[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1300.18]

[Page 529]
 
                     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.