Source: https://www.govregs.com/uscode/title23_chapter6_section604
Timestamp: 2020-03-28 09:43:02
Document Index: 59282091

Matched Legal Cases: ['§\u202f605', '§\u202f1503', '§\u202f184', '§\u202f604', '§\u202f1601', '§\u202f2002']

23 USC 604 - Lines of credit
§ 605. Program administration
Subject to paragraphs (2) through (4), the Secretary may enter into agreements to make available to 1 or more obligors lines of credit in the form of direct loans to be made by the Secretary at future dates on the occurrence of certain events for any project selected under section 602.
Use of proceeds.—
Before entering into an agreement under this subsection, the Secretary, in consultation with the Director of the Office of Management and Budget and each rating agency providing a preliminary rating opinion letter under section 602(b)(3), shall determine an appropriate capital reserve subsidy amount for each line of credit, taking into account the rating opinion letter.
Investment-grade rating requirement.—
The funding of a line of credit under this section shall be contingent on the senior obligations of the project receiving an investment-grade rating from 2 rating agencies.
A line of credit under this section with respect to a project shall be on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines to be appropriate.
Maximum amounts.—
Draws.—
Except as provided in subparagraphs (B) and (C) of section 603(b)(4), the interest rate on a direct loan resulting from a draw on the line of credit shall be not less than the yield on 30-year United States Treasury securities, as of the date of execution of the line of credit agreement.
Period of availability.—
Rights of third-party creditors.—
Against federal government.—
Pre-existing indenture.—
The Secretary shall waive the requirement of subparagraph (A) for a public agency borrower that is financing ongoing capital programs and has outstanding senior bonds under a preexisting indenture, if—
The Secretary may establish fees at a level sufficient to cover all or a portion of the costs to the Federal Government of providing a line of credit under this section.
Relationship to other credit instruments.—
A project that receives a line of credit under this section also shall not receive a secured loan or loan guarantee under section 603 in an amount that, combined with the amount of the line of credit, exceeds 49 percent of eligible project costs.
The Secretary shall establish repayment terms and conditions for each direct loan under this section based on—
(Added Pub. L. 105–178, title I, § 1503(a), June 9, 1998, 112 Stat. 247, § 184; renumbered § 604 and amended Pub. L. 109–59, title I, §§ 1601(e), 1602(b)(4), (d), Aug. 10, 2005, 119 Stat. 1241, 1247; Pub. L. 112–141, div. A, title II, § 2002, July 6, 2012, 126 Stat. 617.)
cite as: 23 USC 604