856 



"(b) A bond or other evidence of indebtedness may be guaranteed under this 

 section only if it is issued by a coastal state or unit of general purpose local gov- 

 ernment for the purpose of obtaining revenues which are to be used to provide 

 public services and public facilities which are made necessary by outer Continen- 

 tal Shelf energy activities. 



"(c) Bonds or other evidences of indebtedness guaranteed under this section 

 shall be guaranteed on such terms and conditions as the Secretary shall prescribe, 

 except that — 



"(1) no guarantee shall be made unless the Secretary determines that the 

 issuer of the evidence of indebtedness would not be able to borrow sufficient 

 revenues on reasonable terms and conditions without the guarantee ; 



" (2) the guarantees shall provide for complete amortization of the indebtedness 

 within a period not to exceed thirty years ; 



"(3) the aggregate principal amount of the obligations which may be guaran- 

 teed under this section on behalf of a coastal state or a unit of general purpose 

 local government and outstanding at any one time may not exceed $20,000,000; 



"(4) the aggregate principal amount of all the obligations which may be 

 guaranteed under this section and outstanding at any one time may not exceed 

 $200,000,000; 



" (5) no guarantee shall be made unless the Secretary determines that the bonds 

 or other evidences of indebtedness will — 



"(A) be issued only to investors approved by, or meeting requirements pre- 

 scribed by, the Secretary, or, if any offering to the public is contemplated, be 

 underwritten upon terms and conditions approved by the Secretary ; 



"(B) bear interest at a rate satisfactory to the Secretary ; 



"(C) contain or be subject to repayment, maturity, and other provisions satis- 

 factory to the Secretary ; and 



"(D) contain or be subject to provisions with respect to the protection of the 

 security interest of the United States ; 



"(6) the approval of the Secretary of the Treasury shall be required with 

 respect to any guarantee made under this section, except that the Secretary of 

 the Treasury may waive this requirement with respect to the issuing of any such 

 obligation when he determines that such issuing does not have a significant 

 impact on the market for Federal Government and Federal Government-guaran- 

 teed securities ; 



"(7) The Secretary determines that there is reasonable assurance that the 

 issur of the evidence of Indebtedness will be able to make the payments of the 

 principal of and interest on such evidence of indebtedness ; and 



" (8) no guarantee shall be made after September 30, 1981. 



"(d) (1) Prior to the time when the first bond or other evidence of indebtedness 

 is guaranteed under this section, the Secretary shall publish in the Federal 

 Register a list of the proposed terms and conditions under which bonds and 

 other evidences of indebtedness will be guaranteed under this section. For at 

 least thirty days following such publication, the Secretary shall receive, and 

 given consideration to, comments from the public concerning such terms and 

 conditions. Following this period, the Secretary shall publish in the F^eral 

 Register a final list of the conditions under which ibonds and other evidences of 

 indebtedness will be guaranteed under this section. The initial guarantee made 

 under this section may not be conducted until thirty days after the final list of 

 terms and conditions is published. 



"(2) Prior to making any amendment to such final list of terms and condi- 

 tions, the Secretary shall publish such amendment in the Federal Register and 

 receive, and give consideration to, comments from the public for at least thirty 

 days following such publication. Following this period, the Secretary shall 

 public in the Federal Register the final form of the amendment, and such 

 amendmenet shall not become effective until thirty days after this publication. 



"(e) The full faith and credit of the United 'States is pledged to the payment 

 of all guarantees made under this section with resixH't to principal, interest, and 

 any redemption premiums. Any such guarantee made by this Secretary shall be 

 conclusive evidence of the eligibility of the obligation involved for such guarantee, 

 and the validity of any guarantee so made shall be incontestable in the hands of 

 a holder of the guaranteed obligation. 



"(f) The Secretary shall prescribe and collect a fee in connection with guaran- 

 tees Tnade under this section. This fee may not exceed the amount which the 

 Secretary estimates to be necessary to cover the administrative costs of carry- 

 ing out this section. Fees collected under this subsection shall be deposited in 

 the revolving fund established under subsection (i ) . 



