What are the contents of a typical TIFIA credit agreement?
The contents of TIFIA credit agreements include both standard provisions and transaction-specific provisions. The borrower and the USDOT will execute the credit agreement for a secured loan or line of credit; the guaranteed lender, the USDOT, and the borrower will execute the credit agreement for a loan guarantee. Additionally, the guaranteed lender will execute a separate loan agreement with the borrower, and the borrower will execute a borrower’s certificate, compliance, and loan agreement with the USDOT. Depending on the nature of the transaction, additional documents, such as an intercreditor agreement, may also be necessary. The USDOT may also require the borrower to provide copies of the bond documents and other agreements material to the flow of funds or to USDOT’s security for its review. The USDOT also reviews any disclosure with respect to the TIFIA transaction, which the borrower includes in the offering documents.
