§ 1293. — Loan guarantees.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 33USC1293]
TITLE 33--NAVIGATION AND NAVIGABLE WATERS
CHAPTER 26--WATER POLLUTION PREVENTION AND CONTROL
SUBCHAPTER II--GRANTS FOR CONSTRUCTION OF TREATMENT WORKS
Sec. 1293. Loan guarantees
(a) State or local obligations issued exclusively to Federal Financing
Bank for publicly owned treatment works; determination of
eligibility of project by Administrator
Subject to the conditions of this section and to such terms and
conditions as the Administrator determines to be necessary to carry out
the purposes of this subchapter, the Administrator is authorized to
guarantee, and to make commitments to guarantee, the principal and
interest (including interest accruing between the date of default and
the date of the payment in full of the guarantee) of any loan,
obligation, or participation therein of any State, municipality, or
intermunicipal or interstate agency issued directly and exclusively to
the Federal Financing Bank to finance that part of the cost of any
grant-eligible project for the construction of publicly owned treatment
works not paid for with Federal financial assistance under this
subchapter (other than this section), which project the Administrator
has determined to be eligible for such financial assistance under this
subchapter, including, but not limited to, projects eligible for
reimbursement under section 1286 of this title.
(b) Conditions for issuance
No guarantee, or commitment to make a guarantee, may be made
pursuant to this section--
(1) unless the Administrator certifies that the issuing body is
unable to obtain on reasonable terms sufficient credit to finance
its actual needs without such guarantee; and
(2) unless the Administrator determines that there is a
reasonable assurance of repayment of the loan, obligation, or
participation therein.
A determination of whether financing is available at reasonable rates
shall be made by the Secretary of the Treasury with relationship to the
current average yield on outstanding marketable obligations of
municipalities of comparable maturity.
(c) Fees for application investigation and issuance of commitment
guarantee
The Administrator is authorized to charge reasonable fees for the
investigation of an application for a guarantee and for the issuance of
a commitment to make a guarantee.
(d) Commitment for repayment
The Administrator, in determining whether there is a reasonable
assurance of repayment, may require a commitment which would apply to
such repayment. Such commitment may include, but not be limited to, any
funds received by such grantee from the amounts appropriated under
section 1286 of this title.
(June 30, 1948, ch. 758, title II, Sec. 213, as added Pub. L. 94-558,
Oct. 19, 1976, 90 Stat. 2639; amended Pub. L. 96-483, Sec. 2(e), Oct.
21, 1980, 94 Stat. 2361.)
Amendments
1980--Subsec. (d). Pub. L. 96-483 struck out ``(1) all or any
portion of the funds retained by such grantee under section 1284(b)(3)
of this title, and (2)'' after ``limited to''.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-483 effective Dec. 27, 1977, see section
2(g) of Pub. L. 96-483, set out as a note under section 1281 of this
title.
