‘‘(8) MODIFICATION.—The term ‘modification’
means any Government action that alters the esti-
mated cost of an outstanding loan guarantee (or loan
guarantee commitment) from the current estimate of
cash flows, including the sale of loan assets, with or
without recourse, and the purchase of guaranteed
loans.
‘‘(9) COMMON TERMS.—Except as provided in
paragraphs (1) through (9), any term used in this
title that is defined in the Communications Act of
1934 (47 U.S.C. 151 et seq.) has the meaning given
the term in that Act.
‘‘SEC. 602. LOAN GUARANTEES.
‘‘(a) PURPOSE.—The purpose of this title is to enable
the Administrator to provide such loan guarantees as are
necessary to ensure improved access to the signals of local
television stations by multichannel video providers to all
households which desire such service in unserved and under-
served rural markets by December 31, 2006.
‘‘(b) ASSISTANCE TO BORROWERS.—Subject to the ap-
propriations limitation under subsection (c)(2), the Admin-
istrator may provide loan guarantees to borrowers to fi-
nance projects to provide local television broadcast signals
by providers of multichannel video services including direct
broadcast satellite licensees and licensees of multichannel
multipoint distribution systems, to areas that do not receive
local television broadcast signals over commercial for-profit
direct-to-home satellite distribution systems. A borrower
that receives a loan guarantee under this title may not
transfer any part of the proceeds of the monies from the
loans guaranteed under this program to an affiliate of the
borrower.
‘‘(c) UNDERWRITING CRITERIA; PREREQUISITES.—
‘‘(1) IN GENERAL.—The Administrator shall ad-
minister the underwriting criteria developed under
subsection (f)(1) to determine which loans are eligible
for a guarantee under this title.
‘‘(2) AUTHORITY TO MAKE LOAN GUARANTEES.—
The Administrator shall be authorized to guarantee
loans under this title only to the extent provided for
in advance by appropriations Acts.
‘‘(3) PREREQUISITES.—In addition to meeting
the underwriting criteria under paragraph (1), a
loan is not eligible for a loan guarantee under this
title unless—
‘‘(A) the loan is made to finance the acqui-
sition, improvement, enhancement, construction,
deployment, launch, or rehabilitation of the
means, including spectrum rights, by which local
television broadcast signals will be delivered to
an area not receiving such signals over commer-
cial for-profit direct-to-home satellite distribu-
tion systems;
‘‘(B) the proceeds of the loan will not be
used for operating expenses;
‘‘(C) the total amount of all such loans may
not exceed in the aggregate $1,250,000,000;
‘‘(D) the loan does not exceed $100,000,000,
except that 1 loan under this title may exceed
$100,000,000, but shall not exceed $625,000,000;
‘‘(E) the loan bears interest and penalties
which, in the Administrator’s judgment, are not
unreasonable, taking into consideration the pre-
vailing interest rates and customary fees in-
curred under similar obligations in the private
capital market; and
‘‘(F) the Administrator determines that tak-
ing into account the practices of the private cap-
ital markets with respect to the financing of
similar projects, the security of the loan is ade-
quate.
‘‘(4) ADDITIONAL CRITERIA.—In addition to the
requirements of paragraphs (1), (2), and (3), a loan
for which a guarantee is sought under this title shall
meet any additional criteria promulgated under sub-
section (f)(1).
‘‘(d) ADDITIONAL
REQUIREMENTS.—The Adminis-
trator may not make a loan guarantee under this title
unless—
‘‘(1) repayment of the loan is required to be
made within a term of the lesser of—
‘‘(A) 25 years from the date of its execution;
or
‘‘(B) the useful life of the primary assets
used in the delivery of relevant signals;
‘‘(2) the Administrator has been given the assur-
ances and documentation necessary to review and ap-
prove the guaranteed loans; and
‘‘(3) the Administrator makes a determination
in writing that—
‘‘(A) the applicant has given reasonable as-
surances that the assets, facilities, or equipment
will be utilized economically and efficiently;
‘‘(B) necessary and sufficient regulatory ap-
provals, spectrum rights, and delivery permis-
sions have been received or will be obtained by
project participants to assure the financial feasi-
bility of the project; and
‘‘(C) repayment of the loan can reasonably
be expected, including the use of an appropriate
combination of credit risk premiums and collat-
eral offered by the applicant to protect the Fed-
eral Government.
‘‘(e) APPROVAL OF NTIA REQUIRED.—
‘‘(1) IN GENERAL.—The Administrator may not
issue a loan guarantee under this title unless the Na-
tional Telecommunications and Information Admin-
istration consults with the Administrator and certifies
that the issuance of the loan guarantee is consistent
with subsection (a).
‘‘(2) CERTIFICATION.—The Administrator shall
provide the appropriate information on each loan
guarantee application recommended by the Adminis-
trator to the National Telecommunications and Infor-
mation Administration for certification. If the Na-
tional Telecommunications and Information Admin-
istration fails to make the required determination
within 90 days after receiving the information from
the Administrator with respect to a particular loan
guarantee application, the certification shall be
deemed to have been granted.
‘‘(f) REQUIREMENTS.—
‘‘(1) IN
GENERAL.—Not later than 180 days
after the date of enactment of this title, the Adminis-
trator shall consult with an appropriate independent
consultant, including a public accounting firm, to de-
velop underwriting criteria relating to the issuance of
loan guarantees, appropriate collateral and cash flow
levels for the types of loan guarantees that might be
issued under this title, and such other matters as the
Administrator determines appropriate.
‘‘(2) AUTHORITY OF ADMINISTRATOR.—In lieu of
or in combination with appropriations of budget au-
thority to cover the costs of loan guarantees as re-
quired under section 504(b)(1) of the Federal Credit
Reform Act of 1990, the Administrator may accept on
behalf of an applicant for assistance under this title
a commitment from a non-Federal source to fund in
whole or in part the credit risk premiums with re-
spect to the applicant’s loan. The aggregate of appro-
priations of budget authority and credit risk pre-
miums described in this paragraph with respect to a
loan guarantee may not be less than the cost of that
loan guarantee.
‘‘(3) CREDIT RISK PREMIUM AMOUNT.—The Ad-
ministrator shall determine the amount required for