Page:United States Statutes at Large Volume 112 Part 1.djvu/274

 112 STAT. 248 PUBLIC LAW 105-178—JUNE 9, 1998 on the project's senior obligations receiving an investmentgrade rating from at least 1 rating agency. " (b) TERMS AND LIMITATIONS.— "(1) IN GENERAL.—^A line of credit under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate. " (2) MAXIMUM AMOUNTS.— "(A) TOTAL AMOUNT.— The total amount of the line of credit shall not exceed 33 percent of the reasonably anticipated eligible project costs. "(B) 1-YEAR DRAWS.—The amount drawn in any 1 year shall not exceed 20 percent of the total amount of the line of credit. "(3) DRAWS.— Any draw on the line of credit shall represent a direct loan and shall be made only if net revenues from the project (including capitalized interest, any debt service reserve fund, and any other available reserve) are insufficient to pay the costs specified in subsection (a)(2). "(4) INTEREST RATE.— The interest rate on a direct loan resulting from a draw on the line of credit shall be not less than the yield on 30-year marketable United States Treasury securities as of the date on which the line of credit is obligated. "(5) SECURITY. — The line of credit— " (A) shall— "(i) be payable, in whole or in part, from tolls, user fees, or other dedicated revenue sources; and "(ii) include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and "(B) may have a lien on revenues described in subparagraph (A) subject to any lien securing project obligations. "(6) PERIOD OF AVAILABILITY.—The line of credit shall be available during the period beginning on the date of substantial completion of the project and ending not later than 10 years after that date. " (7) RIGHTS OF THIRD-PARTY CREDITORS.— "(A) AGAINST FEDERAL GOVERNMENT.—^A third-party creditor of the obligor shall not have any right against the Federal Government with respect to any draw on the line of credit. "(B) ASSIGNMENT. — An obligor may assign the line of credit to 1 or more lenders or to a trustee on the lenders' behalf. "(8) NONSUBORDINATION.— ^A direct loan under this section shall not be subordinated to the claims of any holder of project obligations in the event of bankruptcy, insolvency, or liquidation of the obligor. "(9) FEES. — The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of providing a line of credit under this section. " (10) RELATIONSHIP TO OTHER CREDIT INSTRUMENTS.— ^A project that receives a line of credit under this section also shall not receive a secured loan or loan guarantee under section 183 of an amount that, combined with the amount of the line of credit, exceeds 33 percent of eligible project costs.

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