[Code of Federal Regulations]

[Title 49, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR260.3]



[Page 810-811]

 

                        TITLE 49--TRANSPORTATION

 

       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 

                             TRANSPORTATION

 

PART 260_REGULATIONS GOVERNING LOANS AND LOAN GUARANTEES UNDER THE 

RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM--Table 

of Contents

 

                           Subpart A_Overview

 

Sec. 260.3  Definitions.



    As used in this part--

    (a) Act means the Railroad Revitalization and Regulatory Reform Act 

of 1976, as amended, 45 U.S.C. 821 et seq.

    (b) Administrator means the Federal Railroad Administrator, or his 

or her representative.

    (c) Applicant means any State or local government, government 

sponsored authority or corporation, railroad, or group of two or more 

entities, at least one of which is a railroad, participating in a joint 

venture, that submits an application to the Administrator for a direct 

loan or the guarantee of an existing obligation under which it is an 

obligor or for a commitment to guarantee a new obligation.

    (d) Borrower means an Applicant that has been approved for, and has 

received, financial assistance under this part.

    (e) Credit risk premium means that portion of the total subsidy cost 

to the Government of a direct loan or loan guarantee that is not covered 

by Federal appropriations and which must be paid by Applicant or its 

non-Federal infrastructure partner before that direct loan can be 

disbursed or loan guarantee can be issued.

    (f) Direct loan means a disbursement of funds by the Government to a 

non-federal borrower under a contract that requires the repayment of 

such funds.

    (g) FRA means the Federal Railroad Administration.

    (h) Financial assistance means a direct loan, or a guarantee of a 

new loan issued under this part.

    (i) Holder means the current owner of an obligation or the entity 

retained by the owner to service and collect an obligation which is 

guaranteed under the provisions of this part.

    (j) Including means including but not limited to.

    (k) Infrastructure partner means any non-Federal source of the 

Credit Risk Premium which must be paid to the Administrator in lieu of, 

or in combination with, an appropriation in connection with financial 

assistance provided under this part.

    (l) Intermodal means of or relating to the connection between rail 

service and other modes of transportation, including all parts of 

facilities at which such connection is made.

    (m) Lender means the non-Federal entity making a loan to an 

Applicant for which a loan guarantee under this part is sought.

    (n) Loan guarantee means any guarantee, insurance, or other pledge 

with respect to the payment of all or a part of the principal or 

interest on any debt obligation of a non-Federal borrower to a non-

Federal Lender, but does not include the insurance of deposits, shares, 

or other withdrawable accounts in financial institutions.

    (o) Obligation means a bond, note, conditional sale agreement, 

equipment trust certificate, security agreement, or other obligation.

    (p) Obligor means the debtor under an obligation, including the 

original obligor and any successor or assignee of such obligor.

    (q) Project means the purpose for which financial assistance is 

requested.

    (r) Railroad means a rail carrier subject to part A of subtitle IV 

of title 49, United States Code.

    (s) Subsidy cost of a direct loan means the net present value, at 

the time when



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the direct loan is disbursed, of the following estimated cash flows:

    (1) Loan disbursements;

    (2) Repayments of principal; and

    (3) Payments of interest and other payments by or to the Government 

over the life of the loan after adjusting for estimated defaults, 

prepayments, fees, penalties, and other recoveries; including the 

effects of changes in loan terms resulting from the exercise by the 

borrower of an option included in the loan contract.

    (t) Subsidy cost of a loan guarantee means the net present value, at 

the time when the guaranteed loan is disbursed, of the following 

estimated cash flows:

    (1) Payments by the Government to cover defaults, delinquencies, 

interest subsidies, or other payments; and

    (2) The payments to the Government including origination and other 

fees, penalties and recoveries.