To establish limitations on advanced payments for bus rolling stock, and for other purposes.

“(w) Limitations on advanced payments for bus rolling stock

“(1) In general—Notwithstanding any provision of this chapter or part 200 of title 2, Code of Federal Regulations, or any successor regulation, a recipient may use assistance made available under this chapter to make an advance payment on a bus rolling stock vehicle without the transit vehicle manufacturer obtaining a performance bond or similar financial arrangement.

“(2) Limitations—A recipient making an advance payment under paragraph (1)—

“(A) shall have—

“(i) a signed purchase order and executed contract with a transit vehicle manufacturer that includes advance payment provisions;

“(ii) preaward authority; and

“(iii) met the requirements under subsection (m) and section 5318(e) of this title; and

“(B) shall not provide an advanced payment that is more than 20 percent of the total purchase order value.”