795 



69 



" (2) If there, is a default by a State or local government in any pay- 

 ment of principal or interest due under a bond or other evidence of 

 indebtedness guaranteed by the Secretary pursuant to this section, any 

 holder of such a bond or other evidence of indebtedness may 'demand 

 payment by the Secretary of the unpaid interest on and the unpaid 

 principal of such obligation as they become due. The Secretary, upon 

 investigation, shall pay suoh amounts to such holders, unless the Secre- 

 tary finds that there was no default by the State or local government 

 involved or that such default has been remedied. If the Secretary 

 makes a payment under this paragraph, the United States shall have 

 a right of reimbursement against the Stat« or local government in- 

 volved for the amount of such payment plus interest at prevailing 

 rates. Such right of reimbursement may be satisfied by the Secretary 

 by treating such amount as an offset against any revenues due or to be- 

 come due to such State or local government under section 308 (k) of 

 this Act, and the Attorney Greneral, upon the request of the Secretary, 

 shall take such action as is, in the Secretary's discretion, necessaiy to 

 protect the interests of the United States, including the recovery of 

 previously paid funds that were not applied as provided in this Act. 

 However, if the funds accrued by or due to the State in automatic 

 grants under section 308 (k) of this Act are insufficient to reimburse 

 the Federal government in full for funds paid under this section to 

 retire either the principal or interest on the defaulted bonds, the Secre- 

 tary's right of reimbursement shall be limited to the amount of such 

 automatic grants accrued or due. Funds accrued in automatic grants 

 under section 308 (k) of this Act subsequent to default shall be applied 

 by the Secretary towards the reimbursement of the obligations 

 assumed by the Federal government.". 



"Sec. 103. (a) There shall be in the National Oceanic and Atmos- 

 pheric Administration an Associate Administrator for Coastal Zone 

 Management who shall be appointed by the President, by and with the 

 advice and consent of the Senate. Such Associate Administrator shall 

 be a qualified individual who is, by reason of background and experi- 

 ence, especially qualified to direct the implementation and administra- 

 tion of this Act. Such Associate Administrator shall be compensated 

 at the rate now or hereafter provided for level V of the Executive 

 Schedule Pay Rates (5 U.S.C. 5316). 



"(b) Section 5316 of title 5, United States Code is amended by 

 adding at the end thereof the following new paragraph : 



"(135) Associate Administrator for Coastal Zone Management, 

 National Oceanic and Atmospheric Administration.". 



Agency Comments 



On February 21, 1975, the Committee wrote to the following agen- 

 cies requesting comments on S. 586 : Department of the Interior ; 

 Department of Commerce; Environmental Protection Agency 

 (EPA) ; Council on Environmental Quality (CEQ) ; Federal Energy 

 Administration (FEA) ; Federal Power Commission (FPC) ; and 

 Department of Housing and Urban Development (HUD). 



The Committee has received no comments from these agencies and 

 departments. However, in joint hearings with the Committee on In- 



