Sec. 12. Authority funds
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In this section: The term cost , with respect to a direct loan or loan guarantee, has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a ); and The term direct loan has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a ). The term loan guarantee has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a ). The term project-specific transaction costs — means the costs incurred by the Authority for travel and legal expenses and direct and indirect costs incurred by the Authority in claims settlements; and does not include the costs of information technology (as that term is defined in section 11101 of title 40, United States Code).
Project-specific transaction costs shall not be considered administrative expenses for the purposes of this section. There is established in the Treasury of the United States a fund to be known as the Authority Capital Account to carry out the purposes of the Authority. The Authority Capital Account shall consist of— fees charged and collected under subsection (d); any amounts received under subsection (f); investments and returns on investments under subsection (h); payments received in connection with sales and other business of the Authority; any proceeds from bonds sold under section 4(d); any amounts appropriated to the Authority Capital Account; and all other collections transferred to or earned by the Authority, excluding the cost of direct loans and loan guarantees.
The Authority may charge and collect fees for providing services in amounts to be determined by the Board. The Authority may use amounts in the Authority Capital Account to carry out the purposes described in section 5, including for— the cost of direct loans and loan guarantees; administrative expenses of the Authority; for the cost of providing support authorized by section 6; project-specific transaction costs; payment of all insurance and reinsurance claims of the Authority; repayments to the Treasury of the United States of amounts borrowed under subsection (f); and dividend payments to the Treasury of the United States under subsection (g).
The Authority may borrow from the Treasury of the United States such sums as may be necessary to fulfill obligations of the Authority and any such borrowing shall be at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yields on outstanding marketable obligations of the United States of comparable maturities, for a period jointly determined by the Authority and the Secretary of the Treasury, and subject to such terms and conditions as the Secretary of the Treasury may require.
The Board, in consultation with the Director of the Office of Management and Budget, shall annually assess a dividend payment to the Treasury of the United States if the Authority Capital Account is more than 100 percent reserved. The Authority may request the Secretary of the Treasury to invest such portion of the Authority Capital Account as is not, in the Authority’s judgement, required to meet the current needs of the Authority Capital Account. Investments under paragraph
(1)shall be made by the Secretary of the Treasury in public debt obligations, with maturities suitable to the needs of the Authority Capital Account, as determined by the Authority, and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. Interest earned under subsection
(h)and amounts, excluding fees related to insurance or reinsurance, collected under subsection (d), shall not be collected for any fiscal year except to the extent provided in advance in appropriation Acts.
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U.S. Code