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[Authority To Issue Fund Anticipation Notes]

B-222323 Apr 24, 1986
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Highlights

The Department of Transportation requested an opinion on its authority to issue and sell Railroad Rehabilitation and Improvement Fund Anticipation Notes to finance the Redeemable Preference Share Program in fiscal year 1986. GAO found that: (1) the Secretary is authorized to expend the proceeds from the sale of Fund Anticipation Notes for authorized uses; (2) when Congress appropriates funds for a program for which authorization has expired, there is a sufficient legal basis to continue the program, absent an expression of congressional intent; (3) the amounts in the Fund that were obligated prior to the expiration of the program's organic authority remain available to carry out the projects for which they were originally obligated; and (4) since the proposed rescission of the funds was not approved, the Secretary must draw on the funds in a timely manner by issuing Fund Anticipation Notes. Accordingly, the obligated balances of the Railroad Fund are available to liquidate outstanding obligations.

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