620 
fined in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a)). 
(3) 
OBLIGATION.—The 
term 
‘‘obligation’’ 
means the loan or other debt obligation that is guar-
anteed under this section. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) ELIGIBLE PURPOSES.—Except for division C of 
Public Law 108–423, the Commercial Director shall make 
loan guarantees under this section for renovation projects 
that are eligible projects within the meaning of section 
1703 of the Energy Policy Act of 2005 and that will result 
in a building achieving the United States Green Building 
Council Leadership in Energy and Environmental Design 
‘‘certified’’ level, or meeting a comparable standard ap-
proved by the Commercial Director. 
(c) TERMS AND CONDITIONS.— 
(1) IN
GENERAL.—The Commercial Director 
shall make guarantees under this section for projects 
on such terms and conditions as the Commercial Di-
rector determines, after consultation with the Sec-
retary of the Treasury, in accordance with this sec-
tion, including limitations on the amount of any loan 
guarantee to ensure distribution to a variety of bor-
rowers. 
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(2) SPECIFIC
APPROPRIATION
OR
CONTRIBU-
TION.—No guarantee shall be made under this sec-
tion unless— 
(A) an appropriation for the cost has been 
made; or 
(B) the Commercial Director has received 
from the borrower a payment in full for the 
cost of the obligation and deposited the pay-
ment into the Treasury. 
(3) LIMITATION.—Not more than $100,000,000 
in loans may be guaranteed under this section at 
any one time. 
(4) AMOUNT.—Unless otherwise provided by 
law, a guarantee by the Commercial Director under 
this section shall not exceed an amount equal to 80 
percent of the project cost that is the subject of the 
guarantee, as estimated at the time at which the 
guarantee is issued. 
(5) REPAYMENT.—No guarantee shall be made 
under this section unless the Commercial Director 
determines that there is reasonable prospect of re-
payment of the principal and interest on the obliga-
tion by the borrower. 
(6) INTEREST RATE.—An obligation shall bear 
interest at a rate that does not exceed a level that 
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the Commercial Director determines appropriate, 
taking into account the prevailing rate of interest in 
the private sector for similar loans and risks. 
(7) TERM.—The term of an obligation shall re-
quire full repayment over a period not to exceed the 
lesser of— 
(A) 30 years; or 
(B) 90 percent of the projected useful life 
of the building whose renovation is to be fi-
nanced by the obligation (as determined by the 
Commercial Director). 
(8) DEFAULTS.— 
(A) PAYMENT
BY
COMMERCIAL
DIREC-
TOR.— 
(i) IN GENERAL.—If a borrower de-
faults on the obligation (as defined in reg-
ulations promulgated by the Commercial 
Director and specified in the guarantee 
contract), the holder of the guarantee shall 
have the right to demand payment of the 
unpaid amount from the Commercial Di-
rector. 
(ii) 
PAYMENT
REQUIRED.—Within 
such period as may be specified in the 
guarantee or related agreements, the Com-
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