2 U.S.C. § 661 — Purposes

Page 212 TITLE 2—THE CONGRESS § 661 1 So in original. Probably should be capitalized. pared to the authorization level for the last year in which authorization of appropriations is already provided. (Pub. L. 93–344, title IV, § 428, as added Pub. L. 104–4, title I, § 101(a)(2), Mar. 22, 1995, 109 Stat. 59.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1996, or on the date 90 days after appropriations are made available as authorized under section 1516 of this title, whichever is earlier, and applicable to legislation considered on and after such date, see section 110 of Pub. L. 104–4, set out as a note under section 1511 of this title. SUBCHAPTER III—CREDIT REFORM § 661. Purposes The purposes of this subchapter are to— (1) measure more accurately the costs of Federal credit programs; (2) place the cost of credit programs on a budgetary basis equivalent to other Federal spending; (3) encourage the delivery of benefits in the form most appropriate to the needs of bene- ficiaries; and (4) improve the allocation of resources among credit programs and between credit and other spending programs. (Pub. L. 93–344, title V, § 501, as added Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–610.) Editorial Notes PRIOR PROVISIONS A prior section 661, Pub. L. 93–344, title VI, § 606, July 12, 1974, 88 Stat. 325, directed that Budget Committees of House and Senate study, on a continuing basis, any provisions of law which exempt agencies or programs from inclusion in the budget and make recommenda- tions from time to time with regard to terminating or modifying such provisions, prior to repeal by Pub. L. 99–177, title II, §§ 223, 275(a)(1), Dec. 12, 1985, 99 Stat. 1060, 1100, effective Dec. 12, 1985, and applicable with re- spect to fiscal years beginning after Sept. 30, 1985. A prior section 501 of Pub. L. 93–344, title V, July 12, 1974, 88 Stat. 321, was classified to section 1020 of former Title 31, prior to repeal and reenactment as section 1102 of Title 31, Money and Finance, by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068, the first section of which enacted Title 31. Statutory Notes and Related Subsidiaries SHORT TITLE For short title of title V of Pub. L. 93–344, which en- acted this subchapter, as the ‘‘Federal Credit Reform Act of 1990’’, see section 500 of Pub. L. 93–344, set out as a note under section 621 of this title. § 661a. Definitions For purposes of this subchapter— (1) The term ‘‘direct loan’’ means a disburse- ment of funds by the Government to a non- Federal borrower under a contract that re- quires the repayment of such funds with or without interest. The term includes the pur- chase of, or participation in, a loan made by another lender and financing arrangements that defer payment for more than 90 days, in- cluding the sale of a government 1 asset on credit terms. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price sup- port loans of the Commodity Credit Corpora- tion. (2) The term ‘‘direct loan obligation’’ means a binding agreement by a Federal agency to make a direct loan when specified conditions are fulfilled by the borrower. (3) The term ‘‘loan guarantee’’ means any guarantee, insurance, or other pledge with re- spect to the payment of all or a part of the principal or interest on any debt obligation of a non-Federal borrower to a non-Federal lend- er, but does not include the insurance of de- posits, shares, or other withdrawable accounts in financial institutions. (4) The term ‘‘loan guarantee commitment’’ means a binding agreement by a Federal agen- cy to make a loan guarantee when specified conditions are fulfilled by the borrower, the lender, or any other party to the guarantee agreement. (5)(A) The term ‘‘cost’’ means the estimated long-term cost to the Government of a direct loan or loan guarantee or modification there- of, calculated on a net present value basis, ex- cluding administrative costs and any inci- dental effects on governmental receipts or outlays. (B) The cost of a direct loan shall be the net present value, at the time when the direct loan is disbursed, of the following estimated cash flows: (i) loan disbursements; (ii) repayments of principal; and (iii) payments of interest and other pay- ments by or to the Government over the life of the loan after adjusting for estimated de- faults, prepayments, fees, penalties, and other recoveries; including the effects of changes in loan terms resulting from the exercise by the borrower of an option included in the loan contract. (C) The cost of a loan guarantee shall be the net present value, at the time when the guar- anteed loan is disbursed, of the following esti- mated cash flows: (i) payments by the Government to cover defaults and delinquencies, interest sub- sidies, or other payments; and (ii) payments to the Government including origination and other fees, penalties and re- coveries; including the effects of changes in loan terms resulting from the exercise by the guaranteed lender of an option included in the loan guar- antee contract, or by the borrower of an op- tion included in the guaranteed loan contract. (D) The cost of a modification is the dif- ference between the current estimate of the net present value of the remaining cash flows under the terms of a direct loan or loan guar- antee contract, and the current estimate of the net present value of the remaining cash flows under the terms of the contract, as modified.