114 STAT. 2762A-138 PUBLIC LAW 106-553 —APPENDIX B (A) a judgment against the applicant or any of its affiliates; (B) any breach by the applicant or any of its affiliates of their obligations under the loan guarantee agreement; (C) any violation of the provisions of this Act, and the regulations prescribed under this Act, by the applicant or any of its affiliates; (D) any penalties incurred by the applicant or any of its affiliates for any reason, including violation of a stipulated performance schedule under subsection (f); and (E) any other circumstances that the Board considers appropriate. (2) LIMITATION ON TRANSFER OF LOAN PROCEEDS.—An applicant for a loan guarantee under this Act may not transfer any part of the proceeds of the loan to an affiliate, (p) EFFECT OF BANKRUPTCY. — (1) Notwithstanding any other provision of law, whenever any person or entity is indebted to the United States as a result of any loan guarantee issued under this Act and such person or entity is insolvent or is a debtor in a case under title 11, United States Code, the debts due to the United States shall be satisfied first. (2) A discharge in bankruptcy under title 11, United States Code, shall not release a person or entity from an obligation to the United States in connection with a loan guarantee under this Act. SEC. 1006. ANNUAL AUDIT. (a) REQUIREMENT. —The Comptroller General of the United States shall conduct on an annual basis an audit of— (1) the administration of the provisions of this Act; and (2) the financial position of each applicant who receives a loan guarantee under this Act, including the nature, amount, and purpose of investments made by the applicant. (b) REPORT.— The Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking and Financial Services of the House of Representatives a report on each audit conducted under subsection (a). SEC. 1007. IMPROVED CELLULAR SERVICE IN RURAL AREAS. (a) REINSTATEMENT OF APPLICANTS AS TENTATIVE SELECTEES.— (1) IN GENERAL. —Notwithstanding the order of the Federal Communications Commission in the proceeding described in paragraph (3), the Commission shall— (A) reinstate each applicant as a tentative selectee under the covered rural service area licensing proceeding; and (B) permit each applicant to amend its application, to the extent necessary to update factual information and to comply with the rules of the Commission, at any time before the Commission's final licensing action in the covered rural service area licensing proceeding. (2) EXEMPTION FROM PETITIONS TO DENY. —For purposes of the amended applications filed pursuant to paragraph (1)(B), the provisions of section 309(d)(1) of the Communications Act of 1934 (47 U.S.C. 309(d)(1)) shall not apply.
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