Sec. 5003. Direct loans
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/bill/113/hr/1877/ih/section-5003A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Administrator may make a direct loan to a State infrastructure financing authority for use in the same manner, and subject to the same terms and conditions (unless otherwise specified in this section), as a capitalization grant made under section 601 of the Federal Water Pollution Control Act ( 33 U.S.C. 1831 ). The Administrator may make a loan under this section on such terms and conditions (including requirements for audits) as the Administrator determines appropriate.
The amount of a loan made under this section to a State infrastructure financing authority shall not exceed the applicable percentage for the State establishing such authority of the total amount available under this title for disbursement, based on the allotment for the State in accordance with section 604 of the Federal Water Pollution Control Act ( 33 U.S.C. 1384 ). The final maturity date of a loan made under this section shall not be later than 35 years after the date on which funds are disbursed to a State infrastructure financing authority.
The Administrator may make a loan under this section only if the Administrator determines that the interest rate on the loan is appropriate, taking into account the prevailing rate of interest in the private sector for similar loans. The Administrator shall require a State infrastructure financing authority receiving a loan under this section to use a rate covenant, coverage requirement, or similar security feature adequate to ensure loan repayment. The Administrator shall set a repayment schedule for each loan made under this section based on the projected cash flow to the State infrastructure financing authority, including consideration of the effect on such cash flow of the security features described in paragraph (4).
Scheduled loan repayments of principal or interest on a loan made under this section shall commence not later than 5 years after the date on which the loan is made. If the Administrator determines that a State infrastructure financing authority lacks the resources to make scheduled payments on a loan made under this section based on circumstances not foreseeable at the time the loan is made, the Administrator may allow for the deferral of such payments. Any payment deferred under clause
(i)shall— continue to accrue interest until fully repaid; and be amortized over the remaining term of the loan. Payments on the loan may be made in advance with no penalty. After notifying the State infrastructure financing authority, the Administrator, in consultation with the Secretary of the Treasury, may sell a loan made under this section, if the Administrator determines that the sale can be made on favorable terms. The requirements of sections 211, 511(c)(1), and 513 of the Federal Water Pollution Control Act ( 33 U.S.C. 1291 , 1371(c)(2), and 1372) apply to the construction of a project carried out in whole or in part with assistance made available through a loan under this section in the same manner as treatment works for which grants are made available under the Federal Water Pollution Control Act. The Administrator shall charge and collect fees from State infrastructure financing authorities receiving loans under this section in amounts the Administrator determines are sufficient to cover the administrative expenses associated with carrying out this section and, as provided in advance in appropriations Acts, use such amounts to cover such expenses. A State infrastructure financing authority receiving a loan under this section shall keep such records and other pertinent documents as the Administrator shall prescribe by regulation, including such records as the Administrator may require to facilitate an effective audit of loans made under this section. The Administrator and the Comptroller General of the United States, or their duly authorized representatives, shall have access, for the purpose of audits, to records and other pertinent documents kept under paragraph (1).
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- 33 USC 1831
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