Sec. 6. Loan terms and repayment
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/bill/114/s/797/is/section-6·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 502(g)(1) ( 45 U.S.C. 822(g)(1) ) is amended by striking 35 years from the date of its execution and inserting the lesser of 50 years or 90 percent of the estimated useful life of the rail equipment or facilities to be acquired, rehabilitated, improved, developed, or established . Section 502(j) ( 45 U.S.C. 822(j) ) is amended— in paragraph (1), by striking the sixth anniversary date of the original loan disbursement and inserting 5 years after the date of substantial completion ; and by adding at the end the following:
If at any time after the date of substantial completion the project is unable to generate sufficient revenues to pay the scheduled loan repayments of principal and interest on the direct loan, the Secretary, subject to subparagraph (B), may allow the obligor to add unpaid principal and interest to the outstanding balance of the direct loan. A payment deferred under subparagraph
(A)shall— continue to accrue interest under paragraph
(2)until the loan is fully repaid; and be scheduled to be amortized over the remaining term of the loan. Any excess revenues that remain after satisfying scheduled debt service requirements on the project obligations and direct loan and all deposit requirements under the terms of any trust agreement, bond resolution, or similar agreement securing project obligations may be applied annually to prepay the direct loan without penalty. The direct loan may be prepaid at any time without penalty from the proceeds of refinancing from non-Federal funding sources. .
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- 45 USC 822(g)(1)
- 45 USC 822(j)
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Sec. 6
Loan terms and repayment
Cite45 USC 822(g)(1)
Cite45 USC 822(j)
Cites 2Cited by 0 across 0 sources