Title 48, Territories and Insular PossessionsRelease 119-102
§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
Summary
Loans or loan guarantees from this program can only be made if the agency running it is sure the borrower cannot get financing elsewhere on reasonable terms. No single project may get more than 25% of the funds Congress provides. Guarantees may cover up to 90% of a loan. Agency participation must be a careful share tied to the minimum needed to meet the program’s purpose. Agencies must hold reserves of at least 25% of each 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
Aug 21, 2026
Release point: 119-102