[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: 14CFR1300.2]



[Page 521-522]

 

                     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 A_General

 

Sec. 1300.2  Definitions.



    (a) Act means the Air Transportation Safety and System Stabilization 

Act, Public Law 107-42, 115 Stat. 230 (49 U.S.C. 40101 note).

    (b) Administer, administering and administration, mean the lender's 

actions in making, disbursing, servicing (including, but not limited to 

care, preservation and maintenance of collateral), monitoring, 

collecting, and liquidating a loan and security.

    (c) Agent means that lender authorized to take such actions, 

exercise such powers, and perform such duties on behalf and in 

representation of all lenders party to a guarantee of a single loan, as 

is required by, or necessarily incidental to, the terms and conditions 

of the guarantee.

    (d) Air carrier means an air carrier as defined in 49 U.S.C. 40102.

    (e) Applicant means one or more air carriers applying for a Federal 

credit instrument issued by the Board under the program.

    (f) The Board, for purposes of any operational and decisionmaking 

functions in connection with individual loan guarantees, means the 

voting members of the Air Transportation Stabilization Board established 

under Section 102 of the Act. The voting members of the Board are the 

Chairman of the Board of Governors of the Federal Reserve System (who is 

the Chairman of the Board), the Secretary of the Treasury and the 

Secretary of Transportation, or their designees. The Comptroller 

General, who is a nonvoting member, will not participate in the review, 

operations, or deliberations of the Board in connection with individual 

loan guarantees, or otherwise participate in the Board's exercise of any 

executive power, but may provide such audit, evaluation and other 

support to the Board as the Board may request, consistent with 

applicable auditing standards.

    (g) Borrower means an ``Obligor,'' as defined in Section 102(a)(4) 

of the Act, and includes an air carrier that is primarily liable for 

payment of the principal of and interest on a Federal credit instrument, 

which party may be a corporation, partnership, joint venture, trust, or 

governmental entity, agency, or instrumentality.

    (h) Federal credit instrument, as defined in Section 107(2) of the 

Act, means any guarantee or other pledge by the Board issued under the 

program to pledge the full faith and credit of



[[Page 522]]



the United States to pay all or part of any of the principal of and 

interest on a loan issued by a borrower and funded by a lender.

    (i) Financial obligation, as defined in Section 102(a)(2) of the 

Act, means any note, bond, debenture, or other debt obligation issued by 

a borrower in connection with financing under the program.

    (j) Guarantee means the written agreement between the Board and one 

or more lenders, pursuant to which the Federal government guarantees 

repayment of a specified percentage of the principal of and/or interest 

on the loan. Unless otherwise specified, guarantee includes any other 

pledge issued under a Federal credit instrument.

    (k) Lender means any non-Federal qualified institutional buyer, as 

defined in Section 102(a)(3) of the Act, that funds a financial 

obligation subject to a guarantee issued by the Board. With respect to a 

guarantee of a single loan to which more than one lender is a party, the 

term lender means agent.

    (l) Loan, unless otherwise specified, includes any financial 

obligation (i.e., note, bond, debenture, or other debt obligation) 

issued by a borrower.

    (m) Loan documents mean the loan agreement and all other 

instruments, and all documentation between the lender and the borrower 

evidencing the making, disbursing, securing, collecting, or otherwise 

administering of the loan. (References to loan documents also include 

comparable agreements, instruments, and documentation for other 

financial obligations for which a guarantee is requested or issued.)

    (n) Program means the air carrier guarantee loan program established 

by section 101(a)(1) and the related provisions of Title I of the Act.

    (o) Security means all property, real or personal, required by the 

provisions of the guarantee or by the loan documents to secure repayment 

of any indebtedness of the borrower under the loan documents or 

guarantee.