PUBLIC LAW 106-553 —APPENDIX B 114 STAT. 2762A-135 (C) shall remain sufficiently capitalized; and (D) shall submit to, and cooperate fully with, any audit of the applicant under section 6(a)(2). (2) COLLATERAL. — (A) EXISTENCE OF ADEQUATE COLLATERAL. — An applicant shall provide the Board such documentation as is necessary, in the judgment of the Board, to provide satisfactory evidence that appropriate and adequate collateral secures a loan guaranteed under this Act. (B) FORM OF COLLATERAL.— Collateral required by subparagraph (A) shall consist solely of assets of the applicant, any affiliate of the applicant, or both (whichever the Board considers appropriate), including primary assets to be used in the delivery of signals for which the loan is guaranteed. (C) REVIEW OF VALUATION. —The value of collateral securing a loan guaranteed under this Act may be reviewed by the Board, and may be adjusted downward by the Board if the Board reasonably believes such adjustment is appropriate. (3) LIEN ON INTERESTS IN ASSETS. —Upon the Board's approval of a loan guarantee under this Act, the Administrator shall have liens on assets securing the loan, which shall be superior to all other liens on such assets, and the value of the assets (based on a determination satisfactory to the Board) subject to the liens shall be at least equal to the unpaid balance of the loan amount covered by the loan guarantee, or that value approved by the Board under section 4(d)(3)(B)(iii). (4) PERFECTED SECURITY INTEREST. —With respect to a loan guaranteed under this Act, the Administrator and the lender shall have a perfected security interest in assets securing the loan that are fully sufficient to protect the financial interests of the United States and the lender. (5) INSURANCE.—In accordance with practices in the private capital market, as determined by the Board, the applicant for a loan guarantee under this Act shall obtain, at its expense, insurance sufficient to protect the financial interests of the United States, as determined by the Board. (c) ASSIGNMENT OF LOAN GUARANTEES. — The holder of a loan guarantee under this Act may assign the loan guaranteed under this Act in whole or in part, subject to such requirements as the Board may prescribe. (d) EXPIRATION OF LOAN GUARANTEE UPON STRIPPING.— Notwithstanding subsections (c), (e), and (h), a loan guarantee under this Act shall have no force or effect if any part of the guaranteed portion of the loan is transferred separate and apart from the unguaranteed portion of the loan. (e) ADJUSTMENT. —The Board may approve the adjustment of any term or condition of a loan guarantee or a loan guaranteed under this Act, including the rate of interest, time of payment of principal or interest, or security requirements only if— (1) the adjustment is consistent with the financial interests of the United States; (2) consent has been obtained from the parties to the loan agreement; (3) the adjustment is consistent with the underwriting criteria developed under section 4(g);
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