duration to the cash flows of the direct loan or loan 
guarantee for which the estimate is being made. 
‘‘(H) When funds are obligated for a direct loan 
or loan guarantee, the estimated cost shall be based 
on the current assumptions, adjusted to incorporate 
the terms of the loan contract, for the fiscal year in 
which the funds are obligated. 
‘‘(6) The term ‘program account’ means the 
budget account into which an appropriation to cover 
the cost of a direct loan or loan guarantee program 
is made and from which such cost is disbursed to 
the financing account. 
‘‘(7) The term ‘financing account’ means the 
nonbudget account or accounts associated with each 
program account which holds balances, receives the 
cost payment from the program account, and also 
includes all other cash flows to and from the Gov-
ernment resulting from direct loan obligations or 
loan guarantee commitments made on or after Octo-
ber 1, 1991. 
‘‘(8) The term ‘liquidating account’ means the 
budget account that includes all cash flows to and 
from the Government resulting from direct loan obli-
gations or loan guarantee commitments made prior
to October 1, 1991. These accounts shall be shown 
in the budget on a cash basis. 
‘‘(9) The term ‘modification’ means any Gov-
ernment action that alters the estimated cost of an 
outstanding direct loan (or direct loan obligation) or 
an outstanding loan guarantee (or loan guarantee 
commitment) from the current estimate of cash 
flows. This includes the sale of loan assets, with or 
without recourse, and the purchase of guaranteed 
loans (or direct loan obligations) or loan guarantees 
(or loan guarantee commitments) such as a change 
in collection procedures. 
‘‘(10) The term ‘current’ has the same meaning 
as in section 250(c)(9) of the Balanced Budget and 
Emergency Deficit Control Act of 1985. 
‘‘(11) The term ‘Director’ means the Director 
of the Office of Management and Budget. 
‘‘(12) The term ‘administrative costs’ means 
costs related to program management activities, but 
does not include essential preservation expenses. 
‘‘(13) The term ‘essential preservation ex-
penses’ means servicing and other costs that are es-
sential to preserve the value of loan assets or collat-
eral.
‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 
REVIEW. 
‘‘(a) IN GENERAL.—For the executive branch, the 
Director shall be responsible for coordinating the esti-
mates required by this title. The Director shall consult 
with the agencies that administer direct loan or loan guar-
antee programs. 
‘‘(b) DELEGATION.—The Director may delegate to 
agencies authority to make estimates of costs. The delega-
tion of authority shall be based upon written guidelines, 
regulations, or criteria consistent with the definitions in 
this title. 
‘‘(c) COORDINATION WITH
THE CONGRESSIONAL 
BUDGET OFFICE.—In developing estimation guidelines, 
regulations, or criteria to be used by Federal agencies, the 
Director shall consult with the Director of the Congres-
sional Budget Office. 
‘‘(d) IMPROVING COST ESTIMATES.—The Director 
and the Director of the Congressional Budget Office shall 
coordinate the development of more accurate data on his-
torical performance and prospective risk of direct loan and 
loan guarantee programs. They shall annually review the 
performance of outstanding direct loans and loan guaran-
tees to improve estimates of costs. The Office of Manage-
ment and Budget and the Congressional Budget Office
shall have access to all agency data that may facilitate 
the development and improvement of estimates of costs. 
‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 
Director shall review, to the extent possible, historical data 
and develop the best possible estimates of adjustments 
that would convert aggregate historical budget data to 
credit reform accounting. 
‘‘SEC. 504. BUDGETARY TREATMENT. 
‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 
year 1992, the President’s budget shall reflect the Treas-
ury discounting component of direct loan and loan guar-
antee programs. Beginning with fiscal year 2015, the 
President’s budget shall reflect the costs of direct loan and 
loan guarantee programs. The budget shall also include 
the planned level of new direct loan obligations or loan 
guarantee commitments associated with each appropria-
tions request. 
‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 
any other provision of law, new direct loan obligations may 
be incurred and new loan guarantee commitments may be 
made for fiscal year 1992 and thereafter only to the extent 
that— 
‘‘(1) new budget authority to cover their costs 
is provided in advance in an appropriation Act;