PRIA, Government Policy, Made Personal

Summary

Defines key words used in this part of the law. Air carrier — an airline that holds a federal certificate to provide air service. Aircraft purchase — buying commercial transport airplanes and the usual spare parts. Capital reserve subsidy amount — the budgeted amount needed to cover the government’s estimated long-term cost of a federal credit instrument, calculated on a net present value basis and handled under the Federal Credit Reform Act of 1990. Commuter air carrier — an airline that mainly flies planes with 75 seats or fewer on published schedules. Federal credit instrument — a secured loan, loan guarantee, or line of credit the government can provide here. Financial obligation — a note, bond, debenture, or other debt used to finance an aircraft purchase, not including a federal credit instrument. Lender — a non‑federal qualified institutional buyer, which can include certain qualified retirement plans and governmental plans. Line of credit — an agreement to provide a direct loan later if specific events happen. Loan guarantee — a government pledge to pay part or all of the principal and interest on a lender’s loan. New entrant air carrier — an airline that has run scheduled service for less than 5 years, including one that has authority but is not yet flying. Obligor — the party mainly responsible for paying a federal credit instrument; it can be a company, partnership, trust, or government entity. Regional jet aircraft — a jet plane designed to carry between 30 and 75 passengers. Secured loan — a direct loan from the government to help finance an aircraft purchase. Underserved market — a passenger market the Secretary defines that is served by a nonhub or small hub airport, is more than 40 miles from any airport that handles at least 0.25% of U.S. boardings each year, and does not have enough air service.

Title 49, §41762

Transportation, Source: USLM XML via OLRC

In this subchapter, the following definitions apply:

(1)Air carrier.—

The term “air carrier” means any air carrier holding a certificate of public convenience and necessity issued by the Secretary of Transportation under section 41102.

(2)Aircraft purchase.—

The term “aircraft purchase” means the purchase of commercial transport aircraft, including spare parts normally associated with the aircraft.

(3)Capital reserve subsidy amount.—

The term “capital reserve subsidy amount” means the amount of budget authority sufficient to cover estimated long-term cost to the United States Government of a Federal credit instrument, calculated on a net present value basis, excluding administrative costs and any incidental effects on Government receipts or outlays in accordance with provisions of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

(4)Commuter air carrier.—

The term “commuter air carrier” means an air carrier that primarily operates aircraft designed to have a maximum passenger seating capacity of 75 or less in accordance with published flight schedules.

(5)Federal credit instrument.—

The term “Federal credit instrument” means a secured loan, loan guarantee, or line of credit authorized to be made under this subchapter.

(6)Financial obligation.—

The term “financial obligation” means any note, bond, debenture, or other debt obligation issued by an obligor in connection with the financing of an aircraft purchase, other than a Federal credit instrument.

(7)Lender.—

The term “lender” means any non-Federal qualified institutional buyer (as defined by section 230.144A(a) of title 17, Code of Federal Regulations (or any successor regulation) known as Rule 144A(a) of the Security and Exchange Commission and issued under the Security Act of 1933 (15 U.S.C. 77a et seq.)), including—

(A)a qualified retirement plan (as defined in section 4974(c) of the Internal Revenue Code of 1986) that is a qualified institutional buyer; and

(B)a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986) that is a qualified institutional buyer.

(8)Line of credit.—

The term “line of credit” means an agreement entered into by the Secretary with an obligor under section 41763(d) to provide a direct loan at a future date upon the occurrence of certain events.

(9)Loan guarantee.—

The term “loan guarantee” means any guarantee or other pledge by the Secretary under section 41763(c) to pay all or part of any of the principal of and interest on a loan or other debt obligation issued by an obligor and funded by a lender.

(10)New entrant air carrier.—

The term “new entrant air carrier” means an air carrier that has been providing air transportation according to a published schedule for less than 5 years, including any person that has received authority from the Secretary to provide air transportation but is not providing air transportation.

(11)Obligor.— (12) Regional jet aircraft.—

The term “obligor” means a party primarily liable for payment of the principal of or interest on a Federal credit instrument, which party may be a corporation, partnership, joint venture, trust, or governmental entity, agency, or instrumentality.

(13)Secured loan.—

The term “secured loan” means a direct loan funded by the Secretary in connection with the financing of an aircraft purchase under section 41763(b).

(14)Underserved market.—

The term “underserved market” means a passenger air transportation market (as defined by the Secretary) that—

(A)is served (as determined by the Secretary) by a nonhub airport or a small hub airport;

(B)is not within a 40-mile radius of an airport that each year has at least .25 percent of the total annual boardings in the United States; and

(C)the Secretary determines does not have sufficient air service.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Credit Reform Act of 1990, referred to in par. (3), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see

Short Title

note set out under section 621 of Title 2 and Tables. The Security Act of 1933, referred to in par. (7), probably means the Securities Act of 1933, title I of act May 27, 1933, ch. 38, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables. section 414(d) and 4974(c) of the Internal Revenue Code of 1986, referred to in par. (7), are classified to section 414(d) and 4974(c), respectively, of Title 26, Internal Revenue Code.

Amendments

2003—Pars. (11) to (16). Pub. L. 108–176 redesignated pars. (12), (13), (14), and (16) as (11), (12), (13), and (14), respectively, and struck out former pars. (11) and (15), which defined “nonhub airport” and “small hub airport”, respectively.

Statutory Notes and Related Subsidiaries

Effective Date

of 2003 AmendmentAmendment by Pub. L. 108–176 applicable only to fiscal years beginning after Sept. 30, 2003, except as otherwise specifically provided, see section 3 of Pub. L. 108–176, set out as a note under section 106 of this title.

Effective Date

Section applicable only to fiscal years beginning after Sept. 30, 1999, see section 3 of Pub. L. 106–181, set out as an

Effective Date

of 2000

Amendments

note under section 106 of this title.

§41762 Definitions

Summary

Title 49, §41762

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Amendments

Citations & Metadata