20 USC 4022 – Asbestos Trust Fund
(a) Creation of Trust Fund
There is established in the Treasury of the United States a trust fund to be known as the “Asbestos Trust Fund”, consisting of such amounts as may be transferred or credited to such Trust Fund as provided in this section.
(b) Transfers to Trust Fund
(1) Transfer
There are hereby transferred to the Asbestos Trust Fund amounts equivalent to—
(A) amounts received in the Treasury on or after January 1, 1987, as repayments of loans made under section 4014 of this title,
(B) amounts received as deposits from local educational agencies under section 2647(a) of title 15, and
(C) amounts received as proceeds from any judgment recovered in any suit brought pursuant to section 4017(a)(1) of this title.
(2) Monthly transfers
The amounts transferred by paragraph (1) shall be transferred at least monthly from the general fund of the Treasury to the Asbestos Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in such paragraph. Adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were more or less than the amounts required to be transferred.
(c) Management of Trust Fund
(1) Investment
(A) In general
The Secretary of the Treasury shall invest such portion of the Asbestos Trust Fund as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States and may be acquired—
(i) on original issue at the issue price, or
(ii) by purchase of outstanding obligations at the market price.
(B) Sale of obligations
Any obligation acquired by the Asbestos Trust Fund may be sold by the Secretary of the Treasury at the market price.
(C) Interest on certain proceeds
The interest on, and the proceeds from the sale or redemption of, any obligations held in the Asbestos Trust Fund shall be credited to and form a part of the Trust Fund.
(2) Repealed. Pub. L. 104-66, title I, §1131(c), Dec. 21, 1995, 109 Stat. 725
(d) Expenditures from Asbestos Trust Fund
Terms Used In 20 USC 4022
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Amounts in the Asbestos Trust Fund shall be available, as provided by appropriation Acts, only for purposes of carrying out the Asbestos Hazards Abatement Assistance Program under section 4014 of this title.
(e) Authority to borrow
(1) In general
There are authorized to be appropriated to the Asbestos Trust Fund, as repayable advances, $25,000,000 for each of fiscal years 1987, 1988, 1989, and 1990.
(2) Repayment of advances
(A) In general
Advances made under this subsection shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury when the Secretary determines that moneys are available for such purposes in the Asbestos Trust Fund.
(B) Rate of interest
Interest on advances made under this subsection shall be at a rate determined by the Secretary (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding and shall be compounded annually.
(f) Effective date
The amendments made by this section shall take effect on January 1, 1986.