
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 23USC183]

 
                           TITLE 23--HIGHWAYS
 
                     CHAPTER 1--FEDERAL-AID HIGHWAYS
 
                  SUBCHAPTER II--INFRASTRUCTURE FINANCE
 
Sec. 183. Secured loans

    (a) In General.--
        (1) Agreements.--Subject to paragraphs (2) through (4), the 
    Secretary may enter into agreements with 1 or more obligors to make 
    secured loans, the proceeds of which shall be used--
            (A) to finance eligible project costs; or
            (B) to refinance interim construction financing of eligible 
        project costs;

    of any project selected under section 182.
        (2) Limitation on refinancing of interim construction 
    financing.--A loan under paragraph (1) shall not refinance interim 
    construction financing under paragraph (1)(B) later than 1 year 
    after the date of substantial completion of the project.
        (3) Risk assessment.--Before entering into an agreement under 
    this subsection, the Secretary, in consultation with the Director of 
    the Office of Management and Budget and each rating agency providing 
    a preliminary rating opinion letter under section 182(b)(2)(B), 
    shall determine an appropriate capital reserve subsidy amount for 
    each secured loan, taking into account such letter.
        (4) Investment-grade rating requirement.--The funding of a 
    secured loan under this section shall be contingent on the project's 
    senior obligations receiving an investment-grade rating, except 
    that--
            (A) the Secretary may fund an amount of the secured loan not 
        to exceed the capital reserve subsidy amount determined under 
        paragraph (3) prior to the obligations receiving an investment-
        grade rating; and
            (B) the Secretary may fund the remaining portion of the 
        secured loan only after the obligations have received an 
        investment-grade rating by at least 1 rating agency.

    (b) Terms and Limitations.--
        (1) In general.--A secured loan under this section with respect 
    to a project shall be on such terms and conditions and contain such 
    covenants, representations, warranties, and requirements (including 
    requirements for audits) as the Secretary determines appropriate.
        (2) Maximum amount.--The amount of the secured loan shall not 
    exceed 33 percent of the reasonably anticipated eligible project 
    costs.
        (3) Payment.--The secured loan--
            (A) shall--
                (i) be payable, in whole or in part, from tolls, user 
            fees, or other dedicated revenue sources; and
                (ii) include a rate covenant, coverage requirement, or 
            similar security feature supporting the project obligations; 
            and

            (B) may have a lien on revenues described in subparagraph 
        (A) subject to any lien securing project obligations.

        (4) Interest rate.--The interest rate on the secured loan shall 
    be not less than the yield on marketable United States Treasury 
    securities of a similar maturity to the maturity of the secured loan 
    on the date of execution of the loan agreement.
        (5) Maturity date.--The final maturity date of the secured loan 
    shall be not later than 35 years after the date of substantial 
    completion of the project.
        (6) Nonsubordination.--The secured loan shall not be 
    subordinated to the claims of any holder of project obligations in 
    the event of bankruptcy, insolvency, or liquidation of the obligor.
        (7) Fees.--The Secretary may establish fees at a level 
    sufficient to cover all or a portion of the costs to the Federal 
    Government of making a secured loan under this section.
        (8) Non-federal share.--The proceeds of a secured loan under 
    this subchapter may be used for any non-Federal share of project 
    costs required under this title or chapter 53 of title 49, if the 
    loan is repayable from non-Federal funds.

    (c) Repayment.--
        (1) Schedule.--The Secretary shall establish a repayment 
    schedule for each secured loan under this section based on the 
    projected cash flow from project revenues and other repayment 
    sources.
        (2) Commencement.--Scheduled loan repayments of principal or 
    interest on a secured loan under this section shall commence not 
    later than 5 years after the date of substantial completion of the 
    project.
        (3) Sources of repayment funds.--The sources of funds for 
    scheduled loan repayments under this section shall include tolls, 
    user fees, or other dedicated revenue sources.
        (4) Deferred payments.--
            (A) Authorization.--If, at any time during the 10 years 
        after the date of substantial completion of the project, the 
        project is unable to generate sufficient revenues to pay the 
        scheduled loan repayments of principal and interest on the 
        secured loan, the Secretary may, subject to subparagraph (C), 
        allow the obligor to add unpaid principal and interest to the 
        outstanding balance of the secured loan.
            (B) Interest.--Any payment deferred under subparagraph (A) 
        shall--
                (i) continue to accrue interest in accordance with 
            subsection (b)(4) until fully repaid; and
                (ii) be scheduled to be amortized over the remaining 
            term of the loan beginning not later than 10 years after the 
            date of substantial completion of the project in accordance 
            with paragraph (1).

            (C) Criteria.--
                (i) In general.--Any payment deferral under subparagraph 
            (A) shall be contingent on the project meeting criteria 
            established by the Secretary.
                (ii) Repayment standards.--The criteria established 
            under clause (i) shall include standards for reasonable 
            assurance of repayment.

        (5) Prepayment.--
            (A) Use of excess revenues.--Any excess revenues that remain 
        after satisfying scheduled debt service requirements on the 
        project obligations and secured loan and all deposit 
        requirements under the terms of any trust agreement, bond 
        resolution, or similar agreement securing project obligations 
        may be applied annually to prepay the secured loan without 
        penalty.
            (B) Use of proceeds of refinancing.--The secured loan may be 
        prepaid at any time without penalty from the proceeds of 
        refinancing from non-Federal funding sources.

    (d) Sale of Secured Loans.--
        (1) In general.--Subject to paragraph (2), as soon as 
    practicable after substantial completion of a project and after 
    notifying the obligor, the Secretary may sell to another entity or 
    reoffer into the capital markets a secured loan for the project if 
    the Secretary determines that the sale or reoffering can be made on 
    favorable terms.
        (2) Consent of obligor.--In making a sale or reoffering under 
    paragraph (1), the Secretary may not change the original terms and 
    conditions of the secured loan without the written consent of the 
    obligor.

    (e) Loan Guarantees.--
        (1) In general.--The Secretary may provide a loan guarantee to a 
    lender in lieu of making a secured loan if the Secretary determines 
    that the budgetary cost of the loan guarantee is substantially the 
    same as that of a secured loan.
        (2) Terms.--The terms of a guaranteed loan shall be consistent 
    with the terms set forth in this section for a secured loan, except 
    that the rate on the guaranteed loan and any prepayment features 
    shall be negotiated between the obligor and the lender, with the 
    consent of the Secretary.

(Added Pub. L. 105-178, title I, Sec. 1503(a), June 9, 1998, 112 Stat. 
245.)

                  Section Referred to in Other Sections

    This section is referred to in sections 181, 184 of this title.
