(II) Waiver The Director may waive the requirement under subclause (I) with respect to the investment in order to mitigate risks to loan repayment. (v) Sale of loans For which a loan is provided under subparagraph (A) and after notifying the obligor, the Director may sell to another entity or reoffer into the capital markets a loan for the investment if the Director determines that the sale or reoffering can be made on favorable terms. (vi) Loan guarantees (I) In general If the Director determines that the holder of a loan guaranteed by the Office defaulted on the loan, the Director shall pay the holder as specified in the loan guarantee agreement. (II) Loan guarantee percentage A loan guarantee agreement entered into by the Office under this paragraph shall specify the percentage of the principal amount of the loan guaranteed by the Office under such agreement. (vii) Terms and conditions Loans and loan guarantees provided under subparagraph (A) shall be subject to such other terms and conditions and contain such other covenants, representations, warranties, and requirements (including requirements for audits) as the Director determines appropriate. (viii) Investment-grade rating The Director shall establish a credit rating system to ensure a reasonable likelihood of repayment of loans made or guaranteed under this subsection. The credit rating system may include the use of existing credit rating agencies as the Director determines appropriate. (ix) Applicability of federal credit reform act of 1990 Loans and loan guarantees provided under subparagraph (A) shall be subject to the requirements of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. ). (2) Equity investments (A) In general The Director may, as a minority investor and subject to the availability of appropriations this purpose, support an eligible investment selected pursuant to subsection (e) with funds or use other mechanisms for the purpose of purchasing, and may make and fund commitments to purchase, invest in, make pledges in respect