808 
teed portion of the loan represented by the 
certificate. 
‘‘(K) PAYMENT OF CLAIMS.—If the Sec-
retary pays a claim under a guarantee issued 
under this subsection, the claim shall be sub-
rogated fully to the rights satisfied by the pay-
ment, as may be provided by the Secretary. 
‘‘(L) APPLICATION OF LAWS.—No State or 
local law, and no Federal law, shall preclude or 
limit the exercise by the Secretary of the owner-
ship rights of the Secretary in the portions of 
loans constituting the pool against which the 
certificates are issued. 
‘‘(3) DUTIES OF THE SECRETARY.— 
‘‘(A) IN
GENERAL.—On the adoption of 
final rules and regulations, the Secretary 
shall— 
‘‘(i) provide for the central collection 
of registration information from all partici-
pating market makers for all loans and 
pool certificates sold under paragraphs (1) 
and (2), including, with respect to each 
original sale and any subsequent sale— 
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‘‘(I) identification of the interest 
rate paid by the borrower to the lend-
er; 
‘‘(II) the servicing fee of the 
lender; 
‘‘(III) disclosure of whether in-
terest on the loan is at a fixed or vari-
able rate; 
‘‘(IV) identification of each pur-
chaser of a pool certificate; 
‘‘(V) the interest rate paid on the 
certificate; and 
‘‘(VI) such other information as 
the Secretary considers appropriate. 
‘‘(ii) before any sale, require the seller 
(as defined in subparagraph (B)) to dis-
close to each prospective purchaser of the 
portion of a loan guaranteed under this 
title and to each prospective purchaser of 
a pool certificate issued under paragraph 
(2) information on the terms, conditions, 
and yield of such instrument; 
‘‘(iii) provide for adequate custody of 
any pooled guaranteed loans; 
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‘‘(iv) take such actions as are nec-
essary, in restructuring pools of the guar-
anteed portion of loans, to minimize the es-
timated costs of paying claims under guar-
antees issued under this subsection; 
‘‘(v) require each market maker— 
‘‘(I) to service all pools formed, 
and participations sold, by the market 
maker; and 
‘‘(II) to provide the Secretary 
with information relating to the collec-
tion and disbursement of all periodic 
payments, prepayments, and default 
funds from lenders, to or from the re-
serve fund that the Secretary shall es-
tablish to enable the timely payment 
guarantee to be self-funding, and 
from all beneficial holders; and 
‘‘(vi) regulate market makers in pool 
certificates sold under this subsection. 
‘‘(B) DEFINITION OF SELLER.—For pur-
poses of subparagraph (A)(ii), if the instrument 
being sold is a loan, the term ‘seller’ does not 
include— 
‘‘(i) the person who made the loan; or 
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‘‘(ii) any person who sells 3 or fewer 
guaranteed loans per year. 
‘‘(4) CONTRACT FOR SERVICES.—The Secretary 
may contract for goods and services to be used for 
the purposes of this subsection without regard to ti-
tles 5, 40, and 41, United States Code (including 
any regulations issued under those titles). 
‘‘SEC. 3903. ADMINISTRATION. 
‘‘(a) POWERS
OF
SECRETARY.—The Secretary 
may— 
‘‘(1)(A) administer the powers and duties of the 
Secretary through such national, area, State, or 
local offices and employees in the United States as 
the Secretary determines to be necessary; and 
‘‘(B) authorize an office to serve an area com-
posed of 2 or more States if the Secretary deter-
mines that the volume of business in the area is not 
sufficient to justify separate State offices; 
‘‘(2)(A) accept and use voluntary and uncom-
pensated services; and 
‘‘(B) with the consent of the agency concerned, 
use the officers, employees, equipment, and informa-
tion of any agency of the Federal Government, or of 
any State, territory, or political subdivision; 
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