Conditional term sheet [Credit Assistance for Surface Transportation Projects] Law and Legal Definition

According to 49 CFR 80.3 [Title 49 – Transportation; Subtitle A -- Office of the Secretary of Transportation; Part 80 -- Credit Assistance for Surface Transportation Projects], conditional term sheet means “a contractual agreement between the U.S. Department of Transportation (DOT) and the project sponsor (and the lender, if applicable) by which the DOT reserves TIFIA funding for a specific project and commits to providing Federal credit assistance to that project at a future point in time upon satisfaction of specified conditions and subject to the future availability of obligation authority. The DOT will not legally obligate budget authority until those conditions are met. Upon satisfaction of those conditions, the conditional term sheet can be amended and/or restated to trigger an obligation of funds.”