(6) ensure that repayment of any loan from the
fund will commence not later than 1 year after the
project has been completed;
(7) ensure that the term for repaying any loan
will not exceed the projected useful life of the project
that is the subject of the loan; and
(8) require the fund to make an annual report
to the Secretary on its status and make such other
reports as the Secretary may require by guidelines.
(d) MATCHING REQUIREMENT.—In order to meet the
matching requirement, each State establishing a revolving
fund shall—
(1) contribute, at a minimum, in each account
of the fund from non-Federal sources an amount
equal to 25 percent of the amount of each capitaliza-
tion grant made to the State and contributed to the
fund under subsection (b); or
(2) require for any project financed from the
fund that the local political subdivision or edu-
cational agency contribute at least 20 percent of the
cost of such project from non-Federal sources.
(e) FORMS
OF
ASSISTANCE
FROM
REVOLVING
FUNDS.—
(1) IN GENERAL.—A revolving fund established
under this section may make loans to a local edu-
cational agency in an amount equal to all or part of
the cost of carrying out a project eligible for assist-
ance under this section. In the case of a project
which meets the requirement of subsection (d)(2), a
revolving fund established under this section may
make loans to a local educational agency in an
amount equal to up to 80 percent of the cost of car-
rying out a project eligible for assistance under this
section.
(2) APPLICATIONS FOR LOANS.—An application
to a revolving fund by a local educational agency for
a loan shall include—
(A) in the case of a renovation project, a
description of each architectural, civil, struc-
tural, mechanical, or electrical deficiency to be
corrected with funds under a loan and the pri-
orities to be applied;
(B) a description of the criteria used by
the applicant to determine the type of corrective
action necessary for the renovation of a facility;
(C) a description of improvements to be
made and a cost estimate for the improvements;
and
(D) such other information as the revolv-
ing fund may require.
A revolving fund shall take final action on a com-
pleted application submitted to it within 90 days
after the date of its submittal.
(3) CRITERIA FOR LOANS.—In considering ap-
plications for a loan, a revolving fund shall
consider—
(A) the extent to which the local edu-
cational agency involved lacks the fiscal capac-
ity, including the ability to raise funds through
the full use of such agency’s bonding capacity
and otherwise, to undertake the project for
which the loan would be used without the loan;
(B) the threat that the condition of the
physical plant in the project poses to the safety
and well-being of students;
(C) the demonstrated need for the con-
struction, reconstruction, or renovation based
on the condition of the facility in the project;
and
(D) the age of such facility.
(f) QUALIFYING PROJECTS.—A project is eligible for
a loan from a revolving fund if it is a project that consists
of—
(1) the construction of new elementary or sec-
ondary schools to meet the needs imposed by enroll-
ment growth;
(2) the repair or upgrading of classrooms or
structures related to academic learning, including
the repair of leaking roofs, crumbling walls, inad-
equate plumbing, poor ventilation equipment, and in-
adequate heating or light equipment;
(3) an activity to increase physical safety at the
educational facility involved;
(4) an activity to enhance the educational facil-
ity involved to provide access for students, teachers,
and other individuals with disabilities;
(5) an activity to address environmental haz-
ards at the educational facility involved, such as
poor ventilation, indoor air quality, or lighting;
(6) the provision of basic infrastructure that fa-
cilitates educational technology, such as communica-
tions outlets, electrical systems, power outlets, or a
communication closet;
(7) work that will bring an educational facility
into conformity with the requirements of—
(A) environmental protection or health and
safety programs mandated by Federal, State, or
local law if such requirements were not in effect
when the facility was initially constructed; and
(B) hazardous waste disposal, treatment,
and storage requirements mandated by the Re-
source Conservation and Recovery Act of 1976
or similar State laws; and
(8) work to detect, remove, or otherwise contain
asbestos hazards in educational facilities.
(g) LOAN FORGIVENESS.—A State may forgive all or
part of any loan described in this section if the total pro-
jected principal and interest repayments for all loans
granted by the State and not forgiven under this sub-
section equal or exceed the combined total of all Federal
capitalization grants provided to the State and any match-
ing funds described in subsection (d)(1) provided by the
State.
(h) SUPPLEMENTATION.—Any loan made by a revolv-
ing fund shall be used to supplement and not supplant
other Federal, State, and local funds available.
(i) LIMITATION ON REPAYMENTS.—Notwithstanding
any other provision of law, the repayment of a loan from
a revolving fund under this section may not be credited
toward the non-Federal share of the cost of any project.
(j) SECRETARIAL REQUIREMENTS.—In administering
this section, the Secretary shall specify procedures and
guidelines for establishing, operating, and providing as-
sistance from a revolving fund.
(k) UNITED STATES NOT OBLIGATED.—The con-
tribution of Federal funds into a revolving fund estab-
lished under this section shall not be construed as a com-
mitment, guarantee, or obligation on the part of the
United States to any third party, nor shall any third party
have any right against the United States for payment sole-
ly by virtue of the contribution. Any security or debt fi-
nancing instrument issued by the revolving fund shall ex-
pressly state that the security or instrument does not con-
stitute a commitment, guarantee, or obligation of the
United States.
(l) MANAGEMENT OF FEDERAL FUNDS.—Sections
3335 and 6503 of title 31, United States Code, shall not
apply to funds contributed under this section.
(m) PROGRAM ADMINISTRATION.—For each of fiscal
years 2002 through 2006, a State may expend an amount
not to exceed 2 percent of the Federal funds contributed
to a revolving fund established by the State under this
section to pay the reasonable costs of administering the
fund.
(n) SECRETARIAL REVIEW.—The Secretary shall re-
view the financial condition of each revolving fund estab-
lished under this section biennially and transmit to Con-