Title 48 — Territories and Insular PossessionsRelease 119-73not60

§1428b Prerequisite for Loan or Loan Guarantee; Maximum Participation in Available Funds; Reserves for Loan Guarantees

Title 48 › Chapter 8A— GUAM › Subchapter VI— GUAM DEVELOPMENT FUND › § 1428b

Last updated Apr 5, 2026|Official source

Summary

No loan or loan guarantee can be made unless the agency running the program is convinced the borrower cannot get other financing on reasonable terms. The program limits how much it will cover. No single project may get more than 25% of the program money. A loan guarantee cannot exceed 90% of the loan. For loans, the government's share must be a careful amount tied to the minimum needed to meet the program's goals. The agency must keep reserves equal to at least 25% of any guarantee.

Full Legal Text

Title 48, §1428b

Territories and Insular Possessions — Source: USLM XML via OLRC

No loan or loan guarantee shall be made under this subchapter to any applicant who does not satisfy the agency or agencies administering the plan that financing is otherwise unavailable on reasonable terms and conditions. The maximum participation in the funds made available under section 1428 of this title shall be limited (a) so that not more than 25 per centum of the funds actually appropriated by the Congress may be devoted to any single project (b) to 90 per centum of loan guarantee, and (c) with respect to all loans, to that decree of participation prudent under the circumstances of individual loans but directly related to the minimum essential participation necessary to accomplish the purposes of this subchapter: Provided, That, with respect to loan guarantees, the reserves maintained by the agency or agencies for the guarantees shall not be less than 25 per centum of the guarantee.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was not enacted as part of the Organic Act of Guam which comprises this chapter.

Reference

Citations & Metadata

Citation

48 U.S.C. § 1428b

Title 48 — Territories and Insular Possessions

Last Updated

Apr 5, 2026

Release point: 119-73not60