1064 

 14 



standing marketahle obligations of the United States with remain- 

 . ing periods to maturity comparable to the maturity of such loans. 

 In developing rules and regulations under this subsection, the Secre- 

 tary shall., to the extent practicable, request the views of, or consult 

 with, appropriate persons regarding impacts resulting from coastal 

 energy activity. 



'"''if) (l) J^onds or other evidences of indebtedness guaranteed uiuler 

 subsection (d) (2) shall be guaranteed on such terms and conditions 

 as the Secretary shall prescribe., except that — 



"(yl) no guarantee shall be nmde unless the indebtedness in- 

 volved will be completely amortized within a reasonable period, 

 not to exceed 30 years; 



"(^) no guarantee shall be made unless the Secretary deter- 

 mines that such bonds or other evidences of indebtedness will — 

 "(^) be issued only to investors who meet the requirements 

 po^escribed by the Secretary.^ or., if an offering to the public 

 is contemplated, be underwritten upon terms and conditions 

 approved by the Secretary; 



^^(il) bear interest at a rate found not to be excessive by 

 the Secretary ; and 



'"''{iii) contain, or be subject to, repayment, maturity, and 

 other provisions which are satisfactory to the Secretary; 

 "(6^) the approval of the Secretary of the Treasury shall be 

 required with respect to any such guarantee, unless the Secretary 

 of the Treasury waives such approval; and 



{d){2), unless the Secretainj of the Treasury waives such ap- 

 proval; and 



"(Z>) no guarantee shall be made after Septemher 30. 1980. 

 "(2) The full faith ami credit of the United States is pledged to 

 the payment, under paragraph (-5), of any default on any indebted- 

 ness guaranteed under subsection (d) (2). Any such guarantee made 

 by the Secretary shall be conclusive evidence of the eligibility of the 

 obligation involved for such guarantee, and the validity of any such 

 guarantee so /nadc shall be incontestable in the hands of a holder of the 

 guaranteed obligation, except for fraud, or nmterial misrepresenta- 

 tion on the part of the holder, or known to the holder at the time 

 acquired. 



"(^) TJte Secretary shall prescribe and collect fees in connection 

 with guarantees made under subsection {d){2). These fees may not 

 exceed the amount which the Secretary estimates to be necessary to 

 cover the administrative costs pertaining to such guarantees. 



'''{Jf.) The interest paid on any obligation which is guaranteed under 

 subsection (d) (2) and which is received by the pi/rchas( r thereof (or 

 the purchaser's successor in interest) . shall be included in gross income 

 for the purpose of chapter 1 of the Internal Revenue Code of lO-'J^. 

 The Secretary may pay out of the Fund to the coastal state or the unit 

 of general imrpose local government issiting sveh obligations not more 

 than such poition of the interest on such obligations as exceeds the 

 amount of interest that would be due at a comparable rate determined 

 for loans made under subsection (d) (/). 



"(-5) (.4) Payments required to be made as a result of any guaran- 

 tee made inuler subsection (d) (2) shcdl be made by the Secretary from 



