(a) 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 Act. 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) The Board shall prescribe
and collect a guarantee fee in connection with each loan guaranteed
by it under this Act. Sums realized from such fees shall be deposited
in the emergency loan guarantee fund.
(c) 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 the Second
Liberty Bond Act, as amended, and the purposes for which securities
may be issued under that Act are extended to include any purchase
of such notes and obligations.
[15 USC 1848.]
