Federal Credit Reform Act of 1987

[AI summary unavailable — showing source text] Federal Credit Reform Act of 1987 - Establishes procedures for the budgetary treatment and financing of Federal direct loan and loan guarantee programs. Defines "subsidy" as: (1) the difference between the face value of a direct loan and the estimated proceeds from the sale of the loan in the investment securities markets; and (2) the estimated net cost to the Government to reinsure a loan guarantee with a private insurer. Makes any direct loan obligation of a Federal agency an obligation of the Federal Credit Revolving Fund. Requires each agency to include in its budget proposal for a fiscal year: (1) the planned level of new direct loan obligations; and (2) the estimated subsidy associated with such obligations. Prohibits an agency from making a direct loan obligation unless: (1) funds have been appropriated for the loan subsidy; or (2) the use of funds otherwise available to the agency for the subsidy has been limited. Provides that the subsidy amount shall constitute the obligation of the agency and the difference between such amount and the face value of the loan shall constitute the obligation of the Fund. Requires the subsidy to be paid as the loan is disbursed. Requires the…