Sec. 7002. Transportation infrastructure finance and innovation act of 1998 temporary loan relief due to COVID–19
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In this section: The term eligible borrower means a recipient of an eligible loan administered by the National Surface Transportation and Innovative Finance Bureau. The term eligible loan means a loan provided on or before the date of enactment of this Act under a program described in subparagraph
(A)or
(B)of 116(d)(1) of title 49, United States Code. The term Secretary means the Secretary of Transportation. If, at any time after the date of execution of an eligible loan, the eligible borrower of such eligible loan is impacted by COVID–19 and unable to generate sufficient revenues from the dedicated revenue source to pay the scheduled repayments of principal and interest on such eligible loan— the eligible borrower may submit to the Secretary a request to reset the interest rate of the eligible loan in such manner and containing such information as the Secretary may require; and the Secretary— in accordance with such criteria as the Secretary may establish under subsection (d), shall determine whether the eligible borrower is impacted by COVID–19; and if a positive determination is made under clause (i), may reset the interest rate of such eligible loan (including through amendment of such eligible loan) to a lower interest rate equal to not less than the yield on United States Treasury securities of a similar maturity to the maturity of the eligible loan on the date of the reset, in accordance with this section. A lower interest rate provided for an eligible loan pursuant to paragraph (1)(B)(ii) shall apply until the final maturity date of the eligible loan. With respect to an eligible borrower impacted by COVID–19, the Secretary, on determining that the eligible borrower has been impacted by COVID–19, may— allow, for a maximum aggregate period of not more than 5 years, an obligor to add unpaid principal and interest to the outstanding balance of the loan, subject to the requirements under section 502(j)(3)(B) of the Railroad Revitalization and Regulatory Reform Act of 1976 ( 45 U.S.C. 822(j)(3)(B) ) or section 603(c)(3)(B) of title 23, United States Code, as applicable; and extend any applicable disbursement period established under an agreement for credit assistance made pursuant to section 502 of the Railroad Revitalization and Regulatory Reform Act of 1976 ( 45 U.S.C. 822 ) or section 603 of title 23, United States Code, as applicable. To be eligible to receive a lower interest rate or other loan modification under this section, an eligible borrower shall achieve compliance with such criteria as the Secretary may establish, in accordance with paragraph (2). In establishing criteria for purposes of paragraph (1), the Secretary may take into consideration such factors as the Secretary determines to be relevant, including achieving the objectives of— maintaining the operation of a project carried out by an eligible borrower in a disaster, emergency, or other extenuating circumstance; mitigating the financial impact on an eligible borrower of a disaster, emergency, or other extenuating circumstance; and protecting the interests of the Federal Government in critical infrastructure. The authority of the Secretary to reset interest rates pursuant to this section shall terminate on September 30, 2022. Nothing in this subsection affects any eligible loan that is modified pursuant to this section on or before September 30, 2022.
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- 45 USC 822(j)(3)(B)
- 45 USC 822
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Sec. 7002
Transportation infrastructure finance and innovation act of 1998 temporary loan relief due to COVID–19
Cite45 USC 822(j)(3)(B)
Cite45 USC 822
Cites 2Cited by 0 across 0 sources