108 STAT. 806 PUBLIC LAW 103-272—JULY 5, 1994 the Government. Transit system amounts that make up the remainder must be from an undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital. The remainder for a planned extension to a fixed guideway system may include the cost of rolling stock previously purchased if the applicant satisfies the Secretary that only amounts other than amounts of the Government were used and that the purchase was made for use on the extension. A refund or reduction of the remainder may be made only if a refund of a proportional amount of the grant of the Government is made at the same time. (i) LOAN TERM REQUIREMENTS.— Except for a loan under subsection (b) of this section, a loan, including a renewal or extension of the loan, may be made, and a security or obligation may be bought, only if it has a maturity date of not more than 40 years. Interest on a loan may not be less than— (1) a rate the Secretary of the Treasury establishes, considering the current average yield on outstanding marketable obligations of the Government that have remaining periods of maturity comparable to the average maturity of the loan, adjusted to the nearest.125 percent; plus (2) an allowance the Secretary of Transportation considers adequate to cover administrative costs and probable losses, (j) LOAN PAYMENT FORGIVENESS.— A grant agreement for a capital project may forgive repaying the loan and interest in place of a cash grant for the amount forgiven. The amount is part of the grant and part of the contribution of the Government to the cost of the project. (k) LIMITATION ON MAKING LOANS AND GRANTS FOR PROJECTS.— The Secretary of Transportation may not make a loan under this section for a project for which a grant (except a relocation payment grant) is made under this section. However, the Secretary may make a project grant even though real property for the project has been or will be acquired through a loan under subsection (b)of this section. (1) FISCAL CAPACITY CONSIDERATIONS. —I f the Secretary of Transportation gives priority consideration to financing projects that include more than the non-Government share required under subsection (h) of this section, the Secretary shall give equal consideration to differences in the fiscal capacity of State and local governments. (m) ALLOCATING AMOUNTS. — (1) Of the amounts available for grants and loans under this section for each of the fiscal years ending September 30, 1993-1997— (A) 40 percent is available for fixed guideway modernization; (B) 40 percent is available for capital projects for new fixed guideway systems and extensions to existing fixed guideway systems; and (C) 20 percent is available to replace, rehabilitate, and buy buses and related equipment and to construct bus-related facilities. (2) At least 5.5 percent of the amounts available in each fiscal year under paragraph (1)(C) of this subsection is available for areas other than urbanized areas. (3) Not later than January 20 of each year, the Secretary of Transportation shall submit to the Committee on Public Works and Transportation of the House of Representatives and the
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