33 USC 3908 - Secured loans

U.S Code last checked for updates: Apr 26, 2024

§ 3908.

Secured loans

(a)

Agreements

(1)

In general

(2)

Financial risk assessment

(3)

Investment-grade rating requirement

(b)

Terms and limitations

(1)

In general

(2)

Maximum amount

The amount of a secured loan under this section shall not exceed the lesser of—

(A)

an amount equal to 49 percent of the reasonably anticipated eligible project costs; and

(B)

if the secured loan does not receive an investment-grade rating, the amount of the senior project obligations of the project.

(3)

Payment

A secured loan under this section—

(A)

shall be payable, in whole or in part, from State or local taxes, user fees, or other dedicated revenue sources that also secure the senior project obligations of the relevant project;

(B)

shall include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and

(C)

may have a lien on revenues described in subparagraph (A), subject to any lien securing project obligations.

(4)

Interest rate

(5)

Maturity date

(A)

In general

The final maturity date of a secured loan under this section shall be the earlier of—

(i)

the date that is 35 years after the date of substantial completion of the relevant project (as determined by the Secretary or the Administrator, as applicable); and

(ii)

if the useful life of the project (as determined by the Secretary or Administrator, as applicable) is less than 35 years, the useful life the project.

(B)

Special rule for State infrastructure financing authorities

(6)

Nonsubordination

(7)

Fees

(A)

In general

(B)

Financing fees

(8)

Non-Federal share

(9)

Maximum Federal involvement

(A)

In general

(B)

Exceptions

Subparagraph (A) shall not apply to any rural water project—

(i)

that is authorized to be carried out by the Secretary of the Interior;

(ii)

that includes among its beneficiaries a federally recognized Indian tribe; and

(iii)

for which the authorized Federal share of the total project costs is greater than the amount described in subparagraph (A).

(C)

Exception for projects funded by a State infrastructure financing authority

(10)

Credit

(c)

Repayment

(1)

Schedule

(2)

Commencement

(A)

In general

(B)

Special rule for State infrastructure financing authorities

(i)

Timing of scheduled loan repayments

(ii)

Repayments

(3)

Deferred payments

(A)

Authorization

(B)

Interest

Any payment deferred under subparagraph (A) shall—

(i)

continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and

(ii)

be scheduled to be amortized over the remaining term of the secured loan.

(C)

Criteria

(i)

In general

(ii)

Repayment standards

(4)

Prepayment

(A)

Use of excess revenues

(B)

Use of proceeds of refinancing

(d)

Sale of secured loans

(1)

In general

(2)

Consent of obligor

(e)

Loan guarantees

(1)

In general

(2)

Terms

(Pub. L. 113–121, title V, § 5029, June 10, 2014, 128 Stat. 1338; Pub. L. 114–322, title IV, § 5008(c), Dec. 16, 2016, 130 Stat. 1897; Pub. L. 115–270, title IV, § 4201(a)(3), (b)(1), Oct. 23, 2018, 132 Stat. 3877, 3878.)

cite as: 33 USC 3908