 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
                     Part C--Public Charter Schools
 
   subpart 2--credit enhancement initiatives to assist charter school 
           facility acquisition, construction, and renovation
 
Sec. 8071d. Reserve account


(a) Use of funds

    To assist charter schools to accomplish the objectives described in 
section 8071c of this title, an eligible entity receiving a grant under 
this subpart shall, in accordance with State and local law, directly or 
indirectly, alone or in collaboration with others, deposit the funds 
received under this subpart (other than funds used for administrative 
costs in accordance with section 8071e of this title) in a reserve 
account established and maintained by the entity for this purpose. 
Amounts deposited in such account shall be used by the entity for one or 
more of the following purposes:
        (1) Guaranteeing, insuring, and reinsuring bonds, notes, 
    evidences of debt, loans, and interests therein, the proceeds of 
    which are used for an objective described in section 8071c of this 
    title.
        (2) Guaranteeing and insuring leases of personal and real 
    property for an objective described in section 8071c of this title.
        (3) Facilitating financing by identifying potential lending 
    sources, encouraging private lending, and other similar activities 
    that directly promote lending to, or for the benefit of, charter 
    schools.
        (4) Facilitating the issuance of bonds by charter schools, or by 
    other public entities for the benefit of charter schools, by 
    providing technical, administrative, and other appropriate 
    assistance (including the recruitment of bond counsel, underwriters, 
    and potential investors and the consolidation of multiple charter 
    school projects within a single bond issue).

(b) Investment

    Funds received under this subpart and deposited in the reserve 
account shall be invested in obligations issued or guaranteed by the 
United States or a State, or in other similarly low-risk securities.

(c) Reinvestment of earnings

    Any earnings on funds received under this subpart shall be deposited 
in the reserve account established under subsection (a) of this section 
and used in accordance with such subsection.

(Pub. L. 89-10, title X, Sec. 10325, as added Pub. L. 106-554, 
Sec. 1(a)(1) [title III, Sec. 322(a)(2)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-59.)

                  Section Referred to in Other Sections

    This section is referred to in sections 8071c, 8071h of this title.
