1065 



15 



sums appropriated to the Fund or from moneys obtained from the 

 Secretary of the Treasury pursuant to paragraph (6). 



"(^) // the7'e is a default by a coastal state or unit of general pur- 

 pose local government in any pay merit of principal or interest due 

 under a bond or other evidence of indebtedness guaranteed by the 

 Secretary under subsection {d) (^), any holder of such 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., after investigating the facts presented 

 by the holder., shall pay to the holder the amount which is due such 

 holder., unless the Seci^etary fiivds that there loas nx) default by such 

 state or unit or that such default has been remedied. 



"(6^) // the Secretary makes a payment to a holder under subpara- 

 graph (B), the Seci^etary shall — 



"(i) have all of the rights granted to the Secretary or the 

 United States by law or by agreement with the obligor; and 



^^(ii) be subrogated to all of the rights which were granted such 

 holder^ by law, assignment, or security agreement between such 

 holder anA the obligor. 

 Such rights shall include, but not be limited to, a right of reimburse- 

 ment to the United States against the coastal state or unit of general 

 purpose local government for lohich the payment was made for the 

 amount of such payment plus interest at the prevailing current rate as 

 determined by the Secretary. If such coastal state, or the coastal state 

 in ivhich such unit is located, is due to receive any amount under sub- 

 section (b), the Secretary shall, in lieu of paying such amount to such 

 state, deposit such amount in the Fund until such right of reimburse- 

 ment has been satisfied. The Secretary may accept, in complete or par- 

 tial satisfaction of any such rights, a conveyance of property or inter- 

 ests therein. Any property so obtained by the Secretary may be com- 

 pleted, maintained, operated, held, rented, sold, or otherwise dealt with 

 or disposed of on such terms or conditions as the Secretary pi^escribes 

 or approves. If, in any case, the sum received through the sale of such 

 property is greater than the amount paid to the holder under subpara- 

 graph {B) plus costs, the Secretary shall pay any such excess to the 

 obligor. 



" (Z>) The Attorney General shall, upon the request of the Secretary, 

 take such action as may be appropriate to enforce any right deciding 

 to the Secretary or the United States as a result of the snaking of any 

 guarantee under subsection (d) {2). Any sums received through any 

 sale under subparagraph {C) or recovered pursuant to this subpara- 

 graph shall be paid into the Fund. 



"(^) ^/ the moneys available to the Secretary are not sufjUcient to 

 pay any amount lohich the Seci^etary is obligated to pay under para- 

 graph (5), the Secretary shall issue to the Secretary of the Treasury 

 notes or other obligations (only to such extent and in such amounts as 

 maybe provided for in appropriation Acts) in such forms and denom- 

 inations, bearing such 7naturities, and subject to such terms and condi- 

 tions as^ the Secretary of the Treasury jrrescribes. Such notes or other 

 obligations shall bear interest at a rate determined by the Secretary of 

 the Treasury on the basis of the current average market yield on out- 

 standing marketable obligations of the United States on comparable 

 maturities during the month preceding the issuance of such notes or 

 other obligations. Any sums received by the Secretary through su^h 

 issuance shall be deposited in the Fund. The Secretary of the treasury 



