620 



shall pay to the holder the amount which is due 

 such holder, unless the Secretary finds that there 

 was no default by such state or unit or that such 

 default has been remedied. 



(C) If the Secretary makes a payment to a holder 

 under subparagraph (B) , the Secretary shall — 



(i) have all 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 and 

 the obligor. 

 Such rights shall include, but not be limited to, a 

 right of reimbursement to the United States 

 against the coastal state or imit of general purpose 

 local government for which 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 which such unit is located, is due to receive any 

 amount under subsection (b) , the Secretary shall, 

 in lieu of paying such amounts to such state, deposit 

 such amount in the Fund until such right of reim- 

 bursement has been satisfied. The Secretary may 

 accept, in complete or partial satisfaction of any 

 such rights, a conveyance of property or interests 

 therein. Any property so obtained by the Secretary 

 may be completed, maintained, operated, held, 

 rented, sold, or otherwise dealt with or disposed of 

 on such terms or conditions as the Secretary pre- 

 scribes or approves. If, in any case, the sum re- 

 ceived through the sale of such property is greater 

 than the amount paid to the holder under subpara- 

 graph (D) plus costs, the Secretary shall pay any 

 such excess to the obligor. 



(D) The Attorney General shall, upon the re- 

 quest of the Secretary, take such action as may be 

 appropriate to enforce any right accruing to the 

 Secretary or the United States as a result of the 

 making of any guarantee under subsection (d) (2) . 

 Any sums received through any sale under subpara- 

 graph (C) or recovered pursuant to this subpara- 

 graph shall be paid into the Fund. 



(6) If the moneys available to the Secretary are 

 not sufficient to pay any amount which the Secre- 

 tary is obligated to pay under paragraph (5), the 

 Secretary shall issue to the Secertary of the Treas- 

 ury notes or other obligations ( only to such extent 

 and in such amounts as may be provided for in 

 appropriation Acts) in such forms and denomina- 

 tions, bearing such maturities, and subject to such 

 terms and conditions as the Secretary of the 

 Treasury prescribes. Such notes or other obliga- 

 tions shall bear interest at a rate determined by 

 the Secretary of the Treasury on the basis of the 

 current average market yield on outstanding mar- 

 ketable obligations of the United States on com- 

 parable maturities during the month preceding the 

 issuance of such notes or other obligations. Any 

 sums received by the Secretary through such is- 

 suance shall be deposited in the Fund. The Secre- 

 tary of the Treasury shall purchase any notes or 

 other obligations Issued under this paragraph, and 

 for this purpose such Secretary may use as a public 



debt transaction the proceeds from the sale of any 

 securities issued under the Second Liberty Bond 

 Act, as now or hereafter in force. The purposes for 

 which securities may be issued under that Act are 

 extended to include any purchase of notes or other 

 obligations issued under this paragaph. The Sec- 

 retary of the Treasury may at any time sell any of 

 the notes or other obligations so acquired under 

 this paragraph. All redemptions, purchases, and 

 sales of such notes or other obligations by the Sec- 

 retary of the Treasury shall be treated as public 

 debt transactions of the United States. 



(g) (1) No coastal state is eligible to receive any 

 financial assistance under this section unless such 

 stats — 



(A) has a management program which has 

 been approved under section 1455; 



(B) is receiving a grant under section 1454(c) 

 or (d) ; or 



(C) is, in the judgment of the Secretary, mak- 

 ing satisfactory progress toward the develop- 

 ment of a management program which is con- 

 sistent with the policies set forth in section 1452. 

 (2) Each coastal state shall, to the maximum ex- 

 tent practicable, provide that financial assistance 

 provided under this section be apportioned, allo- 

 cated, and granted to units of local government 

 within such state on a basis which is proportional 

 to the extent to which such units need such assist- 

 ance. 



(h) There is established in the Treasury of the 

 United States the Coastal Energy Impact Fund. 

 The Fund shall be available to the Secretary with- 

 out fiscal year limitation as a revolving fund for 

 the purposes of carrying out subsections (c) and 

 (d) . The Fund shall consist of — 



(1) any sums appropriated to the Fund; 



(2) payments of principal and interest received 

 under any loan made under subsection (d) (1) ; 



(3) any fees received in connection with any 

 guarantee made under subsection (d) (2) ; and 



(4) any recoveries and receipts under security, 

 subrogation, and other rights and authorities 

 described in subsection (f) . 



All payments made by the Secretary to carry out 

 the provisions of subsections (c), (d), and (f) (in- 

 cluding reimbursements to other Government ac- 

 counts) shall be paid from the Fund, only to the 

 extent provided for in appropriation Acts. Sums in 

 the Fund which are not currently needed for the 

 purposes of subsections (c), (d) , and (f) shall be 

 kept on deposit or invested in obligations of, or 

 guaranteed by, the United States. 



(i) The Secretary shall not intercede in any land 

 use or water use decision of any coastal state with 

 respect to the siting of any energy facility or public 

 facility by making siting in a particular location a 

 prerequisite to, or a condition of, financial assist- 

 ance under this section. 



(j) The Secretary may evaluate, and report to 

 the Congress, on the efforts of the coastal states and 

 units of local government therein to reduce or 

 ameliorate adverse consequences resulting from 

 coastal energy activity and on the extent to which 

 such efforts involve adequate consideration of alter- 

 native sites. 



