I
103D CONGRESS
2D SESSION
H. R. 4525
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
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
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the Interior shall conduct appropriate investigations
regarding, and is authorized to sell, or accept pre-
payment on, the loan contract described in para-
graph (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
Government calculated by discounting the remaining pay-
ments due on the loans by the interest rate determined
pursuant to subsection (c).
(c) INTEREST RATE.—
(1) IN GENERAL.—The Secretary shall deter-
mine the interest rate in accordance with the guide-
lines set forth in Circular A–129 issued by the Of-
fice of Management and Budget concerning loan
sales and prepayment of loans.
(2) DETERMINATION.—In determining the in-
terest rate, the Secretary—
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(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 pur-
chaser of the loan has access to tax-exempt financ-
ing, including tax-exempt bonds, tax-exempt cash re-
serves, and cash and loans of any kind from any tax-
exempt entity, to finance the transaction, and if the
Office of Management and Budget grants the Sec-
retary 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 ad-
justed 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
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composite interest rate consisting of the current
market yield on Treasury securities of comparable
maturities.
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 associ-
ated 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.
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