Page:United States Statutes at Large Volume 120.djvu/1636

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1605

‘‘(B) determine annually for each risk category a subsidy rate equivalent to the cost of obligations in the category, expressed as a percentage of the amount guaranteed for obligations in the category; and ‘‘(C) ensure that each risk category is comprised of loans that are relatively homogeneous in cost and share characteristics predictive of defaults and other costs, given the facts known at the time of obligation or commitment, using a risk category system that is based on historical analysis of program data and statistical evidence concerning the likely costs of defaults or other costs that are expected to be associated with the loans in the category. ‘‘(3) USE OF SYSTEM.— ‘‘(A) PLACING OBLIGATION IN CATEGORY.—Before making a guarantee under this chapter for an obligation, and annually for projects subject to a guarantee, the Secretary shall apply the risk factors specified in paragraph (4) to place the obligation in a risk category established under paragraph (2). ‘‘(B) REDUCTION OF AVAILABLE AMOUNT.—The Secretary shall consider the total amount available to the Secretary for making guarantees under this chapter to be reduced by the amount determined by multiplying— ‘‘(i) the amount guaranteed under this chapter for an obligation; by ‘‘(ii) the subsidy rate for the category in which the obligation is placed under subparagraph (A). ‘‘(C) ESTIMATED COST.—The estimated cost to the United States Government of a guarantee under this chapter for an obligation is deemed to be the amount determined under subparagraph (B) for the obligation. ‘‘(D) RESTRICTION ON FURTHER GUARANTEES.—The Secretary may not guarantee obligations under this chapter after the total amount available to the Secretary under appropriations laws for the cost of loan guarantees is considered to be reduced to zero under subparagraph (B). ‘‘(4) RISK FACTORS.—The risk factors referred to in this subsection are— ‘‘(A) if applicable, the country risk for each eligible export vessel financed or to be financed by an obligation; ‘‘(B) the period for which an obligation is guaranteed or to be guaranteed; ‘‘(C) the amount of an obligation guaranteed or to be guaranteed in relation to the total cost of the project financed or to be financed by the obligation; ‘‘(D) the financial condition of an obligor or applicant for a guarantee; ‘‘(E) if applicable, other guarantees related to the project; ‘‘(F) if applicable, the projected employment of each vessel or equipment to be financed with an obligation; ‘‘(G) if applicable, the projected market that will be served by each vessel or equipment to be financed with an obligation; ‘‘(H) the collateral provided for a guarantee for an obligation;

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