Calendar No. 631

103D CONGRESS

2D SESSION S. 1988

[Report No. 103–377]

A BILL

To authorize the transfer of a certain loan contract

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

SEPTEMBER 26 (legislative day, SEPTEMBER 12), 1994

Reported with an amendment
II

Calendar No. 631

103D CONGRESS

2D SESSION S. 1988

[Report No. 103–377]

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

Water Conservancy Project, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 25 (legislative day, FEBRUARY 22), 1994

Mr. BROWN (for himself and Mr. CAMPBELL) introduced the following bill;

which was read twice and referred to the Committee on Energy and

Natural Resources

SEPTEMBER 26 (legislative day, SEPTEMBER 12), 1994

Reported by Mr. JOHNSTON, with an amendment

[Insert the part printed in italic]

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’’.
2

•S 1988 RS

1 SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT

2 LOAN.

3 (a) AGREEMENT.—

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

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

6 the Interior shall conduct appropriate investigations

7 regarding, and is authorized to sell, or accept pre8 payment on, the loan contract described in para9 graph (2) to the Upper Yampa Water Conservancy

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

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

12 (2) LOAN CONTRACT.—The loan contract de13 scribed in paragraph (1) is numbered 7–07–40–

14 R0480 and was entered into pursuant to the Small

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

16 et seq.).

17 (b) PAYMENT.—Any agreement negotiated pursuant

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

19 Government calculated by discounting the remaining pay20 ments due on the loans by the interest rate determined

21 pursuant to subsection (c).

22 (c) INTEREST RATE.—

23 (1) IN GENERAL.—The Secretary shall deter24 mine the interest rate in accordance with the guide25 lines set forth in Circular A–129 issued by the Of-
3

•S 1988 RS

1 fice of Management and Budget concerning loan

2 sales and prepayment of loans.

3 (2) DETERMINATION.—In determining the in4 terest rate, the Secretary—

5 (A) shall not equate an appropriate

6 amount of prepayment with the price of the

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

8 to a third party; and

9 (B) shall, in following the guidelines set

10 forth in Circular A–129 regarding an allowance

11 for administrative expenses and possible losses,

12 make such an allowance from the perspective of

13 the Federal Government as lender and not from

14 the perspective of a third party purchasing the

15 loan on the open market.

16 (3) ADJUSTMENT.—If the borrower or pur17 chaser of the loan has access to tax-exempt financ18 ing, including tax-exempt bonds, tax-exempt cash re19 serves, and cash and loans of any kind from any tax20 exempt entity, to finance the transaction, and if the

21 Office of Management and Budget grants the Sec22 retary the right to conduct such a transaction, then

23 the interest rate by which the Secretary discounts

24 the remaining payments due on the loan shall be ad25 justed by an amount that compensates the Federal
4

•S 1988 RS

1 Government for the direct or indirect loss of future

2 tax revenues.

3 (4) LIMITATION.—Notwithstanding any other

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

5 composite interest rate consisting of the current

6 market yield on Treasury securities of comparable

7 maturities.

8 (5) APPROVAL.—The Secretary shall obtain ap9 proval from the Secretary of the Treasury and the Di10 rector of the Office of Management and Budget of the

11 final terms of any loan sale or prepayment made

12 pursuant to this title.

13 SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.

14 Upon receipt of the payment specified in section

15 2(b)—

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

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

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

19 right and interest of the United States in the Stage20 coach Reservoir Project to the District; and

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

22 and its officers and agents, of any liability associ23 ated with the Stagecoach Reservoir Project.
5

•S 1988 RS

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

4 2 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.