credit risk premiums under this subsection on the
basis of—
‘‘(A) the circumstances of the applicant, in-
cluding the amount of collateral offered;
‘‘(B) the proposed schedule of loan disburse-
ments;
‘‘(C) the borrower’s business plans for pro-
viding service;
‘‘(D) financial commitment from the broad-
cast 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 ac-
count. In addition, the Administrator may accept
credit risk premiums in the form of letters of credit
or other forms of non-cash instruments, which shall
not accrue interest. As obligations attached to a co-
hort of loans established under paragraph (5) are
being satisfied, credit risk premiums for the cohort,
and interest accrued thereon, which are not required
to mitigate losses shall be returned to the original
source on a pro rata basis.
‘‘(5) COHORTS OF LOANS.—In order to maintain
sufficient balances of credit risk premiums to ade-
quately protect the Federal Government from risk of
default, while minimizing the length of time the Gov-
ernment retains possession of those balances, the Ad-
ministrator in consultation with the Office of Man-
agement and Budget shall establish cohorts of loans.
‘‘(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 obliga-
tion, 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 unpaid
balance of the loan subject to such guarantee.
‘‘(i) SUBORDINATION OR SHARING OF LIENS.—Not-
withstanding subsection (h), at the request of a private lend-
er providing financing to the borrower for the purposes set
forth in subsection (a), the Administrator may offer—
‘‘(1) to share the Government’s lien on the bor-
rower’s assets; or
‘‘(2) to subordinate the Government’s lien on the
borrower’s assets.
‘‘(j) PERFECTED INTEREST.—The Administrator and
the lender shall have a perfected security interest in those
assets of the borrower fully sufficient to protect the Adminis-
trator and the lender.
‘‘(k) INSURANCE POLICIES.—In accordance with prac-
tices of private lenders, as determined by the Administrator,
the borrower shall obtain, at its expense, insurance suffi-
cient to protect the interests of the Federal Government, as
determined by the Administrator.
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—For the
additional costs of the loans guaranteed under this title, in-
cluding the cost of modifying the loans as defined in section
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 nec-
essary. In addition there are authorized to be appropriated
such sums as may be necessary to administer this title. Any
amounts appropriated under this subsection shall remain
available until expended.
‘‘SEC. 603. ADMINISTRATION OF LOAN GUARANTEES.
‘‘(a) APPLICATIONS.—The Administrator shall pre-
scribe the form and contents for an application for a loan
guarantee under section 602.
‘‘(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—
‘‘(1) the Administrator finds in writing that—
‘‘(A) the modification is equitable and is in
the overall best interests of the United States;
‘‘(B) consent has been obtained from the
borrower and the lender;
‘‘(C) the modification is consistent with the
objective underwriting criteria developed in con-
sultation with an appropriate independent con-
sultant, including a public accounting firm,
under section 602(f);
‘‘(D) the modification does not adversely af-
fect the Federal Government’s interest in the en-
tity’s assets or loan collateral; and
‘‘(E) the modification does not adversely af-
fect the entity’s ability to repay the loan; and
‘‘(2) the National Telecommunications and In-
formation Administration does not object to the modi-
fication on the ground that it is inconsistent with the
certification under section 602(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 mar-
kets, as determined by the Administrator. In making
prioritization determinations, the Administrator shall
consider prevailing market conditions, feasibility of
providing service, population, terrain, and other fac-
tors the Administrator determines appropriate.
‘‘(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 broadcast
signals; and
‘‘(B) provide lower projected costs to con-
sumers of such separate tier.
‘‘(3) PERFORMANCE
SCHEDULES.—Applicants
under this section shall enter into stipulated perform-
ance schedules with the Administrator.
‘‘(4) PENALTY.—In addition to any other au-
thority of the Administrator, the Administrator may
assess a borrower a penalty not to exceed 3 times the
interest 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 602.
‘‘(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 sec-
tion 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 hereunder, 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 guar-
antee shall be conclusive evidence that the underlying obli-
gation is in compliance with the provisions of the title, and
that such obligation has been approved and is legal as to
principal, interest, and other terms. Such a guarantee 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 application there-
fore, except as to fraud or material misrepresentation 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 602, 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 Adminis-
trator 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 title in a manner that maximizes
taxpayer return and is consistent with the public con-
venience 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 guar-
antee shall make available to the Administrator all records
and evidence necessary to prosecute the civil action. The
Administrator may accept property in full or partial satis-
faction of any sums owed as a result of default. If the Ad-
ministrator 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 rem-
edying the default, the Administrator shall pay such
excess to the obligor.
‘‘(j) BREACH OF CONDITIONS.—The Attorney General
shall commence a civil action in a court of appropriate ju-
risdiction 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 judg-
ment 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 facili-
ties 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 obliga-
tion.
‘‘(2) LOAN
ORIGINATION
FEE.—The Adminis-
trator may charge a loan origination fee.
‘‘(3) USE OF FEES.—Fees collected pursuant to
this subsection shall be credited to the account which
administers the loan guarantee program under this
title. Such fees shall be made available to the Admin-
istrator without further appropriation and shall re-
main available until expended.
‘‘(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 Committee
on Agriculture, Nutrition, and Forestry of the Senate and
the Committee on Agriculture of the House of Representa-
tives.
‘‘(n) INDEMNIFICATION.—An affiliate of the borrower
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. 
604. 
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 pro-
viding 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 limitations of sec-
tions 338, 614, and 615 of the Communications Act of
1934.’’.
Æ