Page:United States Statutes at Large Volume 86.djvu/703

 86 STAT. ]

PUBLIC LAW 92-419~AUG. 30, 1972

661

(b) Section U)i) of such Act is anieiided by iiddijig at the e]id thereof ^"'®' P- ^^°the following new subsections: " (g)(1) The assets and liabilities of, and authorizations applicable Transfer of to, the Farmers Home Administration direct loan account created by ^"""^s. section 338(c) and the Emergency Credit RevolviD#-ftind referred to 7°u|*c*1988^' in section 326 are hereby transferred to the fundTand such account and 7 USC igee'. such revolving fund are hereby abolished. Such assets and their proceeds, including loans made out of the fund pursuant to this section, shall be subject to the provisions of this section, section 308, the last ^ use 1928. sentence of section 3 0 6 (a)(1), and the last sentence of section 307. 1^2"^*^ ^^^^' "(2) From time to time, and at least at the close of each fiscal year, the Secretary shall pay from the fund into the Treasury as miscellaneous receipts interest on the value as determined by the Secretary, with the approval of the Comptroller General, of the Government's equity transferred to the fund pursuant to the first sentence of this subsection plus the cumulative amount of appropriations made available after enactment of this provision as capital and for administration of the programs financed from the fund, less the average undisbursed cash balance in the fund during the year. The rate of such interest shall be determined by the Secretary of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of loans made or insured from the fund, adjusted to the nearest one-eighth of 1 per centum. Interest payments may be deferred with the approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves bear interest. If at any time the Secretary determines that moneys in the fund exceed present and any reasonably prospective future requirements of the fund, such excess may be transferred to the general fund of the Treasury. " (h) The Secretary may provide financial assistance to borrowers loan^^'^^^^'^ for purposes provided in this title by guaranteeing loans made by any °^"^' Federal or State chartered bank, savings and loan association, coopera' ,. five lending agency, or other legally organized lending agenc}^" SEC. 116. KURAL DEVELOPMENT INSURANCE FUND.—The Consolidated Farmers Home Administration Act of 1961 is amended by inserting the following new section after section 309: supra. "SEC. 309A. (a) There is hereby created the Rural Development Insurance Fund (hereinafter in this section referred to as the 'Insurance Fund") which shall be used by the Secretary as a revolving fund for the discharge of the obligations of the Secretary under contracts guaranteeing or insuring rural development loans. For the purpose of "Rural developthis section 'rural development loans' shall be those provided for by sec- ""^"^ lo^ns." tions 304(b), 306(a)(1), 310B, and 312(b), except loans Cother than J^'^^' P- ^^-^ for water systems and waste disposal facilities) of a type authorized 665^^ ' ^^' by section 306(a)(1) prior to its amendment by the Rural Development Act of 1972. " (b) The assets and liabilities of the Agricultural Credit Insurance fuJds"^^^'^ °^ Fund referred to in section 309(a) applicable to loans for water systems "7 USC 1929. and waste disposal facilities under section 306(a)(1) are hereby transferred to the Insurance Fund. Such assets (including the proceeds thereof) and liabilities and rural development loans guaranteed or insured pursuant to this title shall be subject to the provisions of this section and section 308. "(c) Moneys in the Insurance Fund not needed for current operations shall be deposited in the Treasury of the United States to the credit of the Insurance Fund or invested in direct obligations of the United States or obligations guaranteed by the United States. The Sec- ;„^°';^l'„f"f,'''^^^' retary may purchase with money in the Insurance Fund any notes ing authority. issued by the Secretary to the Secretary of the Treasury for the purpose of obtaining money for the Insurance Fund.

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