12 2 STA T . 1 963PUBLIC LA W 11 0– 2 4 6 —J U NE 1 8, 2008 this s ec ti on, the S ec r et a r y sha l l u se criteria that are technolo g ically neutral .‘ ‘ ( g )TERMSANDCO ND IT IONS F OR L OANS AND LOAN GU ARAN - TEES. — ‘‘( 1 ) I N G ENERA L .— N ot w ithstan d ing any other p ro v ision o f law, a loan or loan guarantee under this section shall— ‘‘( A ) b ear interest at an annual rate of, as deter m ined by the Secretary— ‘‘(i) in the case of a direct loan, a rate e q uivalent to— ‘‘(I) the cost of borrowing to the D epartment of the Treasury for obligations of comparable matu- rity
or ‘‘(II) 4 percent; and ‘‘(ii) in the case of a guaranteed loan, the current applicable mar k et rate for a loan of comparable matu- rity; and ‘‘( B ) have a term of such length, not e x ceeding 35 years, as the borrower may request, if the Secretary deter- mines that the loan is adequately secured. ‘‘( 2 ) TERM.—In determining the term of a loan or loan guarantee, the Secretary shall consider whether the recipient is or would be serving an area that is not receiving broadband services. ‘‘(3) R E C URRING RE V ENUE.—The Secretary shall consider the existing recurring revenues of the entity at the time of application in determining an adequate level of credit support. ‘‘(h) ADE Q UAC Y OF SECURITY.— ‘‘(1) IN GENERAL.—The Secretary shall ensure that the type and amount of, and method of security used to secure, any loan or loan guarantee under this section is commensurate to the risk involved with the loan or loan guarantee, particu- larly in any case in which the loan or loan guarantee is issued to a financially strong and stable entity, as determined by the Secretary. ‘‘(2) DETERMINATION OF AMOUNT AND MET H OD OF SECU- RITY.—In determining the amount of, and method of security used to secure, a loan or loan guarantee under this section, the Secretary shall consider reducing the security in a rural area that does not have broadband service. ‘‘(i) U SE OF LOAN P ROCEEDS TO REFINANCE LOANS FOR DE P LOY- MENT OF BROAD B AND SERVICE.—Notwithstanding any other provi- sion of this Act, the proceeds of any loan made or guaranteed by the Secretary under this Act may be used by the recipient of the loan for the purpose of refinancing an outstanding obligation of the recipient on another telecommunications loan made under this Act if the use of the proceeds for that purpose will support the construction, improvement, or acquisition of facilities and equip- ment for the provision of broadband service in rural areas. ‘‘( j ) REPORTS.—Not later than 1 year after the date of enactment of the F ood, Conservation, and E nergy Act of 2 0 0 8 , and annually thereafter, the Administrator shall submit to Congress a report that describes the extent of participation in the loan and loan guarantee program under this section for the preceding fiscal year, including a description of — ‘‘(1) the number of loans applied for and provided under this section;
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