§1690 Loans From Trust Territory of the Pacific Islands Economic Loan Fund; Restrictions; Guarantees

Summary

Loans and loan guarantees under sections 1688–1693 can only be made if the territorial administering agency is satisfied the applicant cannot get reasonable financing elsewhere. No loan or guarantee may be larger than the amount that can be repaid, the minimum needed to meet those sections’ purposes, or 25 percent of the funds from section 1688. A guarantee may cover at most 90 percent of a loan, and reserves to back a guarantee must be at least 25 percent of the guaranteed amount.