`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3514 Enrolled Bill (ENR)]

        H.R.3514
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act


 
       To clarify the regulatory oversight exercised by the Rural 
    Electrification Administration with respect to certain electric 
                               borrowers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. ADMINISTRATIVE PROHIBITIONS APPLICABLE TO CERTAIN ELECTRIC 
BORROWERS.
    Section 306E of the Rural Electrification Act of 1936 is amended to 
read as follows:
``SEC. 306E. ADMINISTRATIVE PROHIBITIONS APPLICABLE TO CERTAIN ELECTRIC 
BORROWERS.
    ``(a) In General.--For the purpose of relieving borrowers of 
unnecessary and burdensome requirements, the Administrator, guided by 
the practices of private lenders with respect to similar credit risks, 
shall issue regulations, applicable to any electric borrower under this 
Act whose net worth exceeds 110 percent of the outstanding principal 
balance on all loans made or guaranteed to the borrower by the 
Administrator, to minimize those approval rights, requirements, 
restrictions, and prohibitions that the Administrator otherwise may 
establish with respect to the operations of such a borrower.
    ``(b) Subordination or Sharing of Liens.--At the request of a 
private lender providing financing to such a borrower for a capital 
investment, the Administrator shall, expeditiously, either offer to 
share the government's lien on the borrower's system or offer to 
subordinate the government's lien on that property financed by the 
private lender.
    ``(c) Issuance of Regulations.--In issuing regulations implementing 
this section, the Administrator may establish requirements, guided by 
the practices of private lenders, to ensure that the security for any 
loan made or guaranteed under this Act is reasonably adequate.
    ``(d) Authority of the Administrator.--Nothing in this section 
limits the authority of the Administrator to establish terms and 
conditions with respect to the use by borrowers of the proceeds of loans 
made or guaranteed under this Act or to take any other action 
specifically authorized by law.''.

SEC. 2. ISSUANCE OF REGULATIONS.

    The Administrator of the Rural Electrification Administration shall 
issue interim final regulations implementing this Act not later than 180 
days after enactment. If the regulations are not issued within such 
period of time, the Administrator may not, until the Administrator 
issues such regulations, require prior approval of, establish any 
requirement, restriction, or prohibition, with respect to the operations 
of any electric borrower under the Rural Electrification Act of 1936 
whose net worth exceeds 110 percent of the outstanding principal balance 
on all loans made or guaranteed to the borrower by the Administrator.







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.`