Page:United States Statutes at Large Volume 92 Part 1.djvu/148

 92 STAT. 94

Annual report to Congress.

15 USC 2509.

Payments.

Defaults, recovery by Attorney General.

PUBLIC LAW 95-238—FEB. 25, 1978 notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. "(D) Business-type financial reports covering the operations of the fund shall be submitted to the Congress by the Administrator annually upon the completion of the appropriate accounting period.". (2) Section 10 of such Act is further amended by adding at the end thereof the following new subsection: "(j) The full faith and credit of the United States is pledged to the payment of all obligations incurred under this section.". (b) Section 10(g) of such Act (15 U.S.C. 2509(g)) is amended to read as follows: "(g)(1) With respect to any loan guaranteed pursuant to this section, the Administrator is authorized to enter into a contract to pay, and to pay, the lender for and on behalf of the borrower the principal and interest charges which become due and payable on the unpaid balance of such loan if the Administrator finds— " (A) that the borrower is unable to meet principal and interest charges, that it is in the public interest to permit the borrower to continue to pursue the purposes of the project, and that the probable net cost to the Federal Government in paying such principal will be less than that which would result in the event of a default; and "(B) that the amount of such principal and interest charges which the Administrator is authorized to pay shall be no greater than the amount of principal and interest which the borrower is obligated to pay under the loan agreement. "(2) In the event of any default by a qualified borrower on a guaranteed loan, the Administrator is authorized to make payment in accordance with the guarantee, and the Attorney General shall take such action as may be appropriate to recover the amounts of such payments (including any payment of principal and interest under paragraph (1)) from such assets of the defaulting borrower as are associated with the activity with respect to which the loan was made or from any other surety included in the terms of the guarantee.". (c) Section 10(h) of such Act (15 U.S.C. 2509(h)) is amended by striking out "the 5-year period" and inserting in lieu thereof "the 7-year period". Approved February 25, 1978.

LEGISLATIVE HISTORY: SENATE REPORT No. 95-179 (Comm. on Energy and Natural Resources). CONGRESSIONAL RECORD: Vol. 123 (1977): June 13, considered and passed Senate. December 7, considered and passed House, amended. Vol. 124 (1978): Feb. 8, Senate concurred in House amendment.

�