Page:United States Statutes at Large Volume 106 Part 3.djvu/389

 PUBLIC LAW 102-428—OCT. 21, 1992 106 STAT. 2183 Public Law 102-428 102d Congress An Act To amend the Rural Electrification Act of 1936 to improve the provision of electric and telephone service in rural areas, 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. SHORT TITLE. This Act may be cited as the 'Hural Electrification Administration Improvement Act of 1992". SEC. 2. DISCOUNTED LOAN PREPAYMENT. (a) IN GENERAL. —Subsection (a) of section 306B of the Rural Electrification Act of 1936 (7 U.S.C. 936b(a)) is amended to read as follows: " (a) DISCOUNTED PREPAYMENT BY BORROWERS OF ELECTRIC LOANS. — " (1) IN GENERAL.—Except as provided in paragraph (2), a direct or insured loan made under this Act shall not be sold or prepaid at a value that is less theui the outstanding principal balance on the loan. "(2) EXCEPTION. —On request of the borrower, an electric loan made under this Act, or a portion of such a loan, that was advanced before May 1, 1992, or has been advanced for not less than 2 years, shall be sold to or prepaid by the borrower at the lesser of— "(A) the outstanding principal balance on the loan; or ''(B) the present value of the loan discounted from the face value at maturity at the rate established by the Administrator. "(3) DISCOUNT RATE. — The discount rate applicable to the prepayment under this subsection of a loan or loan advance shall be the then current cost of funds to the Department of the Treasury for obligations of comparable maturity to the remaining term of the loan. "(4) TAX EXEMPT FINANCING.— If a borrower prepays a loan under this subsection using tax exempt financing, the discount shall be adjusted to ensure that the borrower receives a benefit that is equal to the benefit the borrower would receive if the borrower used fully taxable financing. The borrower shall certify in writing whether the financing will be tax exempt and shall comply with such other terms and conditions as the Administrator may establish that are reasonable and necessary to carry out this subsection. "(5) ELIGIBILITY. — "(A) IN GENERAL.— A borrower that has prepaid an insured or direct loan shall remain eligible for assistance Oct. 21, 1992 [H.R. 5237] Rural Electrification Administration Improvement Act of 1992. 7 USC 901 note.

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