30 U.S.C. § 1142 : US Code - Section 1142: Payment of guaranteed obligation by Secretary of Energy

Search 30 U.S.C. § 1142 : US Code - Section 1142: Payment of guaranteed obligation by Secretary of Energy

(a) Default by borrower and demand by holder of obligation of
unpaid amount; amount of payment by Secretary of Energy; defenses
available; forebearance by holder of obligation
If there is a default by the borrower, as defined in regulations
promulgated by the Secretary of Energy and set forth in the
guarantee contract, the holder of the obligation shall have the
right to demand payment of the unpaid amount from the Secretary of
Energy. Within such period as may be specified in the guarantee or
related agreements, the Secretary of Energy shall pay to the holder
of the obligation the unpaid interest on, and unpaid principal of
the guaranteed obligation as to which the borrower has defaulted,
unless the Secretary of Energy finds that there was no default by
the borrower in the payment of interest or principal or that such
default has been remedied. Nothing in this section shall be
construed to preclude any forebearance by the holder of the
obligation for the benefit of the borrower which may be agreed upon
by the parties to the guaranteed obligation and approved by the
Secretary of Energy.
(b) Rights and authorities of Secretary of Energy upon payment
If the Secretary of Energy makes a payment under subsection (a)
of this subsection,(!1) the Secretary of Energy shall be subrogated
to the rights of the recipient of such payment as specified in the
guarantee or related agreements including, where appropriate, the
authority (notwithstanding any other provision of law) to complete,
maintain, operate, lease, or otherwise dispose of any property
acquired pursuant to such guarantee or related agreements, or to
permit the borrower, pursuant to an agreement with the Secretary of
Energy, to continue to pursue the purposes of the project if the
Secretary of Energy determines this to be in the public interest.
The rights of the Secretary of Energy with respect to any property
acquired pursuant to such guarantee or related agreements, shall be
superior to the rights of any other person with respect to such
property.
(c) Rights and authorities of Attorney General upon default on any
guarantee
In the event of a default on any guarantee under this subchapter,
the Secretary of Energy shall notify the Attorney General, who
shall take such action as may be appropriate to recover the amounts
of any payments made under subsection (a) of this section,
including any payment of principal and interest under subsection
(d) of this section, from such assets of the defaulting borrower as
are associated with the project, or from any other security
included in the terms of the guarantee.
(d) Contracts to pay, and payment, from Geothermal Resources
Development Fund of principal and interest of unpaid balance of
obligation; preconditions
With respect to any obligation guaranteed under this subchapter,
the Secretary of Energy is authorized to enter into a contract to
pay, and to pay, holders of the obligation, for and on behalf of
the borrower, from the Geothermal Resources Development Fund, the
principal and interest payments which become due and payable on the
unpaid balance of such obligation if the Secretary of Energy finds
that -
(1) the borrower is unable to meet such payments and is not in
default; it is in the public interest to permit the borrower to
continue to pursue the purposes of such project; and the probable
net benefit to the Federal Government in paying such principal
and interest will be greater than that which would result in the
event of a default;
(2) the amount of such payment which the Secretary of Energy is
authorized to pay shall be no greater than the amount of
principal and interest which the borrower is obligated to pay
under the loan agreement; and
(3) the borrower agrees to reimburse the Secretary of Energy
for such payment on terms and conditions, including interest,
which are satisfactory to the Secretary of Energy.