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Treasury's Borrowings Program
 
Office of Public Debt Accounting - Bureau of the Public Debt

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Borrowings Home How To Establish A New Borrowing Agreement TABS Home

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An agency may borrow from the Secretary of the Treasury and incur "new direct loan obligations and new loan guarantee commitments to the extent that:
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new budget authority to cover their costs is provided in advance in an appropriations act;
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a limitation on the use of funds otherwise available for the cost of a direct loan or loan guarantee program has been provided in advance in an appropriations act; or
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authority is otherwise provided in an appropriations act." (OMB Circular A-11, 1998)

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When an agency decides to exercise its authority, the Office of Management and Budget (OMB) should be contacted. OMB will assist the agency in, among other activities, establishing any necessary financing and receipt accounts with the Financial Management Service (FMS).

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Once all necessary accounts have been established, the borrowing agency should contact a member of the Bureau of the Public Debt's (BPD) Borrowings Team. The Borrowings Team is responsible for the accounting and reporting of Treasury's loans receivable and the related interest receivable. FMS accounts for and reports any interest credit on uninvested funds owed to the agency. The Borrowings Team also assists the agency in establishing the required agreement between the borrowing agency and Treasury.

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BPD's Office of the Chief Counsel conducts a legislative review of the agency's borrowing authority prior to the drafting of the agreement. This review confirms for the Borrowings Team that appropriate legislation is current, whether the agreement should fall within the Federal Credit Reform Act of 1990 (FCRA) guidelines, and if any exceptions or conditions exist in the legislation that require special attention.

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The borrowings agreement is drafted upon completion of the legislative review.
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If the agreement is to follow FCRA guidelines with no exceptions, a standard Credit Reform Agreement (file size 13k, uploaded 10/27/00) is used. The borrowing agency simply replaces the underlined portions of the standard agreement with the appropriate information related to the borrowing agency and program.
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If the agreement is to follow FCRA guidelines, but with exception(s), it is possible the standard Credit Reform Agreement (file size 13k, uploaded 10/27/00) may be used with modification for the exception(s). Additional discussion between the agency and BPD may be necessary in drafting the agreement.
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If the agreement will not follow FCRA guidelines, a nonstandard, original agreement will be required. Additional discussion will be necessary between the borrowing agency and BPD.

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A review and approval process will follow the drafting of the agreement. The agreement is not valid until it is signed and dated by both a certified officer at the agency and the Assistant Commissioner of the Office of Public Debt Accounting for the Bureau of the Public Debt. Along with the agreement, the borrowing agency will provide the Borrowings Team a completed Authorized Representative Form (file size 8k, uploaded 8/3/00), and, if applicable, a Sub-Cohort Identification Request Form (file size 11k, uploaded 3/28/02). The Authorized Representative Form lists all agency representatives, with their original signatures, who are authorized to sign borrowing transaction documents. The same certified agency officer who executes the borrowing agreement must sign the Authorized Representative Form. The Sub-Cohort Identification Request Form should be submitted if the agency records direct loans or loan guarantees at a level more detailed than the cohort level. Agencies should allow a minimum of two weeks to complete the legislative review and finalization of the borrowing agreement.

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The borrowing agency may submit a principal advance request once the agreement, the Authorized Representative Form, and the Sub-Cohort Identification Request Form have been finalized and approved. Borrowing and repayment transactions are processed through the Governmentwide Accounting (GWA) system. The GWA system is an Internet based system operated by the Financial Management Service (FMS). Access to the Governmentwide Accounting System is granted by FMS and can be requested online at www.fms.treas.gov/gwa/access.html.

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The borrowing agency will notify BPD of an interest payment, if required, on the interest payment due date using Standard Form 1081 (file size 10k, uploaded 3/27/01). This document is available under Forms on this web site and requires an authorized representative's signature. The SF-1081 is used as a means of notifying BPD of the interest payment. The actual payment is accomplished by the agency when the transaction is recorded on the Statement of Transactions.

* These procedures are not intended to be all-inclusive and may not relate to all Treasury borrowings programs and agreements. The free Adobe Acrobat Reader is required to view documents provided. Feel free to contact a member of the Borrowings Team with any questions.


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Updated October 23, 2002

Bureau of the Public Debt