ESTABLISHMENT OF GUARANTY AND INDEMNITY FUND.

SEC. 302. ESTABLISHMENT OF GUARANTY AND INDEMNITY FUND. (a) New Fund.—(1) Section 1825 is amended to read as follows: “§ 1825. Guaranty and Indemnity Fund “(a) There is hereby established in the Treasury of the United States a revolving fund known as the Guaranty and Indemnity Fund. “(b) The Guaranty and Indemnity Fund shall be available to the Secretary for all operations carried out with respect to housing loans guaranteed or insured under this chapter that are closed after December 31, 1989, except for operations with respect to loans for any purpose specified in section 1812 of this title, for loans guaranteed under section 1811(g) of this title, and for administrative expenses. For purposes of this subsection, the term ‘administrative expenses’ shall not include expenses incurred by the Secretary for appraisals performed after December 31, 1989, on a contractual basis in connection with the liquidation of housing loans guaranteed, insured, or made under this chapter. “(c)(1) All fees collected under section 1829 of this title for loans with respect to which the Guaranty and Indemnity Fund is available shall be credited to such Fund. “(2) There shall also be credited to the Guaranty and Indemnity Fund— “(A) for each loan closed during fiscal year 1990 with respect to which the Guaranty and Indemnity Fund is available, an amount equal to 0.375 percent of the original amount of such loan for each of the fiscal years 1991 and 1992; “(B) for each loan closed after fiscal year 1990 with respect to which the Guaranty and Indemnity Fund is available, an amount equal to 0.25 percent of the original amount of such loan for each of the three fiscal years beginning with the fiscal year in which such loan is closed; “(C) all collections of principal and interest and the proceeds from the use or sale of property which secured a Joan with respect to which the Guaranty and Indemnity Fund is available; “(D) amounts required to be credited under subsections (a)(3) and (c)(2), including amounts credited pursuant to subsections (a)(4) and (c)(3), of section 1829 of this title; “(E) fees collected under section 1829(b) of this title with respect to guaranteed or insured loans that are closed after December 31, 1989, and subsequently assumed; and “(F) all income from the investments described in subsection (d) of this section. “(d)(1) The Secretary of the Treasury shall invest the portion of the Guaranty and Indemnity Fund that is not required to meet current payments made from such Fund, as determined by the Secretary of Veterans Affairs, in obligations of the United States or in obligations guaranteed as to principal and interest by the United States. “(2) In making investments under paragraph (1) of this subsection, the Secretary of the Treasury shall select obligations having matu-103 STAT. 2070rities suitable to the needs of the Guaranty and Indemnity Fund, as determined by the Secretary of Veterans Affairs, and bearing interest at suitable rates, as determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. “(e)(1) Notwithstanding subsection (b) of this section, the Guaranty and Indemnity Fund shall be available to the Secretary, to such extent as is, or in such amounts as are, provided for in appropriation Acts and subject to paragraph (2) of this subsection, for— “(A) contracts for the performance of supplementary services described in paragraph (2) of section 1824(e) of this title for which the Secretary is otherwise authorized to contract; and “(B) the acquisition of supplementary equipment described in such paragraph, (not including services or equipment for which the Guaranty and Indemnity Fund is available under subsection (b) of this section), as the Secretary determines would assist in ensuring the long-term stability and solvency of the Guaranty and Indemnity Fund. “(2) The Secretary may not in any fiscal year obligate more than a total of $25,000,000 for services or equipment under this subsection and section 1824(e) of this title.”. (2) Section 1824(e)(3) is amended— (A) by inserting “a total of” before “$25,000,000”; and (B) by inserting “and section 1825(e) of this title” before the period. (3)(A) The section heading of section 1824 is amended to read as follows: “§ 1824. Loan Guaranty Revolving Fund”. (B) The table of sections at the beginning of chapter 37 is amended by striking out the items relating to sections 1824 and 1825 and inserting in lieu thereof the following: “1824. Loan Guaranty Revolving Fund. “1825. Guaranty and Indemnity Fund.”. (b) Annual Submission of Information.—(1) Subchapter III of chapter 37 is amended by adding at the end the following new section: “§ 1834. Annual submission of information on the Loan Guaranty Revolving Fund and the Guaranty and Indemnity Fund “(a) In the documents providing detailed information on the budget for the Department of Veterans Affairs that the Secretary submits to the Congress in conjunction with the President’s budget submission for each fiscal year pursuant to section 1105 of title 31, United States Code, the Secretary shall include— “(1) a description of the operations of the Loan Guaranty Revolving Fund and the Guaranty and Indemnity Fund during the fiscal year preceding the fiscal year in which such budget is submitted; and “(2) the needs of such funds, if any, for appropriations in— “(A) the fiscal year in which the budget is submitted; and “(B) the fiscal year for which the budget is submitted. 103 STAT. 2071 “(b) The matters submitted under subsection (a) of this section shall include, with respect to each fund referred to in subsection (a), the following: “(1) Information and financial data on the operations of the fund during the fiscal year before the fiscal year in which such matters are submitted and estimated financial data and related information on the operation of the fund for— “(A) the fiscal year of the submission; and “(B) the fiscal year following the fiscal year of the submission. “(2) Estimates of the amount of revenues derived by the fund in the fiscal year preceding the fiscal year of the submission, in the fiscal year of the submission, and in the fiscal year following the fiscal year of the submission from each of the following sources: “(A) Fees collected under section 1829(a) of this title for each category of loan guaranteed, insured, or made under this chapter or collected under section 1829(b) of this title for assumed loans. “(B) Federal Government contributions made under clauses (A) and (B) of section 1825(c)(2) of this title. “(C) Federal Government payments under subsections (a)(3) and (c)(2) of section 1829 of this title. “(D) Investment income. “(E) Sales of foreclosed properties. “(F) Loan asset sales. “(G) Each additional source of revenue. “(3) Information, for each fiscal year referred to in paragraph (2) of this subsection, regarding the types of dispositions made and anticipated to be made of defaults on loans guaranteed, insured, or made under this chapter, including the cost to the fund, and the numbers, of such types of dispositions.”. (2) The table of sections at the beginning of chapter 37 is amended by inserting after the item relating to section 1833 the following new item: “1834. Annual submission of information on the Loan Guaranty Revolving Fund and the Guaranty and Indemnity Fund.”. (c) Conforming Amendments.—Section 1824 is amended— (1) in subsection (b), by inserting before the period at the end of the first sentence the following: “and the operations carried out in connection with the Guaranty and Indemnity Fund established by section 1825 of this title”; and (2) in subsection (c)— (A) by inserting after “title” in clause (2) the following: “for loans closed before January 1, 1990, except that fees collected (A) for all loans made for any purpose specified in section 1812 of this title, or (B) under subsection (b) of such section 1829 for guaranteed or insured loans that are closed before January 1, 1990, and subsequently assumed shall also be deposited in the Fund”; and (B) by inserting after “under this chapter” in clause (3) the following: “(other than operations for which the Guaranty and Indemnity Fund established under section 1825 of this title is available)”.