| (a) Subject to subsection (b) of this section, for
each Enrolled Loan, the Office shall encumber an amount in the Fund
up to the Guaranteed Amount specified in §200.107 of this chapter
(relating to Loan Guarantee Maximums; Procedure for Enrollment of
a Qualified Loan) for the Enrolled Loan and attribute that encumbrance
to the Enrolled Loan.
(b) The Office shall not encumber the full amount specified
in subsection (a) of this section if:
(1) the Fund does not contain an amount of money greater
than or equal to the amount to be encumbered, in which case the Office
may encumber up to the balance of the Fund; or
(2) the amount to be encumbered is more than $4,000,000,
in which case the Office may encumber up to $4,000,000.
(c) Notwithstanding any provision to the contrary,
the Office may unencumber any encumbered amounts related to loans
the Office, in its sole discretion, has determined are ineligible
for reimbursement or for other good cause. If the encumbered amounts
have been reported to Treasury, the Office shall promptly inform Treasury
of the unencumbrance. The Office may use any unencumbered funds to
guarantee any other Qualified Loan.
|
