42 U.S.C. § 8813 : US Code - Section 8813: Insured loans

Search 42 U.S.C. § 8813 : US Code - Section 8813: Insured loans

(a) Authority of Secretary of Agriculture; maximum amount per
project
Subject to sections 8812 and 8817 of this title, the Secretary of
Agriculture may commit to make, and make, insured loans in amounts
not to exceed $1,000,000 per project for the construction of small-
scale biomass energy projects.
(b) Estimated project construction costs as determinative of
initial and revised amount of loan; interest rate
(1) Any insured loan under this section -
(A) may not exceed 90 per centum of the total estimated cost of
construction of the biomass energy project involved, and
(B) shall bear interest at rates determined by the Secretary of
Agriculture, taking into consideration the current average market
yield on outstanding marketable obligations of the United States
with remaining periods to maturity comparable to the average
maturities of such loans, plus not to exceed one per centum, as
determined by the Secretary of Agriculture, and adjusted to the
nearest one-eighth of one per centum.
(2) In the event the total estimated costs of construction of the
project thereafter exceed the total estimated costs initially
determined by the Secretary of Agriculture, the Secretary may in
addition, upon application therefor, make an insured loan for so
much of the additional estimated total costs as does not exceed 10
per centum of the total costs initially estimated.
(c) Funding requirements; "insured loan" defined
(1) The Secretary of Agriculture shall make insured loans under
this section using, to the extent provided in advance in
appropriations Acts, the Agricultural Credit Insurance Fund in
section 309 of the Consolidated Farm and Rural Development Act [7
U.S.C. 1929] or the Rural Development Insurance Fund in section
309A of such Act [7 U.S.C. 1929a] (hereinafter in this section
referred to as the "Funds"). The Secretary of Agriculture may not
use an aggregate amount of funds to make or commit to make insured
loans under this section in excess of the aggregate amount for
insured loans and administrative costs appropriated and transferred
under section 8803 of this title. The terms, conditions, and
requirements applicable to such insured loans shall be in
accordance with this subchapter.
(2) There shall be reimbursed to the Funds, from appropriations
made under section 8803 of this title, amounts equal to the
operating and administrative costs incurred by the Secretary of
Agriculture in insuring loans under this section.
(3) Notwithstanding any provision of the Consolidated Farm and
Rural Development Act [7 U.S.C. 1921 et seq.], no funds made
available to the Secretary of Agriculture under this section for
insured loans shall be used for any other purpose.
(4) For purposes of this section, the term "insured loan" means a
loan which is made, sold, and insured.
(d) Preconditions
An insured loan may not be made under this section unless the
applicant for such loan has established to the satisfaction of the
Secretary that the applicant is unable without such a loan to
obtain sufficient credit elsewhere at reasonable rates and terms,
taking into consideration prevailing private and cooperative rates
and terms for loans for similar purposes and periods of time, to
finance the construction of the biomass energy project for which
such loan is sought.