; or (ii) the optional peg rate, as calculated quarterly by the Administrator and published in the Federal Register, plus the spread described under subparagraph (B). (B) Negotiation of spread and rate of change The lender and the borrower shall negotiate the amount of the spread which will be added to the interest rate described under subparagraph (A) and select the frequency at which the spread will change, which shall be no more often than monthly and shall be consistent over the term of the loan. (e) Deferral period The Administrator may defer payment of the principal and interest on a loan guaranteed under this section for a period not to exceed 3 years. (f) Terms and conditions for loan guarantees (1) In general A loan guaranteed under this section shall be subject to such terms and conditions as the Administrator may prescribe, including— (A) explicit standards for use in periodically assessing the credit risk of guaranteed loans; (B) a requirement that the final maturity of such a loan may not exceed 7 years; and (C) a requirement that such a loan may not be subordinated to another debt contracted by the borrower or to any other claims against the borrower in the case of default. (2) Restrictions The Administrator may not guarantee a loan under this section— (A) unless the Administrator determines that the lender is responsible, that there is a reasonable assurance of repayment, and that adequate provision is made for servicing the loan on reasonable terms and protecting the financial interest of the United States; (B) except to the extent that appropriations of budget authority to cover their costs are made in advance, as required under section 504 of the Federal Credit Reform Act of 1990; and (C) if— (i) the income from such loan is excluded from gross income for purposes of chapter 1 of the Internal Revenue Code of 1986