Reading Room Document

Authority of the Chrysler Corporation Loan Guarantee Board to Issue Guarantees

The Chrysler Corporation Loan Guarantee Board has the authority, under § 4(a) of the Chrysler Corporation Loan Guarantee Act, 15 U.S.C. § 1863(a), to issue loan guarantees even though Congress has not appropriated funds in advance to make payments under the guarantees in the event of a default. The Attorney General concurs in the Comptroller General's opinion (Comp. Op. File B-197380 (April 10, 1980)) that the Board has the authority until December 31, 1983, to issue loan guarantees in the amount up to $1.5 billion of contingent liability for loan principal outstanding at any one time and additional amounts for loan interest. The OLC does not provide release dates for its opinions, so the release date listed is the date on which the opinion was authored. The original opinion is available at www.justice.gov/file/22276/download.

April 23, 1980