Page:United States Statutes at Large Volume 84 Part 1.djvu/1021

 84 STAT. ]

PUBLIC LAW 91-453-OCT. 15, 1970

963

"(1) the legal, financial, and technical capacity to carry out the proposed project; and " (2) satisfactory continuing control, through operation or lease or otherwise, over the use of the facilities and equipment. The Secretary may make loans for real property acquisition pursuant Reai property to subsection (b) upon a determination, which shall be in lieu of the ^^^'^"1^^"*'°"'''°"" preceding determinations, that the real property is reasonably expected to be required in connection with a mass transportation system and that it will be used for that purpose within a reasonable period. No grant or loan funds shall be used for payment of ordinary govern- operating mental or nonprofit operating expenses. An applicant for assistance hfbiiron.^' ^'^°" under this section for a project located wholly or partly in a State in which there is statewide comprehensive transportation planning shall furnish a copy of its application to the Governor of each State affected concurrently with submission to the Secretary. If, within thirty days thereafter, the Governor submits comments to the Secretary, the Secretary must consider the comments before taking final action on the application. " (b) The Secretary is authorized to make loans under this section to States or local public bodies and agencies thereof to finance the acquisition of real property and interests in real property for use as rights-of-way, station sites, and related purposes, on urban mass transportation systems, including the net cost of property management and relocation payments made pursuant to section 7. Each loan ^s Stat. 305. agreement under this subsection shall provide for actual construction '^^ ^^^ ^^°^' of urban mass transportation facilities on acquired real property within a period not exceeding ten years following the fiscal year in which the agreement is made. Each agreement shall provide that in the event acquired real property or interests in real property are not to be used for the purposes for which acquired, an appraisal of current value will be made at the time of that determination, which shall not be later than ten years following the fiscal year in which the agreement is made. Two-thirds of the increase in value, if any, over the original cost of the real property shall be paid to the Secretary for credit to miscellaneous receipts of the Treasury. Repayment of amounts Repayment. loaned shall be credited to miscellaneous receipts of the Treasury. A loan made under this subsection shall be repayable within ten years from the date of the loan agreement or on the date a grant agreement for actual construction of facilities on the acquired real property is made, whichever date is earlier. A grant agreement for construction of facilities under this Act may provide for forgiveness of the repayment of the principal and accrued interest on the loan then outstanding in lieu of a cash grant in the amount thus forgiven, which for all purposes shall be considered a part of the grant and of the Federal

�