Union Calendar No. 190
105TH CONGRESS
1ST SESSION
H. R. 134
[Report No. 105–327]
A BILL
To authorize the Secretary of the Interior to pro-
vide a loan guarantee to the Olivenhain Water
Storage Project, and for other purposes.
OCTOBER 21, 1997
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 190
105TH CONGRESS
1ST SESSION
H. R. 134
[Report No. 105–327]
To authorize the Secretary of the Interior to provide a loan guarantee to
the Olivenhain Water Storage Project, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mr. CUNNINGHAM introduced the following bill; which was referred to the
Committee on Resources
OCTOBER 21, 1997
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]
A BILL
To authorize the Secretary of the Interior to provide a loan
guarantee to the Olivenhain Water Storage Project, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. OLIVENHAIN WATER STORAGE PROJECT LOAN
GUARANTEE.
(a) LOAN GUARANTEE.—The Secretary of the Inte-
rior is authorized to provide a loan guarantee to either
the Olivenhain Municipal Water District (hereinafter re-
ferred to as the ‘‘District’’) or to a nongovernmental devel-
oper selected by the District for the purpose of building
and financing the Olivenhain Water Storage Project in
northern San Diego County, California. The guaranteed
loan shall be available under the existing authorization
ceiling contained in the Small Reclamation Projects Act
of 1956 (43 U.S.C. 422a et seq.). The guaranteed loan
shall bear interest at the rate agreed upon by the borrower
and lender. As used in this section, a guaranteed loan is
one which is initially made, held, and serviced by a legally
organized lending institution, and which is guaranteed by
the Secretary of the Interior. Any guarantee issued pursu-
ant to this section shall constitute an obligation, in accord-
ance with the terms of such guarantee, of the United
States Government and the full faith and credit of the
United States is hereby pledged to the full performance
of the obligation.
(b) SECURITY.—To ensure the repayment of any loan
guaranteed under this section and as a condition for re-
ceiving the guarantee, the Secretary of the Interior shall
require the District to furnish such security as may be
of providing the guarantee, the Secretary of the Inte-
rior shall require that—
(A) the borrower establish and maintain,
with a trustee designated by the Secretary, a re-
serve fund in the amount of 115 percent of the
next year’s principal and interest payments on
the loan;
(B) the District agree to use its revenues to
make all payments required under the terms of
the loan prior to any payment by the United
States under the guarantee, and to make those
payments through the trustee designated under
subparagraph (A); and
(C) the trustee designated under subpara-
graph (A) agree to use all amounts received for
repayment of the loan to repay the loan.
(2) RESERVE
FUND
REQUIREMENTS.—The re-
serve fund under this subsection shall be established
under terms that provide that—
(A) all moneys in the reserve fund shall
constitute a trust fund for the repayment of the
loan guaranteed under subsection (a); and
(B) the reserve fund shall be administered
in accordance with and pursuant to provisions
agreed upon by the borrower and lender for the
loan guaranteed under subsection (a).
(3) PAYMENT OF LOAN AMOUNTS.—Proceeds from
the loan guaranteed under subsection (a) shall—
(A) be deposited directly with the trustee
designated by the Secretary of the Interior under
paragraph (1)(A); and
(B) be disbursed by the trustee consistent
with the terms of the loan.
(4) QUALIFICATIONS OF TRUSTEE.—Any trustee
designated by the Secretary of the Interior under
paragraph (1) must, at a minimum—
(A) be a trust company or a bank having
the powers of a trust company;
(B) have a combined capital and surplus of
at least $100,000,000; and
(C) be otherwise subject to supervision or
examination by a Federal agency.