(1) to develop a communications satellite sys-
tem which is accessible to educational and instruc-
tional programming and can be provided free from
preemption; and
(2) to provide an initial loan that will be de-
signed to fund United States participation in, and
show United States support for, a national or inter-
national organization designed to use the resources
of satellite technology and other telecommunications
to increase and maintain the accessibility and af-
fordability of education and instructional training
services around the world.
SEC. 
2. 
EDUCATIONAL 
SATELLITE 
LOAN 
GUARANTEE
PROGRAM.
(a) PROGRAM AUTHORIZED.—
(1) IN GENERAL.—The Secretary of Commerce
is authorized to carry out a program to guarantee,
for a period of not more than 3 years, any lender
against loss of principal or interest on a loan de-
scribed in paragraph (2) made by such lender to a
non-Federal, nonprofit, public corporation—
(A) whose charter is designed for affili-
ation with State and local instructional institu-
tions and agencies, and other distance learning
and instructional resource providers;
(B) whose governing board includes mem-
bers representing elementary and secondary
education, vocational and technical education,
community and State colleges, and universities;
and
(C) whose sole purpose is to acquire and
operate a communications satellite system dedi-
cated to transmitting instructional program-
ming.
(2) ELIGIBLE LOANS.—The Secretary of Com-
merce only shall guarantee a loan under this Act
if—
(A) the non-Federal, nonprofit, public cor-
poration described in paragraph (1) has—
(i) investigated all practical means to
acquire a communications satellite system;
(ii) reported to the Secretary the find-
ings of such investigation; and
(iii) recommended the most cost-effec-
tive, high-quality communications satellite
system to meet the purpose of this Act;
and
(B) the proceeds of such loan are used
solely to acquire and operate a communications
satellite system dedicated to transmitting in-
structional programming.
(3) DEFINITIONS.—For purposes of this sub-
section—
(A) the term ‘‘acquire’’ includes acquisition
through lease, purchase, or donation; and
(B) the term ‘‘communications satellite
system’’ means one or more communications
satellites capable of providing service from
space, including transponder capacity, on such
satellite or satellites.
(b) LOAN AMOUNT LIMITATIONS.—The Secretary of
Commerce may not guarantee more than $100,000,000 in
loans described in subsection (a), with respect to the pro-
gram assisted under this section, of which—
(1) not more than $85,000,000 shall be for the
guarantee of such loans the proceeds of which are
used to acquire a communications satellite system;
and
(2) not more than $15,000,000 shall be for the
guarantee of such loans the proceeds of which are
used to pay the costs of not more than 3 years of
operating and management expenses associated with
providing the communications satellite system serv-
ices described in subsection (a).
(c) LIQUIDATION OR ASSIGNMENT.—
(1) IN GENERAL.—In order for a lender to re-
ceive a loan guarantee under this section such lender
shall agree to assign to the United States any right
or interest in the communications satellite system or
communications satellite system services that such
lender possesses upon payment by the Secretary of
Commerce on such loan guarantee.
(2) DISPOSITION.—The United States may ex-
ercise, retain, or dispose of any right or interest ac-
quired pursuant to paragraph (1) in any manner the
United States deems fit, upon the recommendation
of the Secretary of Commerce.
(d) SPECIAL RULE.—Any loan guaranteed under this
section shall be guaranteed with full faith and credit of
the United States.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary for each fiscal year to carry out this section.
Æ