‘‘(d) ADDITIONAL REQUIREMENTS.—The Adminis-
trator may not make a loan guarantee under this title
unless—
‘‘(1) repayment of the obligation is required to
be made within a term of the lesser of—
‘‘(A) 25 years from the date of its execu-
tion; or
‘‘(B) the useful life of the primary assets
used in the delivery of relevant signals;
‘‘(2) the Administrator has been given the as-
surances and documentation necessary to review and
approve the guaranteed loans; and
‘‘(3) the Administrator makes a determination
in writing that—
‘‘(A) the applicant has given reasonable as-
surances that the assets, facilities, or equipment
will be utilized economically and efficiently;
‘‘(B) necessary and sufficient regulatory
approvals, spectrum rights, and delivery permis-
sions have been received by project participants
to assure the project’s ability to repay obliga-
tions under this title; and
‘‘(C) repayment of the obligation can rea-
sonably be expected, including the use of an ap-
propriate combination of credit risk premiums
and collateral offered by the applicant to pro-
tect the Federal Government.
‘‘(e) APPROVAL OF NTIA REQUIRED.—
‘‘(1) IN GENERAL.—The Administrator may not
issue a loan guarantee under this title unless the
National Telecommunications and Information Ad-
ministration consults with the Administrator and
certifies that the issuance of the loan guarantee is
consistent with subsection (a).
‘‘(2) CERTIFICATION.—The Administrator shall
provide the appropriate information on each loan
guarantee application recommended by the Adminis-
trator to the National Telecommunications and In-
formation Administration for certification. The Na-
tional Telecommunications and Information Admin-
istration shall make the determination required
under this subsection within 90 days, without regard
to the provision of chapter 5 of title 5, United States
Code, and sections 10 and 11 of the Federal Advi-
sory Committee Act (5 U.S.C. App.).
‘‘(f) REQUIREMENTS.—
‘‘(1) IN GENERAL.—Not later than 180 days
after the date of enactment of this title, the Admin-
istrator shall consult with an independent public ac-
counting firm to develop underwriting criteria relat-
ing to the issuance of loan guarantees, appropriate
collateral and cash flow levels for the types of loan
guarantees that might be issued under this title, and
such other matters as the Administrator determines
appropriate.
‘‘(2) AUTHORITY OF ADMINISTRATOR.—In lieu
of or in combination with appropriations of budget
authority to cover the costs of loan guarantees as re-
quired under section 504(b)(1) of the Federal Credit
Reform Act of 1990, the Administrator may accept
on behalf of an applicant for assistance under this
title a commitment from a non-Federal source to
fund in whole or in part the credit risk premiums
with respect to the applicant’s loan. The aggregate
of appropriations of budget authority and credit risk
premiums described in this paragraph with respect
to a loan guarantee may not be less than the cost
of that loan guarantee.
‘‘(3) CREDIT
RISK
PREMIUM
AMOUNT.—The
Administrator shall determine the amount required
for credit risk premiums under this subsection on
the basis of—
‘‘(A) the circumstances of the applicant,
including the amount of collateral offered;
‘‘(B) the proposed schedule of loan dis-
bursements;
‘‘(C) the borrower’s business plans for pro-
viding service;
‘‘(D) financial commitment from the
broadcast signal provider; and
‘‘(E) any other factors the Administrator
considers relevant.
‘‘(4) PAYMENT OF PREMIUMS.—Credit risk pre-
miums under this subsection shall be paid to an ac-
count established in the Treasury which shall accrue
interest and such interest shall be retained by the
account, subject to paragraph (5).
‘‘(5) COHORTS OF LOANS.—In order to main-
tain sufficient balances of credit risk premiums to
adequately protect the Federal Government from
risk of default, while minimizing the length of time
the Government retains possession of those balances,
the Administrator in consultation with the Office of
Management and Budget shall establish cohorts of
loans. When all obligations attached to a cohort of
loans have been satisfied, credit risk premiums paid
for the cohort, and interest accrued thereon, which
were not used to mitigate losses shall be returned to
the original source on a pro rata basis.
‘‘(g) CONDITIONS OF ASSISTANCE.—A borrower shall
agree to such terms and conditions as are sufficient, in
the judgment of the Administrator to ensure that, as long
as any principal or interest is due and payable on such
obligation, the borrower—
‘‘(1) will maintain assets, equipment, facilities,
and operations on a continuing basis;
‘‘(2) will not make any discretionary dividend
payments that reduce the ability to repay obligations
incurred under this section; and
‘‘(3) will remain sufficiently capitalized.
‘‘(h) LIEN ON INTERESTS IN ASSETS.—Upon pro-
viding a loan guarantee to a borrower under this title, the
Administrator shall have liens which shall be superior to
all other liens on assets of the borrower equal to the un-
paid balance of the loan subject to such guarantee.
‘‘(i) PERFECTED INTEREST.—The Administrator and
the lender shall have a perfected security interest in those
assets of the borrower fully sufficient to protect the Ad-
ministrator and the lender.
‘‘(j) INSURANCE
POLICIES.—In accordance with
practices of private lenders, as determined by the Adminis-
trator, the borrower shall obtain, at its expense, insurance
sufficient to protect the interests of the Federal Govern-
ment, as determined by the Administrator.
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—For the
additional costs of the loans guaranteed under this title,
including the cost of modifying the loans as defined in sec-
tion 502 of the Congressional Budget Act of 1974 (2
U.S.C. 661(a)), there are authorized to be appropriated
for fiscal years 2000 through 2006, such amounts as may
be necessary. In addition there are authorized to be appro-
priated such sums as may be necessary to administer this
title. Any amounts appropriated under this subsection
shall remain available until expended.
‘‘SEC. 503. ADMINISTRATION OF LOAN GUARANTEES.
‘‘(a) APPLICATIONS.—The Administrator shall pre-
scribe the form and contents for an application for a loan
guarantee under section 502.
‘‘(b) ASSIGNMENT
OF LOAN GUARANTEES.—The
holder of a loan guaranteed under this title may assign
the loan guarantee in whole or in part, subject to such
requirements as the Administrator may prescribe.
‘‘(c) MODIFICATIONS.—The Administrator may ap-
prove the modification of any term or condition of a loan
guarantee including the rate of interest, time of payment
of interest or principal, or security requirements, if the
Administrator finds in writing that—
‘‘(1) the modification is equitable and is in the
overall best interests of the United States;
‘‘(2) consent has been obtained from the bor-
rower and the lender;
‘‘(3) the modification is consistent with the ob-
jective underwriting criteria developed in consulta-
tion with an independent public accounting firm
under section 502(f);
‘‘(4) the modification does not adversely affect
the Federal Government’s interest in the entity’s as-
sets or loan collateral;
‘‘(5) the modification does not adversely affect
the entity’s ability to repay the loan; and
‘‘(6) the National Telecommunications and In-
formation Administration does not object to the
modification on the ground that it is inconsistent
with the certification under section 502(e).
‘‘(d) PRIORITY MARKETS.—
‘‘(1) IN
GENERAL.—To the maximum extent
practicable, the Administrator shall give priority to
projects which serve the most underserved rural
markets, as determined by the Administrator. In
making prioritization determinations, the Adminis-
trator shall consider prevailing market conditions,
feasibility of providing service, population, terrain,
and other factors the Administrator determines ap-
propriate.
‘‘(2) PRIORITY RELATING TO CONSUMER COSTS
AND SEPARATE TIER OF SIGNALS.—The Adminis-
trator shall give priority to projects that—
‘‘(A) offer a separate tier of local broad-
cast signals; and
‘‘(B) provide lower projected costs to con-
sumers of such separate tier.
‘‘(3) PERFORMANCE
SCHEDULES.—Applicants
for priority projects under this section shall enter
into stipulated performance schedules with the Ad-
ministrator.
‘‘(4) PENALTY.—The Administrator may assess
a borrower a penalty not to exceed 3 times the inter-
est due on the guaranteed loan, if the borrower fails
to meet its stipulated performance schedule. The
penalty shall be paid to the account established
under section 502.
‘‘(5) LIMITATION ON CONSIDERATION OF MOST
POPULATED
AREAS.—The Administrator shall not
provide a loan guarantee for a project that is pri-
marily designed to serve the 40 most populated des-
ignated market areas and shall take into consider-
ation the importance of serving rural markets that
are not likely to be otherwise offered service under
section 122 of title 17, United States Code, except
through the loan guarantee program under this title.
‘‘(e) COMPLIANCE.—The Administrator shall enforce
compliance by an applicant and any other party to the
loan guarantee for whose benefit assistance is intended,
with the provisions of this title, regulations issued here-
under, and the terms and conditions of the loan guarantee,
including through regular periodic inspections and audits.
‘‘(f) COMMERCIAL
VALIDITY.—For purposes of
claims by any party other than the Administrator, a loan
guarantee or loan guarantee commitment shall be conclu-
sive evidence that the underlying obligation is in compli-
ance with the provisions of the title, and that such obliga-
tion has been approved and is legal as to principal, inter-
est, and other terms. Such a guarantee or commitment
shall be valid and incontestable in the hands of a holder
thereof, including the original lender or any other holder,
as of the date when the Administrator granted the applica-
tion therefore, except as to fraud or material misrepresen-
tation by such holder.
‘‘(g) DEFAULTS.—The Administrator shall prescribe
regulations governing a default on a loan guaranteed
under this title.
‘‘(h) RIGHTS OF THE ADMINISTRATOR.—
‘‘(1) SUBROGATION.—If the Administrator au-
thorizes payment to a holder, or a holder’s agent,
under subsection (g) in connection with a loan guar-
antee made under section 502, the Administrator
shall be subrogated to all of the rights of the holder
with respect to the obligor under the loan.
‘‘(2) DISPOSITION OF PROPERTY.—The Admin-
istrator may complete, recondition, reconstruct, ren-
ovate, repair, maintain, operate, rent, sell, or other-
wise dispose of any property or other interests ob-
tained under this section in a manner that maxi-
mizes taxpayer return and is consistent with the
public convenience and necessity.
‘‘(i) ACTION AGAINST OBLIGOR.—The Administrator
may bring a civil action in an appropriate district court
of the United States in the name of the United States
or of the holder of the obligation in the event of a default
on a loan guaranteed under this title. The holder of a
guarantee shall make available to the Administrator all
records and evidence necessary to prosecute the civil ac-
tion. The Administrator may accept property in full or
partial satisfaction of any sums owed as a result of de-
fault. If the Administrator receives, through the sale or
other disposition of such property, an amount greater than
the aggregate of—
‘‘(1) the amount paid to the holder of a guar-
antee under subsection (g); and
‘‘(2) any other cost to the United States of
remedying the default, the Administrator shall pay
such excess to the obligor.
‘‘(j) BREACH OF CONDITIONS.—The Attorney Gen-
eral shall commence a civil action in a court of appropriate
jurisdiction to enjoin any activity which the Administrator
finds is in violation of this title, regulations issued here-
under, or any conditions which were duly agreed to, and
to secure any other appropriate relief, including relief
against any affiliate of the borrower.
‘‘(k) ATTACHMENT.—No attachment or execution
may be issued against the Administrator or any property
in the control of the Administrator prior to the entry of
final judgment to such effect in any State, Federal, or
other court.
‘‘(l) INVESTIGATION CHARGE AND FEES.—
‘‘(1) APPRAISAL FEE.—The Administrator may
charge and collect from an applicant a reasonable
fee for appraisal for the value of the equipment or
facilities for which the loan guarantee is sought, and
for making necessary determinations and findings.
The fee may not, in the aggregate, be more than
one-half of one percent of the principal amount of
the obligation. The fee imposed under this para-
graph shall be used to offset the administrative costs
of the program.
‘‘(2) LOAN ORIGINATION FEE.—The Adminis-
trator may charge a loan origination fee.
‘‘(m) ANNUAL AUDIT.—The Comptroller General of
the United States shall annually audit the administration
of this title and report the results of the audit to the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate and the Committee on Agriculture of the House of
Representatives.
‘‘(n) INDEMNIFICATION.—An affiliate of the bor-
rower shall indemnify the Government for any losses it
incurs as a result of—
‘‘(1) a judgment against the borrower;
‘‘(2) any breach by the borrower of its obliga-
tions under the loan guarantee agreement;
‘‘(3) any violation of the provisions of this title
by the borrower;
‘‘(4) any penalties incurred by the borrower for
any reason, including the violation of the stipulated
performance; and
‘‘(5) any other circumstances that the Adminis-
trator determines to be appropriate.
‘‘(o) SUNSET.—The Administrator may not approve
a loan guarantee under this title after December 31, 2006.
‘‘SEC. 
504. 
RETRANSMISSION 
OF 
LOCAL 
TELEVISION
BROADCAST STATIONS.
‘‘A borrower shall be subject to applicable rights, obli-
gations, and limitations of title 17, United States Code.
If a local broadcast station requests carriage of its signal
and is located in a market not served by a satellite carrier
providing service under a statutory license under section
122 of title 17, United States Code, the borrower shall
carry the signal of that station without charge and shall
be subject to the applicable rights, obligations, and limita-
tions of sections 338, 614, and 615 of the Communica-
tions Act of 1934.’’.
Æ