I
103D CONGRESS
1ST SESSION
H. R. 3123
To increase the interest rates electric and telephone borrowers pay under
the lending programs administered by the Rural Electrification Adminis-
tration and otherwise restructure the lending programs carried out by
that Administration.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 22, 1993
Mr. DE LA GARZA (for himself, Mr. ROBERTS, Mr. ENGLISH of Oklahoma,
Mr. COMBEST, and Mr. BOEHNER) introduced the following bill; which
was referred to the Committee on Agriculture
A BILL
To increase the interest rates electric and telephone borrow-
ers pay under the lending programs administered by
the Rural Electrification Administration and otherwise
restructure the lending programs carried out by that
Administration.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Rural Electrification
Loan Restructuring Act of 1993’’.
SEC. 2. ELECTRIC AND TELEPHONE LOAN PROGRAMS.
(a) INSURED ELECTRIC AND TELEPHONE LOANS.—
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(1) IN GENERAL.—Section 305 of the Rural
Electrification Act of 1936 (7 U.S.C. 935) is amend-
ed—
(A) by striking subsections (b) and (d);
(B) by redesignating subsection (c) as sub-
section (b); and
(C) by inserting after subsection (b) (as so
redesignated) the following new subsections:
‘‘(c) INSURED ELECTRIC LOANS.—
‘‘(1) HARDSHIP LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
shall make insured electric loans, to the extent
of qualifying applications for the loans, at an
interest rate of 5 percent per year to any appli-
cant for a loan who meets each of the following
requirements:
‘‘(i) The average revenue per kilowatt-
hour sold by the applicant is not less than
120 percent of the average revenue per kil-
owatt-hour sold by all utilities in the State
in which the applicant provides service.
‘‘(ii) The average residential revenue
per kilowatt-hour sold by the applicant is
not less than 120 percent of the average
residential revenue per kilowatt-hour sold
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by all utilities in the State in which the ap-
plicant provides service.
‘‘(iii) The average per capita income
of the residents receiving electric service
from the applicant is less than the average
per capita income of the residents of the
State in which the applicant provides serv-
ice, or the median household income of the
households receiving electric service from
the applicant is less than the median
household income of the households in the
State.
‘‘(B) SEVERE HARDSHIP LOANS.—In addi-
tion to hardship loans that are made under sub-
paragraph (A), the Administrator may make an
insured electric loan at an interest rate of 5
percent per year to an applicant for a loan if,
in the sole discretion of the Administrator, the
applicant has experienced a severe hardship.
‘‘(C) 
LIMITATION.—The 
Administrator
may not make a loan under this paragraph to
an applicant for the purpose of furnishing or
improving electric service to a consumer located
in an urban area (as defined by the Bureau of
the Census) if the average number of consum-
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ers per mile of line of the total electric system
of the applicant exceeds 17.
‘‘(2) MUNICIPAL RATE LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
shall make insured electric loans, to the extent
of qualifying applications for the loans, at the
interest rate described in subparagraph (B) for
the term or terms selected by the applicant pur-
suant to subparagraph (C).
‘‘(B) INTEREST RATE.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the interest rate described in this sub-
paragraph on a loan to a qualifying appli-
cant shall be—
‘‘(I) the interest rate determined
by the Administrator to be equal to
the current market yield on outstand-
ing municipal obligations with remain-
ing periods to maturity similar to the
term selected by the applicant pursu-
ant to subparagraph (C), but not
greater than the rate determined
under section 307(a)(3)(A) of the
Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1927(a)(3)(A))
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that is based on the current market
yield on outstanding municipal obliga-
tions; plus
‘‘(II) if the applicant for the loan
makes an election pursuant to sub-
paragraph (D) to include in the loan
agreement the right of the applicant
to prepay the loan, a rate equal to the
amount by which—
‘‘(aa) the interest rate on
commercial loans for a similar
period that afford the borrower
such a right; exceeds
‘‘(bb) the interest rate on
commercial loans for the period
that do not afford the borrower
such a right.
‘‘(ii) MAXIMUM
RATE.—The interest
rate described in this subparagraph on a
loan to an applicant for the loan shall not
exceed 7 percent if—
‘‘(I) the average number of con-
sumers per mile of line of the total
electric system of the applicant is less
than 5.50; or
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‘‘(II)(aa) the average revenue per
kilowatt-hour sold by the applicant is
more than the average revenue per
kilowatt-hour sold by all utilities in
the State in which the applicant pro-
vides service; and
‘‘(bb) the average per capita in-
come of the residents receiving electric
service from the applicant is less than
the average per capita income of the
residents of the State in which the ap-
plicant provides service, or the median
household income of the households
receiving electric service from the ap-
plicant is less than the median house-
hold income of the households in the
State.
‘‘(iii) EXCEPTION.—Clause (ii) shall
not apply to a loan to be made to an appli-
cant for the purpose of furnishing or im-
proving electric service to consumers lo-
cated in an urban area (as defined by the
Bureau of the Census) if the average num-
ber of consumers per mile of line of the
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total electric system of the applicant ex-
ceeds 17.
‘‘(C) LOAN TERM.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the applicant for a loan under this
paragraph may select the term for which
an interest rate shall be determined pursu-
ant to subparagraph (B), and, at the end
of the term (and any succeeding term se-
lected by the applicant under this subpara-
graph), may renew the loan for another
term selected by the applicant.
‘‘(ii) MAXIMUM TERM.—
‘‘(I) APPLICANT.—The applicant
may not select a term that ends more
than 35 years after the beginning of
the first term the applicant selects
under clause (i).
‘‘(II) ADMINISTRATOR.—The Ad-
ministrator may prohibit an applicant
from selecting a term that would re-
sult in the total term of the loan being
greater than the expected useful life
of the assets being financed.
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‘‘(D) CALL
PROVISION.—The Adminis-
trator shall offer any applicant for a loan under
this paragraph the option to include in the loan
agreement the right of the applicant to prepay
the loan on terms consistent with similar provi-
sions of commercial loans.
‘‘(3) OTHER
SOURCE
OF
CREDIT
NOT
RE-
QUIRED
IN
CERTAIN
CASES.—The Administrator
may not require any applicant for a loan made
under this subsection who is eligible for a loan under
paragraph (1) to obtain a loan from another source
as a condition of approving the application for the
loan or advancing any amount under the loan.
‘‘(d) INSURED TELEPHONE LOANS.—
‘‘(1) HARDSHIP LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
shall make insured telephone loans, to the ex-
tent of qualifying applications for the loans, at
an interest rate of 5 percent per year, to any
applicant who meets each of the following re-
quirements:
‘‘(i) The average number of subscrib-
ers per mile of line in the service area of
the applicant is not more than 4.
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‘‘(ii) The applicant is capable of pro-
ducing net income or margins before inter-
est of not less than 100 percent (but not
more than 300 percent) of the interest re-
quirements on all of the outstanding and
proposed loans of the applicant.
‘‘(iii) The Administrator has approved
a telecommunications modernization plan
for the State under paragraph (3) and, if
the plan was developed by telephone bor-
rowers under this title, the applicant is a
participant in the plan.
‘‘(iv) The average number of subscrib-
ers per mile of line in the area included in
the proposed loan is not more than 17.
‘‘(B) AUTHORITY
TO
WAIVE
TIER
RE-
QUIREMENT.—The Administrator may waive
the requirement of subparagraph (A)(ii) in any
case in which the Administrator determines
(and sets forth the reasons for the waiver in
writing) that the requirement would prevent
emergency restoration of the telephone system
of the applicant or result in severe hardship to
the applicant.
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‘‘(C) EFFECT OF LACK OF FUNDS.—On re-
quest of any applicant who is eligible for a loan
under this paragraph for which funds are not
available, the applicant shall be considered to
have applied for a loan under title IV.
‘‘(2) COST-OF-MONEY LOANS.—
‘‘(A) IN
GENERAL.—The Administrator
may make insured telephone loans for the ac-
quisition, purchase, and installation of tele-
phone lines, systems, and facilities (other than
buildings used primarily for administrative pur-
poses, vehicles not used primarily in construc-
tion, and customer premise equipment) related
to the furnishing, improvement, or extension of
rural telecommunications service, at an interest
rate equal to the then current cost of money to
the Government of the United States for loans
of similar maturity, but not more than 7 per-
cent per year, to any applicant for a loan who
meets the following requirements:
‘‘(i) The average number of subscrib-
ers per mile of line in the service area of
the applicant is not more than 15.
‘‘(ii) The applicant is capable of pro-
ducing net income or margins before inter-
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est of not less than 100 percent (but not
more than 500 percent) of the interest re-
quirements on all of the outstanding and
proposed loans of the applicant.
‘‘(iii) The Administrator has approved
a telecommunications modernization plan
for the State under paragraph (3) and, if
the plan was developed by telephone bor-
rowers under this title, the applicant is a
participant in the plan.
‘‘(B) CONCURRENT
LOAN
AUTHORITY.—
On request of any applicant for a loan under
this paragraph during any fiscal year, the Ad-
ministrator shall—
‘‘(i) consider the application to be for
a loan under this paragraph and a loan
under section 408; and
‘‘(ii) if the applicant is eligible for a
loan, make a loan to the applicant under
this paragraph in an amount equal to the
amount that bears the same ratio to the
total amount of loans for which the appli-
cant is eligible under this paragraph and
under section 408, as the amount made
available for loans under this paragraph
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for the fiscal year bears to the total
amount made available for loans under this
paragraph and under section 408 for the
fiscal year.
‘‘(C) EFFECT OF LACK OF FUNDS.—On re-
quest of any applicant who is eligible for a loan
under this paragraph for which funds are not
available, the applicant shall be considered to
have applied for a loan guarantee under section
306.
‘‘(3) 
STATE
TELECOMMUNICATIONS
MOD-
ERNIZATION PLANS.—
‘‘(A) APPROVAL.—If, not later than 1 year
after final regulations are promulgated to carry
out this paragraph, the public utility commis-
sion of any State develops a telecommunications
modernization plan that meets the requirements
of subparagraph (B), the Administrator shall
approve the plan for the State. If a State does
not develop a plan in accordance with the re-
quirements of the preceding sentence, the Ad-
ministrator shall approve any telecommuni-
cations modernization plan for the State that
meets the requirements that is developed by a
majority of the borrowers of telephone loans
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made under this title who are located in the
State.
‘‘(B) REQUIREMENTS.—For purposes of
subparagraph (A), a telecommunications mod-
ernization plan must, at a minimum, meet the
following objectives:
‘‘(i) The plan must provide for the
elimination of party line service.
‘‘(ii) The plan must provide for the
availability of telecommunications services
for improved business, educational, and
medical services.
‘‘(iii) The plan must encourage and
improve computer networks and informa-
tion highways for subscribers in rural
areas.
‘‘(iv) The plan must provide for—
‘‘(I) subscribers in rural areas to
be able to receive through telephone
lines—
‘‘(aa) multiple voices;
‘‘(bb) video images; and
‘‘(cc) data at a rate of at
least 1,000,000 bits of informa-
tion per second; and
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‘‘(II) the proper routing of infor-
mation to subscribers.
‘‘(v) The plan must provide for uni-
form deployment schedules to ensure that
advanced services are deployed at the same
time in rural and nonrural areas.
‘‘(vi) The plan must provide for such
additional requirements for service stand-
ards as may be required by the Adminis-
trator.
‘‘(C) FINALITY
OF
APPROVAL.—A tele-
communications modernization plan approved
under subparagraph (A) may not subsequently
be disapproved. Notwithstanding paragraphs
(1)(A)(iii) 
and 
(2)(A)(iii), 
and 
section
408(b)(4)(C), the Administrator and the Gov-
ernor of the telephone bank may make a loan
to a borrower serving a State that does not
have a telecommunication modernization plan
approved by the Administrator if the loan is
made less than 1 year after the Administrator
has adopted final regulations implementing this
paragraph.’’.
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(2) RURAL
TELEPHONE
BANK
LOAN
PRO-
GRAM.—Section 408 of such Act (7 U.S.C. 948) is
amended—
(A) in subsection (a), by striking ‘‘, (2)’’
and all that follows through ‘‘408 of this Act,’’
and inserting ‘‘, (2) for the acquisition, pur-
chase, and installation of telephone lines, sys-
tems, and facilities (other than buildings used
primarily for administrative purposes, vehicles
not used primarily in construction, and cus-
tomer premise equipment) related to the fur-
nishing, improvement, or extension of rural tele-
communications service,’’;
(B) in subsection (b)—
(i) by striking paragraph (4) and in-
serting the following new paragraph:
‘‘(4) The Governor of the telephone bank may
make a loan under this section only to an applicant
for the loan who meets the following requirements:
‘‘(A) The average number of subscribers
per mile of line in the service area of the appli-
cant is not more than 15.
‘‘(B) The applicant is capable of producing
net income or margins before interest of not
less than 100 percent (but not more than 500
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percent) of the interest requirements on all of
the outstanding and proposed loans of the ap-
plicant.
‘‘(C) The Administrator has approved,
under section 305(d)(3), a telecommunications
modernization plan for the State in which the
applicant is located and, if the plan was devel-
oped by telephone borrowers under title III, the
applicant is a participant in the plan.’’;
(ii) in paragraph (8)—
(I) by inserting ‘‘(A)’’ after
‘‘(8)’’;
(II) by striking ‘‘if such prepay-
ment is not made later than Septem-
ber 30, 1988’’ and inserting ‘‘except
for any prepayment penalty provided
for in a loan agreement entered into
before the date of enactment of the
Omnibus Budget Reconciliation Act of
1993’’; and
(III) by adding at the end the
following new subparagraph:
‘‘(B) If a borrower prepays part or all of a loan
made under this section, then, notwithstanding sec-
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tion 407(b), the Governor of the telephone bank
shall—
‘‘(i) use the full amount of the prepayment
to repay obligations of the telephone bank is-
sued pursuant to section 407(b) before October
1, 1991, to the extent any such obligations are
outstanding; and
‘‘(ii) in repaying the obligations, first repay
the advances bearing the greatest rate of inter-
est.’’; and
(iii) by adding at the end the follow-
ing new paragraphs:
‘‘(9) On request of any applicant for a loan
under this section during any fiscal year, the Gov-
ernor of the telephone bank shall—
‘‘(A) consider the application to be for a
loan under this section and a loan under section
305(d)(2); and
‘‘(B) if the applicant is eligible for a loan,
make a loan to the applicant under this section
in an amount equal to the amount that bears
the same ratio to the total amount of loans for
which the applicant is eligible under this section
and under section 305(d)(2), as the amount
made available for loans under this section for
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the fiscal year bears to the total amount made
available for loans under this section and under
section 305(d)(2) for the fiscal year.
‘‘(10) On request of any applicant who is eligi-
ble for a loan under this section for which funds are
not available, the applicant shall be considered to
have applied for a loan under section 305(d)(2).’’;
and
(C) by adding at the end the following new
subsection:
‘‘(e) Loans and advances made under this section on
or after November 5, 1990, shall bear interest at a rate
determined under this section, taking into account all as-
sets and liabilities of the telephone bank. This subsection
shall not apply to loans obligated before the date of enact-
ment of this subsection. Funds are not authorized to be
appropriated to carry out this subsection until the funds
are appropriated in advance to carry out this subsection.’’.
(b) FUNDING.—
(1) LIMITATIONS ON AUTHORIZATION OF AP-
PROPRIATIONS.—Section 314 of such Act (7 U.S.C.
940d) is amended to read as follows:
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‘‘SEC. 314. LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.
‘‘(a) DEFINITION OF ADJUSTMENT PERCENTAGE.—
As used in this section, the term ‘adjustment percentage’
means, with respect to a fiscal year, the percentage (if
any) by which—
‘‘(1) the average of the Consumer Price Index
(as defined in section 1(f)(5) of the Internal Reve-
nue Code of 1986) for the 1-year period ending on
July 31 of the immediately preceding fiscal year;
exceeds
‘‘(2) the average of the Consumer Price Index
(as so defined) for the 1-year period ending on July
31, 1993.
‘‘(b) FISCAL YEARS 1994 THROUGH 1998.—In the
case of each of fiscal years 1994 through 1998, there are
authorized to be appropriated to the Administrator such
sums as may be necessary for the cost of loans in the
following amounts, for the following purposes:
‘‘(1) ELECTRIC HARDSHIP LOANS.—For loans
under section 305(c)(1)—
‘‘(A) for fiscal year 1994, $125,000,000;
and
‘‘(B) for each of fiscal years 1995 through
1998, $125,000,000, increased by the adjust-
ment percentage for the fiscal year.
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‘‘(2) ELECTRIC MUNICIPAL RATE LOANS.—For
loans under section 305(c)(2)—
‘‘(A) for fiscal year 1994, $600,000,000;
and
‘‘(B) for each of fiscal years 1995 through
1998, $600,000,000, increased by the adjust-
ment percentage for the fiscal year.
‘‘(3) 
TELEPHONE
HARDSHIP
LOANS.—For
loans under section 305(d)(1)—
‘‘(A) for fiscal year 1994, $125,000,000;
and
‘‘(B) for each of fiscal years 1995 through
1998, $125,000,000, increased by the adjust-
ment percentage for the fiscal year.
‘‘(4) TELEPHONE
COST-OF-MONEY
LOANS.—
For loans under section 305(d)(2)—
‘‘(A) for fiscal year 1994, $198,000,000;
and
‘‘(B) for each of fiscal years 1995 through
1998, $198,000,000, increased by the adjust-
ment percentage for the fiscal year.
‘‘(c) FUNDING LEVELS.—The Administrator shall
make insured loans under this title for the purposes, in
the amounts, and for the periods of time specified in sub-
section (b), as provided in advance in appropriations Acts.
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‘‘(d) AVAILABILITY
OF
FUNDS
FOR
INSURED
LOANS.—Amounts made available for loans under section
305 are authorized to remain available until expended.’’.
(2) 
RULE
OF
INTERPRETATION.—Section
309(a) of such Act (7 U.S.C. 939(a)) is amended by
adding at the end the following new sentence: ‘‘The
preceding sentence shall not be construed to make
section 408(b)(2) or 412 applicable to this title.’’.
(c) MISCELLANEOUS AMENDMENTS.—
(1) LOANS
FOR
RURAL
ELECTRIFICATION.—
Section 2 of such Act (7 U.S.C. 902) is amended—
(A) by inserting ‘‘(a)’’ before ‘‘The Admin-
istrator’’;
(B) by striking ‘‘telephone service in rural
areas, as hereinafter provided;’’ and inserting
‘‘electric and telephone service in rural areas, as
provided in this Act, and for the purpose of as-
sisting electric borrowers to implement demand
side management, energy conservation pro-
grams, and on-grid and off-grid renewable en-
ergy systems;’’; and
(C) by adding at the end the following new
subsection:
‘‘(b) By January 1, 1994, the Administrator shall
issue interim regulations to implement the authority con-
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tained in subsection (a) to make loans for the purpose of
assisting electric borrowers to implement demand side
management, energy conservation programs, and on-grid
and off-grid renewable energy systems. If the regulations
are not issued by January 1, 1994, the Administrator
shall consider any demand side management, energy con-
servation, or renewable energy program, system, or activ-
ity that is approved by a State agency to be eligible for
the loans.’’.
(2) LOANS
FOR
ELECTRICAL
PLANTS
AND
TRANSMISSION
LINES.—Section 4 of such Act (7
U.S.C. 904) is amended by inserting after ‘‘central
station service’’ the following: ‘‘and for the furnish-
ing and improving of electric service to persons in
rural areas, including by assisting electric borrowers
to implement demand side management, energy con-
servation programs, and on-grid and off-grid renew-
able energy systems’’.
(3) DEFINITIONS.—Section 13 of such Act (7
U.S.C. 913) is amended—
(A) by inserting ‘‘, except as provided in
section 203(b),’’ before ‘‘shall be deemed to
mean any area’’; and
(B) by striking ‘‘city, village, or borough
having a population in excess of fifteen hundred
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inhabitants’’ and inserting ‘‘urban area, as de-
fined by the Bureau of the Census’’.
(4) GENERAL
PROHIBITIONS.—Section 18 of
such Act (7 U.S.C. 918) is amended—
(A) by inserting ‘‘(a) NO CONSIDERATION
OF
BORROWER’S
LEVEL
OF
GENERAL
FUNDS.—’’ before ‘‘The Administrator’’; and
(B) by adding at the end the following new
subsections:
‘‘(b) LOAN ORIGINATION FEES.—The Administrator
and the Governor of the telephone bank may not charge
any fee or charge not expressly provided in this Act in
connection with any loan made or guaranteed under this
Act.
‘‘(c) CONSULTANTS.—
‘‘(1) IN GENERAL.—To facilitate timely action
on applications by borrowers for financial assistance
under this Act and for approvals required of the
Rural Electrification Administration pursuant to the
terms of outstanding loan or security instruments or
otherwise, the Administrator may use consultants
funded by the borrower, paid for out of the general
funds of the borrower, for financial, legal, engineer-
ing, and other technical advice and services in con-
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nection with the review of the application by the
Rural Electrification Administration.
‘‘(2) CONFLICTS OF INTEREST.—The Adminis-
trator shall establish procedures for the selection
and the provision of technical services by consultants
to ensure that the consultants have no financial or
other potential conflicts of interest in the outcome of
the application of the borrower.
‘‘(3) PAYMENT OF COSTS.—The Administrator
may not, without the consent of the borrower, re-
quire, as a condition of processing an application for
approval, that the borrower agree to pay the costs,
fees, and expenses of consultants hired to provide
technical or advisory services to the Administrator.
‘‘(4) 
CONTRACTS, 
GRANTS, 
AND
AGREE-
MENTS.—The Administrator may enter into such
contracts, grants, or cooperative agreements as are
necessary to carry out this section.
‘‘(5) USE OF CONSULTANTS.—Nothing in this
subsection shall limit the authority of the Adminis-
trator to retain the services of consultants from
funds made available to the Administrator or other-
wise.’’.
(5) DEFINITION
OF
RURAL
AREA.—Section
203(b) of such Act (7 U.S.C. 924(b)) is amended by
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striking ‘‘one thousand five hundred’’ and inserting
‘‘5,000’’.
(6) INSURED LOANS.—Section 305 of such Act
(7 U.S.C. 935) (as amended by subsection (a)(1)) is
further amended—
(A) by striking ‘‘SEC. 305. INSURED
LOANS; INTEREST RATES AND LENDING LEV-
ELS.—(a) The’’ and inserting the following:
‘‘SEC. 305. INSURED LOANS; INTEREST RATES AND LEND-
ING LEVELS.
‘‘(a) IN GENERAL.—The’’; and
(B) in subsection (b), by striking ‘‘(b)
Loans’’ and inserting ‘‘(b) INSURED LOANS.—
Loans’’.
(7) ELIGIBILITY
OF
DISTRIBUTION
BORROW-
ERS; ADMINISTRATIVE PROHIBITIONS.—Title III of
such Act is amended by inserting after section 306B
(7 U.S.C. 936b) the following new sections:
‘‘SEC. 306D. ELIGIBILITY OF DISTRIBUTION BORROWERS
FOR LOANS, LOAN GUARANTEES, AND LIEN
ACCOMMODATIONS.
‘‘For the purpose of determining the eligibility of a
distribution borrower not in default on the repayment of
a loan made or guaranteed under this Act for a loan, loan
guarantee, or lien accommodation under this title, a de-
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fault by a borrower from which the distribution borrower
purchases wholesale power shall not—
‘‘(1) be considered a default by the distribution
borrower;
‘‘(2) reduce the eligibility of the distribution
borrower for assistance under this Act; or
‘‘(3) be the cause, directly or indirectly, of im-
posing any requirement or restriction on the bor-
rower as a condition of the assistance, except such
requirements or restrictions as are necessary to im-
plement a debt restructuring agreed on by the power
supply borrower and the Government.
‘‘SEC. 306E. ADMINISTRATIVE PROHIBITIONS APPLICABLE
TO ELECTRIC BORROWERS.
‘‘The Administrator may not require prior approval
of, impose any requirement, restriction, or prohibition with
respect to the operations of, or deny or delay the granting
of a lien accommodation to, any electric borrower under
this Act whose net worth exceeds 110 percent of the out-
standing principal balance on all loans made or guaran-
teed to the borrower by the Administrator.’’.
(8) LOANS FROM OTHER CREDIT SOURCES.—
Section 307 of such Act (7 U.S.C. 937) is amended
by adding at the end the following new sentence:
‘‘The Administrator may not request any applicant
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for an electric loan under this Act to apply for and
accept a loan in an amount exceeding 30 percent of
the credit needs of the applicant.’’.
(9) CAPITALIZATION.—Section 406 of such Act
(7 U.S.C. 946) is amended by adding at the end the
following new subsection:
‘‘(i) The Governor of the telephone bank may invest
in obligations of the United States the amounts in the ac-
count in the Treasury of the United States numbered
12X8139 (known as the ‘RTB Equity Fund’).’’.
(d) EXPANDED ELIGIBILITY FOR LOANS FOR WATER
AND WASTE DISPOSAL FACILITIES.—Section 306(a)(1) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1926(a)(1)) is amended by inserting after the first
sentence the following new sentence: ‘‘The Secretary may
also make loans to any borrower to whom a loan has been
made under the Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.), for the conservation, development,
use, and control of water, and the installation of drainage
or waste disposal facilities, primarily serving farmers,
ranchers, farm tenants, farm laborers, rural businesses,
and other rural residents.’’.
(e) RURAL ECONOMIC DEVELOPMENT.—Section 364
of such Act (7 U.S.C. 2006f) is amended by adding at
the end the following new subsection:
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‘‘(g) RURAL ECONOMIC DEVELOPMENT.—
‘‘(1) IN GENERAL.—A borrower of a loan or
loan guarantee under the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.) shall be eligible for
assistance under all programs administered by the
Rural Development Administration.
‘‘(2) PARTICIPATION.—The Administrator of
the Rural Development Administration shall encour-
age and facilitate the full participation of borrowers
referred to in paragraph (1) in programs adminis-
tered by the Rural Development Administration.’’.
(f) REGULATIONS.—Except as provided in section
2(b) of the Rural Electrification Act of 1936, as added
by section 2(c)(1)(C) of this Act, not later than 45 days
after the date of enactment of this Act, interim final rules
shall be issued by—
(1) the Administrator of the Rural Electrifica-
tion Administration to carry out amendments made
by this Act to programs administered by the Admin-
istrator;
(2) the Administrator of the Rural Development
Administration to carry out amendments made by
this Act to programs administered by the Adminis-
trator; and
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(3) the Secretary of Agriculture to carry out
amendments made by this Act to programs adminis-
tered by the Farmers Home Administration.
Æ
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