§1293 — Title 33 Navigation and Navigable Waters | U.S. Code

Summary

The Administrator can guarantee loans made directly to the Federal Financing Bank to help pay for part of building publicly owned sewage or wastewater treatment projects that are eligible for help under this law but are not paid for with federal grants under this subchapter. The guarantee can cover the loan’s main amount and any interest, including interest that adds up from the date of a default until the loan is fully paid. It also applies to projects that may be reimbursed under section 1286. Before guaranteeing a loan, the Administrator must say the borrower cannot get enough credit on reasonable terms and must believe there is a reasonable chance the loan will be repaid. The Administrator may charge reasonable fees to review an application and to promise a guarantee. The Administrator can also require a specific pledge to repay the loan, and that pledge can include money from amounts appropriated under section 1286.

Title 33, §1293

Navigation and Navigable Waters — Source: USLM XML via OLRC

(a)Subject to the conditions of this section and to such terms and conditions as the Administrator determines to be necessary to carry out the purposes of this subchapter, the Administrator is authorized to guarantee, and to make commitments to guarantee, the principal and interest (including interest accruing between the date of default and the date of the payment in full of the guarantee) of any loan, obligation, or participation therein of any State, municipality, or intermunicipal or interstate agency issued directly and exclusively to the Federal Financing Bank to finance that part of the cost of any grant-eligible project for the construction of publicly owned treatment works not paid for with Federal financial assistance under this subchapter (other than this section), which project the Administrator has determined to be eligible for such financial assistance under this subchapter, including, but not limited to, projects eligible for reimbursement under section 1286 of this title.

(b)No guarantee, or commitment to make a guarantee, may be made pursuant to this section—

(1)unless the Administrator certifies that the issuing body is unable to obtain on reasonable terms sufficient credit to finance its actual needs without such guarantee; and

(2)unless the Administrator determines that there is a reasonable assurance of repayment of the loan, obligation, or participation therein.

(c)The Administrator is authorized to charge reasonable fees for the investigation of an application for a guarantee and for the issuance of a commitment to make a guarantee.

(d)The Administrator, in determining whether there is a reasonable assurance of repayment, may require a commitment which would apply to such repayment. Such commitment may include, but not be limited to, any funds received by such grantee from the amounts appropriated under section 1286 of this title.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1980—Subsec. (d). Pub. L. 96–483 struck out “(1) all or any portion of the funds retained by such grantee under section 1284(b)(3) of this title, and (2)” after “limited to”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–483 effective Dec. 27, 1977, see section 2(g) of Pub. L. 96–483, set out as a note under section 1281 of this title.

§1293 Loan guarantees