Page:United States Statutes at Large Volume 108 Part 5.djvu/710

 108 STAT. 4200 PUBLIC LAW 103-403—OCT. 22, 1994 "(III) with respect to a 20-year term loan, 10.5 percent; and "(IV) with respect to a 25-year term loan, 11.5 percent. " (iii) ADJUSTMENTS TO APPLICABLE PERCENTAGE RATE.— The percentage rates described in clause (ii) shall be increased or decreased by the Administration by a factor not to exceed one-third, if the same factor is applied in each case and if the Administration determines that an adjustment is necessary, based on the number of borrowers having given notice of their intent to participate, in order to make the program (including the amounts appropriated for this purpose under Public Law 103-317) result in no substantial net gain or loss of revenue to the Federal Financing Bank or to the Administration. Amounts collected in excess of the amount necessary to ensure revenue neutrality shall be refunded to the borrowers. "(b) REQUIREMENTS.—For purposes of subsection (a), the requirements of this subsection are that— "(1) the debenture is outstanding and neither the loan that secures the debenture, if any, nor the debenture is in default on the date on which the prepayment is made; "(2) State, local, or personal funds, or the proceeds of a refinancing in accordance with subsection (d) of this section under the programs authorized by this title, are used to prepay or roll over the debenture; and "(3) with respect to a debenture issued under section 503, the issuer certifies that the benefits, net of fees and expenses authorized herein, associated with prepayment of the debenture are entirely passed through to the borrower. "(c) No PREPAYMENT FEES OR PENALTIES.— NO fees or penalties other than those specified in this section may be imposed on the issuer, the borrower, the Administration, or any fund or account administered by the Administration as the result of a prepayment under this section. "(d) REFINANCING LIMITATIONS.— "(1) IN GENERAL. — The refinancing of a debenture under sections 504 and 505, in accordance with subsection (b)(2)— "(A) shall not exceed the amount necessary to prepay existing debentures, including all costs associated with the refinancing and any applicable prepayment penalty or repurchase premium; and "(B) except as provided in paragraphs (2) and (3), shall be subject to the provisions of sections 504 and 505 and the rules and regulations promulgated thereunder, including rules and regulations governing payment of authorized expenses, commissions, fees, and discounts to brokers and dealers in trust certificates issued pursuant to section 505. "(2) JOB CREATION. —An applicant for refinancing under section 504 of a loan made pursuant to section 503 shall not be required to demonstrate that a requisite number of jobs will be created with the proceeds of a refinancing. "(3) LOAN PROCESSING FEE. —To cover the cost of loan packaging, processing, and other administrative functions, a development company that provides refinancing under subsection

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