1982 LIMITATIONS ON LOAN GUARANTEE COMMITMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84M00395R000100010013-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: March 9, 2007
• Sequence Number: 13
• Publication Date: January 26, 1982
• Content Type: REGULATION

Approved For Release 2007/04/13: CIA-RDP84M00395R000100010013-6
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
JAN 2.0 1981
6
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: 1982 Limitations on Loan Guarantee Commitments
1. Purpose. This Bulletin provides instructions on
treatment of 1982 limitations on loan guarantee commitments
in the 1983 Budget, where the level of commitments is
estimated to be less than the enacted limitation.
2. Authority. The Budget and Accounting Act, 1921, as
amended.
3. Background. In the 1981 Budget, a system for controlling
Federal direct loans and loan guarantees through the enact-
ment of limitations in appropriations acts was established.
Under this system, annual ceilings are recommended to the
Congress on credit programs that in most cases are limited
otherwise only by provisions in authorizing statutes.
Authorizing statutes generally specify eligibility criteria
and in some cases the amount of direct loans or loan
guarantees that may be outstanding at any time. Limitations
in appropriations acts specify the maximum amount of Federal-
credit that may be extended during the year. Other factors,
such as the absence of qualified applicants, may result in a
lesser amount of credit actually being extended.
On November 5, 1981, the President directed the heads of
certain agencies to prepare plans for achieving reductions in
1982 new commitments for Federal loan guarantees (see attach-
ment). One of the President's objectives was to promote
administrative practices to ensure that only qualified
applicants receive Federal loan guarantees. Consistent with
this objective, applicants should be required to meet those
criteria dictated by bound financial management principles
that can be applied within the bounds of the pertinent legal
authority. The criteria, among other things, should preclude
Federal guarantees when credit can be obtained without them
and establish equity, collateral, and coinsurance require-
ments. Because of the importance of achieving the reductions
quickly and because the appropriations process was already
far advanced, the President requested that administrative
action to achieve the reductions be taken whenever possible.
In the further continuing resolution for 1982 (P.L. 97-92,
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section 136), the Congress expressed its agreement with the
President's policy that guarantees or insurance should be
extended only to qualified applicants.
In furtherance of his policy, the President will request that
the Congressi:enact revised loan guarantee limitations for
1982. The amounts proposed will be lower, but will be
sufficient to fulfill the purpose of the guarantee programs
under rigorously applied criteria.
4. Coverage. ' This Bulletin applies to all loan guarantee
programs for) which limitations were enacted either specif-
ically in appropriations acts or in effect in the further
continuing resolution (P.L. 97-92).
5. Definitions. The terms commitment and loan guarantee are
defined in OMB Circular No. A-11 (revised), section 33.2.
6. Policy. Supplemental appropriation language proposing a
lower limitation for 1982 guarantee programs will be trans-
mitted with the 1983 Budget where the amount of new commit-
ments in 1982 is estimated to be less than the amount of the
limitation described in paragraph 4 and the lesser amount is
expected to result for reasons other than the absence of
qualified applicants. OMB approval is required for
exceptions.
7. Action required. For each affected budget account, the
responsible agency will accomplish the following actions
(references are to sections of OMB Circular No. A-11,
revised):
a. Submit proposed appropriations language (as
prescribed in section 31.5) to be printed in Part III of the
Appendix to the budget that includes the revised amount
(underscore language, to be printed in italics). ,
b. Ensure that the schedule on status of loan guarantees
appearing in, Part I of the Appendix includes the amount of
the reduction on line 2190, Unused balance of limitation,
expiring, and that line 2110, Limitation on commitments, is
footnoted to read "A limitation in the amount of $xxx
thousand is proposed for FY 1982; see Part III for additional
information." (The footnote, "See Part III for additional
details" should also follow the appropriation language in
Part I.)
8. Timing. The above actions must be completed concurrently
with the next submission of Budget Appendix galley proofs or
page proofs to be submitted to OMB subsequent to the date of
this Bulletin.
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9. Information contact. Agencies should contact their OMB
budget examiner.
10. Sunset review date. This Bulletin expires concurrently
with the transmittal to Congress of the 1983 Budget.
David A. Stockman
Director
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