PUBLIC LAW 104-239—OCT. 8, 1996 110 STAT. 3135 this title with respect to the risk factors set forth in paragraph (3); and "(B) determine for each of the risk categories a subsidy rate equivalent to the cost of obligations in the category, expressed as a percentage of the amount guaranteed under this title for obligations in the category. "(2)(A) Before making a guarantee under this section for an obligation, the Secretary shall apply the risk factors set forth in paragraph (3) to place the obligation in a risk category established under paragraph (1)(A). "(B) The Secretary shall consider the aggregate amount available to the Secretary for making guarantees under this title to be reduced by the amount determined by multiplying— "(i) the amount guaranteed under this title for an obligation, by "(ii) the subsidy rate for the category in which the obligation is placed under subparagraph (A) of this paragraph. "(C) The estimated cost to the Government of a guarantee made by the Secretary under this title for an obligation is deemed to be the amount determined under subparagraph (B) for the obligation. "(D) The Secretary may not guarantee obligations under this title after the aggregate amount available to the Secretary under appropriations Acts for the cost of loan guarantees is required by subparagraph (B) to be considered reduced to zero. "(3) The risk factors referred to in paragraphs (1) and (2) are the following: "(A) If applicable, the country risk for each eligible export vessel financed or to be financed by an obligation. "(B) The period for which an obligation is guaranteed or to be guaranteed. "(C) The amount of an obligation, which is guaranteed or to be guaranteed, in relation to the total cost of the project financed or to be financed by the obligation. "(D) The financial condition of an obligor or applicant for a guarantee. "(E) If applicable, any guarantee related to the project, other than the guargmtee under this title for which the risk factor is applied. "(F) If applicable, the projected employment of each vessel or equipment to be financed with an obligation. "(G) If applicable, the projected market that will be served by each vessel or equipment to be financed with an obligation. "(H) The collateral provided for a guarantee for an obligation. "(I) The management and operating experience of an obligor or applicant for a guarantee. "(J) Whether a guarantee under this title is or will be in effect during the construction period of the project. "(4) In this subsection, the term 'cost' has the meaning given that term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). ". (b) APPLICATION.—Subsection (h)(2) of section 1103 of the 46 USC app. Merchant Marine Act, 1936 (46 U.S.C. App. 1273), as amended 1273 note. by subsection (a) of this section, shall apply to guarantees that the Secretary of Transportation makes or commits to make with
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