680 



he deems necessary and proper to protect such guaran- 

 tees. Appropriations are hereby authorized to be made 

 to the Administrator In such sums as are necessary to 

 make payments under such guarantees, and such pay- 

 ments are authorized to be made from such appropri- 

 ations. 



"(3) No purchase shall be made of obligations Issued 

 to finance projects, the permanent financing of which 

 occurred prior to the enactment of this section |Oct. 18. 

 1972]. 



"(4) Any purchase by the Authority shall be upon such 

 terms and conditions as to yield a return at a rate de- 

 termined by the Secretary of the Treasury taking Into 

 consideration (A) the current average yield on outstand- 

 ing marketable obligations of the United States of com- 

 parable maturity or In Its stead whenever the Authority 

 has sufficient of Its own long-term obligations outstand- 

 ing, the current average yield on outstanding obligations 

 of the Authority of comparable maturity; and (B) the 

 market yields on municipal bonds, 



"(5) The Authority Is authorized to charge fees for 

 its commitments and other services adequate to cover 

 all expenses and to provide for the accumulation of 

 reasonable contingency reserves and such fees shall be 

 Included in the aggregate project costs. 



"(f) (Initial Capital] To provide Initial capital to the 

 Authority the Secretary of the Treasury is authorized to 

 advance the funds necessary for this purpose Each such 

 advance shall be upon such terms and conditions as to 

 yield a return at a rate not less than a rate determined 

 by the Secretary of the Treasury taking into considera- 

 tion the current average yield on outstanding market- 

 able obligations of the United States of comparable ma- 

 turities. Interest payments on such advances may be 

 deferred, at the discretion of the Secretary, but any such 

 deferred payments shall themselves bear interest at the 

 rate specified in this section. There is authorized to be 

 appropriated not to exceed $100,000,000, which shall be 

 available for the purposes of this subsection. 



"(g) [Issuance of Obligations! (1) The Authority is 

 authorized, with the approval of the Secretary of the 

 Treasury, to issue and have outstanding obligations hav- 

 ing such maturities and bearing such rate or rates of 

 Interest as may be determined by the Authority. Such 

 obligations may be redeemable at the option of the 

 Authority before maturity in such manner as may be 

 stipulated therein. 



"(2) As authorized in appropriation Acts, and such 

 authorizations may be without fiscal year limitations, 

 the Secretary of the Treasury may in his discretion pur- 

 chase or agree to purchase any obligations issued pur- 

 suant to paragraph (1) of this subsection, and for such 

 purpose the Secretary of the Treasury Is authorized to use 

 as a public debt transaction the proceeds of the sale of 

 any securities hereafter issued under the Second Liberty 

 Bond Act [section 752 et seq. of Title 31 1, as now or 

 hereafter in force, and the purposes for which securities 

 may be issued under the Second Liberty Bond Act 

 [section 752 et seq. of Title 31 1, as now or hereafter In 

 force, are extended to Include such purchases. Each 

 purchase of obligations by the Secretary of the Treasury 

 under this subsection shall be upon such terms and con- 

 ditions as to yield a return at a rate not less than a rate 

 determined by the Secretary of the Treasury, taking into 

 consideration the current average yield on outstanding 

 marketable obligations of the United States of com- 

 parable maturities. The Secretary of the Treasury may 

 sell, upon such terms and conditions and at such price 

 or prices as he shall determine, any of the obligations 

 acquired by him under this paragraph. All purchases 

 and sales by the Secretary of the Treasury of such obli- 

 gations under this paragraph shall be treated as public 

 debt transactions of the United States. 



"(h) [Interest Differential] The Secretary of the Treas- 

 ury is authorized and directed to make annual payment."! 

 to the Authority in such amounts as are necessary to 

 equal the amount by which the dollar amount of interest 

 expense accrued by the Authority on account of its 

 obligations exceeds the dollar amount of interest Inconin 

 accrued by the Authority on account of obligations pur- 

 chased by it pursuant to subsection (e) of this section. 



"(1) [Powersl The Authority shall have power — 



"(1) to sue and be sued, complain and defend, in If 

 corporate name; 



■■(2) to adopt, alter, and use a corporate seal, which 

 shall be Judicially noticed; 



"(3) to adopt, amend, and repeal bylaws, rules, and 

 regulations as may be necessary for the conduct of its 

 business; 



"(4) to conduct its business, carry on Its operations, 

 and have offices and exercise the powers granted by this 

 section in any State without regard to any qualification 

 or similar statute in any State; 



"(5) to lease, purchase, or otherwise acquire, own. 

 hold. Improve, use, or otherwise deal In and with any 

 property, real, personal, or mixed, or any interest there- 

 in, wherever situated; 



"(6) to accept gifts or donations of services, or of 

 property, real, personal, or mixed, tangible or Intangi- 

 ble, in aid of any of the purposes of the Authority; 



"(7) to sell, convey, mortgage, pledge, lease, exchange, 

 and otherwise dispose of its property and assets; 



"(8) to appoint such officers, attorneys, employees, 

 and agents as may be required, to define their duties, 

 to fix and to pay such compensation for their services 

 as may be determined, subject to the civil service and 

 classification laws, to require bonds for them and pay 

 the oremium thereof; and 



"(9) to enter Into contracts, to execute instruments. 



to incur liabilities, and to do all things as are necessary 



or Incidental to the proper management of its affairs 



and the proper conduct of its business. 



■■(J) [Tax Exemption. Exemptions] The Authority, its 



property. Its franchise, capital, reserves, surplus, security 



holdings, and other funds, and its Income shall be exempt 



from all taxation now or hereafter Imposed by the United 



States or by any State or local taxing authority; except 



that (A) any real property and any tangible personal 



property of the Authority shall be subject to Federal, 



State, and local taxation to the same extent according to 



its value as other such property is taxed, and (B) any and 



all obligations issued by the Authority shall be subject 



both as to principal and interest to Federal, State, and 



local taxation to the same extent as the obligations of 



private corporations are taxed. 



"(k) ]Nature of Obligations] All obligations Issued by 

 the Authority shall be lawful investments, and may be 

 accepted as security for all fiduciary, trust, and public 

 funds, the investment or deposit of which shall be under 

 authority or control of the United States or cf any officer 

 or officers thereof All obligations issued by the Authority 

 pursuant to this section shall be deemed to be exempt 

 securities within the meaning of laws administered by the 

 Securities and Exchange Commission, to the same extent 

 as securities which are issued bv the United States. 



"{!) [Preparation of Obligations by Secretary of the 

 Treasury [ In order to furnish obligations for delivery by 

 the Authority, the Secretary of the Treasury is authorized 

 to prepare such obligations in such form as the Authority 

 may approve, such obligations when prepared to be held 

 in the Treasury subject to delivery upon order by the 

 Authority. The engraved plates, dies, bed pieces, and so 

 forth, executed in connection therewith, shall remain in 

 the custody of the Secretary of the Treasury. The Au- 

 thority shall reimburse the Secretary of the Treasury for 

 any expenditures made In the preparation, cuscody. and 

 delivery of such obligations. 



"(m) [Annual Report to Congress] The Authority shall, 

 as soon as practicable after the end of each fiscal year, 

 transmit to the President anct the Congress an annual re- 

 port of its operations and activities 



"(n) [Subsec. (n) amended section 24 of Title 12, 

 Banks and Banking, and is not set out herein.] 



"(o) [Financial Controls] The budget and audit provi- 

 sions of the Government Corporation Control Act (31 

 use. 846) shall be applicable to the Environmental 

 Financing Authority in the same manner as they are 

 applied to the wholly owned Government corporations. 



"(p) [Subsec. (p) amended section 711 of Title 31, 

 Money and Finance, and is not set out herein.]" 



