To clarify the regulatory oversight exercised by the Rural Electrification Administration with respect to certain electric borrowers.
PL 103-201 (H.R.3514), enacted 12/17/1993

107 STAT. 2342 
PUBLIC LAW 103-201—DEC. 17, 1993 
Public Law 103-201 
103d Congress 
An Act 
Dec. 17, 1993 
To clarify the regulatory oversight exercised by the Rural Electrification 
[H.R. 3514] 
Administration with respect to certain electric borrowers. 
Be it enacted by the Senate and House of Representatives of 
Loans. 
the United States of 
America in Congress assembled, 
SECTION 1. ADMINISTRATIVE PROmBITIONS APPLICABLE TO CER. 
TAIN ELECTRIC BORROWERS. 
7 use 936e. 
Section 306E of the Rural Electrification Act of 1936 is amended 
to read as follows: 
Regulations. 
'^SEC. 306E. ADMINISTRATIVE PROmBITIONS APPLICABLE TO CER-
, 
TAIN ELECTRIC BORROWERS. 
"(a) IN GENERAL.—For the purpose of relieving borrowers of 
unnecessary £uid 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 lotin 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.**. 
7 use 936e note. 
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. 
PUBLIC LAW 103-201—DEC. 17, 1993 
107 STAT. 2343 
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. 
Approved December 17, 1993. 
LEGISLATIVE HISTORY—H.R. 3514: 
HOUSE REPORTS: No. 103-381 (Comm. on Agriculture). 
CONGRESSIONAL RECORD, Vol. 139 (1993): 
Nov. 19, considered and passed House. 
Nov. 22, considered and passed Senate.