[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: 14CFR1300.18]



[Page 527]

 

                     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. 1300.18  Issuance of the guarantee.



    (a) The Board's decisions to approve any application for a guarantee 

under Sec. 1300.17 is conditioned upon:

    (1) The lender and borrower obtaining any required regulatory or 

judicial approvals;

    (2) Evidence showing, to the Board's satisfaction, that the lender 

and borrower are legally authorized to enter into the loan under the 

terms and conditions submitted to the Board in the application;

    (3) The Board's receipt of the loan documents and any related 

instruments, in form and substance satisfactory to the Board, and the 

guarantee, all properly executed by the lender, borrower, and any other 

required party other than the Board; and

    (4) No material adverse change in the borrower's ability to repay 

the loan or any of the representations and warranties made in the 

application between the date of the Board's approval and the date the 

guarantee is to be issued.

    (b) The Board may withdraw its approval of an application and 

rescind its offer of guarantee if the Board determines that the lender 

or the borrower cannot, or is unwilling to, provide adequate 

documentation and proof of compliance with paragraph (a) of this section 

within the time provided for in the offer.

    (c) Only after receipt of all the documentation required by this 

section, will the Board sign and deliver the guarantee.

    (d) A borrower receiving a loan guaranteed by the Board under this 

program shall pay an annual fee, in an amount and payable as determined 

by the Board. At the time that the guarantee is issued, the Board shall 

ensure that this annual fee will escalate for each year that the loan is 

outstanding and that such annual escalation reflects the borrower's 

potential ability to obtain credit in the private credit markets, in 

addition to any other factors the Board may deem appropriate.