Source: https://budgetcounsel.com/laws-and-rules/congressional-budget-act-of-1974-2/%C2%A7155-section-505-credit-reform-authorizations/
Timestamp: 2019-04-19 08:46:08+00:00

Document:
(a) Authorization for Costs.—There are authorized to be appropriated to each Federal agency authorized to make direct loan obligations or loan guarantee commitments, such sums as may be necessary to pay the cost associated with such direct loan obligations or loan guarantee commitments.
(b) Authorization for Financing Accounts.—In order to implement the accounting required by this title, the President is authorized to establish such non-budgetary accounts as may be appropriate.
(c) Treasury Transactions with the Financing Accounts.—The Secretary of the Treasury shall borrow from, receive from, lend to, or pay to the financing ac­counts such amounts as may be appropriate. The Secretary of the Treasury may prescribe forms and denominations, maturities, and terms and conditions for the transactions described above, except that the rate of interest charged by the Secretary on lending to financing accounts (includ­ing amounts treated as lending to financing accounts by the Federal Financing Bank (hereinafter in this subsection referred to as the “Bank”) pursuant to section 405(b)) and the rate of interest paid to financing accounts on unin­vested balances in financing accounts shall be the same as the rate determined pursuant to section 502(5)(E). For guaranteed loans financed by the Bank and treated as direct loans by a Federal agency pursuant to section 405(b), any fee or interest surcharge (the amount by which the interest rate charged exceeds the rate determined pursuant to sec­tion 502(5)(E)) that the Bank charges to a private borrower pursuant to section 6(c) of the Federal Financing Bank Act of 1973 shall be considered a cash flow to the Government for the purposes of determining the cost of the direct loan pursuant to section 502(5). All such amounts shall be cred­ited to the appropriate financing account. The Bank is au­thorized to require reimbursement from a Federal agency to cover the administrative expenses of the Bank that are attributable to the direct loans financed for that agency. All such payments by an agency shall be considered administrative expenses subject to section 504(g). This subsection shall apply to transactions related to direct loan obligations or loan guarantee commitments made on or after October 1, 1991. The authorities described above shall not be construed to supersede or override the authority of the head of a Federal agency to administer and operate a direct loan or loan guarantee program. All of the transactions provided in this subsection shall be subject to the provisions of subchapter II of chapter 15 of title 31, United States Code. 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.
(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.
(e) Authorization of Appropriations For Implementation Expenses.—There are authorized to be appropriated to existing accounts such sums as may be necessary for salaries and expenses to carry out the responsibilities under this title.
(f) Reinsurance.—Nothing in this title shall be construed as authorizing or requiring the purchase of insurance 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.
(g) Eligibility and Assistance.—Nothing in this title shall be construed to change the authority or the responsibility of a Federal agency to determine the terms and conditions of eligibility for, or the amount of assistance provided by a direct loan or a loan guarantee.
 This section is classified to the U.S. Code at 2 U.S.C. 661d.
Pub. L. 101–508, title XIII, §13201(a), Nov. 5, 1990, 104 Stat. 1388–613 (Budget Enforcement Act of 1990) added §505 to Pub. L. 93–344, title V of the Congressional Budget Act of 1974).
Pub. L. 105–33, title X, §10117(c), Aug. 5, 1997, 111 Stat. 694 (Budget Enforcement Act of 1997).
Pub. L. 113–67, div. A, title I, §122(15), Dec. 26, 2013, 127 Stat. 1176 (Bipartisan Budget Act of 2013) amended subsection (c) and (d) of §505.
Pub. L. 113–67 made technical amendment to reference in original act which appears in text as reference to section 655(b) of this title.
Pub. L. 105–33, §10117(c)(2), substituted “supersede” for “supercede”.
Pub. L. 105–33, §10117(c)(1), inserted before period at end of second sentence “, except that the rate of interest charged by the Secretary on lending to financing accounts (including amounts treated as lending to financing accounts by the Federal Financing Bank (hereinafter in this subsection referred to as the ‘Bank’) pursuant to section 655(b) of this title) and the rate of interest paid to financing accounts on uninvested balances in financing accounts shall be the same as the rate determined pursuant to section 661a(5)(E) of this title. For guaranteed loans financed by the Bank and treated as direct loans by a Federal agency pursuant to section 655(b) of this title, any fee or interest surcharge (the amount by which the interest rate charged exceeds the rate determined pursuant to section 661a(5)(E) of this title) that the Bank charges to a private borrower pursuant to section 2285(c) of title 12 shall be considered a cash flow to the Government for the purposes of determining the cost of the direct loan pursuant to section 661a(5) of this title. All such amounts shall be credited to the appropriate financing account. The Bank is authorized to require reimbursement from a Federal agency to cover the administrative expenses of the Bank that are attributable to the direct loans financed for that agency. All such payments by an agency shall be considered administrative expenses subject to section 661c(g) of this title. This subsection shall apply to transactions related to direct loan obligations or loan guarantee commitments made on or after October 1, 1991”.

References: §13201
 §505
 §10117
 §122
 §505
 §10117
 §10117