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U.S. Code as of:
01/19/04
Section 4357. Acceptance of guarantees with gifts for major projects
(a) Acceptance Authority. - Subject to subsection (c), the
Secretary of the Army may accept from a donor or donors a qualified
guarantee for the completion of a major project for the benefit of
the Academy.
(b) Obligation Authority. - The amount of a qualified guarantee
accepted under this section shall be considered as contract
authority to provide obligation authority for purposes of Federal
fiscal and contractual requirements. Funds available for a project
for which such a guarantee has been accepted may be obligated and
expended for the project without regard to whether the total amount
of the funds and other resources available for the project (not
taking into account the amount of the guarantee) is sufficient to
pay for completion of the project.
(c) Notice of Proposed Acceptance. - The Secretary of the Army
may not accept a qualified guarantee under this section for the
completion of a major project until after the expiration of 30 days
following the date upon which a report of the facts concerning the
proposed guarantee is submitted to Congress or, if earlier, the
expiration of 14 days following the date on which a copy of the
report is provided in an electronic medium pursuant to section 480
of this title.
(d) Prohibition on Commingling of Funds. - The Secretary of the
Army may not enter into any contract or other transaction involving
the use of a qualified guarantee and appropriated funds in the same
contract or transaction.
(e) Definitions. - In this section:
(1) Major project. - The term "major project" means a project
for the purchase or other procurement of real or personal
property, or for the construction, renovation, or repair of real
or personal property, the total cost of which is, or is estimated
to be, at least $1,000,000.
(2) Qualified guarantee. - The term "qualified guarantee", with
respect to a major project, means a guarantee that -
(A) is made by one or more persons in connection with a
donation, specifically for the project, of a total amount in
cash or securities that, as determined by the Secretary of the
Army, is sufficient to defray a substantial portion of the
total cost of the project;
(B) is made to facilitate or expedite the completion of the
project in reasonable anticipation that other donors will
contribute sufficient funds or other resources in amounts
sufficient to pay for completion of the project;
(C) is set forth as a written agreement that provides for the
donor to furnish in cash or securities, in addition to the
donor's other gift or gifts for the project, any additional
amount that may become necessary for paying the cost of
completing the project by reason of a failure to obtain from
other donors or sources funds or other resources in amounts
sufficient to pay the cost of completing the project; and
(D) is accompanied by -
(i) an irrevocable and unconditional standby letter of
credit for the benefit of the Academy that is in the amount
of the guarantee and is issued by a major United States
commercial bank; or
(ii) a qualified account control agreement.
(3) Qualified account control agreement. - The term "qualified
account control agreement", with respect to a guarantee of a
donor, means an agreement among the donor, the Secretary of the
Army, and a major United States investment management firm that -
(A) ensures the availability of sufficient funds or other
financial resources to pay the amount guaranteed during the
period of the guarantee;
(B) provides for the perfection of a security interest in the
assets of the account for the United States for the benefit of
the Academy with the highest priority available for liens and
security interests under applicable law;
(C) requires the donor to maintain in an account with the
investment management firm assets having a total value that is
not less than 130 percent of the amount guaranteed; and
(D) requires the investment management firm, at any time that
the value of the account is less than the value required to be
maintained under subparagraph (C), to liquidate any noncash
assets in the account and reinvest the proceeds in Treasury
bills issued under section 3104 of title 31.
(4) Major united states commercial bank. - The term "major
United States commercial bank" means a commercial bank that -
(A) is an insured bank (as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813));
(B) is headquartered in the United States; and
(C) has net assets in a total amount considered by the
Secretary of the Army to qualify the bank as a major bank.
(5) Major united states investment management firm. - The term
"major United States investment management firm" means any
broker, dealer, investment adviser, or provider of investment
supervisory services (as defined in section 3 of the Securities
Exchange Act of 1934 (15 U.S.C. 78c) or section 202 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-2)) or a major
United States commercial bank that -
(A) is headquartered in the United States; and
(B) holds for the account of others investment assets in a
total amount considered by the Secretary of the Army to qualify
the firm as a major investment management firm.
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