‘‘(II) payments to the Govern-
ment, including origination and other
fees, penalties, and recoveries; and
‘‘(ii) shall include the effects of
changes in loan terms resulting from the
exercise by the guaranteed lender of an op-
tion included in the loan guarantee con-
tract, or by the borrower of an option in-
cluded in the guaranteed loan contract.
‘‘(C) COST OF MODIFICATION.—The cost
of the modification shall be the difference be-
tween the current estimate of the net present
value of the remaining cash flows under the
terms of a loan guarantee contract, and the
current estimate of the net present value of the
remaining cash flows under the terms of the
contract, as modified.
‘‘(D) DISCOUNT RATE.—In estimating net
present value, the discount rate shall be the av-
erage interest rate on marketable Treasury se-
curities of similar maturity to the cash flows of
the guarantee for which the estimate is being
made.
‘‘(E) FISCAL YEAR ASSUMPTIONS.—When
funds of a loan guarantee under this title are
obligated, the estimated cost shall be based on
the current assumptions, adjusted to incor-
porate the terms of the loan contract, for the
fiscal year in which the funds are obligated.
‘‘(5) CURRENT.—The term ‘current’ has the
meaning given that term in section 250(c)(9) of the
Balanced Budget and Emergency Deficit Control
Act of 1985.
‘‘(6) DESIGNATED MARKET AREA.—The term
‘designated market area’ has the meaning given that
term in section 122(j) of title 17, United States
Code.
‘‘(7) LOAN GUARANTEE.—The term ‘loan guar-
antee’ means any guarantee, insurance, or other
pledge with respect to the payment of all or part of
the principal or interest on any debt obligation of a
non-Federal borrower to the Federal Financing
Bank or a non-Federal lender, but does not include
the 
insurance 
of 
deposits, 
shares, 
or 
other
withdrawable accounts in financial institutions.
‘‘(8) MODIFICATION.—The term ‘modification’
means any Government action that alters the esti-
mated cost of an outstanding loan guarantee (or
loan guarantee commitment) from the current esti-
mate of cash flows, including the sale of loan assets,
with or without recourse, and the purchase of guar-
anteed loans.
‘‘(9) COMMON TERMS.—Except as provided in
paragraphs (1) through (9), any term used in this
title that is defined in the Communications Act of
1934 (47 U.S.C. 151 et seq.) has the meaning given
the term in that Act.
‘‘SEC. 502. LOAN GUARANTEES.
‘‘(a) PURPOSE.—The purpose of this title is to enable
the Administrator to provide such loan guarantees as are
necessary to ensure improved access to the signals of local
television stations by multichannel video providers to all
households which desire such service in unserved and un-
derserved rural areas by December 31, 2006.
‘‘(b) ASSISTANCE TO BORROWERS.—Subject to the
appropriations limitation under subsection (c)(2), the Ad-
ministrator may provide loan guarantees to borrowers to
finance projects to provide local television broadcast sig-
nals by providers of multichannel video services including
direct broadcast satellite licensees and licensees of multi-
channel multipoint distribution systems, to areas that do
not receive local television broadcast signals over commer-
cial for-profit direct-to-home satellite distribution systems.
A borrower that receives a loan guarantee under this title
may not transfer any part of the proceeds of the monies
from the loans guaranteed under this program to an affil-
iate of the borrower.
‘‘(c) UNDERWRITING CRITERIA; PREREQUISITES.—
‘‘(1) IN
GENERAL.—The Administrator shall
administer the underwriting criteria developed under
subsection (f)(1) to determine which loans are eligi-
ble for a guarantee under this title.
‘‘(2) AUTHORITY
TO
MAKE
LOAN
GUARAN-
TEES.—The Administrator shall be authorized to
guarantee loans under this title only to the extent
provided for in advance by appropriations Acts.
‘‘(3) PREREQUISITES.—In addition to meeting
the underwriting criteria under paragraph (1), a
loan is not eligible for a loan guarantee under this
title unless—
‘‘(A) the loan is made to finance the acqui-
sition, improvement, enhancement, construction,
deployment, launch, or rehabilitation of the
means by which local television broadcast sig-
nals will be delivered to an area not receiving
such signals over commercial for-profit direct-
to-home satellite distribution systems;
‘‘(B) the proceeds of the loan will not be
used for operating expenses;
‘‘(C) the total amount of all such loans
may 
not 
exceed 
in 
the 
aggregate
$1,250,000,000;
‘‘(D) 
the 
loan 
does 
not 
exceed
$100,000,000, except that 1 loan under this
title may exceed $100,000,000, but shall not
exceed $625,000,000;
‘‘(E) the loan bears interest and penalties
which, in the Administrator’s judgment, are not
unreasonable, taking into consideration the pre-
vailing interest rates and customary fees in-
curred under similar obligations in the private
capital market; and
‘‘(F) the Administrator determines that
taking into account the practices of the private
capital markets with respect to the financing of
similar projects, the security of the loan is ade-
quate.
‘‘(4) ADDITIONAL
CRITERIA.—In addition to
the requirements of paragraphs (1), (2), and (3), a
loan for which a guarantee is sought under this title
shall meet any additional criteria promulgated under
subsection (f)(1).