Deferred Accrued Interest and Principal Amount of the Saint Lawrence Seaway Development Corporation Borrowings from the Department of Treasury

The Director of the Civil Accounting and Auditing Division within GAO posed two questions to the Assistant Comptroller General clarifying a previous GAO decision regarding whether the statutory limitation on the Saint Lawrence Seaway Development Corporation borrowings from the Treasury should be considered as applicable to the deferred acrued interest as well as the principal amount of the revenue bonds issued. First, the Director asked if limitations on Treasury borrowings to the Saint Lawrence Seaway Development Corporation applied equally to accrued interest deferred during the construction period of the Seaway as to accrued interest deferred during the operational period. The Director also asked if the statutory language outlining the limitations permitted the payment of interest charges during the construction period from funds derived from issued bonds.