General standards for Board issuance of Federal credit instruments.

CFR · 2024-01-01 · US · Title 14

(a) In accordance with section 102(c)(1) of the Act, the Board may enter into agreements with one or more borrowers to issue Federal credit instruments only if the Board determines, in its discretion and in accordance with the minimum requirements set forth in this part, that— (1) The borrower is an air carrier for which credit is not reasonably available at the time of the transaction; (2) The intended obligation by the borrower is prudently incurred; and (3) Such agreement is a necessary part of maintaining a safe, efficient, and viable commercial aviation system in the United States. (b) In accordance with section 102(c)(2)(A) of the Act, the Board shall enter into an agreement to issue a Federal credit instrument in such form and on such terms and conditions and subject to such covenants, representations, warranties, and requirements (including requirements for audits) as the Board determines are appropriate for satisfying the requirements of this part and any supplemental requirements issued by the Board under section 102(c)(2)(B) of the Act. (c) In accordance with section 102(d)(1) of the Act, in entering into (d) In accordance with Section 102(d)(2) of the Act, the Board is authorized to enter into contracts under which the Federal Government, contingent on the financial success of the air carrier, would participate in the gains of the air carrier or its security holders through the use of such instruments as warrants, stock options, common or preferred stock, or other

official document · source cfr-2024 · id 14:§ 1300.10