Page:United States Statutes at Large Volume 107 Part 2.djvu/405

 PUBLIC LAW 103-129—NOV. 1, 1993 107 STAT. 1357 trator may make an insiired electric loan at an interest rate of 5 percent per year to an applicant for a loan if, in the sole discretion of the Administrator, the applicant has experienced a severe hardship. "(C) LIMITATION.— Except as provided in subparagraph (D), the Administrator may not make a loan under tnis paragraph to an applicant for the purpose of furnishing or improving electric service to a consumer located in an urban area (as defined by the Bureau of the Census) if the average number of consumers per mile of line of the total electric system of the applicant exceeds 17. "(D) EXTREMELY HIGH RATES.— In addition to hardship loans that are made under subparagraphs (A) and (B), the Administrator shall make insured electric loans, to the extent of qualifying applications for the loans, at an interest rate of J5 percent per year to any applicant for a loan whose residential revenue exceeds 15.0 cents per kilowatt-hour sold. A qualiMng application from such an applicant for the purpose of furnishing or improving electric service to a consiuner located outside of an urbanized area shall not be subject to the conditions or limitation of subparagraph (A) or (C). "(2) MUNICIPAL RATE LOANS.— "(A) IN GENERAL.—The Administrator shall make insured electric loans, to the extent of qualifying applications for the loans, at the interest rate described in subparagraph (B) for the term or terms selected by the applicant pursuant to subparagraph (C). "(B) INTEREST RATE.— " (i) IN GENERAL.—Subject to clause (ii), the interest rate describiid in this subparagraph on a loan to a qualifying applicant shall be— "(I) the interest rate determined by the Administrator to be equal to the current market yield on outstanding municipal obligations with remaining periods to maturity similar to the term selected by the applicant pursuant to subparagraph (C), but not greater than the rate determined under section 307(a)(3)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(A)) that is based on the current market yield on outstanding municipal obligations; plus "(II) if the applicant for the loan makes an election pursuant to subparagraph (D) to include in the loan agreement the right of the applicant to prepay the loan, a rate equal to the amount by which— "(aa) the interest rate on commercial loans for a similar period that afford the borrower such a right; exceeds "(bb) the interest rate on commercial loans for the period that do not afford the borrower such a right. "(ii) MAXIMUM RATE. —The interest rate described in this subparagraph on a loan to an applicant for the loan shall not exceed 7 percent if—

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