[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

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

[CITE: 14CFR1300.11]



[Page 523]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

           CHAPTER VI--AIR TRANSPORTATION SYSTEM STABILIZATION

 

PART 1300_AVIATION DISASTER RELIEF_AIR CARRIER GUARANTEE LOAN PROGRAM

--Table of Contents

 

        Subpart B_Minimum Requirements and Application Procedures

 

Sec. 1300.11  Eligible borrower.



    (a) An eligible borrower must be an air carrier that can 

demonstrate, to the satisfaction of the Board, that:

    (1) It has incurred (or is incurring) losses as a result of the 

terrorist attacks on the United States that occurred on September 11, 

2001, which may include losses due to the unavailability of credit or 

the decrease in demand for that air carrier's services;

    (2) It is not under bankruptcy protection or receivership when the 

application is submitted or when the Board issues the guarantee, unless 

the guarantee and the underlying financial obligation is to be part of a 

bankruptcy court-certified reorganization plan;

    (3) It has agreed to permit such audits and reviews prior to the 

issuance of a guarantee, as the Board may deem appropriate, by an 

independent auditor acceptable to the Board;

    (4) It has agreed to permit such audits and reviews during the 

period the loan is outstanding and three years after payment in full of 

the guaranteed loan, as the Board may deem appropriate, by an 

independent auditor acceptable to the Board or by the Comptroller 

General;

    (5) In conducting audits and reviews pursuant to paragraphs (a) (3) 

and (4) of this section, it has agreed to provide access to the officers 

and employees, books, records, accounts, documents, correspondence, and 

other information of the borrower, its subsidiaries, affiliates, 

financial advisers, consultants, and independent certified accountants 

that the Board or the Comptroller General consider necessary.

    (b) Status as an eligible borrower under this section does not 

ensure that the Board will issue the guarantee sought or preclude the 

Board from declining to issue a guarantee.