Us Code § 2423 - Loan guarantees
Full text of Us Code United States Code § 2423 — Loan guarantees, with citation guidance and answers to common questions.
§ 2423. Loan guarantees
(a) Authority
Subject to the availability of appropriations, the Secretary may make available to lenders for a project meeting the eligibility criteria established in section 2422 of this title loan guarantees to supplement private-sector or lender financing for the project.
(b) Terms and limitations
(1) In general
Loan guarantees under this section for a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements as the Secretary determines to be appropriate to protect the financial interests of the United States.
(2) Amount
Loan guarantees by the Secretary shall not exceed an amount equal to 90 percent of the cost of the project that is the subject of the loan guarantee, as estimated at the time at which the loan guarantee is issued.
(3) Interest rate
An obligation shall bear interest at a rate that does not exceed a level that the Secretary determines to be appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks.
(4) Amortization
A loan guarantee under this section shall provide for complete amortization of the loan guarantee within not more than 40 years.
(5) Nonsubordination
An obligation shall be subject to the condition that the obligation is not subordinate to other financing.
(c) Prepayment and refinancing
Any prepayment or refinancing terms on a loan guarantee shall be negotiated between the non-Federal borrower and the lender with the consent of the Secretary.
(Pub. L. 109–451, title II, §204, Dec. 22, 2006, 120 Stat. 3358.)
About This Section
43 U.S.C. § 2423 is part of Title 43 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
This section may be cited in legal writing as 43 U.S.C. § 2423. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.
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