71
STAT.]
629
PUBLIC LAW 8 5 - 3 0 7 - S E P T. 7, 1957
Public Law 85-307 AN ACT September 7, 1957 [S. 2229] To provide for Govermnent guaranty of private loans to certain air carriers for purchase of modern aircraft and equipment, to foster the development and use of modern transport aircraft by such carriers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it is hereby declared to be the policy of Congress, in the interests of the commerce of the Ignited States, the postal service, and the national defense to promote the development of local, feeder, and short-haul air transportation. In furtherance of this policy it is deemed necessary and desirable that provision be made to assist certain air carriers engaged in such air transportation by providing governmental guaranties of loans to enable them to purchase aircraft suitable for such transportation on reasonable terms. SEC. 2. As used in this Act— (a) "Board'- means the Civil Aeronautics Board. (b) "Aircraft purchase loan" means any loan, or commitment in connection therewith, made for the purchase of a commercial transport aircraft, including spare parts normally associated therewith. SEC. 8. The l^oard is hereby authorized to guarantee any lender against loss of principal or interest on any aircraft purcliase loan made by such lender to any air carrier holding a certificate of public convenience and necessity issued by the Board (a) designated therein to be for local or feeder air service, or (b) providing for operations wholly within the Territory of Hawaii, or (c) providing for operations (the major portion of which are conducted either within Alaska or between Alaska and the United States) within the Territory of Alaska (including service between Alaska and the United States, and between Alaska and adjacent Canadian territory), or (d) providing for operations within the Commonwealth of Puerto Rico (including service to the Virgin Islands and the Dominican Republic), or (e) providing for operations between Florida and the British West Indies (including service to Cuba), or (f) for the purpose of authorizing metropolitan helicopter service. Such guaranty shall be made in such form, on such terms and conditions, and pursuant to such regulations, as the Board deems necessary and which are not inconsistent with the provisions of this Act. SEC. 4. No guaranty shall be made: (a) Extending to more than the unpaid interest and 90 percent of the unpaid principal of any loan, (b) On any loan or combination of loans for more than 90 percent of the purchase price of the aircraft, including spare parts, to be purchased therewith. (c) On any loan whose terms permit full repayment more than 10 years after the date thereof. (d) Wherein the total face amount of such loan, and of any other loans to the same carrier, or corporate predecessor carrier or carriers, guaranteed and outstanding under the terms of this Act exceed $5,000,000. (e) Unless the Board finds that, without such guaranty, in the amount thereof, the air carriei- would be unable to obtain necessary funds for the purchase of needed aircraft on reasonable terms. (f) Unless the Board finds that the aircraft to be purchased with the guaranteed loan is needed to improve the service and efficiency of operation of the air carrier.
Aircraft purchase loans. Guaranty.
Restrictions.
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