Application evaluation.

CFR · 2024-01-01 · US · Title 14

(a) Eligibility screening. Applications will be reviewed to determine whether the lender and borrower are eligible, the information required under § 1300.16(b) is complete, and the proposed loan complies with applicable statutes and regulations. The Board may at any time reject an application that does not meet these requirements. (b) Evaluation criteria. Applications that are determined to be eligible pursuant to paragraph (a) of this section shall be subject to a substantive review by the Board. In addition to the general standards for Board issuance of Federal credit instruments set forth in (1) Reasonable assurance that the borrower will be able to repay the loan by the date specified in the loan document, which shall be no later than seven years from the date on which the first disbursement of the loan is made; (2) The adequacy of the proposed provisions to protect the Federal Government, including sufficiency of any security provided by the borrower and the percentage of guarantee requested; (3) The ability of the lender to administer the loan in full compliance with the requisite standard of care. In making this determination, the Board will assess: (i) The lender's level of regulatory capital, in the case of banking institutions, or net worth, in the case of other institutions; (ii) Whether the lender possesses the ability to administer the loan, including its experience with loans to air carriers; and (iii) Any other matter the Board deems material to its assessment

official document · source cfr-2024 · id 14:§ 1300.17