As used in this part—

1. (a) Act means the Railroad Revitalization and Regulatory Reform Act of 1976, as amended, 45 U.S.C. 821 et seq.
2. (b) Administrator means the Federal Railroad Administrator, or his or her representative.
3. (c) Applicant means any State or local government, government sponsored authority or corporation, railroad, or group of two or more entities, at least one of which is a railroad, participating in a joint venture, that submits an application to the Administrator for a direct loan or the guarantee of an existing obligation under which it is an obligor or for a commitment to guarantee a new obligation.
4. (d) Borrower means an Applicant that has been approved for, and has received, financial assistance under this part.
5. (e) Credit risk premium means that portion of the total subsidy cost to the Government of a direct loan or loan guarantee that is not covered by Federal appropriations and which must be paid by Applicant or its non-Federal infrastructure partner before that direct loan can be disbursed or loan guarantee can be issued.
6. (f) Direct loan means a disbursement of funds by the Government to a non-federal borrower under a contract that requires the repayment of such funds.
7. (g) FRA means the Federal Railroad Administration.
8. (h) Financial assistance means a direct loan, or a guarantee of a new loan issued under this part.
9. (i) Holder means the current owner of an obligation or the entity retained by the owner to service and collect an obligation which is guaranteed under the provisions of this part.
10. (j) Including means including but not limited to.
11. (k) Infrastructure partner means any non-Federal source of the Credit Risk Premium which must be paid to the Administrator in lieu of, or in combination with, an appropriation in connection with financial assistance provided under this part.
12. (l) Intermodal means of or relating to the connection between rail service and other modes of transportation, including all parts of facilities at which such connection is made.
13. (m) Lender means the non-Federal entity making a loan to an Applicant for which a loan guarantee under this part is sought.
14. (n) Loan guarantee means any guarantee, insurance, or other pledge with respect to the payment of all or a part of the principal or interest on any debt obligation of a non-Federal borrower to a non-Federal Lender, but does not include the insurance of deposits, shares, or other withdrawable accounts in financial institutions.
15. (o) Obligation means a bond, note, conditional sale agreement, equipment trust certificate, security agreement, or other obligation.
16. (p) Obligor means the debtor under an obligation, including the original obligor and any successor or assignee of such obligor.
17. (q) Project means the purpose for which financial assistance is requested.
18. (r) Railroad means a rail carrier subject to part A of subtitle IV of title 49, United States Code.

19. (s) Subsidy cost of a direct loan means the net present value, at the time when the direct loan is disbursed, of the following estimated cash flows:

    1. (1) Loan disbursements;
    2. (2) Repayments of principal; and
    3. (3) Payments of interest and other payments by or to the Government over the life of the loan after adjusting for estimated defaults, prepayments, fees, penalties, and other recoveries; including the effects of changes in loan terms resulting from the exercise by the borrower of an option included in the loan contract.

20. (t) Subsidy cost of a loan guarantee means the net present value, at the time when the guaranteed loan is disbursed, of the following estimated cash flows:

    1. (1) Payments by the Government to cover defaults, delinquencies, interest subsidies, or other payments; and
    2. (2) The payments to the Government including origination and other fees, penalties and recoveries.