The Administrator will consider requests for the accommodation of the Government's lien on the borrower's system or the subordination of the Government's lien on after-acquired property which will enable the borrowers to obtain financing from private lenders for the purpose of providing new telecommunication services which may not be eligible for financing under the Act if the Administrator is satisfied that:

The borrower will have the ability to repay its existing and proposed indebtedness;

The security for outstanding Government loans and guarantees is reasonably adequate and will not be adversely affected by the accommodation or subordination; and

Approval of the request is in the interests of the Government with respect to the financial soundness of the borrower and other matters, such as assuring that the borrower's system is constructed cost-effectively using sound engineering practices.

In determining that the security for outstanding Government loans and guarantees is reasonably adequate and will not be adversely affected by the accommodation or subordination the Administrator will consider, among other matters, when applicable, the following:

Market forecasts for the project;

Projected revenues, expenses and net income of the borrower's existing system and the project;

Maximum debt service on indebtedness of both the borrower's system and the project;

Projected rate of return on the borrower's investment in the project;

Fair market value of property acquired by the borrower as part of the project;

Impact of the project on the ratio of the borrower's secured debt to assets;

Projected growth in borrower's system and project equity; and

Amount of funds available for plant additions, replacements and other similar costs of the system and the project.

In determining whether the accommodation or subordination is in the interests of the Government, the Administrator may consider, among other matters, whether the project will improve the borrower's financial strength and the assurance of repayment of Government debt.