§41762 Definitions

Summary

Defines the key words used for the federal program that helps finance airline plane purchases. It gives short, plain meanings for terms used later. air carrier — an airline that holds the certificate from the Secretary of Transportation under section 41102. aircraft purchase — buying commercial transport airplanes and the usual spare parts. capital reserve subsidy amount — the budget authority needed to cover the government’s estimated long-term cost of a federal credit instrument, measured on a net present value basis and excluding administrative costs and incidental effects, under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). commuter air carrier — an airline that mostly flies planes with 75 seats or fewer on published schedules. Federal credit instrument — a secured loan, loan guarantee, or line of credit allowed under this part. financial obligation — a note, bond, debenture, or other debt used to finance an aircraft purchase, but not a Federal credit instrument. lender — a non-Federal qualified institutional buyer under SEC Rule 144A(a) (including qualifying retirement and governmental plans). line of credit — an agreement under section 41763(d) to make a direct loan later if certain events occur. loan guarantee — the Secretary’s pledge under section 41763(c) to pay part or all of a loan’s principal or interest. new entrant air carrier — an airline that has run scheduled service for less than 5 years, including one authorized but not yet operating. obligor — the party mainly responsible for paying a Federal credit instrument; can be a company, partnership, trust, or government entity. regional jet aircraft — a jet-powered civil plane designed for 30 to 75 passengers. underserved market — a passenger market (as the Secretary defines) served by a nonhub or small hub airport, not within 40 miles of any airport that has at least .25 percent of U.S. annual boardings, and lacking sufficient air service.