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U.S. Code as of:
01/19/04
Section 1848. Emergency loan guarantee fund
(a) Establishment; use; investment
There is established in the Treasury an emergency loan guarantee
fund to be administered by the Board. The fund shall be used for
the payment of the expenses of the Board and for the purpose of
fulfilling the Board's obligations under this chapter. Moneys in
the fund not needed for current operations may be invested in
direct obligations of, or obligations that are fully guaranteed as
to principal and interest by, the United States or any agency
thereof.
(b) Guarantee fee; deposits in fund
The Board shall prescribe and collect a guarantee fee in
connection with each loan guaranteed by it under this chapter. Sums
realized from such fees shall be deposited in the emergency loan
guarantee fund.
(c) Payments; issuance of notes or other obligations when fund
moneys insufficient: forms and denominations, maturities, terms
and conditions, interest rate; public debt transaction
Payments required to be made as a consequence of any guarantee by
the Board shall be made from the emergency loan guarantee fund. In
the event that moneys in the fund are insufficient to make such
payments, in order to discharge its responsibilities, the Board is
authorized to issue to the Secretary of the Treasury notes or other
obligations in such forms and denominations, bearing such
maturities, and subject to such terms and conditions as may be
prescribed by the Board with the approval of the Secretary of the
Treasury. Such notes or other obligations shall bear interest at a
rate determined by the Secretary of the Treasury, taking into
consideration the current average market yield on outstanding
marketable obligations of the United States of comparable
maturities during the month preceding the issuance of the notes or
other obligations. The Secretary of the Treasury is authorized and
directed to purchase any notes and other obligations issued
hereunder and for that purpose he is authorized to use as a public
debt transaction the proceeds from the sale of any securities
issued under chapter 31 of title 31 and the purposes for which
securities may be issued under that chapter are extended to include
any purchase of such notes and obligations.
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