‘‘(ii) Payments to the Government includ-
ing origination and other fees, penalties, and re-
coveries, including the effects of changes in loan 
terms resulting from the exercise by the guaran-
teed lender of an option included in the loan 
guarantee contract, or by the borrower of an op-
tion included in the guaranteed loan contract. 
‘‘(F) The cost of a modification is the sum of— 
‘‘(i) the difference between the current esti-
mate of the Treasury discounting component of 
the remaining cash flows under the terms of a 
direct loan or loan guarantee and the current es-
timate of the Treasury discounting component of 
the remaining cash flows under the terms of the 
contract, as modified; and 
‘‘(ii) the difference between the current esti-
mate of the risk component of the remaining 
cash flows under the terms of a direct loan or 
loan guarantee and the current estimate of the 
risk component of the remaining cash flows 
under the terms of the contract as modified. 
‘‘(G) In estimating Treasury discounting compo-
nents, the discount rate shall be the average interest 
rate on marketable Treasury securities of similar du-
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ration 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 in-
cludes all other cash flows to and from the Govern-
ment resulting from direct loan obligations or loan 
guarantee commitments made on or after October 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 
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October 1, 1991. These accounts shall be shown in the 
budget on a cash basis. 
‘‘(9) The term ‘modification’ means any Govern-
ment action that alters the estimated cost of an out-
standing direct loan (or direct loan obligation) or an 
outstanding loan guarantee (or loan guarantee com-
mitment) 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 di-
rect loan obligations) or loan guarantees (or loan 
guarantee commitments) such as a change in collec-
tion 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 expenses’ 
means servicing and other costs that are essential to 
preserve the value of loan assets or collateral. 
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‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 
REVIEW. 
‘‘(a) IN GENERAL.—For the executive branch, the Di-
rector shall be responsible for coordinating the estimates re-
quired by this title. The Director shall consult with the 
agencies that administer direct loan or loan guarantee pro-
grams. 
‘‘(b) DELEGATION.—The Director may delegate to 
agencies authority to make estimates of costs. The delegation 
of authority shall be based upon written guidelines, regula-
tions, 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 Congressional 
Budget Office. 
‘‘(d) IMPROVING COST ESTIMATES.—The Director and 
the Director of the Congressional Budget Office shall coordi-
nate the development of more accurate data on historical 
performance and prospective risk of direct loan and loan 
guarantee programs. They shall annually review the per-
formance of outstanding direct loans and loan guarantees 
to improve estimates of costs. The Office of Management and 
Budget and the Congressional Budget Office shall have ac-
cess to all agency data that may facilitate the development 
and improvement of estimates of costs. 
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