Union Calendar No. 438

103D CONGRESS

2D SESSION H. R. 4525

[Report No. 103–792]

A BILL

To authorize the transfer of a certain loan contract

and for other purposes.to the Upper Yampa Water Conservancy Project,

OCTOBER 3, 1994

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole Hose on the State of the Union, and
IB

Union Calendar No. 438

103D CONGRESS

2D SESSION H. R. 4525

[Report No. 103–792]

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

OCTOBER 3, 1994

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on May 26, 1994]

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,
2

•HR 4525 RH

1 SECTION 1. SHORT TITLE.

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

3 Project Act of 1993’’.

4 SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT

5 LOAN.

6 (a) AGREEMENT.—

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

8 the date of enactment of this Act, the Secretary of the

9 Interior shall conduct appropriate investigations re10 garding, and is authorized to sell, or accept prepay11 ment on, the loan contract described in paragraph (2)

12 to the Upper Yampa Water Conservancy District in

13 Colorado (referred to in this Act as the ‘‘District’’) for

14 the Stagecoach Reservoir Project.

15 (2) LOAN CONTRACT.—The loan contract de16 scribed in paragraph (1) is numbered 7–07–40–

17 R0480 and was entered into pursuant to the Small

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

19 seq.).

20 (b) PAYMENT.—Any agreement negotiated pursuant to

21 subsection (a) shall realize an amount to the Federal Gov22 ernment calculated by discounting the remaining payments

23 due on the loans by the interest rate determined pursuant

24 to subsection (c).

25 (c) INTEREST RATE.—
3

•HR 4525 RH

1 (1) IN GENERAL.—The Secretary shall determine

2 the interest rate in accordance with the guidelines set

3 forth in Circular A–129 issued by the Office of Man4 agement and Budget concerning loan sales and pre5 payment of loans.

6 (2) DETERMINATION.—In determining the inter7 est rate, the Secretary—

8 (A) shall not equate an appropriate amount

9 of prepayment with the price of the loan if it

10 were to be sold on the open market to a third

11 party; and

12 (B) shall, in following the guidelines set

13 forth in Circular A–129 regarding an allowance

14 for administrative expenses and possible losses,

15 make such an allowance from the perspective of

16 the Federal Government as lender and not from

17 the perspective of a third party purchasing the

18 loan on the open market.

19 (3) ADJUSTMENT.—If the borrower or purchaser

20 of the loan has access to tax-exempt financing, includ21 ing tax-exempt bonds, tax-exempt cash reserves, and

22 cash and loans of any kind from any tax-exempt en23 tity, to finance the transaction, and if the Office of

24 Management and Budget grants the Secretary the

25 right to conduct such a transaction, then the interest
4

•HR 4525 RH

1 rate by which the Secretary discounts the remaining

2 payments due on the loan shall be adjusted by an

3 amount that compensates the Federal Government for

4 the direct or indirect loss of future tax revenues.

5 (4) LIMITATION.—Notwithstanding any other

6 provision of law, the interest rate shall not exceed a

7 composite interest rate consisting of the current mar8 ket yield on Treasury securities of comparable matu9 rities.

10 (5) APPROVAL.—The Secretary shall obtain ap11 proval from the Secretary of the Treasury and the Di12 rector of the Office of Management and Budget of the

13 final terms of any loan sale or prepayment made

14 pursuant to this title.

15 SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.

16 Upon receipt of the payment specified in section

17 2(b)—

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

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

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

21 right and interest of the United States in the Stage22 coach Reservoir Project to the District; and

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

24 and its officers and agents, of any liability associated

25 with the Stagecoach Reservoir Project.
5

•HR 4525 RH

1 SEC. 4. TERMINATION OF AUTHORITY.

2 (a) IN GENERAL.—Subject to subsection (b), the au3 thority granted by this Act to sell loans shall terminate 2

4 years after the date of enactment of this Act.

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

6 shall have not less than 60 days to respond to any prepay7 ment offer made by the Secretary.