Title: A bill to amend the Water Infrastructure Finance and Innovation Act of 2014 to authorize the interest rate to be used on a secured loan to be the interest rate for United States Treasury securities of a similar maturity on the date of first disbursement of the loan, and for other purposes.
Policy area: Water Resources Development

Summary:
This bill modifies statutory requirements related to the minimum interest rate for a secured loan provided under a federal program to help finance water infrastructure projects (i.e., the program established under the Water Infrastructure Finance and Innovation Act of 2014).
Specifically, the interest rate for such a loan shall not be less than the yield of U.S. Treasury securities of similar maturity to the loan, either on the date the loan agreement was executed or the date of the loan's first disbursement, whichever is lower. Currently, the statute only takes into consideration the yield of comparable U.S. Treasury securities on the execution date of the loan agreement.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4206 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4206

To amend the Water Infrastructure Finance and Innovation Act of 2014 to 
  authorize the interest rate to be used on a secured loan to be the 
   interest rate for United States Treasury securities of a similar 
 maturity on the date of first disbursement of the loan, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 2, 2020

  Mr. Merkley introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
To amend the Water Infrastructure Finance and Innovation Act of 2014 to 
  authorize the interest rate to be used on a secured loan to be the 
   interest rate for United States Treasury securities of a similar 
 maturity on the date of first disbursement of the loan, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INTEREST RATE OF SECURED LOANS.

    (a) In General.--Section 5029(b)(4) of the Water Infrastructure 
Finance and Innovation Act of 2014 (33 U.S.C. 3908(b)(4)) is amended--
            (1) by inserting ``the lesser of'' after ``less than'';
            (2) by striking ``on the date'' and inserting the 
        following: ``on--
                    ``(A) the date''; and
            (3) in subparagraph (A) (as so designated), by striking the 
        period at the end and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(B) the date of the first disbursement of the 
                secured loan.''.
    (b) Applicability.--Notwithstanding any other provision of law, 
this Act and the amendments made by this Act shall apply to any secured 
loan (as defined in section 5022 of the Water Infrastructure Finance 
and Innovation Act of 2014 (33 U.S.C. 3901)) for which, on the date of 
enactment of this Act--
            (1) a loan agreement has been entered into; but
            (2) no disbursement has been made.
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