§ 611.105. Agreement.
231 words·~1 min read·
/us/cfr/t10/s§ 611.105·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Only an Agreement executed by a duly authorized DOE Contracting Officer can contractually obligate the government to make a loan made by and through the Federal Financing Bank with the full faith and credit of the United States government on the principal and interest.
(b)DOE is not bound by oral representations made during the Application stage, or during any negotiation process.
(c)No funds obtained from the Federal Government, or from a loan or other instrument guaranteed by the Federal Government, may be used to pay administrative fees, or other fees charged by or paid to DOE relating to the section 136 loan program.
(d)Prior to the execution by DOE of an Agreement, DOE must ensure that the following requirements and conditions, which must be specified in the Agreement, are satisfied:
(1)The Borrower is a Eligible Applicant as defined in this part;
(2)The Agreement is for an Eligible Project as defined in this part;
(3)The principal amount of the loan is limited to no more than 80 percent of reasonably anticipated total Project Costs;
(4)Loan funds will be disbursed only to meet immediate cash disbursement needs of the Borrower and not for investment purposes, and any investment earnings obtained in excess of accrued interest expense will be returned to United States Government; and
(5)Such documents, representations, warrants and covenants as DOE may require.