Page:United States Statutes at Large Volume 112 Part 1.djvu/273

 PUBLIC LAW 105-178-JUNE 9, 1998 112 STAT. 247 "(A) USE OF EXCESS REVENUES. —Any excess revenues that remain after satisfying scheduled debt service requirements on the project obligations and secured loan and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing project obligations may be applied annually to prepay the secured loan without penalty. "(B) USE OF PROCEEDS OF REFINANCING.— The secured loan may be prepaid at any time without penalty from the proceeds of refinancing from non-Federal funding sources. "(d) SALE OF SECURED LOANS.— "(1) IN GENERAL. —Subject to paragraph (2), as soon as practicable after substantial completion of a project and after notifying the obligor, the Secretary may sell to another entity or reoffer into the capital markets a secured loan for the project if the Secretary determines that the sale or reoffering can be made on favorable terms. "(2) CONSENT OF OBLIGOR.—In making a sale or reoffering under paragraph (1), the Secretary may not change the original terms and conditions of the secured loan without the written consent of the obligor. "(e) LOAN GUARANTEES.— "(1) IN GENERAL.— The Secretary may provide a loan guarantee to a lender in lieu of making a secured loan if the Secretary determines that the budgetary cost of the loan guarantee is substantially the same as that of a secured loan. "(2) TERMS. —The terms of a guaranteed loan shall be consistent with the terms set forth in this section for a secured loan, except that the rate on the guaranteed loan and any prepayment features shall be negotiated between the obligor and the lender, with the consent of the Secretary. "§ 184. Lines of credit "(a) IN GENERAL.— "(1) AGREEMENTS. —Subject to paragraphs (2) through (4), the Secretary may enter into agreements to make available lines of credit to 1 or more obligors in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any project selected under section 182. "(2) USE OF PROCEEDS.— The proceeds of a line of credit made available under this section shall be available to pay debt service on project obligations issued to finance eligible project costs, extraordinary repair and replacement costs, operation and maintenance expenses, and costs associated with unexpected Federal or State environmental restrictions. "(3) RISK ASSESSMENT.— Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget and each rating agency providing a preliminary rating opinion letter under section 182(b)(2)(B), shall determine an appropriate capital reserve subsidy amount for each line of credit, taking into account such letter. "(4) INVESTMENT-GRADE RATING REQUIREMENT. —The funding of a line of credit under this section shall be contingent

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