Page:United States Statutes at Large Volume 114 Part 4.djvu/836

 114 STAT. 2762A-136 PUBLIC LAW 106-553—APPENDIX B (4) the adjustment does not adversely affect the interest of the Federal Government in the assets or collateral of the applicant; (5) the adjustment does not adversely affect the ability of the applicant to repay the loan; and (6) the National Telecommunications and Information Administration has been consulted by the Board regarding the adjustment. (f) PERFORMANCE SCHEDULES.— (1) PERFORMANCE SCHEDULES.—An applicant for a loan guarantee under this Act for a project covered by section 4(e)(1) shall enter into stipulated performance schedules with the Administrator with respect to the signals to be provided through the project. (2) PENALTY. —The Administrator may assess against and collect from an applicant described in paragraph (1) a penalty not to exceed 3 times the interest due on the guaranteed loan of the applicant under this Act if the applicant fails to meet its stipulated performance schedule under that paragraph. (g) COMPLL\NCE. —The Administrator, in cooperation with the Board and as the regulations of the Board may provide, shall enforce compliance by an applicant, and any other party to a loan guarantee for whose benefit assistance under this Act is intended, with the provisions of this Act, any regulations under this Act, and the terms and conditions of the loan guarantee, including through the submittal of such reports and documents as the Board may require in regulations prescribed by the Board and through regular periodic inspections and audits. (h) COMMERCIAL VALIDITY.—^A loan guarantee under this Act shall be incontestable— (1) in the hands of an applicant on whose behalf the loan guarantee is made, unless the applicant engaged in fraud or misrepresentation in securing the loan guarantee; and (2) as to any person or entity (or their respective successor in interest) who makes or contracts to make a loan to the applicant for the loan guarantee in reliance thereon, unless such person or entity (or respective successor in interest) engaged in fraud or misrepresentation in making or contracting to make such loan. (i) DEFAULTS. —The Board shall prescribe regulations governing defaults on loans guaranteed under this Act, including the administration of the payment of guaranteed amounts upon default. (j) RECOVERY OF PAYMENTS.— (1) IN GENERAL.—The Administrator shall be entitled to recover from an applicant for a loan guarantee under this Act the amount of any payment made to the holder of the guarantee with respect to the loan. (2) SUBROGATION.—Upon making a payment described in paragraph (1), the Administrator shall be subrogated to all rights of the party to whom the payment is made with respect to the guarantee which was the basis for the pa3anent. (3) DISPOSITION OF PROPERTY. — (A) SALE OR DISPOSAL.—The Administrator shall, in an orderly and efficient manner, sell or otherwise dispose of any property or other interests obtained under this Act in a manner that maximizes taxpayer return and is consistent with the financial interests of the United States.

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