42 U.S.C. § 8813 — Insured loans

Page 7653 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 8814 (Pub. L. 96–294, title II, § 212, June 30, 1980, 94 Stat. 687.) § 8813. Insured loans (a) Authority of Secretary of Agriculture; max- imum amount per project Subject to sections 8812 and 8817 of this title, the Secretary of Agriculture may commit to make, and make, insured loans in amounts not to exceed $1,000,000 per project for the construc- tion of small-scale biomass energy projects. (b) Estimated project construction costs as deter- minative of initial and revised amount of loan; interest rate (1) Any insured loan under this section— (A) may not exceed 90 per centum of the total estimated cost of construction of the biomass energy project involved, and (B) shall bear interest at rates determined by the Secretary of Agriculture, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average matu- rities of such loans, plus not to exceed one per centum, as determined by the Secretary of Ag- riculture, and adjusted to the nearest one- eighth of one per centum. (2) In the event the total estimated costs of construction of the project thereafter exceed the total estimated costs initially determined by the Secretary of Agriculture, the Secretary may in addition, upon application therefor, make an insured loan for so much of the additional esti- mated total costs as does not exceed 10 per cen- tum of the total costs initially estimated. (c) Funding requirements; ‘‘insured loan’’ defined (1) The Secretary of Agriculture shall make insured loans under this section using, to the ex- tent provided in advance in appropriations Acts, the Agricultural Credit Insurance Fund in sec- tion 309 of the Consolidated Farm and Rural De- velopment Act [7 U.S.C. 1929] or the Rural De- velopment Insurance Fund in section 309A of such Act [7 U.S.C. 1929a] (hereinafter in this sec- tion referred to as the ‘‘Funds’’). The Secretary of Agriculture may not use an aggregate amount of funds to make or commit to make insured loans under this section in excess of the aggre- gate amount for insured loans and administra- tive costs appropriated and transferred under section 8803 of this title. The terms, conditions, and requirements applicable to such insured loans shall be in accordance with this sub- chapter. (2) There shall be reimbursed to the Funds, from appropriations made under section 8803 of this title, amounts equal to the operating and administrative costs incurred by the Secretary of Agriculture in insuring loans under this sec- tion. (3) Notwithstanding any provision of the Con- solidated Farm and Rural Development Act [7 U.S.C. 1921 et seq.], no funds made available to the Secretary of Agriculture under this section for insured loans shall be used for any other pur- pose. (4) For purposes of this section, the term ‘‘in- sured loan’’ means a loan which is made, sold, and insured. (d) Preconditions An insured loan may not be made under this section unless the applicant for such loan has established to the satisfaction of the Secretary that the applicant is unable without such a loan to obtain sufficient credit elsewhere at reason- able rates and terms, taking into consideration prevailing private and cooperative rates and terms for loans for similar purposes and periods of time, to finance the construction of the bio- mass energy project for which such loan is sought. (Pub. L. 96–294, title II, § 213, June 30, 1980, 94 Stat. 690.) Editorial Notes REFERENCES IN TEXT The Consolidated Farm and Rural Development Act, referred to in subsec. (c)(3), is title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, which is classified principally to chapter 50 (§ 1921 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 1921 of Title 7 and Tables. § 8814. Loan guarantees (a) Authority of Secretary concerned Subject to sections 8812 and 8817 of this title, the Secretary concerned may commit to guar- antee, and guarantee, against loss of principal and interest, loans which are made to provide funds for the construction of biomass energy projects. (b) Estimated project construction costs as deter- minative of initial and revised amount of guarantee (1) Any guarantee of a loan under this section may not exceed 90 per centum of the cost of the construction of the biomass energy project in- volved, as estimated by the Secretary on the date of the guarantee or commitment to guar- antee. (2) In the event the construction costs of the project are thereafter estimated by the Sec- retary concerned to exceed the construction costs initially estimated by the Secretary, the Secretary may in addition, upon application therefor, guarantee, against loss of principal and interest, a loan for up to 60 per centum of the difference between the construction costs then estimated and the construction costs initially estimated. (c) Debt obligation; ineligibility for purchase, etc., by Federal Financing Bank or any Fed- eral agency Notwithstanding the provisions of the Federal Financing Bank Act of 1973 (12 U.S.C. 2281 et seq.) or any other provision of law (except as may be specifically provided by reference to this subsection in any Act enacted after June 30, 1980), no debt obligation which is guaranteed or committed to be guaranteed by the Secretary of Agriculture or the Secretary of Energy under this section shall be eligible for purchase by, or commitment to purchase by, or sale or issuance to, the Federal Financing Bank or any Federal agency. (d) Terms and conditions The terms and conditions of loan guarantees under this section shall provide that, if the Sec-