[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: 14CFR1300.15]



[Page 524]

 

                     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. 1300.15  Loan terms.



    (a) A loan guaranteed under the program shall be due and payable in 

full no later than seven years from the date on which the first 

disbursement of the loan is made.

    (b) Loans guaranteed under the program must bear a rate of interest 

determined by the Board to be reasonable. In determining the 

reasonableness of an interest rate, the Board shall consider the 

percentage of the guarantee, any collateral, other loan terms, and 

current average yields on outstanding obligations of the United States 

with maturity comparable to the term of the loan guaranteed. The Board 

may reject an application to guarantee a loan if it determines the 

interest rate on such loan to be unreasonable.

    (c) An eligible lender may assess and collect from the borrower such 

other fees and costs associated with the application and origination of 

the loan as are reasonable and customary, taking into consideration the 

amount and complexity of the credit. The Board may take such other fees 

and costs into consideration when determining whether to offer a 

guarantee to the lender.