BPLA (Contents)
Budget Process Law Annotated (1993)
Section 504
Congressional Budget and Impoundment Control Act of 1974
[Pages 288-292]
[Page 288]
SEC. 504.784 BUDGETARY TREATMENT.
(a) President’s Budget.—Beginning with fiscal year 1992, the President’s budget shall reflect the costs785 of direct loan786 and loan guarantee787 programs. The budget shall also include the planned-level of new direct loan obligatlons788 or loan guarantee commitments789 associated with each appropriations request.
784. Section 504 is codified at 2 U.S.C. § 661c (Supp. IV 1992). For legislative history of section 504, see infra note 825 (at the end of this section).
785. Section 502(5) defines “cost”. See supra p. 281.
786. Section 502(1) defines “direct loan”. See supra p. 280.
787. Section 502(3) defines “loan guarantee”. See supra p. 280.
788. Section 502(2) defines “direct loan obligation”. See supra p. 280.
789. Section 502(4) defines “loan guarantee commitment”. See supra p. 281.
(b) Appropriations Required.—Notwithstanding any other provision of law, new direct loan obligations790 may be incurred and new loan guarantee commitments791 may be made for fiscal year 1992 and thereafter only to the extent that—
(1) appropriations of budget authorltym to cover their costs793 are made in advance;
(2) a limitation on the use of funds otherwise available for the cost of a direct loan794 or loan guarantee795 program is enacted; or
(3) authority is otherwise provided in appropriation Acts.
790. Section 502(2) defines “direct loan obligation”. See supra p. 180.
791. Section 502(4) defines “loan guarantee commitment”. See supra p. 281.
792. Section 3(2) defines “budget authority”. See supra pp. 11-13.
793. Section 502(.5) defines “cost”. See supra p. 281.
794.Section 502(1) defines “direct loan”. See supra p. 280.
795. Section 502(3) defines “loan guarantee”. See supra p. 280.
(c) Exemption For Mandatory Programs.—Subsection (b) shall not apply to a direct loan796 or loan guarantee797 program that—
(1) constitutes an entitlements798 (such as the guaranteed student loan program or the veterans’ home loan guaranty program); or
(2) all existing credit programs of the Commodity Credit Corporation on the date of enactment of this title.
796. Section 502(1) defines “direct loan”. See supra p. 280.
797. Section 502(3) defines “loan guarantee”. See supra p. 280.
798. Section 3(9) (see supra p. 18) defines “entitlement authority” to mean that authority described in section 401(c)(2)(C) (see supra p. 252).
(d) Budget Accounting.—
(1) The authority to incur new direct loan obligations,799 make new loan guarantee commitments,800 or directly or indirectly alter the costs801 of outstanding direct loans802 and loan guarantees803 shall constitute new budget authority804 in an amount equal to the cost of the direct loan or loan guarantee in the fiscal year in which definite authority becomes available or indefinite authority is used. Such budget authority shall constitute an obligation of the credit program account805 to pay to the financing account.806
(2) The outlays807 resulting from new budget authority808 for the cost809 of direct loans810 or loan guarantees811 described in paragraph (1) shall be paid from the credit program account812 into the financing account813 and recorded in the fiscal year in which the direct loan or the guaranteed loan is disbursed or its costs altered.
(3) All collections and payments of the financing accounts814 shall be a means of financing.
799. Section 502(2) defines “direct loan obligation”. See supra p. 280.
800. Section 502(4) defines “1oan guarantee commitment”. See supra p. 281.
801. Section 502(5) defines “cost”. See supra p. 281.
800. Section 502(4) defines “1oan guarantee commitment”. See supra p. 281.
801. Section 502(5) defines “cost”. See supra p. 281.
802. Section 502(1) defines “direct loan”. See supra p. 280.
803. Section 502(3) defines “loan guarantee”. See supra p. 280.
804. Section 3(2) defines “budget authority”. See supra pp. 11-13.
805. Section 502(6) defines “credit program account”. See supra p. 282.
806. Section 502(7) defines “financing account”. See supra p. 283.
807. Section 3(1) defines “budget outlays”. See supra p. 11.
808. Section 3(2) defines “budget authority”. See supra pp. 11-13.
809. Section 502(5) defines “cost”. See supra p. 281.
810. Section 502(1) defines “direct loan”. See supra p. 280.
811. Section 502(3) defines “loan guarantee”. See supra p. 280.
812. Section 502(6) defines “credit program account”. See supra p. 282.
813. Section 502(7) defines “financing account”. See supra p. 283.
814. Section 502(7) defines “financing account”. See supra p. 283.
(e) Modifications.—A direct loan obligation815 or loan guarantee commitment816 shall not be modified in a manner that increases its cost817 unless budget authority818 for the additional cost is appropriated, or is available out of existing appropriations or from other budgetary resources.
815. Section 502(2) defines “direct loan obligation”. See supra p. 280.
816. Section 502(4) defines “loan guarantee commitment”. See supra p. 281.
817. Section 502(5) defines “cost”. See supra p. 281.
818. Section 3(2) defines “budget authority”. See supra pp. 11-13.
(f) Reestimates.—When the estimated cost819 for a group of direct loans820 or loan guarantees821 for a given credit program made in a single fiscal year is reestimated in a subsequent year, the difference between the reestimated cost and the previous cost estimate shall be displayed as a distinct and separately identified subaccount in the credit program account822 as a change in program costs and a change in net interest. There is hereby provided permanent indefinite authority for these reestimates.
819. Section 502(5) defines “cost”. See supra p. 281.
820. Section 502(1) defines “direct loan”. See supra p. 280.
821. Section 502(3) defines “loan guarantee”. See supra p. 280.
822. Section 502(6) defines “credit program account”. See supra p. 282.
(g) Administrative Expenses.—All funding for an agency’s administration of a direct loan823 or loan guarantee824 program shall be displayed as distinct and separately identified subaccounts within the same budget account as the program’s cost.825
823. Section 502(1) defines “direct loan”. See supra p. 280.
824. Section 502(3) defines “loan guarantee”. See supra p. 280.
825. Section 502(5) defines “cost”. See supra p. 281.
Section 13201(a) of the Budget Enforcement Act of 1990 created the new title V on credit reform, including section 504. See infra p. 713. Public Law 97 258 repealed what used to be section 503. See “An Act to Revise, Codify, and Enact Without Substantive Change Certain General and Permanent Laws, Related to Money and Finance, as Title 31, United States Code, ‘Money and Finance’”, Pub. L. 97 258, 96 Stat. 877, 1082 (1982). As originally enacted in 1974, section 504 read as follows:
conversion of authorizations of appropriations
Sec. 504. Any law providing for an authorization of appropriations commencing on July 1 of a year shall, if that year is any year after 1975, be considered as meaning October 1 of that year. Any law providing for an authorization of appropriations ending on June 30 of a year shall, if that year is any year after 1976, be considered as meaning September 30 of that year. Any law providing for an authorization of appropriations for the fiscal year 1977 or any fiscal year thereafter shall be construed as referring to that fiscal year ending on September 30 of the calendar year having the same calendar year number as the fiscal year number.
Counsel Notes
SECTION 504, in Current Law
Section 504, as in the current Congressional Budget Act of 1974 (Pub. L. 97-344).
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