[Congressional Record Volume 146, Number 71 (Friday, June 9, 2000)]
[Senate]
[Pages S4924-S4928]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   AMENDMENTS SUBMITTED--JUNE 8, 2000

                                 ______
                                 

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001

                                 ______
                                 

            SMITH OF OREGON (AND OTHERS) AMENDMENT NO. 3247

  Mr. WARNER (for Mr. Smith of Oregon (for himself, Mr. Wyden, and Mr. 
Bryan)) proposed an amendment to the bill, S. 2549, supra; as follows:

       On page 155, line 4, strike ``(g) Effective Date.--This'' 
     and insert the following:
       ``(g) Vice Chief of National Guard Bureau.--(1) The 
     Secretary of Defense shall conduct a study of the 
     advisability of increasing the grade authorized for the Vice 
     Chief of the National Guard Bureau to Lieutenant General.
       ``(2) As part of the study, the chief of the National Guard 
     Bureau shall submit to the Secretary of Defense an analysis 
     of the functions and responsibilities of the Vice Chief of 
     the National Guard Bureau and the Chief's recommendation as 
     to whether the grade authorized for the Vice Chief should be 
     increased.
       ``(3) Not later than February, 1, 2001, the Secretary shall 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives a report on the study. The report 
     shall include the following:
       ``(A) The recommendation of the Chief of the National Guard 
     Bureau and any other information provided by the Chief to the 
     Secretary of Defense pursuant to paragraph (2).
       ``(B) The conclusions resulting from the study.
       (C) The Secretary's recommendation regarding whether the 
     grade authorized for the Vice Chief of the National Guard 
     Bureau should be increased to Lieutenant General.
       ``(h) Effective Dates.--Subsection (g) shall take effect on 
     the date of the enactment of the Act. Except for that 
     subsection, this''.
                                 ______
                                 

                   AMENDMENTS SUBMITTED--JUNE 9, 2000

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             DEPARTMENT OF DEFENSE APPROPRIATIONS ACT 2000

                                 ______
                                 

                        HELMS AMENDMENT NO. 3280

  Mr. HELMS proposed an amendment to the bill (H.R. 4576) making 
appropriations for the Department of Defense for the fiscal year ending 
September 30, 2001, and for other purposes; as follows:

       At the appropriate place in the bill insert the following:

     SEC. ____. SENSE OF THE SENATE ON BRINGING PEACE TO CHECHNYA.

       (a) Findings.--The Senate finds that--
       (1) the Senate of the United States unanimously passed 
     Senate Resolution 262 on February 24th, 2000, which condemned 
     the indiscriminate use of force by the Government of the 
     Russian Federation against the people of Chechnya and called 
     for peace negotiations between the Government of the Russian 
     Federation and the democratically elected Government of 
     Chechnya led by President Aslan Maskhadov;
       (2) the Committee on Foreign Relations of the Senate 
     received credible evidence reporting that Russian forces in 
     Chechnya caused the deaths of innocent civilians and the 
     displacement of well over 250,000 other residents of Chechnya 
     and committed widespread atrocities, including summary 
     executions, torture, and rape;
       (3) the Government of the Russian Federation continues its 
     military campaign in Chechnya, including using indiscriminate 
     force, causing further dislocation of people from their 
     homes, the deaths of noncombatants, and widespread suffering;
       (4) the Government of the Russian Federation refuses to 
     participate in peace negotiations with the democratically 
     elected government of Chechnya;
       (5) the war in Chechnya contributes to ethnic hatred and 
     religious intolerance within the Russian Federation, 
     jeopardizes prospects for the establishment of democracy in 
     the Russian Federation, and is a threat to the peace in the 
     region; and
       (6) it is in the interests of the United States to promote 
     a cease-fire in Chechnya and negotiations between the 
     Government of the Russian Federation and the democratically 
     elected government of Chechnya that result in a just and 
     lasting peace;
       (7) representatives of the democratically elected President 
     of Chechnya, including his foreign minister, have traveled to 
     the United States to facilitate an immediate cease-fire to 
     the conflict in Chechnya and the initiation of peace 
     negotiations between Russian and Chechen forces;
       (8) the Secretary of State and other senior United States 
     Government officials have refused to meet with 
     representatives of the democratically elected President of 
     Chechnya to discuss proposals for an immediate cease-fire 
     between Chechen and Russian forces and for peace 
     negotiations; and
       (9) the Senate expresses its concern over the war and the 
     humanitarian tragedy in Chechnya and its desire for a 
     peaceful and durable settlement to the conflict.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the Government of the Russian Federation should 
     immediately--
       (A) cease its military operations in Chechnya and 
     participate in negotiations toward a just peace with the 
     leadership of the

[[Page S4925]]

     Chechen Government led by President Aslan Maskhadov;
       (B) allow into and around Chechnya international missions 
     to monitor and report on the situation there and to 
     investigate alleged atrocities and war crimes; and
       (C) grant international humanitarian agencies full and 
     unimpeded access to Chechen civilians, including those in 
     refugee, detention, and so-called ``filtration camps'', or 
     any other facility where citizens of Chechnya are detained;
       (2) the Secretary of State should meet with representatives 
     of the government of Chechnya led by President Aslan 
     Maskhadov to discuss its proposals to initiate a cease-fire 
     in the war in Chechnya and to facilitate the provision of 
     humanitarian assistance to the victims of this tragic 
     conflict; and
       (3) the President of the United States, in structuring 
     United States policy toward the Russian Federation, should 
     take into consideration the refusal of the Government of the 
     Russian Federation to cease its military operations in 
     Chechnya and to participate in peace negotiations with the 
     government of Chechnya.
                                 ______
                                 

                 INTERNET NONDISCRIMINATION ACT OF 2000

                                 ______
                                 

                       JOHNSON AMENDMENT NO. 3281

  Mr. JOHNSON proposed an amendment to the bill (H.R. 3709) to extend 
for 5 years the moratorium enacted by the Internet Tax Freedom Act, and 
for other purposes; as follows:

       At the appropriate place insert the following:

             TITLE XX--LOAN GUARANTEES FOR RURAL TELEVISION

     SEC. ____01. SHORT TITLE.

       This title may be cited as the ``Launching Our Communities' 
     Access to Local Television Act of 2000''.

     SEC. ____02. PURPOSE.

       The purpose of this title is to facilitate access, on a 
     technologically neutral basis and by December 31, 2006, to 
     signals of local television stations, and related signals 
     (including high-speed Internet access and National Weather 
     Service warnings), for households located in unserved areas 
     and underserved areas.

     SEC. ____03. LOCAL TELEVISION LOAN GUARANTEE BOARD.

       (a) Establishment.--There is established the LOCAL 
     Television Loan Guarantee Board (in this title 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.
       (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 title. The Board shall 
     make such determinations consistent with the purpose of this 
     title and in accordance with this subsection and section 
     ____04.
       (2) Consultation authorized.--
       (A) In general.--In carrying out its functions under this 
     title, 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 title.
       (3) Approval by majority vote.--The determination of the 
     Board to approve a loan guarantee under this title shall be 
     by a vote of a majority of the Board.

     SEC. ____04. APPROVAL OF LOAN GUARANTEES.

       (a) Authority To Approve Loan Guarantees.--Subject to the 
     provisions of this section and consistent with the purpose of 
     this title, the Board may approve loan guarantees under this 
     title.
       (b) Regulations.--
       (1) Requirements.--The Administrator (as defined in section 
     ____05), under the direction of and for approval by the 
     Board, shall prescribe regulations to implement the 
     provisions of this title and shall do so not later than 120 
     days after funds authorized to be appropriated under section 
     ____09 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 title;
       (B) set forth time periods for the review and consideration 
     by the Board of applications to be submitted to the Board 
     under this title, 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 title;
       (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 title;
       (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 title; and
       (F) include such other provisions consistent with the 
     purpose of this title as the Board considers appropriate.
       (3) Construction.--(A) Nothing in this title 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 title.
       (B) If any provision of this title 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 title, 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 title only to the 
     extent provided for in advance in appropriations Acts. The 
     Board may delegate to the Administrator (as defined in 
     section ____05) the authority to approve loan guarantees of 
     up to $20,000,000. To the extent the Administrator is 
     delegated such authority, the Administrator shall comply with 
     the terms of this title applicable to the Board.
       (d) Requirements and Criteria Applicable to Approval.--
       (1) In general.--The Board shall utilize the underwriting 
     criteria developed under subsection (g), and any relevant 
     information provided by the departments and agencies with 
     which the Board consults under section ____03, to determine 
     which loans may be eligible for a loan guarantee under this 
     title.
       (2) Prerequisites.--In addition to meeting the underwriting 
     criteria under paragraph (1), a loan may not be guaranteed 
     under this title 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, and related signals (including high-speed 
     Internet access and National Weather Service warnings), will 
     be delivered to an unserved area or underserved area;
       (B) the proceeds of the loan will not be used for operating 
     expenses;
       (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 an unserved area or underserved area;
       (D)(i) the loan (including Other Debt, as defined in 
     subsection (f)(2)(B))--
       (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, and, if the Board determines 
     that the making of the loan by such nonprofit corporation 
     will cause a decline in the debt rating mentioned above, the 
     Board at its discretion may disapprove the loan guarantee on 
     this basis;
       (ii)(I) no loan (including Other Debt as defined in 
     subsection (f)(2)(B)) may be made for purposes of this Act 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;
       (II) any loan (including Other Debt as defined in 
     subsection (f)(2)(B)) 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;
       (III) 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--

[[Page S4926]]

       (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).
       (3) Protection of united states financial interests.--The 
     Board may not approve the guarantee of a loan under this 
     title 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 title; 
     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) to the extent possible, 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; and if the combined value of 
     collateral provided by an applicant and any affiliate is not 
     at least equal to the Amount, the collateral from such 
     affiliate represents all of such affiliate's assets;
       (iv) all necessary and required regulatory and other 
     approvals, spectrum rights, and delivery permissions have 
     been received for the loan, the project under the loan, and 
     the Other Debt, if any, under subsection (f)(2)(B);
       (v) the loan would not be available on reasonable terms and 
     conditions without a loan guarantee under this title; 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 title in the following order: 
     First, to projects that will serve the greatest number of 
     households in unserved areas and the number of States 
     (including noncontiguous States); and second, to projects 
     that will serve the greatest number of households in 
     underserved areas. In each instance, the Board shall consider 
     the project's efficiency in providing service given the area 
     to be served.
       (B) Additional considerations.--To the maximum extent 
     practicable, the Board should give additional consideration 
     to projects which also provide related signals (including 
     high-speed Internet access and National Weather Service 
     warnings).
       (C) Prohibition.--The Board may not approve a loan 
     guarantee under this title for a project that is designed 
     primarily to serve 1 or more of the 40 most populated 
     designated market areas (as that term is defined in section 
     122(j) of title 17, United States Code).
       (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 title by a means 
     reasonably compatible with existing systems or devices 
     predominantly in use.
       (f) Guarantee Limits.--
       (1) Limitation on aggregate value of loans.--The aggregate 
     value of all loans for which loan guarantees are issued under 
     this title (including the unguaranteed portion of loans 
     issued under paragraph (2)(A)) and Other Debt under paragraph 
     (2)(B) may not exceed $1,250,000,000.
       (2) Guarantee level.--A loan guarantee issued under this 
     title--
       (A) may not exceed an amount equal to 80 percent of a loan 
     meeting in its entirety the requirements of subsection 
     (d)(2)(A). 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; or
       (B) may, as to a loan meeting in its entirety the 
     requirements of subsection (d)(2)(A), cover the amount of 
     such loan only if that loan is for an amount not exceeding 80 
     percent of the total debt financing for the project, and 
     other debt financing (also meeting in its entirety the 
     requirements of subsection (d)(2)(A)) from the same source 
     for a total amount not less than 20 percent of the total debt 
     financing for the project (``Other Debt'') has been approved.
       (g) Underwriting Criteria.--Within the period provided for 
     under subsection (b)(1), 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 title, including 
     appropriate collateral and cash flow levels for loans 
     guaranteed under this Act, and such other matters as the 
     Board considers appropriate.
       (h) Credit Risk Premiums.--
       (1) Establishment and acceptance.--The Board may establish 
     and approve the acceptance of credit risk premiums with 
     respect to a loan guarantee under this title in order to 
     cover the cost, as determined under section 504(b)(1) of the 
     Federal Credit Reform Act of 1990, 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 title, credit risk premiums shall be 
     accepted from a non-Federal source under this subsection on 
     behalf of the applicant for the loan guarantee.
       (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 title 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 504(b)(1) of the Federal Credit 
     Reform Act of 1990, of loan guarantees under this title, 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 title 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 (h) and (i) of 
     section ____05, 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 title 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) when all loans guaranteed under this 
     title have been repaid or otherwise satisfied in accordance 
     with this title 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 title were not in default, or where any 
     default was cured in accordance with the terms of the 
     underlying loan or loan guarantee agreement.
       (i) Judicial Review.--The decision of the Board to approve 
     or disapprove the making of a loan guarantee under this title 
     shall not be subject to judicial review.

     SEC. ____05. ADMINISTRATION OF LOAN GUARANTEES.

       (a) In General.--The Administrator of the Rural Utilities 
     Service (in this Act referred to as the ``Administrator'') 
     shall issue and otherwise administer loan guarantees that 
     have been approved by the Board in accordance with sections 
     ____03 and ____04.
       (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 
     title, 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 
     title; and
       (C) shall remain sufficiently capitalized.
       (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 title.
       (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 title 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 title, the Administrator shall 
     have liens

[[Page S4927]]

     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 ____04(d)(3)(B)(iii).
       (4) Perfected security interest.--With respect to a loan 
     guaranteed under this title, 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 title 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 title may assign the loan guaranteed 
     under this title in whole or in part, subject to such 
     requirements as the Board may prescribe.
       (d) Modification.--The Board may approve the modification 
     of any term or condition of a loan guarantee or a loan 
     guaranteed under this title, including the rate of interest, 
     time of payment of principal or interest, or security 
     requirements only if--
       (1) the modification is consistent with the financial 
     interests of the United States;
       (2) consent has been obtained from the parties to the loan 
     agreement;
       (3) the modification is consistent with the underwriting 
     criteria developed under section ____04(g);
       (4) the modification does not adversely affect the interest 
     of the Federal Government in the assets or collateral of the 
     applicant;
       (5) the modification 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 
     modification.
       (e) Performance Schedules.--
       (1) Performance schedules.--An applicant for a loan 
     guarantee under this title for a project covered by section 
     ____04(e)(1) 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 title if the 
     applicant fails to meet its stipulated performance schedule 
     under that paragraph.
       (f) 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 title 
     is intended, with the provisions of this title, any 
     regulations under this title, 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.
       (g) Commercial Validity.--A loan guarantee under this title 
     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.
       (h) Defaults.--The Board shall prescribe regulations 
     governing defaults on loans guaranteed under this title, 
     including the administration of the payment of guaranteed 
     amounts upon default.
       (i) Recovery of Payments.--
       (1) In general.--The Administrator shall be entitled to 
     recover from an applicant for a loan guarantee under this 
     title 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 title 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).
       (j) 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 title. 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 title, 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.
       (k) 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 title, the regulations under this title, or any 
     conditions which were duly agreed to, and to secure any other 
     appropriate relief, including relief against any affiliate of 
     the applicant.
       (l) Attachment.--No attachment or execution may be issued 
     against the Administrator or any property in the control of 
     the Administrator pursuant to this title 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.
       (m) Fees.--
       (1) Application fee.--The Board may charge and collect from 
     an applicant for a loan guarantee under this title a fee to 
     cover the cost of the Board in making necessary 
     determinations and findings with respect to the loan 
     guarantee application under this title. The amount of the fee 
     shall be reasonable.
       (2) Loan guarantee origination fee.--The Board may charge, 
     and the Administrator may collect, a loan guarantee 
     origination fee with respect to the issuance of a loan 
     guarantee under this title.
       (3) Use of fees collected.--Any fee collected under this 
     subsection shall be used to offset administrative costs under 
     this title, including costs of the Board and of the 
     Administrator.
       (n) 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 title 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 title, and the 
     regulations prescribed under this title, 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 (e); 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 title may not transfer any 
     part of the proceeds of the loan to an affiliate.
       (o) 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 title and such person or entity is insolvent or is 
     a debtor in a case under title 11, United States Code, the 
     debts due to the United States shall be satisfied first.
       (2) A discharge in bankruptcy under title 11, United States 
     Code, shall not release a person or entity from an obligation 
     to the United States in connection with a loan guarantee 
     under this title.

     SEC. ____06. ANNUAL AUDIT.

       (a) Requirement.--The Comptroller General of the United 
     States shall conduct on an annual basis an audit of the 
     administration of the provisions of this title.
       (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).

     SEC. ____07. SUNSET.

       No loan guarantee may be approved under this title after 
     December 31, 2006.

     SEC. ____08. DEFINITIONS.

       In this title:
       (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) Unserved area.--The term ``unserved 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 other widely 
     marketed means.
       (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

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       (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 Act 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.

     SEC. ____09. AUTHORIZATIONS OF APPROPRIATIONS.

       (a) Cost of Loan Guarantees.--For the cost of the loans 
     guaranteed under this title, including the cost of modifying 
     the loans, as defined in section 502 of the Congressional 
     Budget Act of 1974 (2 U.S.C. 661(a)), there are authorized to 
     be appropriated for fiscal years 2001 through 2006, such 
     amounts as may be necessary.
       (b) Cost of Administration.--There is hereby authorized to 
     be appropriated such sums as may be necessary to carry out 
     the provisions of this title, other than to cover costs under 
     subsection (a).
       (c) Availability.--Any amounts appropriated pursuant to the 
     authorizations of appropriations in subsections (a) and (b) 
     shall remain available until expended.

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