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.