Federal Credit Reform Act of 1989

[AI summary unavailable — showing source text] Federal Credit Reform Act of 1989 - Establishes procedures for the budgetary treatment and financing of Federal direct loan and loan guarantee programs. Makes any direct loan obligation of a Federal agency an obligation of the Direct Loan Fund. Requires each agency to include in its budget proposal for a fiscal year: (1) the planned level of new direct loan obligations and new loan guarantee commitments; and (2) the estimated subsidies associated with each. Prohibits an agency from making a direct loan obligation or loan guarantee commitment unless: (1) funds have been appropriated or are available on a permanent indefinite basis for the subsidy; or (2) the use of funds otherwise available to the agency for the subsidy has been limited. Declares that the loan subsidy amount shall constitute an obligation of the agency and the difference between such amount and the face value of the loan shall constitute an obligation of the Direct Loan Fund. Requires the subsidy to be paid as the loan is disbursed. Makes any loan guarantee commitment of a Federal agency a commitment of the Guaranteed Loan Fund. Requires the relevant subsidy to be paid to the Guaranteed Loan Fund when the underlying…