obligation and deposited the payment into the 
Treasury. 
‘‘(3) AMOUNT.—Unless otherwise provided by 
law, a guarantee by the Secretary shall not exceed 
an amount equal to 80 percent of the project cost 
of the hybrid technology that is the subject of the 
guarantee, as estimated at the time at which the 
guarantee is issued. 
‘‘(4) REPAYMENT.— 
‘‘(A) IN GENERAL.—No guarantee shall be 
made unless the Secretary determines that 
there is a reasonable prospect of repayment of 
the principal and interest on the obligation by 
the borrower. 
‘‘(B) AMOUNT.—No guarantee shall be 
made unless the Secretary determines that the 
amount of the obligation (when combined with 
amounts available to the borrower from other 
sources) will be sufficient to carry out the 
project. 
‘‘(C) 
SUBORDINATION.—The 
obligation 
shall be subject to the condition that the obliga-
tion is not subordinate to other financing. 
‘‘(5) INTEREST RATE.—An obligation shall bear 
interest at a rate that does not exceed a level that
the Secretary determines appropriate, taking into 
account the prevailing rate of interest in the private 
sector for similar loans and risks. 
‘‘(6) TERM.—The term of an obligation shall 
require 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 physical asset to be financed by the obli-
gation (as determined by the Secretary). 
‘‘(7) DEFAULTS.— 
‘‘(A) PAYMENT BY SECRETARY.— 
‘‘(i) IN GENERAL.—If a borrower de-
faults on the obligation (as defined in reg-
ulations promulgated by the Secretary and 
specified in the guarantee contract), the 
holder of the guarantee shall have the 
right to demand payment of the unpaid 
amount from the Secretary. 
‘‘(ii) PAYMENT
REQUIRED.—Within 
such period as may be specified in the 
guarantee or related agreements, the Sec-
retary shall pay to the holder of the guar-
antee the unpaid interest on, and unpaid 
principal of the obligation as to which the
borrower has defaulted, unless the Sec-
retary finds that— 
‘‘(I) there was no default by the 
borrower in the payment of interest or 
principal; or 
‘‘(II) the default has been rem-
edied. 
‘‘(iii) 
FORBEARANCE.—Nothing 
in 
this subsection precludes any forbearance 
by the holder of the obligation for the ben-
efit of the borrower that may be agreed 
upon by the parties to the obligation and 
approved by the Secretary. 
‘‘(B) SUBROGATION.— 
‘‘(i) IN
GENERAL.—If the Secretary 
makes a payment under subparagraph (A), 
the Secretary shall be subrogated to the 
rights of the recipient of the payment as 
specified in the guarantee or related agree-
ments including, where appropriate, the 
authority (notwithstanding any other pro-
vision of law) to— 
‘‘(I) complete, maintain, operate, 
lease, or otherwise dispose of any
property acquired pursuant to the 
guarantee or related agreements; or 
‘‘(II) permit the borrower, pursu-
ant to an agreement with the Sec-
retary, to continue to pursue the pur-
poses of the eligible project, as the 
Secretary determines to be in the pub-
lic interest. 
‘‘(ii) SUPERIORITY OF RIGHTS.—The 
rights of the Secretary, with respect to any 
property acquired pursuant to a guarantee 
or related agreement, 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 Sec-
retary determines appropriate to— 
‘‘(I) protect the interests of the 
United States in the case of default; 
and 
‘‘(II) have available all the pat-
ents and technology necessary for any 
person selected, including the Sec-
retary, to complete and operate the el-
igible project. 
‘‘(C) PAYMENT OF PRINCIPAL AND INTER-
EST BY SECRETARY.—With respect to any obli-
gation guaranteed under this section, the Sec-
retary may enter into a contract 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 pay-
ments that become due and payable on the un-
paid balance of the obligation if the Secretary 
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 eligible project; and 
‘‘(III) the probable net benefit to the 
Federal Government in paying the prin-
cipal and interest will be greater than the 
benefit that would result in the event of a 
default; 
‘‘(ii) the amount of the payment that 
the Secretary is authorized to pay will be 
no greater than the amount of principal