Volume 71 · 629
Public Law 85–307
To provide for Government guaranty of private loans to certain air carriers for purchase of modern aircraft and equipment, to foster the development and use of modern transport aircraft by such carriers, and for other purposes.
Approved September 7, 1957
Statutory text
AN ACT
To provide for Government guaranty of private loans to certain air carriers for purchase of modern aircraft and equipment, to foster the development and use of modern transport aircraft by such carriers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That it is hereby declared to be the policy of Congress, in the interests of the commerce of the United States, the postal service, and the national defense to promote the development of local, feeder, and short-haul air transportation. In furtherance of this policy it is deemed necessary and desirable that provision be made to assist certain air carriers engaged in such air transportation by providing governmental guaranties of loans to enable them to purchase aircraft suitable for such transportation on reasonable terms.
Sec. 2.
As used in this Act—
“Board” means the Civil Aeronautics Board.
“Aircraft purchase loan” means any loan, or commitment in connection therewith, made for the purchase of a commercial transport aircraft, including spare parts normally associated therewith.
Sec. 3.
The Board is hereby authorized to guarantee any lender against loss of principal or interest on any aircraft purchase loan made by such lender to any air carrier holding a certificate of public convenience and necessity issued by the Board (a) designated therein to be for local or feeder air service, or (b) providing for operations wholly within the Territory of Hawaii, or (c) providing for operations (the major portion of which are conducted either within Alaska or between Alaska and the United States) within the Territory of Alaska (including service between Alaska and the United States, and between Alaska and adjacent Canadian territory), or (d) providing for operations within the Commonwealth of Puerto Rico (including service to the Virgin Islands and the Dominican Republic), or (e) providing for operations between Florida and the British West Indies (including service to Cuba), or (f) for the purpose of authorizing metropolitan helicopter service. Such guaranty shall be made in such form, on such terms and conditions, and pursuant to such regulations, as the Board deems necessary and which are not inconsistent with the provisions of this Act.
Sec. 4.
No guaranty shall be made:
Restrictions.
Extending to more than the unpaid interest and 90 percent of the unpaid principal of any loan.
On any loan or combination of loans for more than 90 percent of the purchase price of the aircraft, including spare parts, to be purchased therewith.
On any loan whose terms permit full repayment more than 10 years after the date thereof.
Wherein the total face amount of such loan, and of any other loans to the same carrier, or corporate predecessor carrier or carrière, guaranteed and outstanding under the terms of this Act exceed $5,(XX),000.
Unless the Board finds that, without such guaranty, in the amount thereof, the air carrier would be unable to obtain necessary funds for the purchase of needed aircraft on reasonable terms.
Unless the Board finds that the aircraft to be purchased with the guaranteed loan is needed to improve the service and efficiency of operation of the air carrier.
Sec. 5.
The Board shall prescribe and collect from the lending institution a reasonable guaranty fee in connection with each loan guaranteed under this Act.
Sec. 6.
To permit it to make use of such expert advice and services as it may require in carrying out the provisions of this Act, the Board may use available services and facilities of other agencies and instrumentalities of the Federal Government with their consent and on a reimbursable basis.
Departments and agencies of the Federal Government shall exercise their powers, duties, and functions in such manner as will assist in carrying out the objectives of this Act.
Sec. 7.
Receipts under this Act shall be credited to miscellaneous
Crediting of receipts, etc.
receipts of the Treasury.
Payments to lenders required as a consequence of any guaranty under this Act may be made from funds which are hereby authorized to be appropriated to the Board for that purpose.
Administrative expenses under this Act shall be paid from appropriations to the Board for administrative expenses.
Sec. 8.
This Act shall become effective upon enactment, and the
Effective dates.
authority contained in section 3 hereof shall expire five years thereafter.
Approved September 7, 1957.