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

Summary

The Administrator may guarantee, or promise to guarantee, loans made to a state, city, or local multi-jurisdiction agency when the loan is issued directly and only to the Federal Financing Bank. The guarantee can cover the loan amount and all interest, including interest that builds up between a default and the day the guarantee is fully paid. The loan must pay for part of a public wastewater treatment project that was not paid with other federal money under this subchapter, and the Administrator must have found the project eligible for that federal help, including projects eligible under section 1286. The Administrator must first certify that the borrower cannot get enough credit on reasonable terms without the guarantee. The Administrator must also find there is reasonable assurance the loan will be repaid. The Administrator can charge reasonable fees to review applications and to issue a guarantee commitment. The Administrator may require a repayment promise from the borrower, which can include using funds received 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