override the authority of the head of a Federal agency 
to administer and operate a direct loan or loan guar-
antee program. 
‘‘(5) TITLE 31.—All of the transactions provided 
in the subsection shall be subject to the provisions of 
subchapter II of chapter 15 of title 31, United States 
Code. 
‘‘(6) TREATMENT
OF
CASH
BALANCES.—Cash 
balances of the financing accounts in excess of current 
requirements shall be maintained in a form of 
uninvested funds and the Secretary of the Treasury 
shall pay interest on these funds. The Secretary of the 
Treasury shall charge (or pay if the amount is nega-
tive) financing accounts an amount equal to the risk 
component for a direct loan or loan guarantee, or 
modification thereof. Such amount received by the 
Secretary of the Treasury shall be a means of financ-
ing and shall not be considered a cash flow of the 
Government for the purposes of section 502(5). 
‘‘(c) 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— 
VerDate Mar 15 2010 
23:31 Jan 31, 2012
Jkt 019200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H3581.RH
H3581
srobinson on DSK4SPTVN1PROD with BILLS
‘‘(A) interest payments and principal repay-
ments to the Treasury or the Federal Financing Bank 
for amounts borrowed; 
‘‘(B) disbursements of loans; 
‘‘(C) default and other guarantee claim pay-
ments; 
‘‘(D) interest supplement payments; 
‘‘(E) payments for the costs of foreclosing, man-
aging, and selling collateral that are capitalized or 
routinely deducted from the proceeds of sales; 
‘‘(F) payments to financing accounts when re-
quired for modifications; 
‘‘(G) administrative costs and essential preserva-
tion expenses, if— 
‘‘(i) amounts credited to the liquidating ac-
count would have been available for administra-
tive costs and essential preservation expenses 
under a provision of law in effect prior to Octo-
ber 1, 1991; and 
‘‘(ii) no direct loan obligation or loan guar-
antee commitment has been made, or any modi-
fication of a direct loan or loan guarantee has 
been made, since September 30, 1991; or 
VerDate Mar 15 2010 
23:31 Jan 31, 2012
Jkt 019200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H3581.RH
H3581
srobinson on DSK4SPTVN1PROD with BILLS
‘‘(H) such other payments as are necessary for 
the liquidation of such direct loan obligations and 
loan guarantee commitments. 
‘‘(2) Amounts credited to liquidating accounts in any 
year shall be available only for payments required in that 
year. Any unobligated balances in liquidating accounts at 
the end of a fiscal year shall be transferred to miscellaneous 
receipts as soon as practicable after the end of the fiscal 
year. 
‘‘(3) If funds in liquidating accounts are insufficient 
to satisfy obligations and commitments of such accounts, 
there is hereby provided permanent, indefinite authority to 
make any payments required to be made on such obligations 
and commitments. 
‘‘(d) REINSURANCE.—Nothing in this title shall be 
construed as authorizing or requiring the purchase of insur-
ance or reinsurance on a direct loan or loan guarantee from 
private insurers. If any such reinsurance for a direct loan 
or loan guarantee is authorized, the cost of such insurance 
and any recoveries to the Government shall be included in 
the calculation of the cost. 
‘‘(e) ELIGIBILITY AND ASSISTANCE.—Nothing in this 
title shall be construed to change the authority or the re-
sponsibility of a Federal agency to determine the terms and 
VerDate Mar 15 2010 
23:31 Jan 31, 2012
Jkt 019200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H3581.RH
H3581
srobinson on DSK4SPTVN1PROD with BILLS