[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: 14CFR1300.12]



[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. 1300.12  Eligible lender.



    (a) A lender eligible to receive a Federal credit instrument 

approved by the Board must be a non-Federal qualified institutional 

buyer as defined in Section 102(a)(3) of the Act.

    (b) If more than one institution participates as a lender in a 

single loan for which a Federal credit instrument is requested, each one 

of the institutions on the application must meet the requirements to be 

an eligible lender. An application for a guarantee of a single loan, for 

which there is more than one lender, must identify one of the 

institutions to act as agent for all. This agent is responsible for 

administering the loan and shall have those duties and responsibilities 

required of an agent, as set forth in the guarantee.

    (c) Each lender, irrespective of any indemnities or other agreements 

between the lenders and the agent, shall be bound by all actions, and/or 

failures to act, of the agent. The Board shall be entitled to rely upon 

such actions and/or failures to act of the agent as binding the lenders.

    (d) Status as an eligible lender under this section does not assure 

that the Board will issue the guarantee sought, or otherwise preclude 

the Board from declining to issue a guarantee.