
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 23USC184]

 
                           TITLE 23--HIGHWAYS
 
                     CHAPTER 1--FEDERAL-AID HIGHWAYS
 
                  SUBCHAPTER II--INFRASTRUCTURE FINANCE
 
Sec. 184. Lines of credit

    (a) In General.--
        (1) Agreements.--Subject to paragraphs (2) through (4), the 
    Secretary may enter into agreements to make available lines of 
    credit to 1 or more obligors in the form of direct loans to be made 
    by the Secretary at future dates on the occurrence of certain events 
    for any project selected under section 182.
        (2) Use of proceeds.--The proceeds of a line of credit made 
    available under this section shall be available to pay debt service 
    on project obligations issued to finance eligible project costs, 
    extraordinary repair and replacement costs, operation and 
    maintenance expenses, and costs associated with unexpected Federal 
    or State environmental restrictions.
        (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 line of credit, taking into account such letter.
        (4) Investment-grade rating requirement.--The funding of a line 
    of credit under this section shall be contingent on the project's 
    senior obligations receiving an investment-grade rating from at 
    least 1 rating agency.

    (b) Terms and Limitations.--
        (1) In general.--A line of credit 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 amounts.--
            (A) Total amount.--The total amount of the line of credit 
        shall not exceed 33 percent of the reasonably anticipated 
        eligible project costs.
            (B) 1-year draws.--The amount drawn in any 1 year shall not 
        exceed 20 percent of the total amount of the line of credit.

        (3) Draws.--Any draw on the line of credit shall represent a 
    direct loan and shall be made only if net revenues from the project 
    (including capitalized interest, any debt service reserve fund, and 
    any other available reserve) are insufficient to pay the costs 
    specified in subsection (a)(2).
        (4) Interest rate.--The interest rate on a direct loan resulting 
    from a draw on the line of credit shall be not less than the yield 
    on 30-year marketable United States Treasury securities as of the 
    date on which the line of credit is obligated.
        (5) Security.--The line of credit--
            (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.

        (6) Period of availability.--The line of credit shall be 
    available during the period beginning on the date of substantial 
    completion of the project and ending not later than 10 years after 
    that date.
        (7) Rights of third-party creditors.--
            (A) Against federal government.--A third-party creditor of 
        the obligor shall not have any right against the Federal 
        Government with respect to any draw on the line of credit.
            (B) Assignment.--An obligor may assign the line of credit to 
        1 or more lenders or to a trustee on the lenders' behalf.

        (8) Nonsubordination.--A direct loan under this section shall 
    not be subordinated to the claims of any holder of project 
    obligations in the event of bankruptcy, insolvency, or liquidation 
    of the obligor.
        (9) Fees.--The Secretary may establish fees at a level 
    sufficient to cover all or a portion of the costs to the Federal 
    Government of providing a line of credit under this section.
        (10) Relationship to other credit instruments.--A project that 
    receives a line of credit under this section also shall not receive 
    a secured loan or loan guarantee under section 183 of an amount 
    that, combined with the amount of the line of credit, exceeds 33 
    percent of eligible project costs.

    (c) Repayment.--
        (1) Terms and conditions.--The Secretary shall establish 
    repayment terms and conditions for each direct loan under this 
    section based on the projected cash flow from project revenues and 
    other repayment sources.
        (2) Timing.--All scheduled repayments of principal or interest 
    on a direct loan under this section shall commence not later than 5 
    years after the end of the period of availability specified in 
    subsection (b)(6) and be fully repaid, with interest, by the date 
    that is 25 years after the end of the period of availability 
    specified in subsection (b)(6).
        (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.

(Added Pub. L. 105-178, title I, Sec. 1503(a), June 9, 1998, 112 Stat. 
247.)

                  Section Referred to in Other Sections

    This section is referred to in section 181 of this title.
