with United States Government checks from the ac-
count referred to in paragraph (1).
(e) LOAN REPAYMENT ACCOUNT.—The Adminis-
trator shall establish and maintain a separate checking ac-
count in a Federal reserve bank for the deposit of any
repayment of principal on loans made under section 6.
SEC. 5. ELIGIBILITY OF STATE AND LOCAL GOVERNMENTS
FOR INTEREST-FREE LOANS.
(a) IN GENERAL.—Subject to subsection (b), each
State, county, township, incorporated municipality, school
district, and Indian tribe shall be entitled to obtain a loan
from the Administrator in accordance with section 6, un-
less such unit of government is delinquent in repaying a
prior loan.
(b) MAXIMUM
AMOUNT
LIMITATION.—The total
amount of money to which any entity described in sub-
section (a) is eligible to borrow under this section shall
not exceed the amount equal to the product of—
(1) the resident population, as determined by
the Secretary of Commerce on the basis of the 1990
census, of the geographic territory over which the
entity has jurisdiction (or, in the case of a school
district, the latest official enrollment figures as re-
ported to the State in which the school district re-
sides); and
(2) the amount equal to—
(A) in the case of a State, $200;
(B) in the case of a county (as defined in
section 2 of title 1, United States Code), $100;
if the State has no township form of govern-
ment, this amount shall be $200;
(C) in the case of an incorporated munici-
pality, $600;
(D) in the case of any township, $100;
(E) in the case of any school district,
$2,400; and
(F) in the case of an Indian tribe, $1,000.
SEC. 6. ISSUANCE OF INTEREST-FREE LOANS.
Subject to sections 5(b) and 7, the Administrator
shall issue an interest-free loan from the money created
under section 3 to any government unit described in sec-
tion 5(a) if the Administrator obtains such assurances as
the Administrator determines to be appropriate from the
unit that—
(1) the proceeds of such loan will be used solely
for the purpose of—
(A) funding capital projects of the govern-
mental unit, including the construction of or
improvements to—
(i) school facilities;
(ii) streets, highways, bridges, and
tunnels;
(iii) water and sewer systems;
(iv) waste disposal systems;
(v) public housing facilities;
(vi) public buildings and other public
facilities; and
(vii) environmental facilities; or
(B) the cleanup of toxic waste sites or
other environmental improvements.
SEC. 7. ADMINISTRATIVE PROVISIONS.
(a) DISBURSEMENT REQUIREMENTS.—Loans made
under section 6 shall be disbursed by the Administrator—
(1) in a lump sum for the full amount of the
loan; or
(2) if the Administrator determines that partial
disbursements are appropriate in the case of loans
for construction projects in order to accommodate a
greater number of loan requests, over the construc-
tion period of the project.
(b) MINIMUM PHASE-IN PERIOD.—Disbursements on
all eligible loans approved under section 6 shall begin be-
fore the end of the 5-year period beginning on the date
of the enactment of this Act.
(c) PERIOD TO MATURITY.—The period to maturity
of any loan made under section 6 shall be the estimated
number of years of the useful life of the infrastructure
installation (if any) which is financed by the loan, but,
in any case, shall be a minimum of 10 years and a max-
imum of 30 years.
(d) APPLICABILITY OF STATE LAW.—The number or
the principal amounts of interest-free loans made under
section 6 to any governmental unit established by a State,
or the period to maturity of any such loan, may not exceed
the maximum number, amount, or period to maturity es-
tablished under the law of such State, unless the State
provides a waiver from any such limitation with respect
to any such governmental unit.
(e) ADMINISTRATIVE
FEES.—The Administrator
shall impose an administrative fee on each recipient of a
loan under section 6 in an amount not to exceed the lesser
of—
(1) 0.25 percent of the total amount of the
loan; or
(2) the amount sufficient to cover all adminis-
trative costs incurred by the Administrator, includ-
ing overhead, for making and administering that
particular loan.
(f) TERMS OF REPAYMENT.—The repayment terms
of any loan under section 6 shall require quarterly pay-
ments by the recipient in equal amounts determined by
dividing—
(1) the sum of the principal and the adminis-
trative fees applicable with respect to such loan; by
(2) the number of calendar quarters any por-
tion of which falls within the period to maturity of
the loan.
(g) COLLECTIONS OF PAST DUE AMOUNTS AND COL-
LECTION FEES.—
(1) ENFORCED
COLLECTIONS.—The Adminis-
trator shall take action to enforce collection of past
due amounts of any loan on which 4 or more quar-
terly payments are due and payable.
(2) 
IMPOUNDMENT
OF
DELINQUENT
AMOUNT.—In the case of any delinquent loan de-
scribed in paragraph (1), the Administrator may
seek an order from any district court of the United
States of appropriate jurisdiction directing a United
States marshall to impound, under authority of this
section, any available funds of the debtor in an
amount equal to the amount currently due as of the
date of such action to reduce or eliminate the delin-
quency.
(3) WAIVER OF DEBTOR’S RIGHT TO DEFEND
AGAINST COLLECTION.—As a condition for receiving
any loan under section 6, the recipient shall waive
any right to take any legal action to prevent or de-
fend against the collection by the Administrator of
any amount which the parties agree is past due.
(4) COST OF COLLECTION.—The costs incurred
by the Administrator in collecting any amount under
this subsection with respect to any loan shall be
added to and treated as a part of the principal
amount of the loan.
(5) BALANCE OF LOAN PRINCIPAL AND FEES
PAYABLE IN ACCORDANCE WITH TERMS OF LOAN.—
A debtor who is subject to collection proceedings
under this subsection for any delinquent portion of
a loan under section 6 shall continue to meet the re-
payment schedule applicable to such loan for the re-
maining amount of principal and fees.
SEC. 8. DISPOSITION OF FUNDS UPON REPAYMENT.
The Administrator shall, at such times and in such
amounts as the Administrator determines to be appro-
priate, transfer amounts in the loan repayment account
referred to in section 4(e) hereof to the United States Gov-
ernment general checking account referred to in section
4(d)(1).