Page:United States Statutes at Large Volume 112 Part 1.djvu/272

 112 STAT. 246 PUBLIC LAW 105-178-JUNE 9, 1998 "(B) may have a lien on revenues described in subparagraph (A) subject to any Hen securing project obligations. "(4) INTEREST RATE.—The interest rate on the secured loan shall be not less than the yield on marketable United States Treasury securities of a similar maturity to the maturity of the secured loan on the date of execution of the loan agreement. "(5) MATURITY DATE.—The final maturity date of the secured loan shall be not later than 35 years after the date of substantial completion of the project. "(6) NONSUBORDINATION.—The secured loan shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor. "(7) FEES.—The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of making a secured loan under this section. "(8) NON-FEDERAL SHARE.— The proceeds of a secured loan under this subchapter may be used for any non-Federal share of project costs required under this title or chapter 53 of title 49, if the loan is repayable from non-Federal funds. " (c) REPAYMENT.— "(1) SCHEDULE. —The Secretary shall establish a repayment schedule for each secured loan under this section based on the projected cash flow from project revenues and other repay- ment sources. "(2) COMMENCEMENT.— Scheduled loan repayments of principal or interest on a secured loan under this section shall commence not later than 5 years after the date of substantial completion of the project. "(3) SOURCES OF REPAYMENT FUNDS.— The sources of funds for scheduled loan repayments under this section shall include tolls, user fees, or other dedicated revenue sources. "(4) DEFERRED PAYMENTS.— "(A) AUTHORIZATION. —I f, at any time during the 10 years after the date of substantial completion of the project, the project is unable to generate sufficient revenues to pay the scheduled loan repa3nnents of principal and interest on the secured loan, the Secretary may, subject to subparagraph (C), allow the obligor to add unpaid principal and interest to the outstanding balance of the secured loan. "(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 loan beginning not later than 10 years after the date of substantial completion of the project in accordance with paragraph (1). "(C) CRITERIA. — "(i) IN GENERAL.—Any payment deferral under subparagraph (A) shall be contingent on the project meeting criteria established by the Secretary. "(ii) REPAYMENT STANDARDS. —The criteria established under clause (i) shall include standards for reasonable assurance of repayment. "(5) PREPAYMENT.—

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