An Act to amend the Rural Electrification Act of 1936, as amended, to establish a Rural Electrification and Telephone Revolving Fund to provide adequate funds for rural electric and telephone systems through insured and guaranteed loans at interest rates which will allow them to achieve the objectives of the Act, and for other purposes.
PL 93-32 (S.394), enacted 05/11/1973

87 
STAT.] 
PUBLIC LAW 93-32-MAY 11, 1973 
65 
Public Law 93-30 
JOINT RESOLUTION 
To authorize and request the President to issue a proclamation designating the 
calendar week beginning May 6, 1973, as "National Historic Preservation 
Week". 
May 5, 1973 
[ S . J . Res. 51] 
Resolved 
hy the Senate and House of Representatives 
of the 
United 
States of America 
in Congress assembled^ That the President is author-
ized and requested to issue a proclamation— 
(1) designating the calendar week beginning May 6, 1973, as 
"National Historic Preservation Week"; and 
(2) urging Federal, State, and local government agencies, as 
well as citizens and private organizations, especially the preserva-
tion organizations, historical societies, and related groups, to 
observe that week with educational efforts, ceremonies, and other 
appropriate activities which— 
(a) are designed to call public attention to the urgent need 
to have our historic landmarks for the enjoyment and edifica-
tion of the citizens of this Nation, present and future; and 
(b) will demonstrate 
lasting respect 
for 
this 
unique 
heritage. 
Approved May 5, 1973. 
National His-
toric Preserva-
tion Week. 
Designation 
authorization. 
Public Law 93-31 
AN ACT 
To amend section 236 of the Central Intelligence Agency Retirement Act of 
1964 for Certain Employees to limit the number of employees that may be 
retired under such Act during specified periods. 
May 8, 1973 
[S.1494] 
Be it enacted 
hy the Senate 
and House 
of Representatives 
of 
the 
United 
States 
of America 
in Congress 
assembled^ That section 236 of 
the Central Intelligence Agency Retirement Act of 1964 for Certain 
Employees, as amended 
(78 Stat. 1043; 50 U.S.C. 403 note), is 
amended by (1) striking out "eight hundred" and inserting in lieu 
thereof "twenty-one hundred", and (2) striking out the period at the 
end of such section and inserting in lieu thereof a comma and the 
following: "nor a total of fifteen hundred during the period beginning 
on July 1,1974, and ending on June 30,1979." 
Approved May 8, 1973. 
Certain Central 
Intelligence 
Agency employ-
ees. 
Retirement 
limitation. 
84 Stat. 1873. 
Public Law 93-32 
AN ACT 
To amend the Rural Electrification Act of 193G, as amended, to establish a Rural 
Electrification and Telephone Revolving Fund to provide adequate funds for 
rural electric and telephone systems through insured and guaranteed loans at 
interest rates which will allow them to achieve the objc?ctives of the Act, and 
for other purposes. 
May 11, 1973 
[S. 394] 
Be it enacted 
hy the Senate 
and House 
of Representatives 
of 
the 
United 
States 
of America 
in Congress 
assembled^ 
That it is hereby 
^""^^^ electric 
declared to be the policy of the Congress that adequate funds should d^rec^ io^n°pro. 
be made available to rural electric and telephone systems through grams. 
direct, insured and guaranteed loans at interest rates which will allow 
Restoration. 
them to achieve the objectives of the Rural Electrification Act of 1936, 
as amended, and that such rural electric and telephone systems should 
y^usc^oi^^^ 
22-150 O - 75 - 7 
66 
PUBLIC LAW 93-32-MAY 11, 1973 
[87 STAT. 
be encouraged and assisted to develop their resources and ability to 
achieve the financial strength needed to enable them to satisfy their 
credit needs from their own financial organizations and other sources 
at reasonable rates and terms consistent with the loan applicant's 
ability to pay and achievement of the Act's objectives. The Rural 
49 Stat. 1363. 
Electrification Act of 1986, as amended (7 U.S'.C. 901-950(b)), is 
therefore fuither amended as hereinafter provided. 
SEC. 2. Title I I I of the Kural Electrification Act of 1936, as 
7\js'c*93^%32. amended, is amended by striking out all of sections 301 and 302 and 
inserting in lieu thereof the following new sections: 
"SEC. 
301. RURAL ELECTRIFICATION AND TELEPHONE 
REVOLVING 
FUND.—(a) There is hereby established in the Treasury of the United 
States a fund, to be known as the Rural Electrification and Telephone 
Revolving Fund (hereinafter referred to as the 'fund'), consisting of: 
"(1) all notes, bonds, obligations, liens, mortgages, and prop-
erty delivered or assigned to the Administrator pursuant to loans 
heretofore or hereafter made under sections 4, 5, and 201 of this 
63 Stat' 948^' 
^^^ ^^^ uuder this title, as of the effective date of this title, as 
7 use 904,905, 
Tcvised herein, and all proceeds from the sales hereunder of such 
922. 
notes, bonds, obligations, liens, mortgages, and property, which 
shall be transferred to and be assets of the fund; 
"(2) undisbursed balances of electric and telephone loans made 
under sections 4, 5, and 201, which as of the effective date of this 
title, as revised herein, shall be transferred to and be assets of the 
fund ; 
"(3) notwithstanding section 3(a) of title I, all collections of 
principal and interest received on and after July 1,1972, on notes, 
bonds, judgments, or other oblijiations made or held under titles I 
^^^l.ll^^oA^^^^' 
and I I of this Act and under this title, except for net collection 
Do btat. y4o. 
.
, 
•
1
^
1
1 
7 use 901, 921. 
proceeds previously appropriated for the purchase or class A 
stock in the Rural Telephone Bank, which shall be paid into 
and be assets of the fund; 
"(4) all appropriations for interest subsidies and losses 
required under this title which may hereafter be made by the 
Congress ; 
"(5) moneys borrowed from the Secretary of the Treasury pur-
pose, p. 67. 
suant to section 304(a); and 
"(6) shares of the capital stock of the Rural Telephone Bank 
purchased by the United States pursuant to section 406(a) of 
y^^an^'gf^' 
this Act and moneys received from said bank upon retirement of 
said shares of stock in accordance with the provisions of title I V 
7 use 941. 
^f ^j^ig ^f.^^ which said shares and moneys shall be assets of the 
fund-
"SEC. 302. LIABILITIES AND USES OF FUND,—(a) The notes of the 
Administrator to the Secretary of the Treasury to obtain funds for 
loans under sections 4, 5, and 201 of this Act, and all other liabilities 
against the appropriations or assets in the fund in connection wdth 
electrification and telephone loan operations shall be liabilities of the 
fund, and all other obligations against such appropriations or assets in 
the fund arising out of electrification and telephone loan operations 
shall be obligations of the fund. 
61 Stat. 546. 
7 u s e 903. 
63 Stat. 94«. 
85 Stat. 37. 
87 STAT.] 
PUBLIC LAW 93-32-MAY U, 1973 
67 
"(b) The assets of the fund shall be available only for the following 
purposes: 
"(1) loans which could be insured under this title, and for 
advances in connection with such loans and loans previously 
made, as of the effective date of this title, as revised herein, under 
sections 4, 5, and 201 of this Act; 
"(2) payment of principal w^hen due (without interest) on 
7 use 904, 905, 
outstanding loans to the Administrator from the Secretary of tiie ^'^'^• 
Treasury for electrification and telephone purposes pursuant to 
section 3(a) of this Act and payment of principal and interest 
61 stat. 546. 
when due on loans to the Administrator from the Secretary of 
^^^ ^°^* 
the Treasury pursuant to section 304(a) of this title; 
^"''•^* 
"(3) payment of amounts to which the holder of notes is 
entitled on insured loans: Provided^ That payments other than 
final payments need not be remitted to the holder until due or 
until the next agreed annual, semiannual, or quarterly remittance 
date; 
"(4) payment to the holder of insured notes of any defaulted 
iiistallment or, upon assignment of the note to the Administrator 
at his request, the entire balance due on the note; 
"•(5) purchase of notes in accordance with contracts of insur-
ance entered into by the Administrator; 
'•(6) payment in compliance with contracts of guarantee; 
"(7) payment of taxes, insurance, prior liens, expenses neces-
sary to make fiscal adjustments in connection wdth the application, 
and transmittal of collections or necessary to obtain credit reports 
on applicants or borrowers, expenses for necessary services, 
including construction inspections, commercial appraisals, loan 
servicing, consulting business advisory or other commercial and 
technical services, and other program services, and other expenses 
and advances authorized in section 7 of this Act in connection with 
'•^ stat. 1 ses. 
insured loans. Such items may be paid in connection with guar 
an- 
^^^ 
teed loans after or in connection with the acquisition of such loans 
or security thereof after default, to the extent determined to be 
necessary to protect the interest of the Government, or in connec-
tion with any other activity authorized in this Act; 
"(8) payment of the purchase price and Miy costs and expenses 
incurred in connection w^ith the purchase, acquisition, or operation 
of property pursuant to section 7 of this Act. 
"SEC. 303. DEPOSIT or FUND MONEYS.—Moneys in the fund shall 
remain on deposit in the Treasury of the United States until disbursed. 
"SEC. 304. FINANCIAL TRANSACTIONS OF THE FUND.—(a) The . interim notes. 
k -t 
• 
• 
• 
^ 
• 
-I 
! • 
• 
• 
1 
i s s u a n c e . 
Administrator is authorized to make and issue interim notes to the 
Secretary of the Treasury for the purpose of obtaining funds neces-
sary for discharging obligations of the fund and for making loans, 
advances and authorized expenditures out of the fund. Such notes 
shall be in such form and denominations and have such maturities and 
be subject to such terms and conditions as may be agreed upon by the 
68 
PUBLIC LAW 93-32-MAY 11, 1973 
[87 STAT. 
Interest rate 
determination. 
40 Stat. 288. 
31 u s e 774. 
U.S. budget 
totals, exclusion. 
ObliRations, 
purchase for re-
sale. 
U.S. budget 
totals, exclusion. 
Notes and 
certificates, sale. 
42 Stat. 20. 
31 use 1. 
Liens. 
Transfer of 
funds. 
U.S. budget 
totals, exclusion. 
Administrator and the Secretary of the Treasury. Such notes shall 
bear interest at a rate fixed by the Secretary of the Treasury, taking 
into consideration the current average market yield of outstanding-
marketable obligations of the Ignited States having maturities com-
parable to the notes issued by the Administrator under this section. 
The Secretary of the Treasury is authorized and directed to purchase 
any notes of the Administrator issued hereunder, and, for that pur-
pose, the Secretary of the Treasury is authorized to use as a public 
debt transaction the proceeds from the sale of any securities issued 
under the Second Liberty Bond Act, as amended, and the purposes for 
which such securities may be issued under such Act, as amended, are 
extended to include the purchase of notes issued by the xVdministrator. 
All redemptions, purchases, and sales by the Secretary of tlie Treasury 
of such notes shall be treated as public debt transactions of the United 
States: Provided^ however^ That such interim notes to the Secretary 
of the Treasury shall not be included in the totals of the budget of the 
United States Government and shall be exempt from any general 
limitation imposed by statute on expenditures and net lending (budget 
outlays) of the L^nited States. 
"(b) The Secretary of the Treasury is authorized and directed to 
})urchase for resale obligations insured through the fund when ofi'ered 
by the Administrator. Such resales shall be upon such terms and con-
ditions as the Secretary of the Treasury shall determine. Purchases 
and resales by the Secretary of the Treasury hereunder shall not be 
included in the totals of the budget of the Ignited States Government 
and shall be exempt from any general limitation imposed by statute 
on expenditures and net lending (budget outlays) of the United 
States. 
"(c) The Administrator may, on an insured basis or otherwise, sell 
and assign any notes in the fund or sell certificates of beneficial owner-
ship therein to the Secretary of the Treasury or in the private market. 
Any sale by the Administrator of notes individually or in blocks shall 
be treated as a sale of assets for the purposes of the Budget and 
Accounting Act, 1921, notwithstanding the fact that the Administra-
tor, under an agreement with the purchaser or purchasers, holds the 
debt instruments evidencing the loans and holds or reinvests payments 
thereon as trustee and custodian for the purchaser or purchasers of the 
individual note or of the certificate of beneficial ownership in a num-
ber of such notes. Security instruments taken by the Admmistrator in 
connection with any notes in the fund may constitute liens running 
to the United States notwithstanding the fact that such notes may be 
thereafter held by purchasers thereof. 
"SEC. 305. INSURED LOANS ; INTEREST RATES AND LENDING LEVELS.— 
(a) The Administrator is authorized to make insured loans under this 
title and at the interest rates hereinafter provided to the full extent of 
the assets available in the fund, subject only to limitations as to 
amounts authorized for loans and advances as may be from time to 
rime imposed by the Congress of the United States for loans to be 
made in any one year, which amounts shall remain available until 
expended: Provided^ That the Congress in the annual appropriation 
Act may also authorize the transfer of any excess cash in the fund 
for deposit into the Treasury as miscellaneous receipts: And 'provided 
further^ That any such loans and advances shall not be included in 
the totals of the budget of the United States Government and shall be 
exempt from any general limitation imposed by statute on expendi-
tures and net lending (budget outlays) of the United States. 
87 STAT.] 
PUBLIC LAW 93-32-MAY 11, 1973 
69 
" (b) Insured loans made under this title shall bear interest at either 
2 per centum per annum (hereinafter called the 'special rate'), or 5 
"Special rate." 
per centum per annum (hereinafter called the 'standard rate'). Loans ^^"/^f"'^^'''' 
bearing the special rate shall be available only for an electric or tele-
phone borrower which meets either of the following conditions: 
"(1) has an average consumer or subscriber density of two or 
fewer per mile, or 
"(2) has an average gross revenue per mile which is at least 
$450 below the average gross revenue per mile of REA-financed 
electric systems, in the case of electric borrowers, or at least 
$300 below the average gross revenue per mile of REA-financed 
telephone systems, in the case of telephone borrowers: Provided., 
however., That the Administrator may, in his sole discretion, 
make a loan at the special rate if he finds that the borrower: 
"(A) 
has experienced 
extenuating 
circumstances or 
extreme hardship; or 
"(B) cannot, in accordance with generally accepted man-
agement and accounting principles, produce net income or 
margins before interest at least equal to 150 per centum of 
its total interest requirements on all outstanding and pro-
posed loans w'ith an interest rate greater than 2 per centum 
per annum on the entire current loan, and still meet the 
objectives of the Act, or 
"(C) cannot, in accordance with generally accepted man-
agement and accounting principles and without an excessive 
increase in the rates charged by such borrowers to their con-
sumers or subscribers, provide service consistent with tlie 
objectives of the Act. 
"(c) Loans made under this section shall be insured by the Admin-
istrator when purchased by a lender. As used in this Act, an insured 
loan is one which is made, held, and serviced by the Administrator, 
and sold and insured by the Administrator hereunder; such loans shall 
be sold and insured by the Administrator without undue delay. 
"SEC. 306. GUARANTEED LOANS ; ACCOMMODATION AND SUBORDINATION 
OF LIENS.—The Administrator may provide financial assistance to bor-
rowers for purposes provided in the Rural Electrification Act of 1936, 
as amended, by guaranteeing loans, in the full amount thereof, made 
'•^ ^tat. isss; 
by the Rural Telephone Bank, National Rural Utilities Cooperative 
7 use 901. 
Finance Corporation, and any other legally organized lending agency, 
or by accommodating or subordinating liens or mortgages in the fund 
held by the Administrator as owner or as trustee or custodian for 
purchases of notes from the fund, or by any combination of such guar-
antee, accommodation, or subordination. No fees or charges shall be 
assessed for any such guarantee, accommodation, or subordination. 
Guaranteed loans shall bear interest at the rate agreed upon by tlie 
borrower and the lender. Guaranteed loans, and accommodation and 
subordination of liens or mortgages, may be made concurrently with 
a loan insured at the standard rate. The amount of guaranteed loans 
shall be subject only to such limitations as to amounts as may be 
authorized from time to time by the Congress of the United States: 
Provided^ That any amounts guaranteed hereunder shall not be u.s. budget 
included in the totals of the budget of the United States Government *°*^ ^' ^'^'^ "^^°"-
and shall be exempt from any general limitation imposed by statute 
on expenditures and net lending (budget outlays) of the United States. 
As used in this title a guaranteed loan is one which is made, held, and 
Definition.. 
serviced by a legally organized lending agency and which is guaranteed 
by the Administrator hereunder. 
70 
PUBLIC LAW 93-32-MAY 11, 1973 
[87 STAT. 
"SEC. 307. OTHER FIXANCING.—When it appears to the Adminis-
trator that the loan applicant is able to obtain a loan for part of his 
credit needs from a responsible cooperative or other credit source at 
reasonable rates and terms consistent with the loan applicant's ability 
to pay and the achievement of the Act's objectives, he may request the 
loan applicant to apply for and accept such a loan concurrently with 
a loan insured at the standard rate, subject, however, to full use being 
made by the Administrator of the funds made available hereunder for 
such insured loans under this title. 
"SEC. 308. FULL FAITH AND CREDIT OF THE LNITED STATES.—Any 
contract of insurance or guarantee executed by the Administrator 
under this title shall be an obligation supported by the full faith and 
credit of the United States and incontestable except for fraud or mis-
representation of which the holder has actual knowledge, 
•'SEC. 300. LOAN TERMS AND CONDITIONS.—Loans made from or 
insured through the fund shall be for the same purposes and on the 
same terms and conditions as are provided for loans in titles I and I I 
A/Q ^*^Q'A^^^' 
of this Act except as otherwise provided in sections 303 to 308 
7 use 901, 921. inclusive. 
Ante, p. 67. 
" S E C . 310. REFINANCING OF RuRAL DEVELOPMENT ACT LoANS. 
A t 
the request of the borrower, the Administrator is authorized {.nd 
directed to refinance witli loans which will be insured under this Act 
Ante, p. 68. 
.^^ (]jg interest rates pr-ovided in section 305 any loans made for rural 
electric and telephone facilities under any provision of the Consoli-
dated Farm and Rural Development Act." 
SEC. 3. Section 3(f) of the Rural Electrification Act of 1936, as 
amended, is repealed. 
SEC. 4. Section 405 of the Rural Electrification Act of 1936, as 
amended, is further amended by striking subsection (e) in its entirety 
and by inserting in lieu thereof a new subsection (e), as follows: 
"(e) Thereafter, the cooperative-type entities and organizations 
holding class B and class C stock, voting as a separate class, shall elect 
three directors to represent their class by a majority vote of the stock-
holders voting in such class; and the commercial-type entities and 
organizations holding class B and class C stock, voting as a separate 
class, shall elect three directors to represent their class by a majority 
vote of the stockholders voting in such class. Limited proxy voting 
may be permitted, as authorized by the bylaws of the telephone bank. 
Cumulative voting shall not be j)ermitted." 
SEC. 5. The second sentence of section 406(a) of the Rural Electrifi-
7 use 946. 
cation Act of 1936, as amended, is further amended by striking "from 
net collection proceeds in the rural telephone account created under 
title I I I of tliis Act'' immediately after the word "appropriated". 
SEC. 6. Subsection (a) of section 407 of the Rural Electrification Act 
86^stat^Vgo"*' 
^^ 1936, as amended, is amended by striking out "eight" in the secojid 
7 use 947. 
sentence and inserting in lieu thereof "twenty", and by striking out all 
of the third sentence. 
SEC. 7. Section 407 of the Rural Electrification Act of 1936, as 
amended, is amended by adding a new subsection (c) as follows: 
U.S. budget 
"/(.) Purchases and resales by the Secretary of the Treasurv as 
authorized in subsection (b) oi this section shall not be included m the 
totals of the budget of the ITnited States Government and shall be 
exempt from any general limitation imposed by statute on expenditures 
and net lending (budget outlays) of the LTnited States." 
SEC. 8. Subsection (a) of section 408 of the Rural Electrification 
Act of 1936, as amended, is amended (a) by inserting the words "or 
86 Stat 
7 use 
note. 
Repeal 
7 use 
85 Stat 
7 use 
. 657 
1921 
903. 
. 32. 
945. 
totals, exclusion. 
7 use 948. 
87 STAT.] 
PUBLIC LAW 93-33-MAY 14, 1973 
. 
71 
-which have been certified by the Administrator to be eligible for such 
a loan or loan commitment," immediately following the term "this 
Act," where it first appears; and (b) by adding at the end thereof the 
following sentence: "Loans and advances made under this section shall 
u.s. budget 
not be included in the totals of the budget of the United States Gov- '°*^ ^' ^'''^ "^'°"' 
ernment and shall be exempt from any general limitation imposed by 
statute on expenditures and net lending (budget outlays) of the 
United States." 
SEC. 9. Subsection (b) of section 408 of the Rural Electrification 
Act of 1936, as amended, is amended by striking out all of paragraph 
7\jg*c'^948^* 
(3^ and inserting in lieu thereof a new paragraph (3) reading: 
(3) Loans under this section shall bear interest at the 'cost of 
"Cost o
f money 
money rate'. The cost of money rate is defined as the average cost of ''^^^•" 
moneys to the telephone bank as determined by the Governor, but not 
less than 5 per centum per annum." 
SEC. 10. No funds provided under the Rural Electrification Act of 
Prohibition. 
1936, as amended, shall be used outside the United States or any of its 
territories. 
SEC. 11. The right to repeal, alter, or amend this Act is expressly 
reserved. 
SEC. 12. This Act shall take effect upon enactment. 
Approved May 11, 1973. 
Effective diite. 
Public Law 93-33 
AN A C T 
^gy 14 _ 1973 
To provide for the striking of medals in commemoration of Roberto 
[H. R. 3841] 
Walker Clemente. 
Be it enacted hy the Sevate and House of Representatl'ves of the 
United States of America in Congress assembled^ That, in recognition ^f^^^^l° *^^''^'' 
of the outstanding athletic, civic, charitable, and humanitarian con- 
commemorative 
tributions of Roberto Walker Clemente, the Secretary of the Treasury medals, 
is authorized and directed to strike and furnish to the Chamber of 
Commerce of Greater Pittsburgh, Pittsburgh, Pennsylvania, (1) one 
gold medal, to be awarded at the discretion of such organization, with 
suitable emblems, devices, and inscriptions to be determined by such 
organization subject to the approval of the Secretary of the Treasury, 
and (2) not more than two hundred thousand duplicate medals of 
sizes and alloys to be determined by such organization subject to the 
approval of the Secretary of the Treasury, to be made and delivered 
at such times as may be required by such organization in quantities of 
not less than two thousand. Any profits derived by such oi-ganization 
from the sale of such medals shall be contributed by such organization 
to the Roberto Clemente Memorial Fund, Pittsburgh, Pennsylvania. 
The medals are national medals within the meaning of section 3551 of 
the Revised Statutes (31 U.S.C. 368). 
SEC. 2. The Secretary of the Treasury shall cause such medals to be 
^°^*-
struck and furnished at not less than the estimated cost of manufac-
ture, including labor, materials, dies, use of machinery, and overhead 
expenses, and security satisfactory to the Director of the ISIint, shall 
be furnished to indemnify the United States for the full payment of 
such costs. 
SEC. 3. No medals shall be made under the authority of this Act 
'^''"^ limitation. 
after December 31, 1974. 
Approved May 14, 1973.