996 

 110 



ury and deposited in such revolving fund jmrsuant to subsection 



(O(^). 



{2) If there is a default by a coastal state or unit of general pur- 

 pose local government in any payment of principal or interest due 

 under a bond or other evidence of indebtedness guaranteed by the 

 Secretary under this section^ any holder of such bond or other evi- 

 dence of indebtedness may demand payment by the Secretary of the 

 unpaid interest on and the unpaid principal of s^ich obligation as they 

 become due. The Secretary^ after investigating the facts presented by 

 the holder., shall pay to the holder the amoumt which is due him., unless 

 the Secretary finds that there was no default by the coastal state or unit 

 of general purpose local government 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 

 coastal state or unit of general purpose local government for which 

 the payment wa^ made for the amount of such payment plus interest 

 at the prevailing current rate as determined by the Secretary. If any 

 revenue becomes due to such coastal state or unit of general purpose 

 local government under section 308 (a) of this title, the Secretary 

 shall., in lieu of paying such coastal state or unit of general purpose 

 local government such revenue, deposit surh revenue in the revolving 

 fund established u/nder subsection (i) until the right of reimbursement 

 has been satisfied. 



(3) The Attorney General shall, upon request of the Secretary, tahe 

 su^h aetion <m may be appropriate to enforce any riaht accruinn to the 

 United States as a result of the issuance of any guarantee 'tinder this 

 section. Any sum recmiered, v^irsuant to this paranraph shall be paid 

 into the revolving fund estahlished bti subsection (i). 



(^) (/I The Secretary shall eufnblish a revolving furtd to provide for 

 the timely payment of any liability incurred as a result of mmrantees 

 made under this section, for the payment of costs of administerina this 

 section., and for the payment of obligations issued to the Secretary of 

 the Treasury under paragraph (2) of this subsection. This revolving 

 fund shall be comprised of — 



(A) receipts from fees collected under this section: 



(B) recoveries under security, subrogation, and other rights: 



(C) reirribursements., interest income, and, any other receipts 

 obtained in connection with aveirantees made under this section: 



(D) proceeds of the obligations issued to the Secretary of the 

 Treasury pursuant to paragraph (2) of this subsecticm : and 



(E) such sums as may be appropriated to carry out the 

 provisions of this section. 



Funds in the revolvinq fund not currently needed for the purpose 

 of this section shall be kept on devosit or invested in obligations of 

 the United States or guaranteed, thereby or in obliaations. participa- 

 tion., or other instruments which are lawful investments for fiduciary, 

 trust, or public funds. 



{2) The Secretary may, for the purpose of carrying out the func- 

 tions of this section, issue obligations to the Secretary of the, Treasury 

 only to such extent or in such amounts as may be provided in nvpro- 

 priation Acts. The obliaatixms issued under this paranraph shall hm^e 

 such maturities and bear such rate or rates of interest as shall be 

 determined by the Secretary of the Treasury. The Secretary of the 



