Page:United States Statutes at Large Volume 101 Part 2.djvu/816

 101 STAT. 1330-22

PUBLIC LAW 100-203—DEC. 22, 1987 October 1, 1987, by the difference (converted to a monthly basis) between the average weighted interest rate paid on outstanding certificates of beneficial ownership issued by the Fund and the 5 percent rate of interest provided to borrowers on cushion of credit payments. "(B) GRANTS.—The Administrator is authorized, from the interest differential sums credited this subaccount and from any other funds made available thereto, to provide grants or zero interest loans to borrowers under this Act for the purpose of promoting rural economic development and job creation projects, including funding for project feasibility studies, start-up costs, incubator projects, and other reasonable expenses for the purpose of fostering rural development. "(C) REPAYMENTS.—In the case of zero interest loans, the Administrator shall establish such reasonable repayment terms as will ensure borrower participation. "(D) PROCEEDS.—All proceeds from the repayment of such loans shall be returned to the subaccount. "(E) NUMBER OF GRANTS.—Such loans and grants shall be made during each fiscal year to the full extent of the amounts held by the rural economic development subaccount, subject only to limitations as may be from timeto-time imposed by law.".

CHAPTER 2—RURAL TELEPHONE BANK BORROWERS

7 USC 948 note.

SEC. 1411. RURAL TELEPHONE BANK INTEREST RATES AND LOAN PREPAYMENTS. (a) FINDINGS.—Congress finds that— (1) overcharging of Rural Telephone Bank borrowers has resulted in $179,000,000 in excess profits and has imperiled borrowers by raising costs to ratepayers; (2) borrowers will be able to seek redress under section 408(b)(3)(G) of the Rural Electrification Act of 1936, as added by subsection (c), or may leave the Rural Telephone Bank, but in no case may the Governor of the Bank issue regulations requiring any penalty from borrowers seeking to retire debt prior to maturity; and (3) any reduction in Federal Government * expenditures in the operation of the Rural Telephone Bank, from borrowers' conduct resulting from the implementation of the amendments made by subsections 0>) and (c), should be included in all calculations of the budget of the United States Government, authorized under the *^ Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987. (b) RURAL TELEPHONE BANK LOAN PREPAYMENTS.— ® (1) PREPAYMENTS AUTHORIZED.—Section 408(b) of the Rural

Electrification Act of 1936 (7 U.S.C. 9480))) is amended by adding at the end the following new paragraph: "(8) A borrower with a loan from the Rural Telephone Bank may prepay such loan (or any part thereof) by paying the face amount thereof without being required to pay the prepayment ' Copy read "PREPAYMENTS.".
 * Copy read "government".
 * Copy read "under of the".

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