Title I, SEC. 1396. GUARANTEED BENEFITS UNDER TRUSTEESHIP OF THE SECRETARY. 
      (a) In General. Subject to subsection (b), the Secretary shall guarantee 
    the payment of all benefits under a corporate alliance health plan which is 
    a self-insured plan while such plan is under the Secretary's trusteeship 
    under section 1396. 

      (b) Limitations. Any increase in the amount of benefits under the plan 
    resulting from a plan amendment which was made, or became effective, 
    whichever is later, within 180 days (or such other reasonable time as may 
    be prescribed in regulations of the Secretary of Labor) before the date of 
    the Secretary's appointment as trustee of the plan shall be disregarded for 
    purposes of determining the guarantee under this section. 

      (c) Corporate Alliance Health Plan Insolvency Fund. 

        (1) Establishment. The Secretary of Labor shall establish a Corporate 
      Alliance Health Plan Insolvency Fund (hereinafter in this section 
      referred to as the ``Fund'') from which the Secretary shall make payment 
      of all guaranteed benefits under this section. 

        (2) Receipts and disbursements. 

          (A) Receipts. The Fund shall be credited with 

            (i) funds borrowed under paragraph (4), 

            (ii) assessments collected under section 1397, and 

            (iii) earnings on investment of the fund. 

          (B) Disbursements. The Fund shall be available 

            (i) for making such payments as the Secretary determines are 
          necessary to pay benefits guaranteed under this section, 

            (ii) to repay the Secretary of the Treasury such sums as may be 
          borrowed (together with interest thereon) under paragraph (4), and 

            (iii) to pay the operational and administrative expenses of the 
          Fund. 

        (3) Borrowing authority. At the direction of the Secretary of Labor, 
      the Fund may, to the extent necessary to carry out the purposes of 
      paragraph (1), issue to the Secretary of the Treasury notes or other 
      obligations, in such forms and denominations, bearing such maturities, 
      and subject to such terms and conditions as may be prescribed by the 
      Secretary of the Treasury. Such notes or other obligations shall bear 
      interest at a rate determined by the Secretary of the Treasury, taking 
      into consideration the current average market yield on outstanding 
      marketable obligations of the United States of comparable maturities 
      during the month preceding the issuance of such notes or other 
      obligations by the Fund. The Secretary of the Treasury shall purchase any 
      notes or other obligations issued by the Fund under this paragraph, and 
      for that purpose the Secretary of the Treasury may use as a public debt 
      transaction the proceeds from the sale of any securities issued under 
      chapter 31 of title 31, United States Code and the purposes for which 
      securities may be issued under such chapter are extended to include any 
      purchase of such notes and obligations. The Secretary of the Treasury may 
      at any time sell any of the notes or other obligations acquired by such 
      Secretary under this paragraph. All redemptions, purchases, and sales by 
      the Secretary of the Treasury of such notes or other obligations shall be 
      treated as public debt transactions of the United States. 

        (4) Investment authority. Whenever the Secretary of Labor determines 
      that the moneys of the Fund are in excess of current needs, the Secretary 
      may request the investment of such amounts as the Secretary determines 
      advisable by the Secretary of the Treasury in obligations issued or 
      guaranteed by the United States, but, until all borrowings under 
      paragraph (4) have been repaid, the obligations in which such excess 
      moneys are invested may not yield a rate of return in excess of the rate 
      of interest payable on such borrowings.