623 
mercial Director shall pay to the holder of 
the guarantee the unpaid interest on, and 
unpaid principal of the obligation as to 
which the borrower has defaulted, unless 
the Commercial Director finds that there 
was no default by the borrower in the pay-
ment of interest or principal or that the 
default has been remedied. 
(iii) FORBEARANCE.—Nothing in this 
paragraph precludes any forbearance by 
the holder of the obligation for the benefit 
of the borrower which may be agreed upon 
by the parties to the obligation and ap-
proved by the Commercial Director. 
(B) SUBROGATION.— 
(i) IN GENERAL.—If the Commercial 
Director makes a payment under subpara-
graph (A), the Commercial Director shall 
be subrogated to the rights of the recipient 
of the payment as specified in the guar-
antee or related agreements including, 
where appropriate, the authority (notwith-
standing any other provision of law) to— 
(I) complete, maintain, operate, 
lease, or otherwise dispose of any 
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property acquired pursuant to such 
guarantee or related agreements; or 
(II) permit the borrower, pursu-
ant to an agreement with the Com-
mercial Director, to continue to pur-
sue the purposes of the project if the 
Commercial Director determines this 
to be in the public interest. 
(ii) SUPERIORITY
OF
RIGHTS.—The 
rights of the Commercial Director, with re-
spect to any property acquired pursuant to 
a guarantee or related agreements, shall be 
superior to the rights of any other person 
with respect to the property. 
(iii) TERMS
AND
CONDITIONS.—A 
guarantee agreement shall include such de-
tailed terms and conditions as the Com-
mercial Director determines appropriate 
to— 
(I) protect the interests of the 
United States in the case of default; 
and 
(II) have available all the patents 
and technology necessary for any per-
son selected, including the Commer-
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cial Director, to complete and operate 
the project. 
(C) PAYMENT OF PRINCIPAL AND INTER-
EST BY COMMERCIAL DIRECTOR.—With respect 
to any obligation guaranteed under this section, 
the Commercial Director may enter into a con-
tract to pay, and pay, holders of the obligation, 
for and on behalf of the borrower, from funds 
appropriated for that purpose, the principal and 
interest payments which become due and pay-
able on the unpaid balance of the obligation if 
the Commercial Director finds that— 
(i)(I) the borrower is unable to meet 
the payments and is not in default; 
(II) it is in the public interest to per-
mit the borrower to continue to pursue the 
purposes of the project; and 
(III) the probable net benefit to the 
Federal Government in paying the prin-
cipal and interest will be greater than that 
which would result in the event of a de-
fault; 
(ii) the amount of the payment that 
the Commercial Director is authorized to 
pay shall be no greater than the amount of 
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principal and interest that the borrower is 
obligated to pay under the agreement 
being guaranteed; and 
(iii) the borrower agrees to reimburse 
the Commercial Director for the payment 
(including interest) on terms and condi-
tions that are satisfactory to the Commer-
cial Director. 
(D) ACTION BY ATTORNEY GENERAL.— 
(i) NOTIFICATION.—If the borrower 
defaults on an obligation, the Commercial 
Director shall notify the Attorney General 
of the default. 
(ii) RECOVERY.—On notification, the 
Attorney General shall take such action as 
is appropriate to recover the unpaid prin-
cipal and interest due from— 
(I) such assets of the defaulting 
borrower as are associated with the 
obligation; or 
(II) any other security pledged to 
secure the obligation. 
(9) FEES.— 
(A) IN GENERAL.—The Commercial Direc-
tor shall charge and collect fees for guarantees 
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in amounts the Commercial Director determines 
are sufficient to cover applicable administrative 
expenses. 
(B) AVAILABILITY.—Fees collected under 
this paragraph shall— 
(i) be deposited by the Commercial 
Director into the Treasury; and 
(ii) remain available until expended, 
subject to such other conditions as are con-
tained in annual appropriations Acts. 
(10) RECORDS; AUDITS.— 
(A) IN GENERAL.—A recipient of a guar-
antee shall keep such records and other perti-
nent documents as the Commercial Director 
shall prescribe by regulation, including such 
records as the Commercial Director may require 
to facilitate an effective audit. 
(B) ACCESS.—The Commercial Director 
and the Comptroller General of the United 
States, or their duly authorized representatives, 
shall have access, for the purpose of audit, to 
the records and other pertinent documents. 
(11) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the 
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