Page:United States Statutes at Large Volume 92 Part 2.djvu/469

 PUBLIC LAW 95-504—OCT. 24, 1978

92 STAT. 1749

"(6) 'intrastate air carrier' means any citizen of the United States who undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage primarily in intrastate air transportation (as such term is defined in section 101(26) of the Federal Aviation Act of 1958); and "(7) 'Secretary' means the Secretary of Transportation.". (c) Section 3 of the Act is amended to read as follows: "SEC. 3. The Secretary is authorized to guarantee any lender against loss of principal or interest on any aircraft purchase loan made by such lender to— "(1) any air carrier whose certificate (A) authorizes such air carrier to provide local or feeder air service, (B) authorizes scheduled passenger operations the major portion of which are conducted within the State of Hawaii, (C) authorizes operations (the major portion of which is conducted either within Alaska or between Alaska and the forty-eight contiguous States), within the State of Alaska (including service between Alaska and the forty-eight contiguous States, and between Alaska and adjacent Canadian territory), or (D) authorizes metropolitan helicopter service, "(2) any charter air carrier for the purchase of any all-cargo nonconvertible aircraft, "(3) any commuter air carrier, or " (4) any intrastate air carrier. Such guarantee shall be made in such form, on such terms and conditions, and pursuant to such regulations, as the Secretary deems necessary and which are not inconsistent with the provisions of this Act.". (d) Section 4 of the Act is amended to read as follows: "SEC. 4. (a) Subject to subsection (b) of this section, no guaranty shall be made— " (1) extending to more than the unpaid interest and 90 percent of the unpaid principal of any loan; " (2) on any loan or combination of loans for more than 90 percent of the purchase price of the aircraft, including spare parts, to be purchased therewith; "(3) on any loan whose terms permit full repayment more than 15 years after the date thereof; "(4) wherein the total face amount of such loan, and of any other loans to the same air carrier, charter air carrier, commuter air carrier, or intrastate air carrier or corporate predecessor of such air carrier, charter air carrier, commuter air carrier, or intrastate air carrier guaranteed and outstanding under the terms of this Act exceeds $100,000,000; "(5) unless the Secretary finds that, without such guaranty, in the amount thereof, the air carrier, charter air carrier, commuter air carrier, or intrastate air carrier would be unable to obtain necessary funds for the purchase of needed aircraft on reasonable terms; "(6) unless the Secretary finds that the aircraft to be purchased with the guaranteed loan is needed to improve the service and efficiency of operation of the air carrier, charter air carrier, commuter air carrier, or intrastate air carrier; "(7) unless the Secretary finds that the prospective earning power—

49 USC 1301. Eligible lenders. 49 USC 1324 note.

Restrictions. 49 USC 1324 note.

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