|
U.S. Code as of:
01/19/04
Section 2509. Loan guarantees
(a) Congressional policy
It is the policy of the Congress to assist in the introduction
into the Nation's transportation fleet of electric and hybrid
vehicles and to assure that qualified small business concerns and
other qualified borrowers are not excluded from participation in
such development due to lack of adequate capital. Accordingly, it
is the policy of the Congress to provide guarantees of loans made
for such purposes.
(b) Encouragement of commercial production; purpose of loans
In order to encourage the commercial production of electric and
hybrid vehicles, the Secretary of Energy is authorized to
guarantee, and to enter into commitments to guarantee, principal
and interest on loans made by lenders to qualified borrowers,
primarily small business concerns, for the purposes of -
(1) research and development related to electric and hybrid
vehicle technology;
(2) prototype development for such vehicles and parts thereof;
(3) construction of capital equipment related to research on,
and development and production of, electric and hybrid vehicles
and components; or
(4) initial operating expenses associated with the development
and production of electric and hybrid vehicles and components.
(c) Maximum amount of loan guarantee
Any guarantee under this section shall apply only to so much of
the principal amount of the loan involved as does not exceed 90
percentum of the aggregate cost of the activity with respect to
which the loan is made.
(d) Terms and conditions of guarantee
Loan guarantees under this section shall be on such terms and
conditions as the Secretary of Energy determines, except that a
guarantee shall be made under this section only if -
(1) the loan bears interest at a rate not to exceed such annual
percent on the principal obligation outstanding as the Secretary
of Energy determines to be reasonable, taking into account the
range of interest rates prevailing in the private sector for
similar loans and risks by the United States;
(2) the terms of such loan require full repayment over a period
not to exceed 15 years;
(3) in the judgment of the Secretary of Energy, the amount of
the loan (when combined with amounts available to the qualified
borrower from other sources) will be sufficient to carry out the
activity with respect to which the loan is made;
(4) in the judgment of the Secretary of Energy, there is
reasonable assurance of repayment of the loan by the qualified
borrower; and
(5) no loan shall be guaranteed by the Secretary of Energy
under subsection (b) of this section unless the Secretary of
Energy finds that no other reasonable means of financing or
refinancing is reasonably available to the applicant.
(e) Maximum guarantee per loan; maximum of aggregate guarantees;
Electric and Hybrid Vehicle Development Fund; establishment,
funding, etc.
(1) The amount of the guarantee of any loan shall not exceed
$3,000,000, unless the Secretary of Energy finds that a higher
guarantee level for specific loan guarantees is necessary in order
to carry out the purposes of this chapter. If the Secretary of
Energy makes such finding, he shall immediately report that finding
to the Speaker of the House of Representatives, the President of
the Senate, the Committee on Science, Space, and Technology of the
House of Representatives, and the Committee on Commerce, Science,
and Transportation of the Senate.
(2) The aggregate amount of guarantees outstanding under this
section at any one time shall not exceed $60,000,000.
(3)(A) There is established in the Treasury of the United States
an Electric and Hybrid Vehicle Development Fund (hereinafter in
this paragraph referred to as the "fund"), which shall be available
to the Secretary of Energy for carrying out the loan guarantee and
principal and interest assistance program authorized by this
chapter, including the payment of administrative expenses incurred
in connection therewith. Moneys in the fund not needed for current
operations may, with the approval of the Secretary of the Treasury,
be invested in bonds or other obligations of, or guaranteed by, the
United States.
(B) There shall be paid into the fund such part of the amounts
appropriated pursuant to section 2514 of this title as the
Secretary of Energy deems necessary to carry out the purposes of
this chapter and such amounts as may be returned to the United
States pursuant to subsection (g) of this section, and the amounts
in the fund shall remain available until expended, except that
after the expiration of the 7-year period established by subsection
(h) of this section such amounts in the fund as are not required to
secure outstanding guarantee obligations shall be paid into the
general fund of the Treasury.
(C) If at any time the moneys available in the fund are
insufficient to enable the Secretary of Energy to discharge his
responsibilities under this section, he shall issue to the
Secretary of the Treasury notes or other obligations in such forms
and denominations, bearing such maturities, and subject to such
terms and conditions as may be prescribed by the Secretary of the
Treasury. This borrowing authority shall be effective only to such
extent or in such amounts as are specified in appropriation Acts.
Such authority shall be without fiscal year limitation. Redemption
of such notes or obligations shall be made by the Secretary of
Energy from appropriations or other moneys available under this
chapter. Such notes or other obligations shall bear interest at a
rate determined by the Secretary of the Treasury, which shall not
be less than a rate determined by taking into consideration the
average market yield on outstanding marketable obligations of the
United States of comparable maturities during the month preceding
the issuance of the notes or other obligations. The Secretary of
the Treasury shall purchase any notes or other obligations issued
hereunder and for that purpose he is authorized to use as a public
debt transaction the proceeds from the sale of any securities
issued under chapter 31 of title 31, and the purposes for which
securities may be issued under that chapter are extended to include
any purchase of such notes or obligations. The Secretary of the
Treasury may at any time sell any of the notes or other obligations
acquired by him under this subsection. All redemptions, purchases,
and sales by the Secretary of the Treasury of such notes or other
obligations shall be treated as public debt transactions of the
United States.
(D) Business-type financial reports covering the operations of
the fund shall be submitted to the Congress by the Secretary of
Energy annually upon the completion of the appropriate accounting
period.
(f) Qualified borrower
As used in this section, the term "qualified borrower" means any
partnership, corporation, or other legal entity which (as
determined by the Secretary of Energy) has presented satisfactory
evidence of an interest in electric or hybrid vehicle technology
and is capable of performing research or completing the development
and production of electric or hybrid vehicles or any components
thereof in an acceptable manner.
(g) Payment of principal and interest; default; recovery of losses
(1) With respect to any loan guaranteed pursuant to this section,
the Secretary of Energy is authorized to enter into a contract to
pay, and to pay, the lender for and on behalf of the borrower the
principal and interest charges which become due and payable on the
unpaid balance of such loan if the Secretary of Energy finds -
(A) that the borrower is unable to meet principal and interest
charges, that it is in the public interest to permit the borrower
to continue to pursue the purposes of the project, and that the
probable net cost to the Federal Government in paying such
principal will be less than that which would result in the event
of a default; and
(B) that the amount of such principal and interest charges
which the Secretary of Energy is authorized to pay shall be no
greater than the amount of principal and interest which the
borrower is obligated to pay under the loan agreement.
(2) In the event of any default by a qualified borrower on a
guaranteed loan, the Secretary of Energy is authorized to make
payment in accordance with the guarantee, and the Attorney General
shall take such action as may be appropriate to recover the amounts
of such payments (including any payment of principal and interest
under paragraph (1)) from such assets of the defaulting borrower as
are associated with the activity with respect to which the loan was
made or from any other surety included in the terms of the
guarantee.
(h) Seven year limitation
No loan guarantee shall be made, or interest assistance contracts
entered into, pursuant to this section, after the expiration of the
7-year period following September 17, 1976.
(i) Citizenship of applicant; corporations; waiver
An applicant seeking a guarantee under this section must be a
citizen or national of the United States. A corporation,
partnership, firm, or association shall not be deemed to be a
citizen or national of the United States unless the Secretary of
Energy determines that it satisfactorily meets all the requirements
of sections 802 and 803 of title 46, Appendix, for determining such
citizenship, except that the provisions in section 802(a) of title
46, Appendix, concerning (1) the citizenship of officers or
directors of a corporation, and (2) the interest required to be
owned in the case of a corporation, association, or partnership
operating a vessel in the coastwise trade, shall not be applicable.
The Secretary of Energy, in consultation with the Secretary of
State, may waive such requirements in the case of a corporation,
partnership, firm, or association, controlling interest in which is
owned by citizens of countries which are participants in the
International Energy Agreement.
(j) Pledge of full faith and credit of United States
The full faith and credit of the United States is pledged to the
payment of all obligations incurred under this section.
|
|