In the Senate of the United States,
July 27 (legislative day, June 30), 1993.
Resolved, That the bill from the House of Representa-
tives (H.R. 2493) entitled ‘‘An Act making appropriations for
Agriculture, Rural Development, Food and Drug Administra-
tion, and Related Agencies programs for the fiscal year end-
ing September 30, 1994, and for other purposes’’, do pass
with the following
AMENDMENTS:
Ω1æPage 2, line 7, strike out ø$2,320,000¿ and insert:
$2,295,000
Ω2æPage 2, line 18, strike out ø$553,000¿ and insert:
$546,000
Ω3æPage 3, line 3, strike out ø$5,954,000¿ and insert:
$5,781,000
Ω4æPage 3, line 8, strike out ø$808,000¿ and insert:
$798,000
Ω5æPage 5, line 6, strike out ø$26,301,000¿ and insert:
$25,960,000
Ω6æPage 5, line 25, strike out ø$1,333,000¿ and insert:
$1,317,000
HR 2493 EAS
Ω7æPage 6, line 6, strike out ø$8,629,000¿ and insert:
$8,510,000
Ω8æPage 6, line 12, strike out ønone of the funds in this
Act¿ and insert: hereafter, none of the funds available to
the Department of Agriculture
Ω9æPage 6, line 18, strike out ø$478,000¿ and insert:
$472,000
Ω10æPage 6, line 24, strike out ø$65,932,000¿ and in-
sert: $64,872,000
Ω11æPage 7, line 11, strike out ø$26,149,000¿ and in-
sert: $25,835,000
Ω12æPage 7, line 15, strike out ø$589,000¿ and insert:
$582,000
Ω13æPage 8, line 9, strike out ø$57,702,000¿ and insert:
$51,219,000
Ω14æPage 9, line 10, strike out ø$82,069,000¿ and in-
sert: $81,458,000
Ω15æPage 9, line 21, strike out ø$2,582,000¿ and insert:
$2,550,000
Ω16æPage 10, line 8, strike out ø$569,000¿ and insert:
$562,000
HR 2493 EAS
Ω17æPage 10, line 13, strike out ø$7,250,000¿ and in-
sert: $12,000,000
Ω18æPage 10, line 24, strike out ø$688,805,000¿ and
insert: $680,165,000
Ω19æPage 11, lines 4 and 5, strike out øappropriations
hereunder¿ and insert: hereafter, appropriations available
to the Department of Agriculture
Ω20æPage 13, line 13, strike out ø$29,387,000¿ and in-
sert: $32,788,000
Ω21æPage 13, line 14, after ‘‘That’’ insert: hereafter,
Ω22æPage 14, line 11, strike out ø$18,809,000¿ and in-
sert: $22,809,000
Ω23æPage 14, line 23, strike out ø$50,070,000¿ and in-
sert: $72,917,000
Ω24æPage 14, line 25, strike out ø$114,000,000¿ and
insert: $102,500,000
Ω25æPage 15, line 6, strike out ø$2,168,000¿ and insert:
$650,000
Ω26æPage 15, line 9, strike out ø$400,000¿ and insert:
$600,000
HR 2493 EAS
Ω27æPage 16, line 7, strike out ø$6,825,000¿ and insert:
$8,000,000
Ω28æPage 16, line 10, strike out ø$20,827,000¿ and in-
sert: $20,689,000
Ω29æPage 16, line 22, strike out ø$428,586,000¿ and
insert: $443,652,000
Ω30æPage 17, line 4, strike out ø$37,750,000¿ and in-
sert: $56,874,000
Ω31æPage 17, line 16, strike out ø$274,582,000¿ and
insert: $270,593,000
Ω32æPage 17, line 18, strike out ø$64,961,000¿ and in-
sert: $61,431,000
Ω33æPage 17, line 21, strike out ø$2,698,000¿ and in-
sert: $2,988,000
Ω34æPage 18, line 3, strike out ø$938,000¿ and insert:
$950,000
Ω35æPage 18, line 7, strike out ø$1,206,000¿ and insert:
$1,221,000
Ω36æPage 18, line 9, after ‘‘$10,000,000;’’ insert: pay-
ments for a Nutrition Education Initiative under section
3(d) of the Act, $5,000,000;
HR 2493 EAS
Ω37æPage 18, line 13, after ‘‘$1,750,000;’’ insert: pay-
ments to establish and operate centers of rural technology
development as authorized by section 2347 of Public Law
101–624 (7 U.S.C. 1932), $2,000,000;
Ω38æPage 18, line 15, after ‘‘$2,963,000;’’ insert: pay-
ments for rural health and safety education as authorized
by section 2390 of Public Law 101–624 (7 U.S.C. 2661
note, 2662), $2,000,000;
Ω39æPage 18, line 18, strike out ø$25,414,000¿ and in-
sert: $25,472,000
Ω40æPage 18, line 18, strike out ø$420,785,000¿ and
insert: $422,641,000
Ω41æPage 19, line 7, strike out ø$8,390,000¿ and insert:
$11,187,000
Ω42æPage 19, line 10, strike out ø$17,682,000¿ and in-
sert: $18,155,000
Ω43æPage 19, line 17, after ‘‘improvements’’ insert: :
Provided further, That $462,000 shall be available for a
grant pursuant to section 1472 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3818), in addition to other funds available in this
appropriation for grants under this section
HR 2493 EAS
Ω44æPage 20, line 1, after ‘‘Service,’’ insert: Agricultural
Cooperative Service,
Ω45æPage 20, line 2, strike out ø$691,000¿ and insert:
$682,000
Ω46æPage 20, line 14, strike out ø$439,042,000¿ and
insert: $443,653,000
Ω47æPage 22, line 2, after ‘‘amounts’’ insert: : Provided
further, That appropriations hereunder shall be available
pursuant to law (7 U.S.C. 2250) for the repair and alter-
ation of leased buildings and improvements, but unless oth-
erwise provided the cost of altering any one building during
the fiscal year shall not exceed 10 per centum of the current
replacement value of the building
Ω48æPage 22, line 2, after ‘‘amounts’’ insert: : Provided
further, That none of these funds shall be used to pay the
salary of any Department veterinarian or Veterinary Medi-
cal Officer who, when conducting inspections at horse
shows, exhibitions, sales, or auctions under the Horse Pro-
tection Act, as amended (15 U.S.C. 1821–1831), relies solely
on the use of digital palpation as the only diagnostic test
to determine whether or not a horse is sore under such Act
Ω49æPage 23, line 10, strike out ø$11,554,000¿ and in-
sert: $11,509,000
HR 2493 EAS
Ω50æPage 23, lines 15 and 16, strike out ønone of the
funds provided by this Act¿ and insert: hereafter, none of
the funds available to the Federal Grain Inspection Service
Ω51æPage 24, after line 10 insert:
AGRICULTURAL COOPERATIVE SERVICE
For necessary expenses to carry out the Cooperative
Marketing Act of July 2, 1926 (7 U.S.C. 451–457), and
for activities relating to the marketing aspects of coopera-
tives, including economic research and analysis and the ap-
plication of economic research findings, as authorized by
the Agricultural Marketing Act of 1946 (7 U.S.C. 1621–
1627), and for activities with institutions or organizations
throughout the world concerning the development and oper-
ation of agricultural cooperatives (7 U.S.C. 3291),
$5,708,000: Provided, That this appropriation shall be
available for employment pursuant to the second sentence
of section 706(a) of the Organic Act of 1944 (7 U.S.C.
2225), and not to exceed $15,000 shall be available for em-
ployment under 5 U.S.C. 3109.
Ω52æPage 24, line 21, strike out ø$61,614,000¿ and in-
sert: $56,887,000
Ω53æPage 25, line 23, strike out ø$10,309,000¿ and in-
sert: $10,670,000
Ω54æPage 26, after line 2, insert:
HR 2493 EAS
In fiscal years 1994 and 1995, section 32 funds shall
be used to promote sunflower and cottonseed oil exports to
the full extent authorized by section 1541 of Public Law
101–624 (7 U.S.C. 1464 note), and such funds shall be used
to facilitate additional sales of such oils in world markets.
Ω55æPage 26, line 8, strike out ø$1,735,000¿ and insert:
$1,300,000
Ω56æPage 26, line 16, strike out ø$12,194,000¿ and in-
sert: $12,052,000
Ω57æPage 26, line 24, after ‘‘Service,’’ insert: Office of
International Cooperation and Development,
Ω58æPage 26, line 25, strike out ø$563,000¿ and insert:
$556,000
Ω59æPage 29, strike out all after line 10 over to and
including line 16 on page 30, and insert:
For administrative and operating expenses, as author-
ized by the Federal Crop Insurance Act, as amended (7
U.S.C. 1516), $290,116,000: Provided, That not to exceed
$700 shall be available for official reception and representa-
tion expenses, as authorized by 7 U.S.C. 1506(i): Provided
further, That none of the funds in this Act may be used
to offer a Federal crop insurance policy in counties on crops
where a loss ratio, that has already been recalculated pursu-
HR 2493 EAS
ant to law to reflect the premium rates issued by the Cor-
poration for the 1993 crop year, is in excess of 1.10 more
than 70 percent of the years that a policy has been offered
since 1980: Provided further, That none of the funds in this
Act may be used to pay operating and administrative costs
that exceed 31 per centum of premium to insurers of policies
on which the Corporation provides reinsurance, except to
reimburse said insurers for excess loss adjustment expenses
as provided for in the Standard Reinsurance Agreement is-
sued by the Corporation: Provided further, That the second
proviso shall not apply in any county affected if the Cor-
poration has implemented a nonstandard classification sys-
tem in such county for those individual farms that have
experienced excessive losses since 1980 under which the pre-
mium rates, notwithstanding the provision of section 508(d)
of the Federal Crop Insurance Act, are increased over com-
parable rates effective for the 1993 crop, or the insured
yields are decreased from comparable yields for the 1993
crop, or a combination of both, by an amount or amounts
sufficient to ensure that an estimated loss ratio will not
exceed 1.1 for the crop produced on such farms during the
1994 crop year.
Ω60æPage 32, line 8, strike out ø$578,000¿ and insert:
$571,000
HR 2493 EAS
Ω61æPage 32, line 24, strike out ø$588,262,000¿ and
insert: $593,835,000
Ω62æPage 34, line 22, strike out ø$9,721,000¿ and in-
sert: $10,921,000
Ω63æPage 35, line 11, strike out ø$228,915,000¿ and
insert: $258,615,000
Ω64æPage 35, line 12, strike out ø$40,386,000¿ and in-
sert: $41,186,000
Ω65æPage 35, line 19, strike out ø$22,881,000¿ and in-
sert: $34,381,000
Ω66æPage 36, line 17, strike out ø$32,945,000¿ and in-
sert: $35,000,000
Ω67æPage 40, line 10, strike out ø$15,000,000¿ and in-
sert: $22,000,000
Ω68æPage 40, strike out lines 23 to 26
Ω69æPage 41, strike out lines 1 to 6
Ω70æPage 43, line 2, strike out ø$44,450,000¿ and in-
sert: $70,000,000
Ω71æPage 43, line 17, strike out ø$583,000¿ and insert:
$576,000
HR 2493 EAS
Ω72æPage 43, lines 19 and 20, strike out øexcept Sec.
722,¿
Ω73æPage 44, line 12, strike out ø$573,900,000¿ and
insert: $540,107,000
Ω74æPage 44, line 13, strike out ø$166,863,000¿ and
insert: $150,000,000
Ω75æPage 44, line 20, strike out ø$366,360,000¿ and
insert: $366,435,000
Ω76æPage 44, line 21, strike out ø$12,225,000¿ and in-
sert: $12,300,000
Ω77æPage 44, line 24, strike out ø$311,972,000¿ and
insert: $309,967,000
Ω78æPage 44, line 25, strike out ø$25,397,000¿ and in-
sert: $22,830,000
Ω79æPage 45, line 10, strike out ø$417,523,000¿ and
insert: $475,865,000
Ω80æPage 45, line 15, strike out ø$5,840,000¿ and in-
sert: $11,210,000
Ω81æPage 45, line 21, strike out all after ‘‘Act’’ over to
and including ‘‘agreements’’ in line 3 on page 46
HR 2493 EAS
Ω82æPage 47, line 3, strike out ø$634,624,000¿ and in-
sert: $678,543,000
Ω83æPage 47, line 4, strike out ø$2,750,000,000¿ and
insert: $4,046,252,000
Ω84æPage 47, line 5, strike out ø$1,800,000,000¿ and
insert: $3,000,000,000
Ω85æPage 47, line 7, strike out ø$4,909,000¿ and insert:
$4,312,000
Ω86æPage 47, line 8, strike out ø$2,012,000¿ and insert:
$1,415,000
Ω87æPage 47, line 10, strike out ø$1,163,000¿ and in-
sert: $1,000,000
Ω88æPage 47, line 13, strike out ø$147,566,000¿ and
insert: $100,000,000
Ω89æPage 47, line 17, strike out ø$34,080,000¿ and in-
sert: $41,507,000
Ω90æPage 47, line 18, strike out ø$119,985,000¿ and
insert: $129,818,000
Ω91æPage 47, line 19, strike out ø$9,360,000¿ and in-
sert: $15,747,000
HR 2493 EAS
Ω92æPage 47, line 20, strike out ø$29,425,000¿ and in-
sert: $29,445,000
Ω93æPage 47, line 21, strike out ø$506,000¿ and insert:
$494,000
Ω94æPage 47, line 22, strike out ø$43,000¿ and insert:
$31,000
Ω95æPage 47, line 24, strike out ø$229,000¿ and insert:
$197,000
Ω96æPage 48, line 2, strike out ø$22,405,000¿ and in-
sert: $15,400,000
Ω97æPage 48, line 12, strike out ø$835,000,000¿ and
insert: $903,886,000
Ω98æPage 48, line 13, strike out ø$35,000,000¿ and in-
sert: $35,500,000
Ω99æPage 48, line 14, strike out ø$325,000,000¿ and
insert: $275,000,000
Ω100æPage 48, line 16, strike out ø$298,762,000¿ and
insert: $200,000,000
Ω101æPage 48, line 22, strike out ø$111,040,000¿ and
insert: $120,532,000
HR 2493 EAS
Ω102æPage 48, line 23, strike out ø$24,125,000¿ and
insert: $19,320,000
Ω103æPage 48, line 25, strike out ø$2,778,000¿ and in-
sert: $1,860,000
Ω104æPage 49, line 5, strike out ø$56,000,000¿ and in-
sert: $84,000,000
Ω105æPage 49, line 12, strike out ø$100,000,000¿ and
insert: $150,000,000
Ω106æPage 49, after line 14 insert:
AGRICULTURAL RESOURCE CONSERVATION
DEMONSTRATION PROGRAM ACCOUNT
For loan guarantees authorized under sections 1465–
1469 of Public Law 101–624, for the Agricultural Resource
Conservation Demonstration Program, $6,799,000 to any
State defined as eligible under section 1465(c)(3)(A) of that
Act. For the cost, as defined in section 502 of the Congres-
sional Budget Act of 1974, $3,599,000.
Ω107æPage 49, line 18, strike out ø$2,963,000¿ and in-
sert: $4,000,000
Ω108æPage 49, line 22, strike out ø$450,000,000¿ and
insert: $535,571,000
HR 2493 EAS
Ω122æPage 58, line 12, after ‘‘That’’ insert: hereafter,
Ω123æPage 58, line 21, after ’’That’’ insert: hereafter,
Ω124æPage 59, line 8, after ‘‘That’’ insert: hereafter,
Ω125æPage 59, lines 13 and 14, strike out øappropriated
under this Act.¿ and insert: available to the Department
of Agriculture; in addition,
Ω126æPage 59, lines 14 and 15, strike out øappropriated
under this Act¿ and insert: available to the Department
of Agriculture
Ω127æPage 59, line 18, strike out ømonth. Exceptions¿
and insert: month; and in addition, exceptions
Ω128æPage 59, line 23, strike out ø$1,706,000¿ and in-
sert: $2,000,000
Ω129æPage 60, line 5, strike out ø1995. Only¿ and in-
sert: 1995: Provided, That hereafter, only
Ω130æPage 60, line 9, strike out øappropriated under
this Act.¿ and insert: available to the Department of Agri-
culture; in addition,
Ω131æPage 60, line 10, strike out øappropriated under
this Act¿ and insert: available to the Department of Agri-
culture
HR 2493 EAS
Ω132æPage 60, line 13, strike out ømonth. Exceptions¿
and insert: month; and in addition, exceptions
Ω133æPage 60, line 21, strike out ø$3,210,000,000¿ and
insert: $3,213,500,000
Ω134æPage 60, line 22, strike out ø$4,000,000¿ and in-
sert: $8,000,000
Ω135æPage 60, line 24, strike out ønone of the funds
in this Act¿ and insert: hereafter, none of the funds avail-
able to the Department of Agriculture
Ω136æPage 61, line 2, after ‘‘program’’ insert: : Provided
further, That until revised allocation regulations have been
issued, the Secretary may waive regulations governing allo-
cations as necessary to ensure funds are received by States
most in need
Ω137æPage 61, line 2, after ‘‘program’’ insert: : Provided
further, That hereafter, rebate funds received by States as
part of a cost containment initiative for WIC are exempt
from the interest provisions of the Cash Management Im-
provement Act of 1990, Public Law 101–453
Ω138æPage 62, line 18, after ‘‘1995’’ insert: : Provided,
That notwithstanding any other provision of law, for meals
provided pursuant to the Older Americans Act of 1965, a
maximum rate of reimbursement to States will be estab-
HR 2493 EAS
lished by the Secretary, subject to reduction if obligations
would exceed the amount of available funds, with any unob-
ligated funds to remain available only for obligation in the
fiscal year beginning October 1, 1994
Ω139æPage 62, line 23, strike out ø$40,000,000¿ and
insert: $42,500,000
Ω140æPage 63, line 3, strike out ø$80,000,000¿ and in-
sert: $107,500,000
Ω141æPage 63, after line 15, insert:
HUMAN NUTRITION INFORMATION SERVICE
For necessary expenses to enable the Human Nutrition
Information Service to perform applied research and dem-
onstrations relating to human nutrition and consumer use
and economics of food utilization, and nutrition monitor-
ing, $10,864,000: Provided, That funds made available by
Public Law 102–341 under this head shall remain available
for obligation from October 1, 1993, through September 30,
1994, only for the purpose of expenses necessary to conduct
the Continuing Survey of Food Intakes by Individuals: Pro-
vided further, That this appropriation shall be available for
employment pursuant to the second sentence of section
706(a) of the Organic Act of 1944 (7 U.S.C. 2225).
Ω142æPage 64, line 3, strike out ø$117,812,000¿ and
insert: $110,284,000
HR 2493 EAS
Ω143æPage 64, line 8, strike out all after ‘‘basis’’ over
to and including ‘‘2392)’’ in line 2 on page 65
Ω144æPage 66, line 11, strike out ø$450,446,000¿ and
insert: $490,184,000
Ω145æPage 66, line 13, strike out ø$45,927,000¿ and
insert: $50,261,000
Ω146æPage 67, line 9, strike out ø$346,889,000¿ and
insert: $377,490,000
Ω147æPage 68, after line 26, insert:
OFFICE OF INTERNATIONAL COOPERATION AND
DEVELOPMENT
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses of the Office of International
Cooperation and Development to coordinate, plan, and di-
rect activities involving international development, tech-
nical assistance and training, and international scientific
and technical cooperation in the Department of Agriculture,
including those authorized by the Food and Agriculture Act
of 1977 (7 U.S.C. 3291), $7,697,000: Provided, That not
to exceed $3,000 of this amount shall be available for official
reception and representation expenses as authorized by 7
U.S.C. 1766: Provided further, That in addition, funds
available to the Department of Agriculture shall be avail-
able to assist an international organization in meeting the
HR 2493 EAS
costs, including salaries, fringe benefits and other associated
costs, related to the employment by the organization of Fed-
eral personnel that may transfer to the organization under
the provisions of 5 U.S.C. 3581–3584, or of other well-quali-
fied United States citizens, for the performance of activities
that contribute to increased understanding of international
agricultural issues, with transfer of funds for this purpose
from one appropriation to another or to a single account
authorized, such funds remaining available until expended:
Provided further, That the Office may utilize advances of
funds, or reimburse this appropriation for expenditures
made on behalf of Federal agencies, public and private or-
ganizations and institutions under agreements executed
pursuant to the agricultural food production assistance pro-
grams of the International Development Cooperation Ad-
ministration (22 U.S.C. 2392).
Ω148æPage 70, line 1, strike out all after ‘‘$25,000;’’
down to and including ‘‘9701’’ in line 9
Ω149æPage 70, line 9, strike out all after ‘‘9701’’ down
to and including ’’Tea’’ in line 11
Ω150æPage 70, line 11, after ’’Tea’’ insert: $638,339,000;
and in addition, $175,000,000 to be credited to this appro-
priation, from fees established and collected to cover the
costs of regulation of products under the jurisdiction of the
HR 2493 EAS
Food and Drug Administration, to remain available until
expended
Ω151æPage 70, after line 11, insert:
In addition, not to exceed $54,000,000 in fees pursuant
to section 736 of the Federal Food, Drug, and Cosmetic Act
may be credited to this appropriation and remain available
until expended in accordance with section 736(g) of such
Act: Provided, That this amount may be adjusted pursuant
to section 736(c) of that Act: Provided further, That fees
derived from applications received during fiscal year 1994
shall be credited to the appropriation current in the year
in which the fees are collected and subject to the fiscal year
1994 limitation.
Ω152æPage 73, line 12, strike out øNo part of the funds
contained in this Act¿ and insert: Hereafter, none of the
funds available to the Department of Agriculture
Ω153æPage 77, line 10, strike out øNone of the funds
provided in this Act¿ and insert: Hereafter, none of the
funds available to the Department of Agriculture
Ω154æPage 78, line 25, after ‘‘count;’’ insert: Rural De-
velopment Loan Fund Program Account;
HR 2493 EAS
teed by the Farmers Home Administration and the Rural
Development Administration shall be the rates established
pursuant to the applicable Federal statutes.
Ω163æPage 81, after line 12, insert:
SEC. 729. None of the funds appropriated or otherwise
made available by this Act shall be used to operate the
Board of Tea Experts established under section 2 of the Act
entitled ‘‘An Act to prevent the importation of impure and
unwholesome tea’’, approved March 2, 1897 (21 U.S.C. 42)
(commonly known as the ‘‘Tea Importation Act’’). Except
as specifically provided in the preceding sentence, the au-
thority of the Commissioner of Food and Drugs shall not
be affected by this section.
Ω164æPage 81, after line 12, insert:
SEC. 730. (a) None of the funds appropriated or other-
wise made available by this Act shall be used by the Sec-
retary of Agriculture to provide a total amount of payments
to a person to support the price of honey under section 207
of the Agricultural Act of 1949 (7 U.S.C. 1446h) and section
405A of such Act (7 U.S.C. 1425a) in excess of $50,000 in
the 1994 crop year.
Ω165æPage 81, after line 12, insert:
HR 2493 EAS
SEC. 731. SENSE OF THE SENATE REGARDING JAPANESE
TRADE BARRIERS TO UNITED STATES GROWN
APPLES.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) The United States apple industry has worked
for 22 years to export apples to Japan, answering
every technical question, and fulfilling every test and
trapping program required by the Japanese Govern-
ment.
(2) During negotiations with United States
growers, the Japanese Government has repeatedly
added new technical requirements or delayed discus-
sions to resolve technical disputes.
(3) United States apple growers currently export
to 24 countries, none of which have phytosanitary
standards as stringent as Japan’s standards.
(4) The administration has provided exemplary
support on this issue, expressing its dissatisfaction
with the Japanese phytosanitary requirements at
every possible occasion.
(b) POLICY.—It is the policy of the United States Sen-
ate that the current Japanese phytosanitary requirements
on United States apples constitute an unnecessary trade
barrier and the United States Senate urges the administra-
tion to continue to work toward removing the barrier, in-
HR 2493 EAS
cluding initiation of an investigation under section 301 of
the Trade Act of 1974.
Ω166æPage 81, after line 12, insert:
SEC. 732. None of the funds appropriated or otherwise
made available by this Act shall be used to support the price
of wool or mohair by means of loans, purchases, payments,
or other operations.
Ω167æPage 81, after line 12, insert:
SEC. 733. The Rural Electrification Act is amended
by adding the following new section:
‘‘SEC. 306C. REFINANCING OF LOANS.—
‘‘(a) IN GENERAL.—A borrower of a loan made
by the Federal Financing Bank and guaranteed
under section 306 of this Act may, at the option of
the borrower, refinance such loan, loan advance, or
any portion thereof.
‘‘(b) PENALTY.—
‘‘(1) DETERMINATION OF PENALTY.—A Pen-
alty shall be assessed against a borrower that re-
finances a loan, loan advance or any portion
thereof under this section. Such penalty shall, ex-
cept as provided by paragraph (2), be equal to
the lesser of—
‘‘(A) the difference between the out-
standing principal balance of the loan being
HR 2493 EAS
refinanced and the present value of such
loan discounted at a rate equal to the cur-
rent cost of funds to the Department of the
Treasury for obligations of comparable ma-
turity to the loan being refinanced;
‘‘(B) one hundred percent of the
amount of interest for one year on the out-
standing principal balance of such loan,
loan advance, or any portion thereof being
refinanced, multiplied by the ratio which—
‘‘(i) the number of quarterly pay-
ment dates between the refinancing
date and the maturity date of the loan
advance,
bears to—
‘‘(ii) the number of quarterly pay-
ment dates between the first quarterly
payment date that occurs 12 years
after the end of the year in which the
amount being refinanced was advanced
and the maturity date of such loan ad-
vance;
‘‘(C) one hundred percent of the
amount of interest for one year on the out-
standing principal balance of such loan,
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loan advance, or any portion thereof being
refinanced, plus, for the interval between the
date of the refinancing and the first quar-
terly payment date that occurs 12 years
after the end of the year in which the
amount being refinanced was advanced, the
present value of the difference between each
payment scheduled for such interval on such
loan amount being refinanced and the pay-
ment amounts that would be required dur-
ing such interval on the amount being refi-
nanced if the interest rate on the loan were
equal to the current cost of funds to the De-
partment of the Treasury for obligations of
comparable maturity to the loan being refi-
nanced.
‘‘(2) LIMITATION.—The penalty provided by
subsection (b)(1)(A) shall be required for a refi-
nancing under this section, except that in the
case of a loan advanced under an agreement exe-
cuted before 1984 which permits the prepayment
or refinancing of such loan advance based on the
payment of one year of interest on the outstand-
ing principal balance of such loan advance, a
borrower may, in lieu of the penalty required by
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subsection (b)(1)(A), pay a penalty as provided
by—
‘‘(A) subsection (b)(1)(B) if such loan
advance has reached the twelve year matu-
rity required under such loan agreement for
such prepayment or refinancing;
‘‘(B) subsection (b)(1)(C) if such loan
advance has not reached the twelve year
maturity required under such loan agree-
ment for such prepayment or refinancing.
‘‘(3) FINANCING OF PENALTY.—A borrower
may at its option meet the penalty requirements
of paragraph (1) by either making a payment in
the amount of such required penalty at the time
of such refinancing or by increasing the out-
standing principal balance of the loan advance
that is being refinanced under this section by the
amount of such penalty. If a borrower meets the
penalty requirements of paragraph (1) by in-
creasing the outstanding principal balance of the
loan advance that is being refinanced, the bor-
rower shall make a payment at the time of such
refinancing equal to 2.5 percent of the amount of
such penalty that is added to the outstanding
principal balance of such loan.
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‘‘(c) LOAN TERMS AND CONDITIONS AFTER RE-
FINANCING.—
‘‘(1) IN GENERAL.—Upon the payment of a
penalty as provided by subsection (b), the loan,
loan advance, or any portion thereof shall be re-
financed at the interest rate described in para-
graph (2) for the term or terms selected by the
borrower pursuant to paragraph (3).
‘‘(2) INTEREST RATE.—The interest rate on
a loan refinanced under this section shall be de-
termined to be equal to the current cost of funds
to the Department of the Treasury for obligations
of comparable maturity to the term selected by
the borrower pursuant to paragraph (3), but the
interest rate on such a refinanced loan shall not
exceed 7 percent.
‘‘(3) LOAN
TERM.—Subject to paragraph
(4), the borrower of a loan that is refinanced
under this section shall select the term for which
an interest rate shall be determined pursuant to
paragraph (2), and at the end of the term (and
any succeeding term selected by the borrower
under this paragraph), may renew the loan for
another term selected by the borrower.
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‘‘(4) MAXIMUM TERM.—The borrower may
not select a term pursuant to paragraph (3) that
ends after the maturity date set for such loan be-
fore its refinancing under this section.
‘‘(5) EXISTING LOAN.—The refinancing of a
loan pursuant to this section and the inclusion
of a penalty in the outstanding principal bal-
ance of such refinanced loan, pursuant to para-
graph (3), shall not, notwithstanding any other
provision of law, be considered the making of a
new loan, new loan guarantee or other new cred-
it activity, nor shall such refinancing be subject
to appropriations or limited by the amount pro-
vided during a fiscal year for new loans, loan
guarantees or other credit activity, nor may the
request of a borrower for such refinancing under
this section be denied.’’.
Attest:
Secretary.
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