Page:United States Statutes at Large Volume 84 Part 1.djvu/404

 346

PUBLIC LAW 91-296-JUNE 30, 1970

[84 STAT.

such guaranteed loan such facility could not be completed and begin to operate or could not continue to operate, but with such guaranteed loan would be able to do so: Provided, That this subsection shall not apply to more than two projects in any one State. " APPLICATION S AND

CONDITIONS

"SEC. (i23. (a) For each project for which a guarantee of a loan to a nonprofit private agency or a direct loan to a public agency is sought under this part, there shall be submitted to the Secretary, through the 78 Stat. 4 5 2. State agency designated in accordance with section 604, an application 42 USC 291cl. by such private nonprofit agency or by such public agency. If two or more private nonprofit agencies, or two or more public agencies, join in the project, the application may be filed by one or more such agencies. Such application shall (1) set forth all of the descriptions, plans, specifications, assurances, and information which are required by the 42 USC 29ie. third seuteucc of section 605(a) (other than clause (6) thereof) with respect to applications submitted under that section, (2) contain such other information as the Secretary may require to carry out the purposes of this part, and (3) include a certification by the State agency of the total cost of the project and the amount of the loan for which a guarantee is sought under this part, or the amount of the direct loan sought under this part, as the case may be. "(b) The Secretary may approve such application only if— "(1) there remains sufficient balance in the allotment determined for such State pursuant to section 622 to cover the amount of the loan for which a guarantee is sought, or the amount of the direct loan sought (as the case may be), in such application, "(2) he makes each of the findings which are required by clauses (1) through (4) of section 605(b) for the approval of applications for projects thereunder (except that, in the case of the finding required under such clause (4) of entitlement of a Ante, p. 339. project to a priority established under section 603(a), such finding' shall be made without regard to the provisions of clauses (1) and (3) of such section), Ante, p. 342. " (3) he finds that there is compliance with section 605(e), "(4) he obtains assurances that the applicant will keep such records, and afford such access thereto, and make such reports, in such form and containing such information, as the Secretary may reasonably require, and "(5) he also determines, in the case of a loan for which a uarantee is sought, that the terms, conditions, maturity, security if any), and schedule and amounts of repayments with respect to the loan are sufficient to protect the financial interests of the United States and are otherwise reasonable and in accord with regulations, including a determination that the rate of interest does not exceed such per centum per annum on the principal obligation outstanding as the Secretary determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the United States. Hearing. "(c) No application under this section shall be disapproved until the Secretary has afforded the State agency an opportunity for a hearing. " (d) Amendment of an approved application shall be subject to approval in the same manner as an original application. Recovery right. {&) (1) l u the case of any loau to a nonprofit private agency, the United States shall be entitled to recover from the applicant the

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