Sec. 302. Liabilities and Uses of Fund
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## Sec. 302 Liabilities and Uses of Fund **[**[7 U.S.C. 932](/us/usc/t7/s932)**]** ###
(a)The Notes of the Secretary to the Secretary of the Treasury to obtain funds for loans under sections 4, 5, and 201 of this Act, and all other liabilities against the appropriations or assets in the fund in connection with electrification and telephone loan operations shall be liabilities of the fund, and all other obligations against such appropriations or assets in the fund arising out of electrification and telephone loan operations shall be obligations of the fund. ###
(b)The assets of the fund shall be available only for the following purposes: ####
(1)loans which could be insured under this title, and for advances in connection with such loans and loans previously made, as of the effective date of this title, as revised herein, under sections 4, 5 and 201 of this Act; ####
(2)payment of principal when due (without interest) on outstanding loans to the Secretary from the Secretary of the Treasury for electrification and telephone purposes and payment of principal and interest when due on loans to the Secretary from the Secretary of the Treasury pursuant to section 304(a) of this title; ####
(3)payment of amounts to which the holder of notes is entitled on insured loans: *Provided,* That payments other than final payments need not be remitted to the holder until due or until the next agreed annual, semiannual, or quarterly remittance date; ####
(4)payment to the holder of insured notes of any defaulted installment or, upon assignment of the note to the Secretary at his request, the entire balance due on the note; ####
(5)purchase of notes in accordance with contracts of insurance entered into by the Secretary; ####
(6)payment in compliance with contracts of guarantee; ####
(7)payment of taxes, insurance, prior liens, expenses necessary to make fiscal adjustments in connection with the application, and transmittal of collections or necessary to obtain credit reports on applicants or borrowers, expenses for necessary services, including construction inspections, commercial appraisals, loan servicing consulting business advisory or other commercial and technical services, and other program services, and other expenses and a advances authorized in section 7 of this Act in connection with insured loans. Such items may be paid in connection with guaranteed loans after or in connection with the acquisition of such loans or security thereof after default, to the extent determined to be necessary to protect the interest of the Government, or in connection with any other activity authorized in this Act; ####
(8)payment of the purchase price and costs and expenses incurred in connection with the purchase, acquisition, or operation of property pursuant to section 7 of this Act. ###
(c)####
(1)The Secretary shall maintain two separate accounts within the fund, which shall be known as the electric account and the telephone account, respectively. ####
(2)#####
(A)The Secretary shall account for the assets, liabilities, income, expenses, and equity of the fund attributable to electrification loan operations in the electric account. #####
(B)The Secretary shall account for the assets, liabilities, income, expenses, and equity of the fund attributable to telephone loan operations in the telephone account. ####
(3)#####
(A)The assets accounted for in the electric account shall be available solely for electrification loan operations under this Act. #####
(B)The assets accounted for in the telephone account shall be available solely for telephone loan operations under this Act (other than under title IV).
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Sec. 302
Liabilities and Uses of Fund
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