Loan Accounting Reform and Deficit Reduction Act of 1986

[AI summary unavailable — showing source text] Loan Accounting Reform and Deficit Reduction Act of 1986 - Requires each Federal agency to transmit to the Secretary of the Treasury any direct loan asset (agreement by the recipient to repay the loan amount plus interest) received by the agency together with such information about the recipient as the Secretary may prescribe. Permits the Secretary to disclose such information to the extent necessary to sell such asset. Directs the Secretary to sell any such asset within 90 days after receiving it to the highest bidder at a public auction. Permits the Secretary to sell such assets through pooled participation arrangements only if such arrangements permit the proper allocation of subsidy costs to the appropriate budget account. Declares that such assets shall be sold without recourse to the Government and with no Government guarantee. Requires any subsidy recognized upon the sale of any asset or any obligation guaranteed by a Federal agency to the Federal Financing Bank to be treated as an agency outlay. Provides that no agency authority to make any direct loan shall be effective: (1) except to the extent any subsidy recognized upon the sale of the direct loan asset is provided for …