Page:United States Statutes at Large Volume 94 Part 1.djvu/714

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PUBLIC LAW 96-000—MMMM. DD, 1980

94 STAT. 664 Ante, p. 644.

"Operating asset." "Control."

PUBLIC LAW 96-294—JUNE 30, 1980 to section i26(c), is the subject of financial assistance under this part under the following circumstances: (1) substantial progress has been made toward completion of the construction and operation of such project and the Board of Directors determines that such project will not commence operation, or will cease operation unless acquired by the Corporation; (2) the operation of such project will make a significant contribution toward achieving the purposes of this title; (3) such acquisition of control will not result in losses to the Corporation disproportionate to the benefits that operation of the project will produce in demonstrating a particular technology; (4) failure of the Corporation to acquire such project would result in a greater financial liability of the Corporation than acquisition of the project by the Corporation; and (5) with respect to projects subject to loans or loan guarantees, the Board of Directors determines that the concern is in default or immediately will go into default: Provided, That the Corporation may not acquire any such control until it has submitted a plan for such acquisition to the President and the President approves such plan and transmits, with respect to such plan, a Corporation synthetic fuel action pursuant to section 128 and such Corporation synthetic fuel action has not been disapproved pursuant to such section: Provided further. That completion of the construction or operation of any such project, the control of which was acquired pursuant to this subsection, may only be undertaken by contract: Provided additionally, That authorities in this subsection shall not be available for synthetic fuel projects which are the subject of price guarantees or purchase agreements. (c) With respect to a synthetic fuel project subject to a loan or loan guarantee where the Corporation acquires control pursuant to subsection (b), the Corporation, on such terms and conditions as the Board of Directors may prescribe, is authorized to lease back to the concern involved such synthetic fuel project where such lease will assure the production of synthetic fuels from such project consistent with the purposes of this title: Provided, That the Corporation may not lease back such a project until it has submitted a plan regarding such lease-back to the President and the President approves such plan and transmits, with respect to such plan, a Corporation synthetic fuel action pursuant to section 128 and such Corporation synthetic fuel action has not been disapproved pursuant to such section. (d) For the purposes of this section, the term— (1) "operating asset" means any real or personal property used in the synthetic fuel project; and (2) "control" means the power to direct the use or disposition of operating assets of the synthetic fuel project through (A) direct ownership; or (B) ownership of the majority of the voting securities of a corporation or other concern which (i) owns or (ii) leases a synthetic fuel project: Provided, That "control" shall not be deemed to result from the ownership of operating assets of a synthetic fuel project which are leased back in accordance with subsection (c). (e) Any control of synthetic fuel projects obtained pursuant to subsection (b) or (c) must be disposed of within not more than five years after the date of the acquisition of such control.