Sec. 4. LOAN GUARANTEE RECOVERY FUND

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## SEC. 4 LOAN GUARANTEE RECOVERY FUND ###

(a)In General ####

(1)In general Using amounts described in paragraph (2), the Secretary of Housing and Urban Development (referred to as the “Secretary”) shall make guaranteed loans to financial institutions in connection with loans made by such institutions to assist organizations described in section 501(c)(3) of the Internal Revenue Code of 1986 that have been damaged as a result of acts of arson or terrorism in accordance with such procedures as the Secretary shall establish by regulation. ####

(2)Use of credit subsidy Notwithstanding any other provision of law, for the cost of loan guarantees under this section, the Secretary may use not more than $5,000,000 of the amounts made available for fiscal year 1996 for the credit subsidy provided under the General Insurance Fund and the Special Risk Insurance Fund. ###

(b)Treatment of Costs The costs of guaranteed loans under this section, including the cost of modifying loans, shall be as defined in section 502 of the Congressional Budget Act of 1974. ###

(c)Limit on Loan Principal Funds made available under this section shall be available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $10,000,000. ###

(d)Terms and Conditions The Secretary shall— ####

(1)establish such terms and conditions as the Secretary considers to be appropriate to provide loan guarantees under this section, consistent with section 503 of the Credit Reform Act; and ####

(2)include in the terms and conditions a requirement that the decision to provide a loan guarantee to a financial institution and the amount of the guarantee does not in any way depend on the purpose, function, or identity of the organization to which the financial institution has made, or intends to make, a loan.