42 U.S.C. § 8832 : US Code - Section 8832: Construction loans

Search 42 U.S.C. § 8832 : US Code - Section 8832: Construction loans

(a) Authority of Secretary of Energy
Subject to sections 8835 and 8836 of this title, the Secretary of
Energy may commit to make, and make, loans for the construction of
municipal waste energy projects.
(b) Estimated project construction costs as determinative of
initial and revised amount of loan; interest rate
(1) Any loan under this section -
(A) may not exceed 80 per centum of the total estimated cost of
the construction of the municipal waste energy project involved,
and
(B) shall bear interest at a rate determined by the Secretary
of Energy (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 Energy, 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 Energy, the Secretary may in
addition, upon application therefor, make a loan for so much of the
additional estimated costs as does not exceed 10 per centum of the
initial total estimated costs of construction.
(c) Preconditions
A loan may not be made under this section unless the person
applying for such loan has established to the satisfaction of the
Secretary of Energy that the applicant is unable without such a
loan to obtain sufficient credit elsewhere at reasonable rates and
terms, taking into consideration prevailing market rates and terms
for loans for similar periods of time, to finance the construction
of the project for which such loan is sought.