Page:United States Statutes at Large Volume 116 Part 1.djvu/381

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PUBLIC LAW 107-171—MAY 13, 2002 116 STAT. 355 SEC. 6007. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS. (a) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSEN- TIAL COMMUNITY FACILITIES LOANS.—Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925(a)) (as 7 USC 1926. amended by section 6006) is amended by adding at the end the following: " (24) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL COMMUNITY FACILITIES LOANS. — "(A) IN GENERAL.—The Secretary may guarantee a loan made to finance a community facility or water or waste facility project in a rural area, including a loan financed by the net proceeds of a bond described in section 142(a) of the Internal Revenue Code of 1986. "(B) REQUIREMENTS. — To be eligible for a loan guarantee under subparagraph (A), an individual or entity offering to purchase the loan shall demonstrate to the Secretary that the person has— "(i) the capabilities and resources necessary to service the loan in a manner that ensures the continued performance of the loan, as determined by the Secretary; and "(ii) the ability to generate capital to provide borrowers of the loan with the additional credit necessary to properly service the loan.". (b) LOAN GUARANTEES FOR CERTAIN LOANS. —Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding at the end the following: "(h) LOAN GUARANTEES FOR CERTAIN LOANS. —The Secretary may guarantee loans made under subsection (a) to finance the issuance of bonds for the projects described in section 306(a)(24).". SEC. 6008. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY FACILITIES. Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) (as amended by section 6007(a)) is amended by adding at the end the following: " (25) TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMU- NITY FACILITIES. — "(A) IN GENERAL.— The Secretary may make grants to tribal colleges and universities (as defined in section 316 of the Higher Education Act of 1965 (20 U.S.C. 1059c)) to provide the Federal share of the cost of developing specific tribal college or university essential community facilities in rural areas. " (B) FEDERAL SHARE.— "(i) IN GENERAL.— Except as provided in clauses Regulation, (ii) and (iii), the Secretary shall, by regulation, establish the maximum percentage of the cost of the facility that may be covered by a grant under this paragraph, "(ii) MAXIMUM AMOUNT.— The amount of a grant provided under this paragraph for a facility shall not exceed 75 percent of the cost of developing the facility, "(iii) GRADUATED SCALE.— The Secretary shall provide for a graduated scale of the percentages of the cost covered by a grant made under this paragraph that provides higher percentages for facilities in