
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2873]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
     CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING
 
SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                            MILITARY HOUSING
 
Sec. 2873. Direct loans and loan guarantees

    (a) Direct Loans.--(1) Subject to subsection (c), the Secretary 
concerned may make direct loans to an eligible entity in order to 
provide funds to the eligible entity for the acquisition or construction 
of housing units that the Secretary determines are suitable for use as 
military family housing or as military unaccompanied housing.
    (2) The Secretary concerned shall establish such terms and 
conditions with respect to loans made under this subsection as the 
Secretary considers appropriate to protect the interests of the United 
States, including the period and frequency for repayment of such loans 
and the obligations of the obligors on such loans upon default.
    (b) Loan Guarantees.--(1) Subject to subsection (c), the Secretary 
concerned may guarantee a loan made to an eligible entity if the 
proceeds of the loan are to be used by the eligible entity to acquire, 
or construct housing units that the Secretary determines are suitable 
for use as military family housing or as military unaccompanied housing.
    (2) The amount of a guarantee on a loan that may be provided under 
paragraph (1) may not exceed the amount equal to the lesser of--
        (A) the amount equal to 80 percent of the value of the project; 
    or
        (B) the amount of the outstanding principal of the loan.

    (3) The Secretary concerned shall establish such terms and 
conditions with respect to guarantees of loans under this subsection as 
the Secretary considers appropriate to protect the interests of the 
United States, including the rights and obligations of obligors of such 
loans and the rights and obligations of the United States with respect 
to such guarantees.
    (c) Limitation on Direct Loan and Guarantee Authority.--Direct loans 
and loan guarantees may be made under this section only to the extent 
that appropriations of budget authority to cover their cost (as defined 
in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a(5))) are made in advance, or authority is otherwise provided in 
appropriation Acts. If such appropriation or other authority is 
provided, there may be established a financing account (as defined in 
section 502(7) of such Act (2 U.S.C. 661a(7))), which shall be available 
for the disbursement of direct loans or payment of claims for payment on 
loan guarantees under this section and for all other cash flows to and 
from the Government as a result of direct loans and guarantees made 
under this section.

(Added Pub. L. 104-106, div. B, title XXVIII, Sec. 2801(a)(1), Feb. 10, 
1996, 110 Stat. 545; amended Pub. L. 106-65, div. B, title XXVIII, 
Sec. 2803(c), Oct. 5, 1999, 113 Stat. 849.)


                               Amendments

    1999--Subsec. (a)(1). Pub. L. 106-65, Sec. 2803(c)(1), substituted 
``an eligible entity'' for ``persons in the private sector'' and ``the 
eligible entity'' for ``such persons''.
    Subsec. (b)(1). Pub. L. 106-65, Sec. 2803(c)(2), substituted ``an 
eligible entity'' for ``any person in the private sector'' and ``the 
eligible entity'' for ``the person''.

                  Section Referred to in Other Sections

    This section is referred to in section 2883 of this title.
