PRIA, Government Policy, Made Personal

Summary

The Administrator may guarantee loans made only to the Federal Financing Bank to help pay for parts of building publicly owned treatment works that are eligible for federal grants but not paid with federal money. The project must be one the Administrator already finds eligible for help under this law, including projects that can be paid back under section 1286. The guarantee can only be approved if the Administrator certifies the borrower cannot get enough credit on reasonable terms and if there is a reasonable chance the loan will be repaid. The Secretary of the Treasury will decide what "reasonable rates" means by comparing similar municipal bonds. The Administrator may charge fees to review applications and to issue commitments. The Administrator may also require a repayment pledge, which can include funds from amounts appropriated under section 1286.

Title 33, §1293

Navigation and Navigable Waters, Source: USLM XML via OLRC

(a)State or local obligations issued exclusively to Federal Financing Bank for publicly owned treatment works; determination of eligibility of project by Administrator (b) Conditions for issuance

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.

(c)Fees for application investigation and issuance of commitment guarantee

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)Commitment for repayment

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