879 



indebtedness issued by a coastal state or unit of general purpose local govern- 

 ment for the purposes specified in subsection (b) of this section. 



"(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 Conti- 

 nental 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 pre- 

 scribe, 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 indebt- 

 edness within a period not to exceed thirty years ; 



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

 guaranteed 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 

 prescribed by, the Secretary, or, if an offering to the public is contem- 

 plated, be underwritten upon terms and conditions apprvoed by the 

 Secretary ; 



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

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

 sions satisfactory 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 apprvoal 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 sig- 

 nificant impact on the market for Federal Government and Federal Govern- 

 ment-guaranteed securities : 



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

 issuer of the evidence of indebtedness will be able to make the payments 

 of the principal of and interest on such evidence of indebtetlness ; 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 vnider 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 give 

 consideration to, comments from the public concerning such terms and condi- 

 tions. Following this period, the Secretary shall publish in the Federal Register 

 a final list of the conditions under which bonds and other evidence of indebted- 

 ness 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 pul)lic for at least thirty 

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

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

 amendment 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 respect to principal, interest, and 

 any redemption premiums. Any such guarantee made l»y the Secretary shall b-e 

 conclusive evidence of the eligil)ility of the obligation involved for such guaran- 

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

 of a holder of the guaranteed obligation. ' 



