Page:United States Statutes at Large Volume 112 Part 1.djvu/499

 PUBLIC LAW 105-178-^JUNE 9, 1998 112 STAT. 473 ''SEC. 502. DIRECT LOANS AND LOAN GUARANTEES. 45 USC 822. loans and loan guarantees to State and local governments, government sponsored authorities and corporations, railroads, and joint ventures that include at least 1 railroad. '*(!) 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 oftrack, bridges, yards, buildings, and shops;. "(B) refinance outstanding debt incurred for the purposes described in subparagraph (A); or "(C) develop or establish new intermodal or railroad facilities. "(2) OPERATING EXPENSES NOT ELIGIBLE.—D irect loans and loan guarantees under this section shall not be used for railroad operating expenses. loans or guaranteed loans \mder this section, the Secretary shall give priority to projects that— "(1) ennance public safety; "(2) enhance the environment; "(4) enable United States companies to be more competitive in international markets; "(5) are endorsed by the plans prepared under section 135 of title 23, United States Code, by the State or States in which they are located; or "(6) preserve or enhance rail or intermodsil service to small communities or rural areas. "(d) EXTENT OF AUTHORITY.—The aggregate unpaid principal amounts of obligations under direct loans and loan guarantees made under this section shall not exceed $3,500,000,000 at any one time. Of this amount, not less than $1,000,000,000 shall be available solely for projects primarily benefiting freight railroads other than Class I carriers. " (e) RATES OF INTEREST.— "(1) DIRECT LOANS. — 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 making the loan. 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. \f) INFRASTRUCTURE PARTNERS. — "(1) AUTHORITY OF SECRETARY. — 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 504(b)(1) of the Federal Credit Reform Act of 1990, 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
 * (a) GENERAL AUTHORITY.—The Secretary may provide direct
 * (b) ELIGIBLE PURPOSES.—
 * (c) PRIORITY RIOJECTS. — In granting applications for direct
 * (3) promote economic development;
 * (2) LOAN GUARANTEES. —The Secretary shall not make a

�