Page:United States Statutes at Large Volume 90 Part 1.djvu/1317

 PUBLIC LAW 94-413—SEPT. 17, 1976

90 STAT. 1267

SEC. 10. LOAN GUARANTEES. (a) It is the policy of the Congress to assist in the introduction into 15 USC 2509. the Nation's transportation fleet of electric and hybrid vehicles and to assure that qualified small business concerns and other qualified borrowers are not excluded from participation in such development due to lack of adequate capital. Accordingly, it is the policy of the Congress to provide guarantees of loans made for such purposes. (b) In order to encourage the commercial production of electric and hybrid vehicles, the Administrator is authorized to guarantee, and to enter into commitments to guarantee, principal and interest on loans made by lenders to qualified borrowers, primarily small business concerns, for the purposes of— (1) research and development related to electric and hybrid vehicle technology; (2) prototype development for such vehicles and parts thereof; (3) construction of capital equipment related to research on, and development and production of, electric and hybrid vehicles ..»{<-! and components; or (4) initial operating expenses associated with the development and production of electric and hybrid vehicles and components. (c) Any guarantee under this section shall apply only to so much of the principal amount of the loan involved as does not exceed 90 percentum of the aggregate cost of the activity with respect to which the loan is made. (d) Loan guarantees under this section shall be on such terms and conditions as the Administrator determines, except that a guarantee shall be made under this section only if— (1) the loan bears interest at a rate not to exceed such annual percent on the principal obligation outstanding as the Administrator determines to be reasonable, taking into account the range of interest rates prevailing in the private sector for similar loans and risks by the United States; (2) the terms of such loan require full repayment over a period not to exceed 15 years; (3) in the judgment of the Administrator, the amount of the loan (when combined with amounts available to the qualified borrower from other sources) will be sufficient to carry out the activity with respect to which the loan is made; (4) in the judgment of the Administrator, there is reasonable assurance of repayment of the loan by the qualified borrower; and (5) no loan shall be guaranteed by the Administrator under subsection (b) unless the Administrator finds that no other reasonable means of financing or refinancing is reasonably available to the applicant. (e)(1) The amount of the guarantee of any loan shall not exceed Limitation. $3,000,000, unless the Administrator finds that a higher guarantee level for specific loan guarantees is necessary in order to carry out the purposes of this Act. If the Administrator makes such finding, he shall Report to immediately report that finding to the Speaker of the House of Repre- Speaker of the sentatives, the President of the Senate, the Committee on Science and House, President Technology of the House of Representatives, and the Committee on of the Senate and congressional Commerce of the Senate. committees. (2) The aggregate amount of guarantees outstanding under this Limitation. section at any one time shall not exceed $60,000,000. (f) As used in this section, the term "qualified borrower" means "Qualified any partnership, corporation, or other legal entity which (as deter- borrower." mined by the Administrator) has presented satisfactory evidence of an interest in electric or hybrid vehicle technology and is capable of

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