Laws: Cases and Codes : U.S. Code : Title 14 : Section 682


   
U.S. Code as of: 01/19/04
Section 682. Loan guarantees

      (a) Loan Guarantees. - 
        (1) Subject to subsection (b), the Secretary may guarantee a
      loan made to any person in the private sector if the proceeds of
      the loan are to be used by the person to acquire, or construct
      housing units that the Secretary determines are suitable for use
      as military family housing or as military unaccompanied housing.
        (2) The amount of a guarantee on a loan that may be provided
      under paragraph (1) may not exceed the amount equal to the lesser
      of - 
          (A) 80 percent of the value of the project; or
          (B) the outstanding principal of the loan.

        (3) The Secretary shall establish such terms and conditions
      with respect to guarantees of loans under this subsection as the
      Secretary considers appropriate to protect the interests of the
      United States, including the rights and obligations of the United
      States with respect to such guarantees.
        (4) The funds for the loan guarantees entered into under this
      section shall be held in the Coast Guard Housing Fund under
      section 687 of this title. The Secretary is authorized to
      purchase mortgage insurance to guarantee loans in lieu of
      guaranteeing loans directly against funds held in the Coast Guard
      Housing Fund.

      (b) Limitation on Guarantee Authority. - Loan guarantees may be
    made under this section only to the extent that appropriations of
    budget authority to cover their cost (as defined in section 502(5)
    of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) are
    made in advance, or authority is otherwise provided in
    appropriations Acts. If such appropriation or other authority is
    provided, there may be established a financing account (as defined
    in section 502(7) of such Act (2 U.S.C. 661a(7))) which shall be
    available for the disbursement of payment of claims for payment on
    loan guarantees under this section and for all other cash flows to
    and from the Government as a result of guarantees made under this
    section.



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