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[Payment of Servicing Costs on Guaranteed Loans]

B-210291 Apr 13, 1983
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Highlights

The Rural Electrification Administration (REA) requested a decision as to whether it has authority to use funds appropriated by the Rural Electrification Act or in the Rural Electrification and Telephone Revolving Fund to pay the cost of Federal Financing Bank (FFB) servicing obligations on an nonreimbursable basis. GAO noted that, since FFB is a lender, REA can only perform as its agent and on a reimbursable basis. Therefore, REA may not use either appropriated or nonappropriated funds to pay, on a nonreimbursable basis, for the cost of servicing loans made by FFB.

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