45 USC § 822
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United
States Code
(a)
General authority
(1) State and local governments;
(2)
interstate
compacts consented to by Congress under section 410(a) of
(1) In general Direct loans and loan guarantees under this section shall be used to--
(A)
acquire,
improve, or rehabilitate intermodal or rail equipment or
facilities, including track, components of track, bridges, yards,
buildings, and shops; (2) Operating expenses not eligible Direct loans and loan guarantees under this section shall not be used for railroad operating expenses.
(1) enhance public safety; (1) enhance public safety; (1) enhance public safety; (1) enhance public safety; (1) enhance public safety; (1) enhance public safety; (1) enhance public safety; (1) enhance public safety; (1) enhance public safety;
(1) enhance public safety;
(2)
enhance
the environment;
(d) Extent of authority
The Secretary shall require interest to be paid on a direct loan made under this section at a rate not less than that necessary to recover the cost of The Secretary shall not make a loan guarantee under this section if the interest rate for the loan exceeds that which the Secretary determines to be reasonable, taking into consideration the prevailing interest rates and customary fees incurred under similar obligations in the private capital market. In lieu of or in combination with appropriations of budget authority to cover the costs of direct loans and loan guarantees as required under section 661c(b)(1) of Title 2 , the Secretary may accept on behalf of an applicant for assistance under this section a commitment from a non-Federal source to fund in whole or in part credit risk premiums with respect to the loan that is the subject of the application. In no event shall the aggregate of appropriations of budget authority and credit risk premiums described in this paragraph with respect to a direct loan or loan guarantee be less than the cost of that direct loan or loan guarantee. (2) Credit risk premium amount The Secretary shall determine the amount required for credit risk premiums under this subsection on the basis of--
(A)
the
circumstances of the applicant, including the amount of collateral
offered, if any; Credit risk premiums under this subsection shall be paid to the Secretary before the disbursement of loan amounts. In order to maintain sufficient balances of credit risk premiums to adequately protect the Federal Government from risk of default, while minimizing the length of time the Government retains possession of those balances, the Secretary shall establish cohorts of loans. When all obligations attached to a cohort of loans have been satisfied, credit risk premiums paid for the cohort, and interest accrued thereon, which were not used to mitigate losses shall be returned to the original source on a pro rata basis. A cohort may include loans and loan guarantees. The Secretary shall not establish any limit on the proportion of a cohort that may be used for 1 loan or loan guarantee.
(1) repayment of the obligation is required to be made within a term of not more than 25 years from the date of its execution;
(2)
the
direct loan or loan guarantee is justified by the present and
probable future demand for rail services or intermodal
facilities; (h) Conditions of assistance (1) The Secretary shall, before granting assistance under this section, require the applicant to agree to such terms and conditions as are sufficient, in the judgment of the Secretary, to ensure that, as long as any principal or interest is due and payable on such obligation, the applicant, and any railroad or railroad partner for whose benefit the assistance is intended-- (A) will not use any funds or assets from railroad or intermodal operations for purposes not related to such operations, if such use would impair the ability of the applicant, railroad, or railroad partner to provide rail or intermodal services in an efficient and economic manner, or would adversely affect the ability of the applicant, railroad, or railroad partner to perform any obligation entered into by the applicant under this section;
(B)
will,
consistent with its capital resources, maintain its capital
program, equipment, facilities, and operations on a continuing
basis; and
(A) the standards of section 24312 of Title 49 as in effect on September 1, 2002, with respect to the project in the same manner that the National Railroad Passenger Corporation is required to comply with such standards for construction work financed under an agreement made under section 24308(a) of Title 49 ; and (B) the protective arrangements established under section 836 of this title, with respect to employees affected by actions taken in connection with the project to be financed by the loan or loan guarantee.
(i)
Time limit for approval or disapproval--
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Freight
Railroading
/ Financial
Assistance
/ RRIF
/ Criteria
for Evaluation |
File Type | application/msword |
File Title | 45 USC § 822 |
Author | frauser1 |
Last Modified By | frauser1 |
File Modified | 2008-06-04 |
File Created | 2008-06-04 |