H. R. 3514
One Hundred Third Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, one thousand nine hundred and ninety-three
An Act
To clarify the regulatory oversight exercised by the Rural Electrification
Administration with respect to certain electric borrowers.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ADMINISTRATIVE PROHIBITIONS APPLICABLE TO CER-
TAIN ELECTRIC BORROWERS.
Section 306E of the Rural Electrification Act of 1936 is amended
to read as follows:
‘‘SEC. 306E. ADMINISTRATIVE PROHIBITIONS APPLICABLE TO CER-
TAIN ELECTRIC BORROWERS.
‘‘(a) IN GENERAL.—For the purpose of relieving borrowers of
unnecessary and burdensome requirements, the Administrator,
guided by the practices of private lenders with respect to similar
credit risks, shall issue regulations, applicable to any electric bor-
rower under this Act whose net worth exceeds 110 percent of
the outstanding principal balance on all loans made or guaranteed
to the borrower by the Administrator, to minimize those approval
rights, requirements, restrictions, and prohibitions that the
Administrator otherwise may establish with respect to the oper-
ations of such a borrower.
‘‘(b) SUBORDINATION OR SHARING OF LIENS.—At the request
of a private lender providing financing to such a borrower for
a capital investment, the Administrator shall, expeditiously, either
offer to share the government’s lien on the borrower’s system or
offer to subordinate the government’s lien on that property financed
by the private lender.
‘‘(c) 
ISSUANCE
OF
REGULATIONS.—In 
issuing 
regulations
implementing this section, the Administrator may establish require-
ments, guided by the practices of private lenders, to ensure that
the security for any loan made or guaranteed under this Act is
reasonably adequate.
‘‘(d) AUTHORITY OF THE ADMINISTRATOR.—Nothing in this sec-
tion limits the authority of the Administrator to establish terms
and conditions with respect to the use by borrowers of the proceeds
of loans made or guaranteed under this Act or to take any other
action specifically authorized by law.’’.
SEC. 2. ISSUANCE OF REGULATIONS.
The Administrator of the Rural Electrification Administration
shall issue interim final regulations implementing this Act not
later than 180 days after enactment. If the regulations are not
issued within such period of time, the Administrator may not,
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H. R. 3514—2
until the Administrator issues such regulations, require prior
approval of, establish any requirement, restriction, or prohibition,
with respect to the operations of any electric borrower under the
Rural Electrification Act of 1936 whose net worth exceeds 110
percent of the outstanding principal balance on all loans made
or guaranteed to the borrower by the Administrator.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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