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103D CONGRESS

2D SESSION H. R. 4525

To authorize the transfer of a certain loan contract to the Upper Yampa

Water Conservancy Project, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 26, 1994

Mr. MCINNIS introduced the following bill; which was referred to the

Committee on Natural Resources

A BILL

To authorize the transfer of a certain loan contract to the

Upper Yampa Water Conservancy Project, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Stagecoach Reservoir

5 Project Act of 1993’’.

6 SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT

7 LOAN.

8 (a) AGREEMENT.—

9 (1) IN GENERAL.—As soon as practicable after

10 the date of enactment of this Act, the Secretary of
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1 the Interior shall conduct appropriate investigations

2 regarding, and is authorized to sell, or accept pre3 payment on, the loan contract described in para4 graph (2) to the Upper Yampa Water Conservancy

5 District in Colorado (referred to in this Act as the

6 ‘‘District’’) for the Stagecoach Reservoir Project.

7 (2) LOAN CONTRACT.—The loan contract de8 scribed in paragraph (1) is numbered 7–07–40–

9 R0480 and was entered into pursuant to the Small

10 Reclamation Projects Act of 1956 (43 U.S.C. 422a

11 et seq.).

12 (b) PAYMENT.—Any agreement negotiated pursuant

13 to subsection (a) shall realize an amount to the Federal

14 Government calculated by discounting the remaining pay15 ments due on the loans by the interest rate determined

16 pursuant to subsection (c).

17 (c) INTEREST RATE.—

18 (1) IN GENERAL.—The Secretary shall deter19 mine the interest rate in accordance with the guide20 lines set forth in Circular A–129 issued by the Of21 fice of Management and Budget concerning loan

22 sales and prepayment of loans.

23 (2) DETERMINATION.—In determining the in24 terest rate, the Secretary—
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1 (A) shall not equate an appropriate

2 amount of prepayment with the price of the

3 loan if it were to be sold on the open market

4 to a third party; and

5 (B) shall, in following the guidelines set

6 forth in Circular A–129 regarding an allowance

7 for administrative expenses and possible losses,

8 make such an allowance from the perspective of

9 the Federal Government as lender and not from

10 the perspective of a third party purchasing the

11 loan on the open market.

12 (3) ADJUSTMENT.—If the borrower or pur13 chaser of the loan has access to tax-exempt financ14 ing, including tax-exempt bonds, tax-exempt cash re15 serves, and cash and loans of any kind from any tax16 exempt entity, to finance the transaction, and if the

17 Office of Management and Budget grants the Sec18 retary the right to conduct such a transaction, then

19 the interest rate by which the Secretary discounts

20 the remaining payments due on the loan shall be ad21 justed by an amount that compensates the Federal

22 Government for the direct or indirect loss of future

23 tax revenues.

24 (4) LIMITATION.—Notwithstanding any other

25 provision of law, the interest rate shall not exceed a
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1 composite interest rate consisting of the current

2 market yield on Treasury securities of comparable

3 maturities.

4 SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.

5 Upon receipt of the payment specified in section

6 2(b)—

7 (1) the obligation of the District under the loan

8 contract described in section 2(a)(2) shall terminate;

9 (2) the Secretary of the Interior shall convey all

10 right and interest of the United States in the Stage11 coach Reservoir Project to the District; and

12 (3) the District shall absolve the United States,

13 and its officers and agents, of any liability associ14 ated with the Stagecoach Reservoir Project.

15 SEC. 4. TERMINATION OF AUTHORITY.

16 (a) IN GENERAL.—Subject to subsection (b), the au17 thority granted by this Act to sell loans shall terminate

18 2 years after the date of enactment of this Act.

19 (b) TIME TO RESPOND TO OFFER.—The borrower

20 shall have not less than 60 days to respond to any prepay21 ment offer made by the Secretary.

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