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U.S. Code as of:
01/19/04
Section 1293. Loan guarantees
(a) State or local obligations issued exclusively to Federal
Financing Bank for publicly owned treatment works; determination
of eligibility of project by Administrator
Subject to the conditions of this section and to such terms and
conditions as the Administrator determines to be necessary to carry
out the purposes of this subchapter, the Administrator is
authorized to guarantee, and to make commitments to guarantee, the
principal and interest (including interest accruing between the
date of default and the date of the payment in full of the
guarantee) of any loan, obligation, or participation therein of any
State, municipality, or intermunicipal or interstate agency issued
directly and exclusively to the Federal Financing Bank to finance
that part of the cost of any grant-eligible project for the
construction of publicly owned treatment works not paid for with
Federal financial assistance under this subchapter (other than this
section), which project the Administrator has determined to be
eligible for such financial assistance under this subchapter,
including, but not limited to, projects eligible for reimbursement
under section 1286 of this title.
(b) Conditions for issuance
No guarantee, or commitment to make a guarantee, may be made
pursuant to this section -
(1) unless the Administrator certifies that the issuing body is
unable to obtain on reasonable terms sufficient credit to finance
its actual needs without such guarantee; and
(2) unless the Administrator determines that there is a
reasonable assurance of repayment of the loan, obligation, or
participation therein.
A determination of whether financing is available at reasonable
rates shall be made by the Secretary of the Treasury with
relationship to the current average yield on outstanding marketable
obligations of municipalities of comparable maturity.
(c) Fees for application investigation and issuance of commitment
guarantee
The Administrator is authorized to charge reasonable fees for the
investigation of an application for a guarantee and for the
issuance of a commitment to make a guarantee.
(d) Commitment for repayment
The Administrator, in determining whether there is a reasonable
assurance of repayment, may require a commitment which would apply
to such repayment. Such commitment may include, but not be limited
to, any funds received by such grantee from the amounts
appropriated under section 1286 of this title.
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