[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR80.5]

[Page 710-711]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 80_CREDIT ASSISTANCE FOR SURFACE TRANSPORTATION PROJECTS--Table of Contents
 
Sec.  80.5  Limitations on assistance.

    (a) The total amount of credit assistance offered to any project 
under this part shall not exceed 33 percent of the anticipated eligible 
project costs, as measured on an aggregate cash (year-of-expenditure) 
basis.
    (b) Costs incurred prior to a project sponsor's submission of an 
application for credit assistance may be considered in calculating 
eligible project costs only upon approval of the Secretary. In addition, 
applicants shall not include application charges or any other expenses 
associated with the application process (such as charges associated with 
obtaining the required preliminary rating opinion letter) among the 
eligible project costs.
    (c) No costs financed internally or with interim funding may be 
refinanced under this part later than a year following substantial 
completion of the project.
    (d)(1) Within the overall credit assistance limitation of 33 percent 
of eligible project costs, the Secretary may consider making future-year 
or multi-year contingent commitments of budget authority and associated 
credit assistance for projects temporarily lacking certain requirements 
or with extended construction periods and financing needs. The TIFIA's 
effectiveness in stimulating private investment in transportation 
infrastructure depends, in large part, on investor recognition that 
TIFIA credit instruments represent solid and reliable Federal 
commitments. Therefore, the Secretary shall make any future-year or 
multi-year contingent commitment of funds for a project using a 
conditional term sheet. The conditional term sheet will resemble the 
standard term sheet that enables the obligation of budget authority, but 
will also specify the additional actions necessary to trigger subsequent 
obligation(s). The conditional term sheet will include fixed dates by 
which any requirements must be met in order for the reserved funding to 
be obligated.
    (2) Upon execution of the conditional term sheet, the Secretary 
shall reserve budget authority attributable to the appropriate year(s). 
This reservation will ensure that a project with a conditional 
commitment will have a priority claim (along with that of any other 
projects receiving such contingent commitments) on budget authority 
becoming available in the specified

[[Page 711]]

year(s), provided that the project sponsor satisfies each condition 
outlined in the conditional term sheet. The Secretary will limit such 
reservations to not more than 50 percent of the budget authority 
becoming available in the applicable year(s). If a multi-year contingent 
commitment is made, each year's loan will be tied to distinct, clearly 
identified project segments or stages or other milestones as specified 
in the credit agreement.
    (e) The obligor may draw upon the line of credit only if net project 
revenues (including, among other sources, any debt service reserve fund) 
are insufficient to pay costs specified in 23 U.S.C. 184(a)(2) under the 
line of credit, including debt service costs. Debt service costs include 
direct payments of principal and interest as well as reimbursements for 
such payments in the form of legally required deposits to a debt service 
reserve fund.
    (f) The Secretary shall not obligate funds in favor of a project 
that has not received an environmental Categorical Exclusion, Finding of 
No Significant Impact, or Record of Decision.
    (g) The Secretary shall fund a secured loan based on the project's 
financing needs. The credit agreement shall include the anticipated 
schedule for such loan disbursements.

[64 FR 29750, June 2, 1999, as amended at 65 FR 44939, July 19, 2000]