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.

Bill: 116-s-4206
Sponsor: full_name: Sen. Merkley, Jeff [D-OR]
Introduced: 2020-07-02
Policy area: Water Resources Development
Subjects: Floods and storm protection

Government lending and loan guarantees

Interest, dividends, interest rates

Water quality

Water resources funding

Water use and supply
Latest action: action_date: 2020-07-02
text: Read twice and referred to the Committee on Environment and Public Works.

Summaries:
action_date: 2020-07-02
action_desc: Introduced in Senate
text: <p>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).</p> <p>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.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4206 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.

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.