US (United States) Code. Title 47. Chapter 10: Local TV

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Telegraphs. telephones and radiotelegraphs

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-CITE-

47 USC CHAPTER 10 - LOCAL TV 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

CHAPTER 10 - LOCAL TV

-MISC1-

Sec.

1101. Purpose.

1102. LOCAL Television Loan Guarantee Board.

(a) Establishment.

(b) Members.

(c) Functions of the Board.

1103. Approval of loan guarantees.

(a) Authority to approve loan guarantees.

(b) Regulations.

(c) Authority limited by appropriations acts.

(d) Requirements and criteria applicable to

approval.

(e) Considerations.

(f) Guarantee limits.

(g) Underwriting criteria.

(h) Credit risk premiums.

(i) Limitations on guarantees for certain cable

operators.

(j) Judicial review.

(k) Applicability of APA.

1104. Administration of loan guarantees.

(a) In general.

(b) Security for protection of United States

financial interests.

(c) Assignment of loan guarantees.

(d) Expiration of loan guarantee upon stripping.

(e) Adjustment.

(f) Performance schedules.

(g) Compliance.

(h) Commercial validity.

(i) Defaults.

(j) Recovery of payments.

(k) Action against obligor.

(l) Breach of conditions.

(m) Attachment.

(n) Fees.

(o) Requirements relating to affiliates.

(p) Effect of bankruptcy.

1105. Annual audit.

(a) Requirement.

(b) Report.

1106. Improved cellular service in rural areas.

(a) Reinstatement of applicants as tentative

selectees.

(b) Continuation of license proceeding; fee

assessment.

(c) Prohibition of transfer.

(d) Definitions.

1107. Sunset.

1108. Definitions.

1109. Authorization of appropriations.

(a) Cost of loan guarantees.

(b) Cost of administration.

(c) Availability.

1110. Prevention of interference to direct broadcast

satellite services.

(a) Testing for harmful interference.

(b) Technical demonstration.

(c) Definitions.

-End-

-CITE-

47 USC Sec. 1101 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1101. Purpose

-STATUTE-

The purpose of this chapter is to facilitate access, on a

technologically neutral basis and by December 31, 2006, to signals

of local television stations for households located in nonserved

areas and underserved areas.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1002], Dec. 21, 2000,

114 Stat. 2762, 2762A-128.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original "this

Act", and was translated as reading "this title" meaning title X of

H.R. 5548, as enacted by Pub. L. 106-553, Sec. 1(a)(2), Dec. 21,

2000, 114 Stat. 2762, 2762A-128, to reflect the probable intent of

Congress. Title X enacted this chapter and amended section 339 of

this title. For complete classification of title X to the Code, see

Short Title note set out below and Tables.

-MISC1-

SHORT TITLE

Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1001], Dec. 21,

2000, 114 Stat. 2762, 2762A-128, provided that: "This title [title

X of H.R. 5548, as enacted by section 1(a)(2) of Pub. L. 106-553,

enacting this chapter and amending section 339 of this title] may

be cited as the 'Launching Our Communities' Access to Local

Television Act of 2000'."

-End-

-CITE-

47 USC Sec. 1102 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1102. LOCAL Television Loan Guarantee Board

-STATUTE-

(a) Establishment

There is established the LOCAL Television Loan Guarantee Board

(in this chapter referred to as the "Board").

(b) Members

(1) In general

Subject to paragraph (2), the Board shall consist of the

following members:

(A) The Secretary of the Treasury, or the designee of the

Secretary.

(B) The Chairman of the Board of Governors of the Federal

Reserve System, or the designee of the Chairman.

(C) The Secretary of Agriculture, or the designee of the

Secretary.

(D) The Secretary of Commerce, or the designee of the

Secretary.

(2) Requirement as to designees

An individual may not be designated a member of the Board under

paragraph (1) unless the individual is an officer of the United

States pursuant to an appointment by the President, by and with

the advice and consent of the Senate.

(c) Functions of the Board

(1) In general

The Board shall determine whether or not to approve loan

guarantees under this chapter. The Board shall make such

determinations consistent with the purpose of this chapter and in

accordance with this subsection and section 1103 (!1) of this

title.

(2) Consultation authorized

(A) In general

In carrying out its functions under this chapter, the Board

shall consult with such departments and agencies of the Federal

Government as the Board considers appropriate, including the

Department of Commerce, the Department of Agriculture, the

Department of the Treasury, the Department of Justice, the

Department of the Interior, the Board of Governors of the

Federal Reserve System, the Federal Communications Commission,

the Federal Trade Commission, and the National Aeronautics and

Space Administration.

(B) Response

A department or agency consulted by the Board under

subparagraph (A) shall provide the Board such expertise and

assistance as the Board requires to carry out its functions

under this chapter.

(3) Approval by majority vote

The determination of the Board to approve a loan guarantee

under this chapter shall be by an affirmative vote of not less

than 3 members of the Board.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1003], Dec. 21, 2000,

114 Stat. 2762, 2762A-128.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsecs. (a) and (c), was in the

original "this Act", and was translated as reading "this title".

See References in Text note set out under section 1101 of this

title.

Section 1103 of this title, referred to in subsec. (c)(1), was in

the original "section 4", and was translated as reading "section

1004", meaning section 1004 of title X of H.R. 5548, as enacted by

Pub. L. 106-553, Sec. 1(a)(2), to reflect the probable intent of

Congress. Pub. L. 106-553 does not contain a section 4 and section

1004 relates to approval of loan guarantees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1103, 1104 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

47 USC Sec. 1103 01/06/03

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TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1103. Approval of loan guarantees

-STATUTE-

(a) Authority to approve loan guarantees

Subject to the provisions of this section and consistent with the

purpose of this chapter, the Board may approve loan guarantees

under this chapter.

(b) Regulations

(1) Requirements

The Administrator (as defined in section 1104 of this title),

under the direction of and for approval by the Board, shall

prescribe regulations to implement the provisions of this chapter

and shall do so not later than 120 days after funds authorized to

be appropriated under section 1109 of this title have been

appropriated in a bill signed into law.

(2) Elements

The regulations prescribed under paragraph (1) shall -

(A) set forth the form of any application to be submitted to

the Board under this chapter;

(B) set forth time periods for the review and consideration

by the Board of applications to be submitted to the Board under

this chapter, and for any other action to be taken by the Board

with respect to such applications;

(C) provide appropriate safeguards against the evasion of the

provisions of this chapter;

(D) set forth the circumstances in which an applicant,

together with any affiliate of an applicant, shall be treated

as an applicant for a loan guarantee under this chapter;

(E) include requirements that appropriate parties submit to

the Board any documents and assurances that are required for

the administration of the provisions of this chapter; and

(F) include such other provisions consistent with the purpose

of this chapter as the Board considers appropriate.

(3) Construction

(A) Nothing in this chapter shall be construed to prohibit the

Board from requiring, to the extent and under circumstances

considered appropriate by the Board, that affiliates of an

applicant be subject to certain obligations of the applicant as a

condition to the approval or maintenance of a loan guarantee

under this chapter.

(B) If any provision of this chapter or the application of such

provision to any person or entity or circumstance is held to be

invalid by a court of competent jurisdiction, the remainder of

this chapter, or the application of such provision to such person

or entity or circumstance other than those as to which it is held

invalid, shall not be affected thereby.

(c) Authority limited by appropriations acts

The Board may approve loan guarantees under this chapter only to

the extent provided for in advance in appropriations Acts, and the

Board may accept credit risk premiums from a non-Federal source in

order to cover the cost of a loan guarantee under this chapter, to

the extent that appropriations of budget authority are insufficient

to cover such costs.

(d) Requirements and criteria applicable to approval

(1) In general

The Board shall utilize the underwriting criteria developed

under subsection (g) of this section, and any relevant

information provided by the departments and agencies with which

the Board consults under section 1102 of this title, to determine

which loans may be eligible for a loan guarantee under this

chapter.

(2) Prerequisites

In addition to meeting the underwriting criteria under

paragraph (1), a loan may not be guaranteed under this chapter

unless -

(A) the loan is made to finance the acquisition, improvement,

enhancement, construction, deployment, launch, or

rehabilitation of the means by which local television broadcast

signals will be delivered to a nonserved area or underserved

area;

(B) the proceeds of the loan will not be used for operating,

advertising, or promotion expenses, or for the acquisition of

licenses for the use of spectrum in any competitive bidding

under section 309(j) of this title;

(C) the proposed project, as determined by the Board in

consultation with the National Telecommunications and

Information Administration, is not likely to have a substantial

adverse impact on competition that outweighs the benefits of

improving access to the signals of a local television station

in a nonserved area or underserved area and is commercially

viable;

(D)(i) the loan -

(I) is provided by any entity engaged in the business of

commercial lending -

(aa) if the loan is made in accordance with

loan-to-one-borrower and affiliate transaction restrictions

to which the entity is subject under applicable law; or

(bb) if item (aa) does not apply, the loan is made only

to a borrower that is not an affiliate of the entity and

only if the amount of the loan and all outstanding loans by

that entity to that borrower and any of its affiliates does

not exceed 10 percent of the net equity of the entity; or

(II) is provided by a nonprofit corporation, including the

National Rural Utilities Cooperative Finance Corporation,

engaged primarily in commercial lending, if the Board

determines that such nonprofit corporation has one or more

issues of outstanding long-term debt that is rated within the

highest 3 rating categories of a nationally recognized

statistical rating organization;

(ii) if the loan is provided by a lender described in clause

(i)(II) and the Board determines that the making of the loan by

such lender will cause a decline in such lender's debt rating

as described in that clause, the Board at its discretion may

disapprove the loan guarantee on this basis;

(iii) no loan may be made for purposes of this chapter by a

governmental entity or affiliate thereof, or by the Federal

Agricultural Mortgage Corporation, or any institution

supervised by the Office of Federal Housing Enterprise

Oversight, the Federal Housing Finance Board, or any affiliate

of such entities;

(iv) any loan must have terms, in the judgment of the Board,

that are consistent in material respects with the terms of

similar obligations in the private capital market;

(v) for purposes of clause (i)(I)(bb), the term "net equity"

means the value of the total assets of the entity, less the

total liabilities of the entity, as recorded under generally

accepted accounting principles for the fiscal quarter ended

immediately prior to the date on which the subject loan is

approved;

(E) repayment of the loan is required to be made within a

term of the lesser of -

(i) 25 years from the date of the execution of the loan; or

(ii) the economically useful life, as determined by the

Board or in consultation with persons or entities deemed

appropriate by the Board, of the primary assets to be used in

the delivery of the signals concerned; and

(F) the loan meets any additional criteria developed under

subsection (g) of this section.

(3) Protection of United States financial interests

The Board may not approve the guarantee of a loan under this

chapter unless -

(A) the Board has been given documentation, assurances, and

access to information, persons, and entities necessary, as

determined by the Board, to address issues relevant to the

review of the loan by the Board for purposes of this chapter;

and

(B) the Board makes a determination in writing that -

(i) to the best of its knowledge upon due inquiry, the

assets, facilities, or equipment covered by the loan will be

utilized economically and efficiently;

(ii) the terms, conditions, security, and schedule and

amount of repayments of principal and the payment of interest

with respect to the loan protect the financial interests of

the United States and are reasonable;

(iii) the value of collateral provided by an applicant is

at least equal to the unpaid balance of the loan amount

covered by the loan guarantee (the "Amount" for purposes of

this clause); and if the value of collateral provided by an

applicant is less than the Amount, the additional required

collateral is provided by any affiliate of the applicant;

(iv) all necessary and required regulatory and other

approvals, spectrum licenses, and delivery permissions have

been received for the loan and the project under the loan;

(v) the loan would not be available on reasonable terms and

conditions without a loan guarantee under this chapter; and

(vi) repayment of the loan can reasonably be expected.

(e) Considerations

(1) Type of market

(A) Priority considerations

To the maximum extent practicable, the Board shall give

priority in the approval of loan guarantees under this chapter

in the following order:

(i) First, to projects that will serve households in

nonserved areas. In considering such projects, the Board

shall balance projects that will serve the largest number of

households with projects that will serve remote, isolated

communities (including noncontiguous States) in areas that

are unlikely to be served through market mechanisms.

(ii) Second, to projects that will serve households in

underserved areas. In considering such projects, the Board

shall balance projects that will serve the largest number of

households with projects that will serve remote, isolated

communities (including noncontiguous States) in areas that

are unlikely to be served through market mechanisms.

Within each category, the Board shall consider the project's

estimated cost per household and shall give priority to those

projects that provide the highest quality service at the lowest

cost per household.

(B) Additional consideration

The Board should give additional consideration to projects

that also provide high-speed Internet service.

(C) Prohibitions

The Board may not approve a loan guarantee under this chapter

for a project that -

(i) is designed primarily to serve 1 or more of the top 40

designated market areas (as that term is defined in section

122(j) of title 17); or

(ii) would alter or remove National Weather Service

warnings from local broadcast signals.

(2) Other considerations

The Board shall consider other factors, which shall include

projects that would -

(A) offer a separate tier of local broadcast signals, but for

applicable Federal, State, or local laws or regulations;

(B) provide lower projected costs to consumers of such

separate tier; and

(C) enable the delivery of local broadcast signals consistent

with the purpose of this chapter by a means reasonably

compatible with existing systems or devices predominantly in

use.

(3) Further consideration

In implementing this chapter, the Board shall support the use

of loan guarantees for projects that would serve households not

likely to be served in the absence of loan guarantees under this

chapter.

(f) Guarantee limits

(1) Limitation on aggregate value of loans

The aggregate value of all loans for which loan guarantees are

issued under this chapter (including the unguaranteed portion of

such loans) may not exceed $1,250,000,000.

(2) Guarantee level

A loan guarantee issued under this chapter may not exceed an

amount equal to 80 percent of a loan meeting in its entirety the

requirements of subsection (d)(2)(A) of this section. If only a

portion of a loan meets the requirements of that subsection, the

Board shall determine that percentage of the loan meeting such

requirements (the "applicable portion") and may issue a loan

guarantee in an amount not exceeding 80 percent of the applicable

portion.

(g) Underwriting criteria

Within the period provided for under subsection (b)(1) of this

section, the Board shall, in consultation with the Director of the

Office of Management and Budget and an independent public

accounting firm, develop underwriting criteria relating to the

guarantee of loans that are consistent with the purpose of this

chapter, including appropriate collateral and cash flow levels for

loans guaranteed under this chapter, and such other matters as the

Board considers appropriate.

(h) Credit risk premiums

(1) Establishment and acceptance

(A) In general

The Board may establish and approve the acceptance of credit

risk premiums with respect to a loan guarantee under this

chapter in order to cover the cost, as defined in section

661a(5) of title 2, of the loan guarantee. To the extent that

appropriations of budget authority are insufficient to cover

the cost, as so determined, of a loan guarantee under this

chapter, credit risk premiums shall be accepted from a

non-Federal source under this subsection on behalf of the

applicant for the loan guarantee.

(B) Authority limited by appropriations Acts

Credit risk premiums under this subsection shall be imposed

only to the extent provided for in advance in appropriations

Acts.

(2) Credit risk premium amount

(A) In general

The Board shall determine the amount of any credit risk

premium to be accepted with respect to a loan guarantee under

this chapter on the basis of -

(i) the financial and economic circumstances of the

applicant for the loan guarantee, including the amount of

collateral offered;

(ii) the proposed schedule of loan disbursements;

(iii) the business plans of the applicant for providing

service;

(iv) any financial commitment from a broadcast signal

provider; and

(v) the concurrence of the Director of the Office of

Management and Budget as to the amount of the credit risk

premium.

(B) Proportionality

To the extent that appropriations of budget authority are

sufficient to cover the cost, as determined under section

661a(5) of title 2, of loan guarantees under this chapter, the

credit risk premium with respect to each loan guarantee shall

be reduced proportionately.

(C) Payment of premiums

Credit risk premiums under this subsection shall be paid to

an account (the "Escrow Account") established in the Treasury

which shall accrue interest and such interest shall be retained

by the account, subject to subparagraph (D).

(D) Deductions from Escrow Account

If a default occurs with respect to any loan guaranteed under

this chapter and the default is not cured in accordance with

the terms of the underlying loan or loan guarantee agreement,

the Administrator, in accordance with subsections (i) and (j)

of section 1104 of this title, shall liquidate, or shall cause

to be liquidated, all assets collateralizing such loan as to

which it has a lien or security interest. Any shortfall between

the proceeds of the liquidation net of costs and expenses

relating to the liquidation, and the guarantee amount paid

pursuant to this chapter shall be deducted from funds in the

Escrow Account and credited to the Administrator for payment of

such shortfall. At such time as determined under subsection

(d)(2)(E) of this section when all loans guaranteed under this

chapter have been repaid or otherwise satisfied in accordance

with this chapter and the regulations promulgated hereunder,

remaining funds in the Escrow Account, if any, shall be

refunded, on a pro rata basis, to applicants whose loans

guaranteed under this chapter were not in default, or where any

default was cured in accordance with the terms of the

underlying loan or loan guarantee agreement.

(i) Limitations on guarantees for certain cable operators

Notwithstanding any other provision of this chapter, no loan

guarantee under this chapter may be granted or used to provide

funds for a project that extends, upgrades, or enhances the

services provided over any cable system to an area that, as of

December 21, 2000, is covered by a cable franchise agreement that

expressly obligates a cable system operator to serve such area.

(j) Judicial review

The decision of the Board to approve or disapprove the making of

a loan guarantee under this chapter shall not be subject to

judicial review.

(k) Applicability of APA

Except as otherwise provided in subsection (j) of this section,

the provisions of subchapter II of chapter 5 and chapter 7 of title

5 (commonly referred to as the Administrative Procedure Act), shall

apply to actions taken under this chapter.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1004], Dec. 21, 2000,

114 Stat. 2762, 2762A-129; Pub. L. 107-171, title VI, Sec.

6404(b)(1), May 13, 2002, 116 Stat. 430.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original "this

Act", and was translated as reading "this title". See References in

Text note set out under section 1101 of this title.

-MISC1-

AMENDMENTS

2002 - Subsec. (b)(1). Pub. L. 107-171, Sec. 6404(b)(1)(A), made

technical amendments to references in original Act which appear in

text as references to sections 1104 and 1109 of this title.

Subsec. (d)(1). Pub. L. 107-171, Sec. 6404(b)(1)(B), made

technical amendment to reference in original Act which appears in

text as a reference to section 1102 of this title.

Subsec. (h)(2)(D). Pub. L. 107-171, Sec. 6404(b)(1)(C), made

technical amendment to reference in original Act which appears in

text as a reference to section 1104 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1102, 1104, 1109 of this

title.

-End-

-CITE-

47 USC Sec. 1104 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1104. Administration of loan guarantees

-STATUTE-

(a) In general

The Administrator of the Rural Utilities Service (in this chapter

referred to as the "Administrator") shall issue and otherwise

administer loan guarantees that have been approved by the Board in

accordance with sections 1102 and 1103 of this title.

(b) Security for protection of United States financial interests

(1) Terms and conditions

An applicant shall agree to such terms and conditions as are

satisfactory, in the judgment of the Board, to ensure that, as

long as any principal or interest is due and payable on a loan

guaranteed under this chapter, the applicant -

(A) shall maintain assets, equipment, facilities, and

operations on a continuing basis;

(B) shall not make any discretionary dividend payments that

impair its ability to repay obligations guaranteed under this

chapter;

(C) shall remain sufficiently capitalized; and

(D) shall submit to, and cooperate fully with, any audit of

the applicant under section 1105(a)(2) of this title.

(2) Collateral

(A) Existence of adequate collateral

An applicant shall provide the Board such documentation as is

necessary, in the judgment of the Board, to provide

satisfactory evidence that appropriate and adequate collateral

secures a loan guaranteed under this chapter.

(B) Form of collateral

Collateral required by subparagraph (A) shall consist solely

of assets of the applicant, any affiliate of the applicant, or

both (whichever the Board considers appropriate), including

primary assets to be used in the delivery of signals for which

the loan is guaranteed.

(C) Review of valuation

The value of collateral securing a loan guaranteed under this

chapter may be reviewed by the Board, and may be adjusted

downward by the Board if the Board reasonably believes such

adjustment is appropriate.

(3) Lien on interests in assets

Upon the Board's approval of a loan guarantee under this

chapter, the Administrator shall have liens on assets securing

the loan, which shall be superior to all other liens on such

assets, and the value of the assets (based on a determination

satisfactory to the Board) subject to the liens shall be at least

equal to the unpaid balance of the loan amount covered by the

loan guarantee, or that value approved by the Board under section

1103(d)(3)(B)(iii) of this title.

(4) Perfected security interest

With respect to a loan guaranteed under this chapter, the

Administrator and the lender shall have a perfected security

interest in assets securing the loan that are fully sufficient to

protect the financial interests of the United States and the

lender.

(5) Insurance

In accordance with practices in the private capital market, as

determined by the Board, the applicant for a loan guarantee under

this chapter shall obtain, at its expense, insurance sufficient

to protect the financial interests of the United States, as

determined by the Board.

(c) Assignment of loan guarantees

The holder of a loan guarantee under this chapter may assign the

loan guaranteed under this chapter in whole or in part, subject to

such requirements as the Board may prescribe.

(d) Expiration of loan guarantee upon stripping

Notwithstanding subsections (c), (e), and (h) of this section, a

loan guarantee under this chapter shall have no force or effect if

any part of the guaranteed portion of the loan is transferred

separate and apart from the unguaranteed portion of the loan.

(e) Adjustment

The Board may approve the adjustment of any term or condition of

a loan guarantee or a loan guaranteed under this chapter, including

the rate of interest, time of payment of principal or interest, or

security requirements only if -

(1) the adjustment is consistent with the financial interests

of the United States;

(2) consent has been obtained from the parties to the loan

agreement;

(3) the adjustment is consistent with the underwriting criteria

developed under section 1103(g) of this title;

(4) the adjustment does not adversely affect the interest of

the Federal Government in the assets or collateral of the

applicant;

(5) the adjustment does not adversely affect the ability of the

applicant to repay the loan; and

(6) the National Telecommunications and Information

Administration has been consulted by the Board regarding the

adjustment.

(f) Performance schedules

(1) Performance schedules

An applicant for a loan guarantee under this chapter for a

project covered by section 1103(e)(1) (!1) of this title shall

enter into stipulated performance schedules with the

Administrator with respect to the signals to be provided through

the project.

(2) Penalty

The Administrator may assess against and collect from an

applicant described in paragraph (1) a penalty not to exceed 3

times the interest due on the guaranteed loan of the applicant

under this chapter if the applicant fails to meet its stipulated

performance schedule under that paragraph.

(g) Compliance

The Administrator, in cooperation with the Board and as the

regulations of the Board may provide, shall enforce compliance by

an applicant, and any other party to a loan guarantee for whose

benefit assistance under this chapter is intended, with the

provisions of this chapter, any regulations under this chapter, and

the terms and conditions of the loan guarantee, including through

the submittal of such reports and documents as the Board may

require in regulations prescribed by the Board and through regular

periodic inspections and audits.

(h) Commercial validity

A loan guarantee under this chapter shall be incontestable -

(1) in the hands of an applicant on whose behalf the loan

guarantee is made, unless the applicant engaged in fraud or

misrepresentation in securing the loan guarantee; and

(2) as to any person or entity (or their respective successor

in interest) who makes or contracts to make a loan to the

applicant for the loan guarantee in reliance thereon, unless such

person or entity (or respective successor in interest) engaged in

fraud or misrepresentation in making or contracting to make such

loan.

(i) Defaults

The Board shall prescribe regulations governing defaults on loans

guaranteed under this chapter, including the administration of the

payment of guaranteed amounts upon default.

(j) Recovery of payments

(1) In general

The Administrator shall be entitled to recover from an

applicant for a loan guarantee under this chapter the amount of

any payment made to the holder of the guarantee with respect to

the loan.

(2) Subrogation

Upon making a payment described in paragraph (1), the

Administrator shall be subrogated to all rights of the party to

whom the payment is made with respect to the guarantee which was

the basis for the payment.

(3) Disposition of property

(A) Sale or disposal

The Administrator shall, in an orderly and efficient manner,

sell or otherwise dispose of any property or other interests

obtained under this chapter in a manner that maximizes taxpayer

return and is consistent with the financial interests of the

United States.

(B) Maintenance

The Administrator shall maintain in a cost-effective and

reasonable manner any property or other interests pending sale

or disposal of such property or other interests under

subparagraph (A).

(k) Action against obligor

(1) Authority to bring civil action

The Administrator may bring a civil action in an appropriate

district court of the United States in the name of the United

States or of the holder of the obligation in the event of a

default on a loan guaranteed under this chapter. The holder of a

loan guarantee shall make available to the Administrator all

records and evidence necessary to prosecute the civil action.

(2) Fully satisfying obligations owed the United States

The Administrator may accept property in satisfaction of any

sums owed the United States as a result of a default on a loan

guaranteed under this chapter, but only to the extent that any

cash accepted by the Administrator is not sufficient to satisfy

fully the sums owed as a result of the default.

(l) Breach of conditions

The Administrator shall commence a civil action in a court of

appropriate jurisdiction to enjoin any activity which the Board

finds is in violation of this chapter, the regulations under this

chapter, or any conditions which were duly agreed to, and to secure

any other appropriate relief, including relief against any

affiliate of the applicant.

(m) Attachment

No attachment or execution may be issued against the

Administrator or any property in the control of the Administrator

pursuant to this chapter before the entry of a final judgment (as

to which all rights of appeal have expired) by a Federal, State, or

other court of competent jurisdiction against the Administrator in

a proceeding for such action.

(n) Fees

(1) Application fee

The Board shall charge and collect from an applicant for a loan

guarantee under this chapter a fee to cover the cost of the Board

in making necessary determinations and findings with respect to

the loan guarantee application under this chapter. The amount of

the fee shall be reasonable.

(2) Loan guarantee origination fee

The Board shall charge, and the Administrator may collect, a

loan guarantee origination fee with respect to the issuance of a

loan guarantee under this chapter.

(3) Use of fees collected

(A) In general

Any fee collected under this subsection shall be used,

subject to subparagraph (B), to offset administrative costs

under this chapter, including costs of the Board and of the

Administrator.

(B) Subject to appropriations

The authority provided by this subsection shall be effective

only to such extent or in such amounts as are provided in

advance in appropriations Acts.

(C) Limitation on fees

The aggregate amount of fees imposed by this subsection shall

not exceed the actual amount of administrative costs under this

chapter.

(o) Requirements relating to affiliates

(1) Indemnification

The United States shall be indemnified by any affiliate

(acceptable to the Board) of an applicant for a loan guarantee

under this chapter for any losses that the United States incurs

as a result of -

(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 chapter, and the

regulations prescribed under this chapter, 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) of this section; 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 chapter 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 chapter and such person or

entity is insolvent or is a debtor in a case under title 11, the

debts due to the United States shall be satisfied first.

(2) A discharge in bankruptcy under title 11 shall not release a

person or entity from an obligation to the United States in

connection with a loan guarantee under this chapter.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1005], Dec. 21, 2000,

114 Stat. 2762, 2762A-134; Pub. L. 107-171, title VI, Sec.

6404(b)(2), May 13, 2002, 116 Stat. 430.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original "this

Act", and was translated as reading "this title". See References in

Text note set out under section 1101 of this title.

Section 1103(e)(1) of this title, referred to in subsec. (f)(1),

was in the original a reference to section 4(e)(1), and was

translated as referring to section 1004(e)(1) of title X of H.R.

5548, as enacted by Pub. L. 106-553, Sec. 1(a)(2), to reflect the

probable intent of Congress. Pub. L. 106-553 does not contain a

section 4 and section 1004 relates to projects to be given priority

for loan guarantees.

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, Sec. 6404(b)(2)(A), made

technical amendments to references in original Act which appear in

text as references to sections 1102 and 1103 of this title.

Subsec. (b)(1)(D). Pub. L. 107-171, Sec. 6404(b)(2)(B)(i), made

technical amendment to reference in original Act which appears in

text as a reference to section 1105(a)(2) of this title.

Subsec. (b)(3). Pub. L. 107-171, Sec. 6404(b)(2)(B)(ii), made

technical amendment to reference in original Act which appears in

text as a reference to section 1103(d)(3)(B)(iii) of this title.

Subsec. (e)(3). Pub. L. 107-171, Sec. 6404(b)(2)(C), made

technical amendment to reference in original Act which appears in

text as a reference to section 1103(g) of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1103, 1109 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

47 USC Sec. 1105 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1105. Annual audit

-STATUTE-

(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 chapter; and

(2) the financial position of each applicant who receives a

loan guarantee under this chapter, 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) of this

section.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1006], Dec. 21, 2000,

114 Stat. 2762, 2762A-138.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a), was in the original

"this Act", and was translated as reading "this title". See

References in Text note set out under section 1101 of this title.

-CHANGE-

CHANGE OF NAME

Committee on Banking and Financial Services of House of

Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1104 of this title.

-End-

-CITE-

47 USC Sec. 1106 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1106. Improved cellular service in rural areas

-STATUTE-

(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 this

title shall not apply.

(3) Proceeding

The proceeding described in this paragraph is the proceeding of

the Commission In re Applications of Cellwave Telephone Services

L.P., Futurewave General Partners L.P., and Great Western

Cellular Partners, 7 FCC Rcd No. 19 (1992).

(b) Continuation of license proceeding; fee assessment

(1) Award of licenses

The Commission shall award licenses under the covered rural

service area licensing proceeding within 90 days after December

21, 2000.

(2) Service requirements

The Commission shall provide that, as a condition of an

applicant receiving a license pursuant to the covered rural

service area licensing proceeding, the applicant shall provide

cellular radiotelephone service to subscribers in accordance with

sections 22.946 and 22.947 of the Commission's rules (47 CFR

22.946, 22.947); except that the time period applicable under

section 22.947 of the Commission's rules (or any successor rule)

to the applicants identified in subparagraphs (A) and (B) of

subsection (d)(1) of this section shall be 3 years rather than 5

years and the waiver authority of the Commission shall apply to

such 3-year period.

(3) Calculation of license fee

(A) Fee required

The Commission shall establish a fee for each of the licenses

under the covered rural service area licensing proceeding. In

determining the amount of the fee, the Commission shall

consider -

(i) the average price paid per person served in the

Commission's Cellular Unserved Auction (Auction No. 12); and

(ii) the settlement payments required to be paid by the

permittees pursuant to the consent decree set forth in the

Commission's order, In re the Tellesis Partners (7 FCC Rcd

3168 (1992)), multiplying such payments by two.

(B) Notice of fee

Within 30 days after the date an applicant files the amended

application permitted by subsection (a)(1)(B) of this section,

the Commission shall notify each applicant of the fee

established for the license associated with its application.

(4) Payment for licenses

No later than 18 months after the date that an applicant is

granted a license, each applicant shall pay to the Commission the

fee established pursuant to paragraph (3) for the license granted

to the applicant under paragraph (1).

(5) Auction authority

If, after the amendment of an application pursuant to

subsection (a)(1)(B) of this section, the Commission finds that

the applicant is ineligible for grant of a license to provide

cellular radiotelephone services for a rural service area or the

applicant does not meet the requirements under paragraph (2) of

this subsection, the Commission shall grant the license for which

the applicant is the tentative selectee ( (!1) pursuant to

subsection (a)(1)(B) of this section by competitive bidding

pursuant to section 309(j) of this title.

(c) Prohibition of transfer

During the 5-year period that begins on the date that an

applicant is granted any license pursuant to subsection (a) of this

section, the Commission may not authorize the transfer or

assignment of that license under section 310 of this title. Nothing

in this chapter may be construed to prohibit any applicant granted

a license pursuant to subsection (a) of this section from

contracting with other licensees to improve cellular telephone

service.

(d) Definitions

For the purposes of this section, the following definitions shall

apply:

(1) Applicant

The term "applicant" means -

(A) Great Western Cellular Partners, a California general

partnership chosen by the Commission as tentative selectee for

RSA #492 on May 4, 1989;

(B) Monroe Telephone Services L.P., a Delaware limited

partnership chosen by the Commission as tentative selectee for

RSA #370 on August 24, 1989 (formerly Cellwave Telephone

Services L.P.); and

(C) FutureWave General Partners L.P., a Delaware limited

partnership chosen by the Commission as tentative selectee for

RSA #615 on May 25, 1990.

(2) Commission

The term "Commission" means the Federal Communications

Commission.

(3) Covered rural service area licensing proceeding

The term "covered rural service area licensing proceeding"

means the proceeding of the Commission for the grant of cellular

radiotelephone licenses for rural service areas #492 (Minnesota

11), #370 (Florida 11), and #615 (Pennsylvania 4).

(4) Tentative selectee

The term "tentative selectee" means a party that has been

selected by the Commission under a licensing proceeding for grant

of a license, but has not yet been granted the license because

the Commission has not yet determined whether the party is

qualified under the Commission's rules for grant of the license.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1007], Dec. 21, 2000,

114 Stat. 2762, 2762A-138.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to subsec. (c), was in the original "this

Act", and was translated as reading "this title". See References in

Text note set out under section 1101 of this title.

-FOOTNOTE-

(!1) So in original. No closing parenthesis was enacted.

-End-

-CITE-

47 USC Sec. 1107 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1107. Sunset

-STATUTE-

No loan guarantee may be approved under this chapter after

December 31, 2006.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1009], Dec. 21, 2000,

114 Stat. 2762, 2762A-140.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original "this

Act", and was translated as reading "this title". See References in

Text note set out under section 1101 of this title.

-End-

-CITE-

47 USC Sec. 1108 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1108. Definitions

-STATUTE-

In this chapter:

(1) Affiliate

The term "affiliate" -

(A) means any person or entity that controls, or is

controlled by, or is under common control with, another person

or entity; and

(B) may include any individual who is a director or senior

management officer of an affiliate, a shareholder controlling

more than 25 percent of the voting securities of an affiliate,

or more than 25 percent of the ownership interest in an

affiliate not organized in stock form.

(2) Nonserved area

The term "nonserved area" means any area that -

(A) is outside the grade B contour (as determined using

standards employed by the Federal Communications Commission) of

the local television broadcast signals serving a particular

designated market area; and

(B) does not have access to such signals by any commercial,

for profit, multichannel video provider.

(3) Underserved area

The term "underserved area" means any area that -

(A) is outside the grade A contour (as determined using

standards employed by the Federal Communications Commission) of

the local television broadcast signals serving a particular

designated market area; and

(B) has access to local television broadcast signals from not

more than one commercial, for-profit multichannel video

provider.

(4) Common terms

Except as provided in paragraphs (1) through (3), any term used

in this chapter that is defined in the Communications Act of 1934

(47 U.S.C. 151 et seq.) has the meaning given that term in the

Communications Act of 1934.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1010], Dec. 21, 2000,

114 Stat. 2762, 2762A-140.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original "this

Act", and was translated as reading "this title". See References in

Text note set out under section 1101 of this title.

The Communications Act of 1934, referred to in par. (4), is act

June 19, 1934, ch. 652, 48 Stat. 1064, as amended, which is

classified principally to chapter 5 (Sec. 151 et seq.) of this

title. For complete classification of this Act to the Code, see

section 609 of this title and Tables.

-End-

-CITE-

47 USC Sec. 1109 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1109. Authorizations of appropriations

-STATUTE-

(a) Cost of loan guarantees

(1) Authorization of appropriations

For the cost of the loans guaranteed under this chapter,

including the cost of modifying the loans, as defined in section

661a of title 2, there are authorized to be appropriated for

fiscal years 2001 through 2006, such amounts as may be necessary.

(2) Commodity Credit Corporation funds

(A) In general

Notwithstanding any other provision of law, subject to

subparagraph (B), in addition to amounts made available under

paragraph (1), of the funds of the Commodity Credit

Corporation, the Secretary of Agriculture shall make available

for loan guarantees to carry out this chapter $80,000,000 for

the period beginning on May 13, 2002, and ending on December

31, 2006, to remain available until expended.

(B) Broadband loans and loan guarantees

(i) In general

Amounts made available under subparagraph (A) that are not

obligated as of the release date described in clause (ii)

shall be available to the Secretary to make loans and loan

guarantees under section 950bb of title 7.

(ii) Release date

For purposes of clause (i), the release date is the date

that is the earlier of -

(I) the date the Secretary determines that at least 75

percent of the designated market areas (as defined in

section 122(j) of title 17) not in the top 40 designated

market areas described in section 1103(e)(1)(C)(i) of this

title have access to local television broadcast signals for

virtually all households (as determined by the Secretary);

or

(II) December 31, 2006.

(C) Advanced appropriations

Subsections (c) and (h)(1)(B) of section 1103 of this title

and section 1104(n)(3)(B) of this title shall not apply to

amounts made available under this paragraph.

(b) Cost of administration

There is hereby authorized to be appropriated such sums as may be

necessary to carry out the provisions of this chapter, other than

to cover costs under subsection (a) of this section.

(c) Availability

Any amounts appropriated pursuant to the authorizations of

appropriations in subsections (a) and (b) of this section shall

remain available until expended.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1011], Dec. 21, 2000,

114 Stat. 2762, 2762A-141; Pub. L. 107-171, title VI, Sec. 6404(a),

May 13, 2002, 116 Stat. 429.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsecs. (a)(1) and (b), was in the

original "this Act", and was translated as reading "this title".

See References in Text note set out under section 1101 of this

title.

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171 designated existing

provisions as par. (1), inserted heading, and added par. (2).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1103 of this title; title

7 section 950bb.

-End-

-CITE-

47 USC Sec. 1110 01/06/03

-EXPCITE-

TITLE 47 - TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

CHAPTER 10 - LOCAL TV

-HEAD-

Sec. 1110. Prevention of interference to direct broadcast satellite

services

-STATUTE-

(a) Testing for harmful interference

The Federal Communications Commission shall provide for an

independent technical demonstration of any terrestrial service

technology proposed by any entity that has filed an application to

provide terrestrial service in the direct broadcast satellite

frequency band to determine whether the terrestrial service

technology proposed to be provided by that entity will cause

harmful interference to any direct broadcast satellite service.

(b) Technical demonstration

In order to satisfy the requirement of subsection (a) of this

section for any pending application, the Commission shall select an

engineering firm or other qualified entity independent of any

interested party based on a recommendation made by the Institute of

Electrical and Electronics Engineers (IEEE), or a similar

independent professional organization, to perform the technical

demonstration or analysis. The demonstration shall be concluded

within 60 days after December 21, 2000, and shall be subject to

public notice and comment for not more than 30 days thereafter.

(c) Definitions

As used in this section:

(1) Direct broadcast satellite frequency band

The term "direct broadcast satellite frequency band" means the

band of frequencies at 12.2 to 12.7 gigahertz.

(2) Direct broadcast satellite service

The term "direct broadcast satellite service" means any direct

broadcast satellite system operating in the direct broadcast

satellite frequency band.

-SOURCE-

(Pub. L. 106-553, Sec. 1(a)(2) [title X, Sec. 1012], Dec. 21, 2000,

114 Stat. 2762, 2762A-141.)

-End-