2013 US Code
Title 23 - Highways
Chapter 6 - INFRASTRUCTURE FINANCE (§§ 601 - 610)
Section 603 - Secured loans
Publication Title | United States Code, 2012 Edition, Supplement 1, Title 23 - HIGHWAYS |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 23 - HIGHWAYS CHAPTER 6 - INFRASTRUCTURE FINANCE Sec. 603 - Secured loans |
Contains | section 603 |
Date | 2013 |
Laws in Effect as of Date | January 16, 2014 |
Positive Law | Yes |
Disposition | standard |
Source Credit | Added Pub. L. 105-178, title I, §1503(a), June 9, 1998, 112 Stat. 245, §183; renumbered §603 and amended Pub. L. 109-59, title I, §§1601(d), 1602(b)(3), (5), (d), Aug. 10, 2005, 119 Stat. 1240, 1247; Pub. L. 112-141, div. A, title II, §2002, July 6, 2012, 126 Stat. 614. |
Statutes at Large References | 112 Stat. 245 119 Stat. 1240 126 Stat. 614 |
Public Law References | Public Law 105-178, Public Law 109-59, Public Law 112-141 |
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(a)
(1)
(A) to finance eligible project costs of any project selected under section 602;
(B) to refinance interim construction financing of eligible project costs of any project selected under section 602;
(C) to refinance existing Federal credit instruments for rural infrastructure projects; or
(D) to refinance long-term project obligations or Federal credit instruments, if the refinancing provides additional funding capacity for the completion, enhancement, or expansion of any project that—
(i) is selected under section 602; or
(ii) otherwise meets the requirements of section 602.
(2)
(3)
(b)
(1)
(2)
(3)
(A) shall—
(i) be payable, in whole or in part, from—
(I) tolls;
(II) user fees;
(III) payments owing to the obligor under a public-private partnership; or
(IV) other dedicated revenue sources that also secure the senior project obligations; and
(ii) include a rate covenant, coverage requirement, or similar security feature supporting the project obligations; and
(B) may have a lien on revenues described in subparagraph (A), subject to any lien securing project obligations.
(4)
(A)
(B)
(i)
(ii)
(C)
(i) 1½ percentage points (150 basis points); or
(ii) the amount of the increase in the interest rate.
(5)
(A) 35 years after the date of substantial completion of the project; and
(B) if the useful life of the capital asset being financed is of a lesser period, the useful life of the asset.
(6)
(A)
(B)
(i)
(I) the secured loan is rated in the A category or higher;
(II) the secured loan is secured and payable from pledged revenues not affected by project performance, such as a tax-backed revenue pledge or a system-backed pledge of project revenues; and
(III) the TIFIA program share of eligible project costs is 33 percent or less.
(ii)
(I) the maximum credit subsidy to be paid by the Federal Government shall be not more than 10 percent of the principal amount of the secured loan; and
(II) the obligor shall be responsible for paying the remainder of the subsidy cost, if any.
(7)
(8)
(9)
(c)
(1)
(A) the projected cash flow from project revenues and other repayment sources; and
(B) the useful life of the project.
(2)
(3)
(A)
(B)
(i) continue to accrue interest in accordance with subsection (b)(4) until fully repaid; and
(ii) be scheduled to be amortized over the remaining term of the loan.
(C)
(i)
(ii)
(4)
(A)
(B)
(d)
(1)
(2)
(e)
(1)
(2)
(Added Pub. L. 105–178, title I, §1503(a), June 9, 1998, 112 Stat. 245, §183; renumbered §603 and amended Pub. L. 109–59, title I, §§1601(d), 1602(b)(3), (5), (d), Aug. 10, 2005, 119 Stat. 1240, 1247; Pub. L. 112–141, div. A, title II, §2002, July 6, 2012, 126 Stat. 614.)
AMENDMENTS2012—Pub. L. 112–141 amended section generally. Prior to amendment, section related to secured loans.
2005—Pub. L. 109–59, §1602(d), renumbered section 183 of this title as this section.
Subsec. (a)(1). Pub. L. 109–59, §1601(d)(1), in subpars. (A) and (B) inserted "of any project selected under section 602" after "costs", added subpar. (C), and struck out concluding provisions which read as follows: "of any project selected under section 182."
Subsec. (a)(3). Pub. L. 109–59, §1602(b)(3), substituted "602(b)(2)(B)" for "182(b)(2)(B)".
Subsec. (a)(4). Pub. L. 109–59, §1601(d)(2), substituted "The execution" for "The funding" and struck out before period at end ", except that—
"(A) the Secretary may fund an amount of the secured loan not to exceed the capital reserve subsidy amount determined under paragraph (3) prior to the obligations receiving an investment-grade rating; and
"(B) the Secretary may fund the remaining portion of the secured loan only after the obligations have received an investment-grade rating by at least 1 rating agency".
Subsec. (b)(2). Pub. L. 109–59, §1601(d)(3)(A), inserted "the lesser of" before "33 percent" and "or, if the secured loan does not receive an investment grade rating, the amount of the senior project obligations" before period at end.
Subsec. (b)(3)(A)(i). Pub. L. 109–59, §1601(d)(3)(B), inserted "that also secure the senior project obligations" after "sources".
Subsec. (b)(4). Pub. L. 109–59, §1601(d)(3)(C), struck out "marketable" before "United States Treasury securities".
Subsec. (b)(8). Pub. L. 109–59, §1602(b)(5), substituted "this chapter" for "this subchapter".
Subsec. (c)(3) to (5). Pub. L. 109–59, §1601(d)(4), redesignated pars. (4) and (5) as (3) and (4), respectively, in par. (3)(A), struck out "during the 10 years" after "at any time", in par. (3)(B)(ii), substituted "loan" for "loan beginning not later than 10 years after the date of substantial completion of the project in accordance with paragraph (1)", and struck out heading and text of former par. (3). Text read as follows: "The sources of funds for scheduled loan repayments under this section shall include tolls, user fees, or other dedicated revenue sources."
EFFECTIVE DATE OF 2012 AMENDMENTAmendment by Pub. L. 112–141 effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of this title.
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