IB
Union Calendar No. 438
103D CONGRESS
2D SESSION
H. R. 4525
[Report No. 103–792]
To authorize the transfer of a certain loan contract to the Upper Yampa
Water Conservancy Project, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 26, 1994
Mr. MCINNIS introduced the following bill; which was referred to the
Committee on Natural Resources
OCTOBER 3, 1994
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]
[For text of introduced bill, see copy of bill as introduced on May 26, 1994]
A BILL
To authorize the transfer of a certain loan contract to the
Upper Yampa Water Conservancy 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. SHORT TITLE.
This Act may be cited as the ‘‘Stagecoach Reservoir
Project Act of 1993’’.
SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT
LOAN.
(a) AGREEMENT.—
(1) IN GENERAL.—As soon as practicable after
the date of enactment of this Act, the Secretary of the
Interior shall conduct appropriate investigations re-
garding, and is authorized to sell, or accept prepay-
ment on, the loan contract described in paragraph (2)
to the Upper Yampa Water Conservancy District in
Colorado (referred to in this Act as the ‘‘District’’) for
the Stagecoach Reservoir Project.
(2) LOAN
CONTRACT.—The loan contract de-
scribed in paragraph (1) is numbered 7–07–40–
R0480 and was entered into pursuant to the Small
Reclamation Projects Act of 1956 (43 U.S.C. 422a et
seq.).
(b) PAYMENT.—Any agreement negotiated pursuant to
subsection (a) shall realize an amount to the Federal Gov-
ernment calculated by discounting the remaining payments
due on the loans by the interest rate determined pursuant
to subsection (c).
(c) INTEREST RATE.—
(1) IN GENERAL.—The Secretary shall determine
the interest rate in accordance with the guidelines set
forth in Circular A–129 issued by the Office of Man-
agement and Budget concerning loan sales and pre-
payment of loans.
(2) DETERMINATION.—In determining the inter-
est rate, the Secretary—
(A) shall not equate an appropriate amount
of prepayment with the price of the loan if it
were to be sold on the open market to a third
party; and
(B) shall, in following the guidelines set
forth in Circular A–129 regarding an allowance
for administrative expenses and possible losses,
make such an allowance from the perspective of
the Federal Government as lender and not from
the perspective of a third party purchasing the
loan on the open market.
(3) ADJUSTMENT.—If the borrower or purchaser
of the loan has access to tax-exempt financing, includ-
ing tax-exempt bonds, tax-exempt cash reserves, and
cash and loans of any kind from any tax-exempt en-
tity, to finance the transaction, and if the Office of
Management and Budget grants the Secretary the
right to conduct such a transaction, then the interest
rate by which the Secretary discounts the remaining
payments due on the loan shall be adjusted by an
amount that compensates the Federal Government for
the direct or indirect loss of future tax revenues.
(4) LIMITATION.—Notwithstanding any other
provision of law, the interest rate shall not exceed a
composite interest rate consisting of the current mar-
ket yield on Treasury securities of comparable matu-
rities.
(5) APPROVAL.—The Secretary shall obtain ap-
proval from the Secretary of the Treasury and the Di-
rector of the Office of Management and Budget of the
final terms of any loan sale or prepayment made
pursuant to this title.
SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.
Upon receipt of the payment specified in section
2(b)—
(1) the obligation of the District under the loan
contract described in section 2(a)(2) shall terminate;
(2) the Secretary of the Interior shall convey all
right and interest of the United States in the Stage-
coach Reservoir Project to the District; and
(3) the District shall absolve the United States,
and its officers and agents, of any liability associated
with the Stagecoach Reservoir Project.
SEC. 4. TERMINATION OF AUTHORITY.
(a) IN GENERAL.—Subject to subsection (b), the au-
thority granted by this Act to sell loans shall terminate 2
years after the date of enactment of this Act.
(b) TIME TO RESPOND
TO OFFER.—The borrower
shall have not less than 60 days to respond to any prepay-
ment offer made by the Secretary.