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43 U.S.C. § 2423 — Loan guarantees
Federal law — U.S. Code and appendices · legal_authorities
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section2422&num=0&edition=prelim) 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.
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Source file: Laws/federal/codes/united-states-code/title-43/section-2423-loan-guarantees--7daefbee58.md
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Source location: Title 43, Chapter 42, § 2423; chapter-042-rural-water-supply.md
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**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section2422&num=0&edition=prelim) 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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Eligibility criteria**
(1) **In general** — The Secretary shall develop and publish in the Federal Register criteria for determining the eligibility of a project for financial assistance under [section 2423 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section2423&num=0&edition=prelim).
(2) **Inclusions** — Eligibility criteria shall include—
(A) submission of an application by the lender to the Secretary;
(B) demonstration of the creditworthiness of the project, including a determination by the Secretary that any financing for the project has appropriate security features to ensure repayment;
(C) demonstration by the non-Federal borrower, to the satisfaction of the Secretary, of the ability of the non-Federal borrower to repay the project financing from user fees or other dedicated revenue sources;
(D) demonstration by the non-Federal borrower, to the satisfaction of the Secretary, of the ability of the non-Federal borrower to pay all operations, maintenance, and replacement costs of the project facilities; and
(E) such other criteria as the Secretary determines to be appropriate.
**(b) Waiver** The Secretary may waive any of the criteria in subsection (a)(2) that the Secretary determines to be duplicative or rendered unnecessary because of an action already taken by the United States.
**(c) Projects previously authorized** A project that was authorized for construction under Federal reclamation laws prior to December 22, 2006, shall be eligible for assistance under this subchapter, subject to the criteria established by the Secretary under subsection (a).
**(d) Criteria for rural water supply projects** A rural water supply project that is determined to be feasible under [section 2405 of this title](https
Source: Supplied U.S. Code snapshot — release unconfirmed · 43 U.S.C. § 2422
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Federal law — U.S. Code and appendices · legal_authorities
Not later than 1 year after the date on which the eligibility criteria are published in the Federal Register under [section 2422(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section2422/a&num=0&edition=prelim), and every 2 years thereafter, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Resources of the House of Representatives a report that describes the implementation of the loan guarantee program under [section 2423 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section2423&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 43 U.S.C. § 2431
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Federal law — U.S. Code and appendices · legal_authorities
Page 639
TITLE 43—PUBLIC LANDS
§ 2424
(d) Criteria for rural water supply projects
A rural water supply project that is deter-
mined to be feasible under section 2405 of this
title is eligible for a loan guarantee under sec-
tion 2423 of this title.
(Pub. L. 109–451, title II, § 203, Dec. 22, 2006, 120
Stat. 3357.)
§ 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 estab-
lished in section 2422 of this title loan guaran-
tees to supplement private-sector or lender fi-
nancing 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 fi-
nancial 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 ac-
count the prevailing rate of interest in the pri-
vate 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 condi-
tion that the obligation is not subordinate to
other financing.
(c) Prepayment and refinancing
Any prepayment or refinancing terms on a
loan guarantee
Source: Supplied 2024 U.S. Code historical extraction · 43 U.S.C. § 2423
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.