
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8813]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
              CHAPTER 96--BIOMASS ENERGY AND ALCOHOL FUELS
 
            SUBCHAPTER I--GENERAL BIOMASS ENERGY DEVELOPMENT
 
Sec. 8813. Insured loans


(a) Authority of Secretary of Agriculture; maximum amount per project

    Subject to sections 8812 and 8817 of this title, the Secretary of 
Agriculture may commit to make, and make, insured loans in amounts not 
to exceed $1,000,000 per project for the construction of small-scale 
biomass energy projects.

(b) Estimated project construction costs as determinative of initial and 
        revised amount of loan; interest rate

    (1) Any insured loan under this section--
        (A) may not exceed 90 per centum of the total estimated cost of 
    construction of the biomass energy project involved, and
        (B) shall bear interest at rates determined by the Secretary of 
    Agriculture, taking into consideration the current average market 
    yield on outstanding marketable obligations of the United States 
    with remaining periods to maturity comparable to the average 
    maturities of such loans, plus not to exceed one per centum, as 
    determined by the Secretary of Agriculture, and adjusted to the 
    nearest one-eighth of one per centum.

    (2) In the event the total estimated costs of construction of the 
project thereafter exceed the total estimated costs initially determined 
by the Secretary of Agriculture, the Secretary may in addition, upon 
application therefor, make an insured loan for so much of the additional 
estimated total costs as does not exceed 10 per centum of the total 
costs initially estimated.

(c) Funding requirements; ``insured loan'' defined

    (1) The Secretary of Agriculture shall make insured loans under this 
section using, to the extent provided in advance in appropriations Acts, 
the Agricultural Credit Insurance Fund in section 309 of the 
Consolidated Farm and Rural Development Act [7 U.S.C. 1929] or the Rural 
Development Insurance Fund in section 309A of such Act [7 U.S.C. 1929a] 
(hereinafter in this section referred to as the ``Funds''). The 
Secretary of Agriculture may not use an aggregate amount of funds to 
make or commit to make insured loans under this section in excess of the 
aggregate amount for insured loans and administrative costs appropriated 
and transferred under section 8803 of this title. The terms, conditions, 
and requirements applicable to such insured loans shall be in accordance 
with this subchapter.
    (2) There shall be reimbursed to the Funds, from appropriations made 
under section 8803 of this title, amounts equal to the operating and 
administrative costs incurred by the Secretary of Agriculture in 
insuring loans under this section.
    (3) Notwithstanding any provision of the Consolidated Farm and Rural 
Development Act [7 U.S.C. 1921 et seq.], no funds made available to the 
Secretary of Agriculture under this section for insured loans shall be 
used for any other purpose.
    (4) For purposes of this section, the term ``insured loan'' means a 
loan which is made, sold, and insured.

(d) Preconditions

    An insured loan may not be made under this section unless the 
applicant for such loan has established to the satisfaction of the 
Secretary that the applicant is unable without such a loan to obtain 
sufficient credit elsewhere at reasonable rates and terms, taking into 
consideration prevailing private and cooperative rates and terms for 
loans for similar purposes and periods of time, to finance the 
construction of the biomass energy project for which such loan is 
sought.

(Pub. L. 96-294, title II, Sec. 213, June 30, 1980, 94 Stat. 690.)

                       References in Text

    The Consolidated Farm and Rural Development Act, referred to in 
subsec. (c)(3), is title III of Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 
307, as amended, which is classified principally to chapter 50 
(Sec. 1921 et seq.) of Title 7, Agriculture. For complete classification 
of this Act to the Code, see Short Title note set out under section 1921 
of Title 7 and Tables.

                  Section Referred to in Other Sections

    This section is referred to in section 8817 of this title.
