
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC821]

 
                           TITLE 45--RAILROADS
 
        CHAPTER 17--RAILROAD REVITALIZATION AND REGULATORY REFORM
 
    SUBCHAPTER II--RAILROAD REHABILITATION AND IMPROVEMENT FINANCING
 
Sec. 821. Definitions

    For purposes of this subchapter:
        (1)(A) The term ``cost'' means the estimated long-term cost to 
    the Government of a direct loan or loan guarantee or modification 
    thereof, calculated on a net present value basis, excluding 
    administrative costs and any incidental effects on governmental 
    receipts or outlays.
        (B) The cost of a direct loan shall be the net present value, at 
    the time when the direct loan is disbursed, of the following 
    estimated cash flows:
            (i) Loan disbursements.
            (ii) Repayments of principal.
            (iii) Payments of interest and other payments by or to the 
        Government over the life of the loan after adjusting for 
        estimated defaults, prepayments, fees, penalties, and other 
        recoveries.

    Calculation of the cost of a direct loan shall include the effects 
    of changes in loan terms resulting from the exercise by the borrower 
    of an option included in the loan contract.
        (C) The cost of a loan guarantee shall be the net present value, 
    at the time when the guaranteed loan is disbursed, of the following 
    estimated cash flows:
            (i) Payments by the Government to cover defaults and 
        delinquencies, interest subsidies, or other payments.
            (ii) Payments to the Government, including origination and 
        other fees, penalties, and recoveries.

    Calculation of the cost of a loan guarantee shall include the 
    effects of changes in loan terms resulting from the exercise by the 
    guaranteed lender of an option included in the loan guarantee 
    contract, or by the borrower of an option included in the guaranteed 
    loan contract.
        (D) The cost of a modification is the difference between the 
    current estimate of the net present value of the remaining cash 
    flows under the terms of a direct loan or loan guarantee contract, 
    and the current estimate of the net present value of the remaining 
    cash flows under the terms of the contract, as modified.
        (E) In estimating net present values, the discount rate shall be 
    the average interest rate on marketable Treasury securities of 
    similar maturity to the cash flows of the direct loan or loan 
    guarantee for which the estimate is being made.
        (F) When funds are obligated for a direct loan or loan 
    guarantee, the estimated cost shall be based on the current 
    assumptions, adjusted to incorporate the terms of the loan contract, 
    for the fiscal year in which the funds are obligated.
        (2) The term ``current'' has the same meaning as in section 
    900(c)(9) of title 2.
        (3) The term ``direct loan'' means a disbursement of funds by 
    the Government to a non-Federal borrower under a contract that 
    requires the repayment of such funds. The term includes the purchase 
    of, or participation in, a loan made by another lender and financing 
    arrangements that defer payment for more than 90 days, including the 
    sale of a Government asset on credit terms. The term does not 
    include the acquisition of a federally guaranteed loan in 
    satisfaction of default claims.
        (4) The term ``direct loan obligation'' means a binding 
    agreement by the Secretary to make a direct loan when specified 
    conditions are fulfilled by the borrower.
        (5) The term ``intermodal'' means of or relating to the 
    connection between rail service and other modes of transportation, 
    including all parts of facilities at which such connection is made.
        (6) The term ``loan guarantee'' means any guarantee, insurance, 
    or other pledge with respect to the payment of all or a part of the 
    principal or interest on any debt obligation of a non-Federal 
    borrower to a non-Federal lender, but does not include the insurance 
    of deposits, shares, or other withdrawable accounts in financial 
    institutions.
        (7) The term ``loan guarantee commitment'' means a binding 
    agreement by the Secretary to make a loan guarantee when specified 
    conditions are fulfilled by the borrower, the lender, or any other 
    party to the guarantee agreement.
        (8) The term ``modification'' means any Government action that 
    alters the estimated cost of an outstanding direct loan (or direct 
    loan obligation) or an outstanding loan guarantee (or loan guarantee 
    commitment) from the current estimate of cash flows. This includes 
    the sale of loan assets, with or without recourse, and the purchase 
    of guaranteed loans. This also includes any action resulting from 
    new legislation, or from the exercise of administrative discretion 
    under existing law, that directly or indirectly alters the estimated 
    cost of outstanding direct loans (or direct loan obligations) or 
    loan guarantees (or loan guarantee commitments) such as a change in 
    collection procedures.

(Pub. L. 94-210, title V, Sec. 501, as added Pub. L. 105-178, title VII, 
Sec. 7203(a)(1), June 9, 1998, 112 Stat. 471.)


                            Prior Provisions

    A prior section 821, Pub. L. 94-210, title V, Sec. 501, Feb. 5, 
1976, 90 Stat. 66; Pub. L. 95-620, title VIII, Sec. 803(c)(1), Nov. 9, 
1978, 92 Stat. 3347; Pub. L. 96-101, Sec. 24(b), Nov. 4, 1979, 93 Stat. 
747; Pub. L. 96-448, title IV, Sec. 405(d), Oct. 14, 1980, 94 Stat. 
1947; Pub. L. 97-35, title XI, Sec. 1162(b), Aug. 13, 1981, 95 Stat. 
684; Pub. L. 99-509, title IV, Sec. 4033(c)(2), Oct. 21, 1986, 100 Stat. 
1908, defined terms for purposes of this subchapter, prior to repeal by 
Pub. L. 105-178, title VII, Sec. 7203(a)(1), June 9, 1998, 112 Stat. 
471.


                            Savings Provision

    Pub. L. 105-178, title VII, Sec. 7203(b)(2), June 9, 1998, 112 Stat. 
477, provided that: ``A transaction entered into under the authority of 
title V of the Railroad Revitalization and Regulatory Reform Act of 1976 
(45 U.S.C. 821 et seq.) before the date of enactment of this Act [June 
9, 1998] shall be administered until completion under its terms as if 
this Act [see Tables for classification] were not enacted.''
