Collapse to view only § 2423. Loan guarantees
- § 2421. Definitions
- § 2422. Project eligibility
- § 2423. Loan guarantees
- § 2424. Defaults
- § 2425. Operations, maintenance, and replacement costs
- § 2426. Title to newly constructed facilities
- § 2427. Water rights
- § 2428. Interagency coordination and cooperation
- § 2429. Records; audits
- § 2430. Full faith and credit
- § 2431. Report
- § 2432. Effect on the reclamation laws
- § 2433. Authorization of appropriations
- § 2434. Termination of authority
§ 2421. DefinitionsIn this subchapter:
(1) Indian tribe
(2) LenderThe term “lender” means—
(A) a non-Federal qualified institutional buyer (as defined in section 230.144A(a) of title 17, Code of Federal Regulation 1
1 So in original. Probably should be “Regulations”.
(or any successor regulation), known as Rule 144A(a) of the Securities and Exchange Commission and issued under the Securities Act of 1933 (15 U.S.C. 77a et seq.)); or(B) a clean renewable energy bond lender (as defined in section 54(j)(2) 2
2 See References in Text note below.
of title 26 (as in effect on December 22, 2006)).(3) Loan guarantee
(4) Non-Federal borrowerThe term “non-Federal borrower” means—
(A) a State (including a department, agency, or political subdivision of a State); or
(B) a conservancy district, irrigation district, canal company, water users’ association, Indian tribe, an agency created by interstate compact, or any other entity that has the capacity to contract with the United States under Federal reclamation law.
(5) Obligation
(6) ProjectThe term “project” means—
(A) a rural water supply project (as defined in section 2401(9) of this title);
(B) an extraordinary operation and maintenance activity for, or the rehabilitation or replacement of, a facility—
(i) that is authorized by Federal reclamation law and constructed by the United States under such law; or
(ii) in connection with which there is a repayment or water service contract executed by the United States under Federal reclamation law; or
(C) an improvement to water infrastructure directly associated with a reclamation project that, based on a determination of the Secretary—
(i) improves water management; and
(ii) fulfills other Federal goals.
(7) Secretary
(Pub. L. 109–451, title II, § 202, Dec. 22, 2006, 120 Stat. 3356.)
§ 2422. Project eligibility
(a) Eligibility criteria
(1) In general
(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
(c) Projects previously authorized
(d) Criteria for rural water supply projects
(Pub. L. 109–451, title II, § 203, Dec. 22, 2006, 120 Stat. 3357.)
§ 2423. Loan guarantees
(a) Authority
(b) Terms and limitations
(1) In general
(2) Amount
(3) Interest rate
(4) Amortization
Nonsubordination
(c) Prepayment and refinancing
(Pub. L. 109–451, title II, § 204, Dec. 22, 2006, 120 Stat. 3358.)
§ 2424. Defaults
(a) Payments by Secretary
(1) In general
(2) Payment required
(3) Forbearance
(b) Subrogation
(1) In general
If the Secretary makes a payment under subsection (a), the Secretary shall be subrogated to the rights of the recipient of the payment as specified in the loan guarantee or related agreements, including, as appropriate, the authority (notwithstanding any other provision of law) to—
(A) complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to the loan guarantee or related agreements; or
(B) permit the non-Federal borrower, pursuant to an agreement with the Secretary, to continue to pursue the purposes of the project if the Secretary determines the purposes to be in the public interest.
(2) Superiority of rights
(c) Payment of principal and interest by Secretary
With respect to any obligation guaranteed under this section, the Secretary may enter into a contract to pay, and pay, holders of the obligation, for and on behalf of the non-Federal borrower, from funds appropriated for that purpose, the principal and interest payments that become due and payable on the unpaid balance of the obligation if the Secretary finds that—
(1)
(A) the non-Federal borrower is unable to meet the payments and is not in default;
(B) it is in the public interest to permit the non-Federal borrower to continue to pursue the purposes of the project; and
(C) the probable net benefit to the Federal Government in paying the principal and interest will be greater than that which would result in the event of a default;
(2) the amount of the payment that the Secretary is authorized to pay shall be no greater than the amount of principal and interest that the non-Federal borrower is obligated to pay under the agreement being guaranteed; and
(3) the borrower agrees to reimburse the Secretary for the payment (including interest) on terms and conditions that are satisfactory to the Secretary.
(d) Action by Attorney General
(1) Notification
(2) Recovery
On notification, the Attorney General shall take such action as is appropriate to recover the unpaid principal and interest due from—
(A) such assets of the defaulting non-Federal borrower as are associated with the obligation; or
(B) any other security pledged to secure the obligation.
(Pub. L. 109–451, title II, § 205, Dec. 22, 2006, 120 Stat. 3358.)
§ 2425. Operations, maintenance, and replacement costs
(a) In general
(b) Plan
(Pub. L. 109–451, title II, § 206, Dec. 22, 2006, 120 Stat. 3360.)
§ 2426. Title to newly constructed facilities
(a) New projects and facilities
(b) Existing projects and facilities
Nothing in this subchapter affects the title of—
(1) reclamation projects authorized prior to December 22, 2006;
(2) works supplemental to existing reclamation projects; or
(3) works constructed to rehabilitate existing reclamation projects.
(Pub. L. 109–451, title II, § 207, Dec. 22, 2006, 120 Stat. 3360.)
§ 2427. Water rights
(a) In general
(b) Compliance required
(Pub. L. 109–451, title II, § 208, Dec. 22, 2006, 120 Stat. 3360.)
§ 2428. Interagency coordination and cooperation
(a) Consultation
(b) Memorandum of agreement
(Pub. L. 109–451, title II, § 209, Dec. 22, 2006, 120 Stat. 3360.)
§ 2429. Records; audits
(a) In general
(b) Access
(Pub. L. 109–451, title II, § 210, Dec. 22, 2006, 120 Stat. 3360.)
§ 2430. Full faith and credit
The full faith and credit of the United States is pledged to the payment of all guarantees issued under this section with respect to principal and interest.
(Pub. L. 109–451, title II, § 211, Dec. 22, 2006, 120 Stat. 3360.)
§ 2431. Report
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, 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.
(Pub. L. 109–451, title II, § 212, Dec. 22, 2006, 120 Stat. 3361.)
§ 2432. Effect on the reclamation laws
(a) Reclamation projects
(b) No new or supplemental benefits
Any assistance provided under this subchapter shall not—
(1) be considered to be a new or supplemental benefit for purposes of the Reclamation Reform Act of 1982 (43 U.S.C. 390aa et seq.); or
(2) affect any contract in existence on December 22, 2006, that is executed under the reclamation laws.
(Pub. L. 109–451, title II, § 213, Dec. 22, 2006, 120 Stat. 3361.)
§ 2433. Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this subchapter, to remain available until expended.
(Pub. L. 109–451, title II, § 214, Dec. 22, 2006, 120 Stat. 3361.)
§ 2434. Termination of authority
(a) In general
(b) Exception
The termination of authority under subsection (a) shall have no effect on—
(1) any loans guaranteed by the United States under this subchapter; or
(2) the administration of any loan guaranteed under this subchapter before the effective date of the termination of authority.
(Pub. L. 109–451, title II, § 215, Dec. 22, 2006, 120 Stat. 3361.)