14 U.S.C. § 682 : US Code - Section 682: Direct loans and loan guarantees

Search 14 U.S.C. § 682 : US Code - Section 682: Direct loans and loan guarantees

(a) Direct Loans. - (1) Subject to subsection (c), the Secretary
may make direct loans to an eligible entity in order to provide
funds to the eligible entity for the acquisition or construction of
housing units that the Secretary determines are suitable for use as
military family housing or as military unaccompanied housing.
(2) The Secretary shall establish such terms and conditions with
respect to loans made under this subsection as the Secretary
considers appropriate to protect the interests of the United
States, including the period and frequency for repayment of such
loans and the obligations of the obligors on such loans upon
default.
(b) Loan Guarantees. -
(1) Subject to subsection (c), the Secretary may guarantee a
loan made to any person in the private sector if the proceeds of
the loan are to be used by the person to acquire, or construct
housing units that the Secretary determines are suitable for use
as military family housing or as military unaccompanied housing.
(2) The amount of a guarantee on a loan that may be provided
under paragraph (1) may not exceed the amount equal to the lesser
of -
(A) 80 percent of the value of the project; or
(B) the outstanding principal of the loan.
(3) The Secretary shall establish such terms and conditions
with respect to guarantees of loans under this subsection as the
Secretary considers appropriate to protect the interests of the
United States, including the rights and obligations of the United
States with respect to such guarantees.
(4) The funds for the loan guarantees entered into under this
section shall be held in the Coast Guard Housing Fund under
section 687 of this title. The Secretary is authorized to
purchase mortgage insurance to guarantee loans in lieu of
guaranteeing loans directly against funds held in the Coast Guard
Housing Fund.
(c) Limitation on Authority. - Direct loans and loan guarantees
may be made under this section only to the extent that
appropriations of budget authority to cover their cost (as defined
in section 502(5) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5))) are made in advance, or authority is otherwise
provided in appropriations Acts. If such appropriation or other
authority is provided, there may be established a financing account
(as defined in section 502(7) of such Act (2 U.S.C. 661a(7))) which
shall be available for the disbursement of payment of claims for
payment on loan guarantees under this section and for all other
cash flows to and from the Government as a result of guarantees
made under this section.