I
103D CONGRESS
2D SESSION
H. R. 3773
To amend the Rural Electrification Act of 1936 to return the Rural Elec-
trification Administration to its original mission of providing credit to
rural electric cooperatives which are unable to obtain needed financing
in the private sector.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 1994
Mr. INGLIS of South Carolina introduced the following bill; which was referred
to the Committee on Agriculture
A BILL
To amend the Rural Electrification Act of 1936 to return
the Rural Electrification Administration to its original
mission of providing credit to rural electric cooperatives
which are unable to obtain needed financing in the pri-
vate sector.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ELIGIBILITY FOR LOANS.
(a) IN GENERAL.—Title I of the Rural Electrification
Act of 1936 (7 U.S.C. 901–918) is amended by adding
at the end the following:
‘‘SEC. 19. ELIGIBILITY FOR LOANS.
‘‘Notwithstanding any other provision of this Act, a
person shall not be eligible for a loan under this Act to
finance an activity for a period of time unless the person
is unable to obtain sufficient credit elsewhere to finance
the activity at reasonable rates and terms, taking into con-
sideration prevailing private and cooperative rates and
terms for loans for similar activities and periods of time.’’.
(b) CONFORMING AMENDMENTS.—Section 307 of
such Act (7 U.S.C. 937) is hereby repealed.
SEC. 2. REDUCTION OF LOAN SUBSIDIES.
(a) IN GENERAL.—Title I of the Rural Electrification
Act of 1936 (7 U.S.C. 901–918) is amended by adding
after the section added by section 1(a) of this Act the fol-
lowing:
‘‘SEC. 20. INTEREST RATE ON LOANS AND ADVANCES
UNDER THIS ACT.
‘‘The rate of interest on any loan made on or after
the date of the enactment of this section, and on any ad-
vance made on or after such date under loan commitments
made at any time, under this Act, shall equal such rate
(exceeding the coupon equivalent yield on obligations of
the Treasury of the United States of comparable maturity,
at the most recent auction of such obligations by the De-
partment of the Treasury) as the Administrator deter-
mines is appropriate, taking into account the purpose for
which the loan is to be made, the creditworthiness of the
borrower, and the term of the loan.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 4 of such Act (7 U.S.C. 904) is
amended by striking ‘‘, and shall bear interest at the
rate of 2 per centum per annum’’.
(2) Section 5 of such Act (7 U.S.C. 905) is
amended by striking ‘‘, and shall be at a rate of in-
terest of 2 per centum per annum’’.
(3) Section 305 of such Act (7 U.S.C. 935) is
amended by striking subsection (b), and by redesig-
nating subsections (c) and (d) as subsections (b) and
(c), respectively.
(4) Section 408(b) of such Act (7 U.S.C.
948(b)) is amended by striking paragraph (3), and
by redesignating paragraphs (4) through (8) as
paragraphs (3) through (7), respectively.
SEC. 3. TERMINATION OF AUTHORITIES RELATED TO TELE-
PHONE LOANS, AND AUTHORITIES RELATED
TO GRANTS.
(a) AMENDMENTS TO SECTION 2.—Section 2 of such
Act (7 U.S.C. 902) is amended—
(1) by striking ‘‘and for the purpose of furnish-
ing and improving telephone service in rural areas’’;
and