12 USC 2279aa-6 - Guarantee of qualified loans

U.S Code last checked for updates: May 07, 2024

§ 2279aa–6.

Guarantee of qualified loans

(a)

Guarantee authorized for certified facilities

(1)

In general

Subject to the requirements of this section and on such other terms and conditions as the Corporation shall consider appropriate, the Corporation—

(A)

shall guarantee the timely payment of principal and interest on the securities issued by a certified facility that represents interests solely in, or obligations fully backed by, any pool consisting solely of qualified loans which meet the applicable standards established under section 2279aa–8 of this title and which are held by such facility; and

(B)

may issue a security, guaranteed as to the timely payment of principal and interest, that represents an interest solely in, or an obligation fully backed by, a pool consisting of qualified loans that—

(i)

meet the applicable standards established under section 2279aa–8 of this title; and

(ii)

have been purchased and held by the Corporation.

(2)

Inability of facility to pay

(3)

Power of Corporation

(b)

Other responsibilities of and limitations on certified facilities

As a condition for providing any guarantees under this section for securities issued by a certified facility that represent interests in, or obligations backed by, any pool of qualified loans, the Corporation shall require such facility to agree to comply with the following requirements:

(1)

Loan default resolution

(2)

Subrogation of United States and Corporation to interests of facility

The proceeds of any collateral, judgments, settlements, or guarantees received by the facility with respect to any loan in such pool, shall be applied, after payment of costs of collection—

(A)

first, to reduce the amount of any principal outstanding on any obligation of the Corporation that was purchased by the Secretary of the Treasury under section 2279aa–13 of this title to the extent the proceeds of such obligation were used to make guarantees in connection with such securities; and

(B)

second, to reimburse the Corporation for any such guarantee payments.

(3)

Loan servicing

(4)

Minority participation in public offerings

(5)

No discrimination against States with borrowers rights

(c)

Additional authority of Board

To ensure the liquidity of securities for which guarantees have been provided under this section, the Board shall adopt appropriate standards regarding—

(1)

the characteristics of any pool of qualified loans serving as collateral for such securities; and

(2)

transfer requirements.

(d)

Purchase of guaranteed securities

(1)

Purchase authority

(2)

Issuance of debt obligations

(3)

Terms and limitations

(A)

Terms

(B)

Requirement

(C)

Authority

(Pub. L. 92–181, title VIII, § 8.6, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1695; amended Pub. L. 100–399, title VI, § 601(f)–(h), Aug. 17, 1988, 102 Stat. 1005; Pub. L. 102–237, title V, § 503(d), Dec. 13, 1991, 105 Stat. 1877; Pub. L. 104–105, title I, §§ 107, 108(a), (c)(2), 109(a), (b)(4), Feb. 10, 1996, 110 Stat. 164, 165; Pub. L. 110–234, title V, § 5406(b), May 22, 2008, 122 Stat. 1158; Pub. L. 110–246, § 4(a), title V, § 5406(b), June 18, 2008, 122 Stat. 1664, 1920; Pub. L. 115–334, title V, § 5411(45), Dec. 20, 2018, 132 Stat. 4685.)

cite as: 12 USC 2279aa-6