than $100,000; and ‘‘(II) sufficient, as determined by a qualified independent auditor, for the PCL to meet its obligations to protect the Federal Government from risk of loss. ‘‘(iii) CERTIFICATION.—Before the end of any cal endar quarter for which an election is in effect under subparagraph (A), the head of the PCL shall submit to the Administrator a certification that the loss reserve of the PCL is sufficient to meet such PCL’s obligation to protect the Federal Government from risk of loss. Such certification shall be in such form and submitted in such manner as the Administrator may require and shall be signed by the head of such PCL and the auditor making the determination under clause (ii)(II). ‘‘(C) DISBURSEMENTS.— ‘‘(i) ORDINARY RULE INAPPLICABLE.—Paragraph (6) shall not apply with respect to any qualified high loss reserve PCL for any calendar quarter for which an election is in effect under subparagraph (A). ‘‘(ii) EXCESS FUNDS.—At the end of each calendar quarter for which an election is in effect under subpara graph (A), the Administration shall allow the qualified high loss reserve PCL to withdraw from its loss reserve the excess of— ‘‘(I) the amount of the loss reserve, over ‘‘(II) the greater of $100,000 or the amount which is determined under subparagraph (B)(ii) to be sufficient to meet the PCL’s obligation to protect the Federal Government from risk of loss. ‘‘(D) RECONTRIBUTION.—If the requirements of this paragraph apply to a qualified high loss reserve PCL for any calendar quarter and cease to apply to such PCL for any subsequent calendar quarter, such PCL shall make a contribution to its loss reserve in such amount as the Administrator may determine provided that such amount does not exceed the amount which would result in the total amount in the loss reserve being equal to the amount which would have been in such loss reserve had this para graph never applied to such PCL. The Administrator may require that such payment be made as a single payment or as a series of payments. ‘‘(E) RISK MANAGEMENT.—If a qualified high loss reserve PCL fails to meet the requirement of subparagraph Applicability.

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