Page:United States Statutes at Large Volume 88 Part 2.djvu/951

 88

STAT.

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PUBLIC LAW 93-641-JAN. 4, 1975

2267

Agreements with "(3)(A) The Secretary is authorized to enter into an agreement loan purchaser. with the purchaser of any loan sold under this part under which the Secretary agrees— "(i) to guarantee to such purchaser (and any successor in interest to such purchaser) payments of the principal and interest payable under such loan, and "(ii) to pay as an interest subsidy to such purchaser (and any successor in interest of such purchaser) amounts which, when added to the amount of interest payable on such loan, are equivalent to a reasonable rate of interest on such loan as determined by the Secretary after taking into account the range of prevailing interest rates in the private market on similar loans and the risks assumed by the United States. " (B) Any agreement under subparagraph (A) — "(i) may provide that the Secretary shall act as agent of any such purchaser, for the purpose of collecting from the entity to which such loan was made and paying over to such purchaser any payments of principal and interest payable by such entity under such loan; "(ii) may provide for the repurchase by the Secretary of any such loan on such terms and conditions as may be specified in the agreement; "(iii) shall provide that, in the event of any default by the entity to which such loan was made in payment of principal or interest due on such loan, the Secretary shall, upon notification to the purchaser (or to the successor in interest of such purchaser), have the option to close out such loan (and any obligations of the Secretary with respect thereto) by paying to the purchaser (or his successor in interest) the total amount of outstandiniy principal and interest due thereon at the time of such notification; and "(iv) shall provide that, in the event such loan is closed out as provided in clause (iii), or in the event of any other loss incurred by the Secretary by reason of the failure of such entity to make payments of principal or interest on such loan, the Secretary shall be subrogated to all rights of such purchaser for recovery of such loss from such entity. "(4) Amounts received by the Secretary as proceeds from the sale of loans under this subsection shall be deposited in the fund established under subsection (d). " (d)(1) There is established in the Treasury a loan and loan guar- ^^"^"^ ^"/ ^"^'"" antee fund (hereinafter in this subsection referred to as the 'fund') ""VsLblishment. which shall be available to the Secretary without fiscal year limitation, in such amounts as may be specified from time to time in appropriation Acts— " (A) to enable him to make loans under this part, " (B) to enable him to discharge his responsibilities under loan guarantees issued by him under this part, " (C) for payment of interest under section 1620(b)(2) on loans guaranteed under this part, " (D) for repurchase of loans under subsection (c)(3)(B), and " (E) for payment of interest on loans which are sold and guaranteed. There are authorized to be appropriated from time to time such Appropriation. amounts as may be necessary to provide the sums required for the fund. There shall also be deposited in the fund amounts received by the Secretary in connection with loans and loan guarantees under this part and other property or assets derived by him from his operations

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