Page:United States Statutes at Large Volume 114 Part 1.djvu/136

 114 STAT. 100 PUBLIC LAW 106-181—APR. 5, 2000 "(G) FEES.— The Secretary, subject to appropriations, may establish fees at a level sufficient to cover all of a portion of the administrative costs to the United States Government of providing a line of credit under this subsection. The proceeds of such fees shall be deposited in an account to be used by the Secretary for the purpose of administering the program established under this subchapter and shall be available upon deposit until expended. " (3) REPAYMENT.— "(A) SCHEDULE. —The Secretary shall establish a repay- ment schedule for each direct loan under this subsection. Deadline. "(B) COMMENCEMENT.— Scheduled loan repayments of principal or interest on a direct loan under this subsection shall commence no later than 3 years after the date of the first draw on the line of credit and shall be repaid, with interest, not later than 18 years after the date of the first draw. "(e) RISK ASSESSMENT.— Before entering into an agreement under this section to make available a Federal credit instrument, the Secretary, in consultation with the Director of the Office of Management and Budget, shall determine an appropriate capital reserve subsidy amount for the Federal credit instrument based on such credit evaluations as the Secretary deems necessary. "(f) CONDITIONS. —Subject to subsection (h), the Secretary may only make a Federal credit instrument available under this section if the Secretary finds that— "(1) the aircraft to be purchased with the Federal credit instrument is a regional jet aircraft needed to improve the service and efficiency of operation of a commuter air carrier or new entrant air carrier; "(2) the commuter air carrier or new entrant air carrier enters into a legally binding agreement that requires the carrier to use the aircraft to provide service to underserved markets; and "(3) the prospective earning power of the commuter air carrier or new entrant air carrier, together with the character and value of the security pledged, including the collateral value of the aircraft being acquired and any other assets or pledges used to secure the Federal credit instrument, furnish— "(A) reasonable assurances of the air carrier's ability and intention to repay the Federal credit instrument within the terms established by the Secretary— "(i) to continue its operations as an air carrier; and "(ii) to the extent that the Secretary determines to be necessary, to continue its operations as an air carrier between the same route or routes being operated by the air carrier at the time of the issuance of the Federal credit instrument; and "(B) reasonable protection to the United States. " (g) LIMITATION ON COMBINED AMOUNT OF FEDERAL CREDIT INSTRUMENTS. —The Secretary shall not allow the combined amount of Federal credit instruments available for any aircraft purchase under this section to exceed— "(1) 50 percent of the cost of the aircraft purchase; or "(2) $100,000,000 for any single obligor.

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