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EFFECTIVE DATE OF 1990 AMENDMENT recently adopted concurrent resolution on the

Amendment by section 13303(d) of Pub. L. 101-508 budget; and

applicable with respect to fiscal years beginning on or (II) estimated social security revenues shall after Oct. 1, 1990, see section 13306 of Pub. L. 101-508, be deemed to be reduced by the excess of esti- set out as a note under section 632 of this title. mated social security outlays (including social

EFFECTIVE DATE OF 1985 AMENDMENT security outlays provided for in the bill, resolution, amendment, or conference report with Amendment by Pub. L. 99-177 effective Dec. 12, respect to which this subsection is applied)

1985, and applicable with respect to fiscal years beginabove the appropriate level of social security

ning after Sept. 30, 1985, see section 275(aX1) of Pub. ol tlays specified in the most recently adopted

L. 99-177, set out as an Effective and Termination

Dates note under section 900 of this title. concurrent resolution on the budget; and (iii) no provision of any bill or resolution, or

SECTION REFERRED TO IN OTHER SECTIONS any amendment thereto or conference report

This section is referred to in sections 665d, 665e, thereon, involving a change in chapter 1 of

907a of this title. the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) shall be treated as affecting the 8 643. Effects of points of order amount of social security revenues unless such provision changes the income tax treat

(a)' Points of order in Senate against amendments ment of social security benefits.

between Houses The chairman of the Committee on the Budget

Each provision of this Act that establishes a of the Senate may file with the Senate appro

point of order against an amendment also espriately revised allocations under section 633(a)

tablishes a point of order in the Senate against of this title and revised functional levels and

an amendment between the Houses. If a point

of order under this Act is raised in the Senate aggregates to reflect the application of the preceding sentence. Such revised allocations, func

against an amendment between the Houses, tional levels, and aggregates shall be considered

and the Presiding Officer sustains the point of as allocations, functional levels, and aggregates

order, the effect shall be the same as if the contained in the most re ntly agreed to con

Senate had disagreed to the amendment. current resolution on the budget, and the ap- (b) Effect of a point of order on a bill in Senate propriate committees shall report revised allo

In the Senate, if the Chair sustains a point of cations pursuant to section 633(b) of this title.

order under this Act against a bill, the Chair [See main edition for text of (b) and (c)]

shall then send the bill to the committee of ap

propriate jurisdiction for further consideration. (As amended Pub. L. 101-508, title XIII, $ $ 13112(a)(10), 13207(a)(1)(E), 13303(d), Nov. 5,

(Pub. L. 93-344, title III, § 312, as added Pub. L. 1990, 104 Stat. 1388-608, 1388-617, 1388-626.)

101-508, title XIII, § 13207(b)(1), Nov. 5, 1990,

104 Stat. 1388-618.)
REFERENCES IN TEXT

REFERENCES IN TEXT
The Internal Revenue Code of 1986, referred to in
subsec. (a)(2)(B)(iii), is classified generally to Title 26, This Act, referred to in text, means Pub. L. 93-344,
Internal Revenue Code.

July 12, 1974, 88 Stat. 297, as amended, known as the

Congressional Budget and Impoundment Control Act
AMENDMENTS

of 1974, which enacted chapters 17, 17A and 17B, and 1990-Subsec. (a). Pub. L. 101-508, § 13303(d), desig.

section 190a-3 of this title and sections 11a, 11c, 11d, nated existing provisions as par. (1), redesignated

1020a of former Title 31, Money and Finance, amendformer pars. (1) to (3) thereof as subpars. (A) to (C),

ed sections 11, 665, 701, 1020, 1151, 1152, 1153, and respectively, and added par. (2).

1154 of former Title 31, section 105 of Title 1, General Pub. L. 101-508, § 13207(a)(1)(E), substituted "bill,

Provisions, sections 190b and 190d of this title, rejoint resolution, amendment, motion, or conference

pealed sections 571 and 581c-1 of former Title 31 and report” for “bill, resolution, or amendment" and

sections 66 and 81 of this title, and enacted provisions struck out “or any conference report on any such bill

set out as notes under sections 190a-1, 621, 632, and or resolution" after “reducing revenues for such fiscal 682 of this title, section 105 of Title 1, and section 1020 year,".

of former Title 31. For complete classification of this Pub. L. 101-508, § 13112(a)(10), in closing provisions,

Act to the Code, see Short Title note set out under substituted "except in the case that a declaration of

section 621 of this title and Tables. war by the Congress is in effect" for "or, in the Senate, would otherwise result in a deficit for such 8 644. Extraneous matter in reconciliation legislation fiscal year that“(A) for fiscal year 1989 or any subsequent fiscal

(a) In general year, exceeds the maximum deficit amount specified When the Senate is considering a reconciliafor such fiscal year in section 62207) of this title; and tion bill or a reconciliation resolution pursuant "(B) for fiscal year 1988 or 1989, exceeds the

to section 641 of this title (whether that bill or amount of the estimated deficit for such fiscal year based on laws and regulations in effect on January 1

resolution originated in the Senate or the of the calendar year in which such fiscal year begins

House) or section 907d of this title, upon a as measured using the budget baseline specified in

point of order being made by any Senator section 901(a)(6) of this title minus $23,000,000,000 against material extraneous to the instructions for fiscal year 1988 or $36,000,000,000 for fiscal year to a committee which is contained in any title 1989;

or provision of the bill or resolution or offered except to the extent that paragraph (1) of section

as an amendment to the bill or resolution, and 632(i) of this title or section 635(b) of this title, as the case may be, does not apply by reason of paragraph (2) of such subsection."

Subsection designation editorially supplied.

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the point of order is sustained by the Chair, any part of said title or provision that contains material extraneous to the instructions to said Committee as defined in subsection (b) of this section shall be deemed stricken from the bill and may not be offered as an amendment from the floor. (b) Extraneous provisions

(1XA) Except as provided in paragraph (2), a provision of a reconciliation bill or reconciliation resolution considered pursuant to section 641 of this title shall be considered extraneous if such provision does not produce a change in outlays or revenues, including changes in outlays and revenues brought about by changes in the terms and conditions under which outlays are made or revenues are required to be collected (but a provision in which outlay decreases or revenue increases exactly offset outlay increases or revenue decreases shall not be considered extraneous by virtue of this subparagraph); (B) any provision producing an increase in outlays or decrease in revenues shall be considered extraneous if the net effect of provisions reported by the committee reporting the title containing the provision is that the committee fails to achieve its reconciliation instructions; (C) a provision that is not in the jurisdiction of the committee with jurisdiction over said title or provision shall be considered extraneous; (D) a provision shall be considered extraneous if it produces changes in outlays or revenues which are merely incidental to the nonbudgetary components of the provision; (E) a provision shall be considered to be extraneous if it increases, or would increase, net outlays, or if it decreases, or would decrease, revenues during a fiscal year after the fiscal years covered by such reconciliation bill or reconciliation resolution, and such increases or decreases are greater than outlay reductions or revenue increases resulting from other provisions in such title in such year; and (F) a provision shall be considered extraneous if it violates section 641(g) of this title.

(2) A Senate-originated provision shall not be considered extraneous under paragraph (1)(A) if the Chairman and Ranking Minority Member of the Committee on the Budget and the Chairman and Ranking Minority Member of the Committee which reported the provision certify that: (A) the provision mitigates direct effects clearly attributable to a provision changing outlays or revenues and both provisions together produce a net reduction in the deficit; (B) the provision will result in a substantial reduction in outlays or a substantial increase in revenues during fiscal years after the fiscal years covered by the reconciliation bill or reconciliation resolution; (C) a reduction of outlays or an increase in revenues is likely to occur as a result of the provision, in the event of new regulations authorized by the provision or likely to be proposed, court rulings on pending litigation, or relationships between economic indices and stipulated statutory triggers pertaining to the provision, other than the regulations, court rulings or relationships currently projected by the Congressional Budget Office for scorekeeping purposes; or (D) such provi

sion will be likely to produce a significant reduction in outlays or increase in revenues but, due to insufficient data, such reduction or increase cannot be reliably estimated.

(3) A provision reported by a committee shall not be considered extraneous under paragraph (1)(C) if (A) the provision is an integral part of a provision or title, which if introduced as a bill or resolution would be referred to such committee, and the provision sets forth the procedure to carry out or implement the substantive provisions that were reported and which fall within the jurisdiction of such committee; or (B) the provision states an exception to, or a special application of, the general provision or title of which it is a part and such general provision or title if introduced as a bill or resolution would be referred to such committee. (c) 1 Point of order

When the Senate is considering a conference report on, or amendment between the Houses in relation to, a reconciliation bill or reconciliation resolution pursuant to section 641 of this title, upon

(1) a point of order being made by any Senator against extraneous material meeting the definition of subsections (b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), or (b)(1)(F) of this section, and

(2) such point of order being sustained, such material contained in such conference report or amendment shall be deemed stricken, and the Senate shall proceed, without intervening action or motion, to consider the question of whether the Senate shall recede from its amendment and concur with a further amendment, or concur in the House amendment with a further amendment, as the case may be, which further amendment shall consist of only that portion of the conference report or House amendment, as the case may be, not so stricken. Any such motion in the Senate shall be debatable for two hours. In any case in which such point of order is sustained against a conference report (or Senate amendment derived from such conference report by operation of this subsection), no further amendment shall be in order.

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(c) 1 Extraneous materials

Upon the reporting or discharge of a reconcil. iation bill or resolution pursuant to section 641 of this title in the Senate, and again upon the submission of a conference report on such a reconciliation bill or resolution, the Committee on the Budget of the Senate shall submit for the record a list of material considered to be extraneous under subsections (b)(1)(A), (b)(1)(B), and (b)(1)(E) of this section to the instructions of a committee as provided in this section. The inclusion or exclusion of a provision shall not constitute a determination of extraneousness by the Presiding Officer of the Senate. (d) General point of order

Notwithstanding any other law or rule of the Senate, it shall be in order for a Senator to

So in original. Two subsecs. (c) have been enacted.

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raise a single point of order that several provi- Pub. L. 101-508, § 13214(aX1XB), inserted "(whether sions of a bill, resolution, amendment, motion,

that bill or resolution originated in the Senate or the or conference report violate this section. The House) or section 907d of this title" after “section 641 Presiding Officer may sustain the point of

of this title". order as to some or all of the provisions against

Subsec. (b). Pub. L. 101-508, § 13214(b)(2XB), (C), rewhich the Senator raised the point of order. If

designated subsec. (d) as (b) and struck out former

subsec. (b) which provided that no motion to waive or the Presiding Officer so sustains the point of

suspend the requirement of section 636(bX2) of this order as to some of the provisions (including title, as it related to germaneness with respect to a recprovisions of an amendment, motion, or confer- onciliation bill or resolution, could be agreed to unless ence report) against which the Senator raised supported by an affirmative vote of three-fifths of the the point of order, then only those provisions

Members, duly chosen and sworn, which super-majori. (including provisions of an amendment, motion,

ty was to be required to successfully appeal the ruling or conference report) against which the Presid

of the Chair on a point of order raised under that sec

tion, as well as to waive or suspend the provisions of ing Officer sustains the point of order shall be

this subsection. deemed stricken pursuant to this section.

Pub. L. 101-508, § 13214(a)(2), inserted heading “ExBefore the Presiding Officer rules on such a traneous provisions”. point of order, any Senator may move to waive Subsec. (b)(1)(A). Pub. L. 101-508, § 13214(bX4XA), such a point of order as it applies to some or all made technical amendment to reference to section 641 of the provisions against which the point of of this title to reflect change in reference to correorder was raised. Such a motion to waive is sponding section of original act. amendable in accordance with the rules and Pub. L. 101-508, $ 13214(a)(3), inserted before semiprecedents of the Senate. After the Presiding

colon “(but a provision in which outlay decreases or Officer rules on such a point of order, any Sen

revenue increases exactly offset outlay increases or

revenue decreases shall not be considered extraneous ator may appeal the ruling of the Presiding Of.

by virtue of this subparagraph)”. ficer on such a point of order as it applies to

Subsec. (b)(1)(F). Pub. L. 101-508, § 13214(a)(4)-(6), some or all of the provisions on which the Pre- added subpar. (F). siding Officer ruled.

Subsec. (b)(2). Pub. L. 101-508, § 13214(a)(7), substi(e) Determination of levels

tuted "A Senate-originated provision” for A provi

sion". For purposes of this section, the levels of new

Subsec. (b)(2)(C). Pub. L. 101-508, § 13214(b)(4)(C), budget authority, budget outlays, new entitle- inserted "or" after "scorekeeping purposes;”. ment authority, and revenues for a fiscal year

Subsec. (c). Pub. L. 101-508, § 13214(b)(4)(F), which shall be determined on the basis of estimates directed the substitution of "this subsection" for “this made by the Committee on the Budget of the resolution" in par. (2), was executed to last sentence of Senate.

subsec. (c) as the probable intent of Congress.

Pub. L. 101-508, $ 13214(b)(4)E), substituted (Pub. L. 93-344, title III, § 313, formerly Pub. L.

(b)(1)(A), (b)(1)(B), (b)(1XD), (b)(1)(E), or (b)(1)(F) 99-272, title XX, $ 20001, Apr. 7, 1986, 100 Stat. of this section" for "(d)(1XA) or (dx1)(D) of section 390, as amended Pub. L. 99-509, title VII, 20001 of the Consolidated Omnibus Budget Reconcili. $ 7006, Oct. 21, 1986, 100 Stat. 1949; Pub. L. ation Act of 1985". 100-119, title II, $ 205(a), (b), Sept. 29, 1987, 101 Pub. L. 101-508, § 13214(b)(4)(D), substituted Stat. 784; renumbered § 313 of Pub. L. 93-344

"When" for "when". and amended Pub. L. 101-508, title XIII,

Pub. L. 101-508, § 13214(bX4)(A), made technical $ 13214(a)-(b)(4), Nov. 5, 1990, 104 Stat.

amendment to reference to section 641 of this title to

reflect change in reference to corresponding section of 1388-621, 1388-622.)

original act. CODIFICATION

Pub. L. 101-508, § 13214(b)(3), redesignated as

subsec. (c), relating to point of order, subsec. (a) of the Prior to redesignation by Pub. L. 101-508, this sec

first section of Senate Resolution No. 286, Ninetytion was section 20001 of Pub. L. 99-272, which was

ninth Congress, Dec. 19, 1985, as amended by Senate not classified to the Code, and subsec. (c) of this sec

Resolution No. 509, Ninety-ninth Congress, Oct. 16, tion (relating to point of order) was subsec. (a) of the

1986. first section of Senate Resolution No. 286, Ninety

Pub. L. 101-508, § 13214(b)(2)(C), redesignated ninth Congress, Dec. 19, 1985.

subsec. (e), relating to extraneous materials, as (c). AMENDMENTS

Pub. L. 101-508, § 13214(b)(2)(B), struck out subsec.

(c) which provided for effective and termination dates 1990-Pub. L. 101-508, 813214(b)(2)(A), inserted

of this section. "Extraneous matter in reconciliation legislation" as

Subsec. (d). Pub. L. 101-508, § 13214(b)(2)(C), redessection catchline. Pub. L. 101-508, § 13214(b)(1), redesignated section

ignated subsec. (f) as (d). Former subsec. (d) redesig

nated (b). 20001 of Pub. L. 99-272 as this section. Subsec. (a). Pub. L. 101-508, $ 13214(a)(1)(A), insert

Subsecs. (e) to (g). Pub. L. 101-508, § 13214(a)(8), ed heading “In general".

(b)(2)(C), added subsecs. (e) to (g) and redesignated Pub. L. 101-508, § 13214(b)(4)(B), substituted "sub

them as subsecs. (c) to (e), respectively. section (b) of this section" for "subsection (d) of this

1987–Subsec. (c). Pub. L. 100-119, $ 205(a), substisection",

tuted "September 30, 1992” for “January 2, 1988". Pub. L. 101-508, $13214(b)(4)(A), made technical Subsec. (d)(1)(E). Pub. L. 100-119, $ 205(b), which diamendment to reference to section 641 of this title to rected that cl. (E) be added to subsec. (d)(1)(A), was reflect change in reference to corresponding section of executed to subsec. (d)(1), as the probable intent of original act.

Congress. Pub. L. 101-508, § 13214(b)(2)(B), struck out at end 1986–Subsec. (c). Pub. L. 99-509, $ 7006(b), substi"An affirmative vote of three-fifths of the Members, tuted "January 2, 1988” for “January 2, 1987". duly chosen and sworn, shall be required to sustain an Pub. L. 99-509, $ 7006(c), substituted “section 20001" appeal of the ruling of the Chair on a point of order for "section 1201” in Senate Resolution No. 286, raised under this section, as well as to waive or sus- Ninety-ninth Congress, Dec. 19, 1985. See 1990 Amendpend the provisions of this subsection."

ment note above.

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Subsec. (dx2). Pub. L. 99-509, $ 7006(a)(1), substitut- 1962d-19, 10309, 11713; title 43 section 390g-7; title 45
ed "paragraph (1)(A) if the Chairman and Ranking section 829; title 50 App. section 1989b-9.
Minority Member of the Committee on the Budget
and the Chairman and Ranking Minority Member of 8 652. Legislation providing new credit authority
the Committee which reported the provision certify
that” for “(1)(A) above if" in introductory provisions.

(a) Controls on legislation providing new credit au-
Subsec. (d)(2XA). Pub. L. 99-509, $ 7006(a)(2), substi- thority
tuted "the provision mitigates" for “it is designed to

It shall not be in order in either the House of mitigate the". Subsec. (d)(2XB). Pub. L. 99-509, $ 7006(a)(3), substi

Representatives or the Senate to consider any tuted "the provision" for "It".

bill, joint resolution, amendment, motion, or Subsec. (d)(3). Pub. L. 99-509, $ 7006(a)(4), added

conference report, as reported to its House, par. (3).

which provides new credit authority described

in subsection (b)(1) of this section, unless that SUBCHAPTER II-FISCAL PROCEDURES

bill, resolution, conference report, or amendSUBCHAPTER REFERRED TO IN OTHER SECTIONS

ment also provides that such new credit author

ity is to be effective for any fiscal year only to This subchapter is referred to in sections 632, 907b,

such extent or in such amounts as are provided 907c, 908 of this title.

in appropriation Acts. 8 651. Bills providing new spending authority

(See main edition for text of (6)] (a) Controls on legislation providing spending au

(As amended Pub. L. 101-508, title XIII, thority

$ 13207(a)(1)(H), Nov. 5, 1990, 104 Stat. It shall not be in order in either the House of

1388-618.)
Representatives or the Senate to consider any
bill, joint resolution, amendment, motion, or

AMENDMENTS
conference report, as reported to its House 1990–Subsec. (a). Pub. L. 101-508 substituted "bill,
which provides new spending authority de- joint resolution, amendment, motion, or conference
scribed in subsection (c)(2)(A) or (B) of this sec- report" for "bill, resolution, or conference report" and
tion, unless that bill, resolution, conference

struck out “or any amendment” after “as reported to report, or amendment also provides that such

its House,”. new spending authority as described in subsec

SUBCHAPTER III-CREDIT REFORM tion (c)(2)(A) or (B) of this section is to be effective for any fiscal year only to such extent SUBCHAPTER REFERRED TO IN OTHER SECTIONS or in such amounts as are provided in appro

This subchapter is referred to in title 12 sections priation Acts.

635, 6351-6; title 22 sections 2186, 2197; title 42 section (b) Legislation providing entitlement authority

292i.
(1) It shall not be in order in either the House 8 661. Purposes
of Representatives or the Senate to consider
any bill, joint resolution, amendment, motion, The purposes of this subchapter are to-
or conference report, as reported to its House,

(1) measure more accurately the costs of which provides new spending authority de

Federal credit programs; scribed in subsection (c)(2)(C) of this section

(2) place the cost of credit programs on a which is to become effective before the first budgetary basis equivalent to other Federal day of the fiscal year which begins during the

spending; calendar year in which such bill or resolution is

(3) encourage the delivery of benefits in the reported.

form most appropriate to the needs of benefi

ciaries; and (See main edition for text of (2) and (3); (c) and (4) improve the allocation of resources (d))

among credit programs and between credit

and other spending programs. (As amended Pub. L. 101-508, title XIII, $ 13207(a)(1)(F), (G), Nov. 5, 1990, 104 Stat. (Pub. L. 93-344, title V, $ 501, as added Pub. L. 1388-617, 1388-618.)

101-508, title XIII, § 13201(a), Nov. 5, 1990, 104

Stat. 1388-610.)
AMENDMENTS
1990–Subsec. (a). Pub. L. 101-508, $ 13207(a)(1)(F),

PRIOR PROVISIONS
substituted "bill, joint resolution, amendment, motion, A prior section 661, Pub. L. 93-344, title VI, $ 606,
or conference report" for "bill, resolution, or confer- July 12, 1974, 88 Stat. 325, directed that Budget Com-
ence report" and struck out “(or any amendment mittees of House and Senate study, on a continuing
which provides such new spending authority)” after basis, any provisions of law which exempt agencies or
"subsection (c)(2)(A) or (B) of this section”.

programs from inclusion in the budget and make recSubsec. (b)(1). Pub. L. 101-508, $ 13207(a)(1)(G), sub- ommendations from time to time with regard to termistituted "bill, joint resolution, amendment, motion, or nating or modifying such provisions, prior to repeal by conference report, as reported to its House" for "bill Pub. L. 99-177, title II, $ $ 223, 275(a)(1), Dec. 12, 1985, or resolution" and struck out “(or any amendment 99 Stat. 1060, 1100, effective Dec. 12, 1985, and applicawhich provides such new spending authority)” after ble with respect to fiscal years beginning after Sept. "subsection (c)2)(C) of this section".

30, 1985.

A prior section 501 of Pub. L. 93-344, title V, July 12, SECTION REFERRED TO IN OTHER SECTIONS

1974, 88 Stat. 321, was classified to section 1020 of This section is referred to in sections 622, 633, 634, former Title 31, prior to repeal and reenactment as 639, 654, 907C, 908 of this title; title 7 section 6617; title section 1102 of Title 31, Money and Finance, by Pub. 15 section 4110; title 16 section 543h; title 22 section L. 97-258, $ 5(b), Sept. 13, 1982, 96 Stat. 1068, the first 3671; title 25 sections 1300h-8, 1771d; title 42 sections section of which enacted Title 31.

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8 661a. Definitions

guarantee for which the estimate is being

made. For purposes of this subchapter-(1) The term “direct loan” means a dis

(6) The term “credit program account" bursement of funds by the Government to a

means the budget account into which an apnon-Federal borrower under a contract that

propriation to cover the cost of a direct loan requires the repayment of such funds with or

or loan guarantee program is made and from without interest. The term includes the pur

which such cost is disbursed to the financing chase of, or participation in, a loan made by

account.

(7) The term "financing account” means another lender. The term does not include

the non-budget account or accounts associatthe acquisition of a federally guaranteed loan in satisfaction of default claims or the price

ed with each credit program account which support loans of the Commodity Credit Cor

holds balances, receives the cost payment poration.

from the credit program account, and also in(2) The term "direct loan obligation" means

cludes all other cash flows to and from the a binding agreement by a Federal agency to

Government resulting from direct loan oblimake a direct loan when specified conditions

gations or loan guarantee commitments made are fulfilled by the borrower.

on or after October 1, 1991. (3) The term “loan guarantee" means any

(8) The term "liquidating account” means guarantee, insurance, or other pledge with re

the budget account that includes all cash spect to the payment of all or a part of the

flows to and from the Government resulting principal or interest on any debt obligation of

from direct loan obligations or loan guarantee & non-Federal borrower to a non-Federal commitments made prior to October 1, 1991. lender, but does not include the insurance of

These accounts shall be shown in the budget deposits, shares, or other withdrawable ac

on a cash basis. counts in financial institutions.

(9) The term “Director" means the Director (4) The term "loan guarantee commitment”

of the Office of Management and Budget. means a binding agreement by a Federal agency to make a loan guarantee when speci

(Pub. L. 93-344, title V, § 502, as added Pub. L. fied conditions are fulfilled by the borrower,

101-508, title XIII, § 13201(a), Nov. 5, 1990, 104 the lender, or any other party to the guaran

Stat. 1388-610.) tee agreement.

PRIOR PROVISIONS (5)(A) The term “cost” means the estimated long-term cost to the Government of a direct A prior section 502 of Pub. L. 93-344, title V, July 12,

1974, 88 Stat. 321, was set out as a note under section loan or loan guarantee, calculated on a net

1020 of former Title 31, prior to repeal by Pub. L. present value basis, excluding administrative

97-258, § 5(b), Sept. 13, 1982, 96 Stat. 1068. costs and any incidental effects on governmental receipts or outlays.

SECTION REFERRED TO IN OTHER SECTIONS (B) The cost of a direct loan shall be the

This section is referred to in title 12 sections net present value, at the time when the direct

17152-13a, 1721; title 46 App. section 1279e. loan is disbursed, of the following cash flows: (i) loan disbursements;

8 661b. OMB and CBO analysis, coordination, and (ii) repayments of principal; and

review (iii) payments of interest and other payments by or to the Government over the (a) In general life of the loan after adjusting for estimated

For the executive branch, the Director shall defaults, prepayments, fees, penalties and

be responsible for coordinating the estimates other recoveries.

required by this subchapter. The Director shall (C) The cost of a loan guarantee shall be consult with the agencies that administer direct the net present value when a guaranteed loan loan or loan guarantee programs. is disbursed of the cash flow from

(b) Delegation (i) estimated payments by the Government to cover defaults and delinquencies,

The Director may delegate to agencies auinterest subsidies, or other payments, and

thority to make estimates of costs. The delega. (ii) the estimated payments to the Gov

tion of authority shall be based upon written ernment including origination and other guidelines, regulations, or criteria consistent fees, penalties and recoveries.

with the definitions in this subchapter. (D) Any Government action that alters the (c) Coordination with Congressional Budget Office estimated net present value of an outstanding

In developing estimation guidelines, reguladirect loan or loan guarantee (except modifi.

tions, or criteria to be used by Federal agencies, cations within the terms of existing contracts the Director shall consult with the Director of or through other existing authorities) shall

the Congressional Budget Office. be counted as a change in the cost of that direct loan or loan guarantee. The calculation

(d) Improving cost estimates of such changes shall be based on the esti- The Director and the Director of the Con. mated present value of the direct loan or loan gressional Budget Office shall coordinate the guarantee at the time of modification.

development of more accurate data on histori(E) In estimating net present values, the cal performance of direct loan and loan guarandiscount rate shall be the average interest tee programs. They shall annually review the rate on marketable Treasury securities of performance of outstanding direct loans and similar maturity to the direct loan or loan loan guarantees to improve estimates of costs.

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