Page:United States Statutes at Large Volume 107 Part 2.djvu/413

 PUBLIC LAW 103-129—NOV. 1, 1993 107 STAT. 1365 <«£€. 306D. ELIGranJTY OF DISTRIBUTION BORROWERS FOR LOANS, 7 USC 936d. LOAN GUARANTEES, AND LIEN ACCOMMODATIONS. Tor the purpose of determining the eligibility of a distribution borrower not in default on the repayment of a loan made or guaranteed under this Act for a loan, loan guarantee, or lien accommodation under this title, a default by a borrower from which the distribution borrower purchases wholesale power shall not— "(1) be considered a default by the distribution borrower; "(2) reduce the eligibility of the distribution borrower for assistance under this Act; or "(3) be the cause, directly or indirectly, of imposing any requirement or restriction on the borrower as a condition of the assistance, except such requirements or restrictions as are necessary to implement a debt restructuring agreed on by the power supply borrower and the Government. "SEC. 306E. ADMINISTRATIVE PROmBITIONS APPLICABLE TO ELEC- 7 USC 936e. TRIC BORROWERS. The Administrator may not require prior approval of, impose any requirement, restriction, or prohibition with respect to the operations of, or deny or delay the granting of a lien accommodation to, any electric borrower 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.". (8) LOANS FROM OTHER CREDIT SOURCES. — Section 307 of such Act (7 U.S.C. 937) is amended by adding at the end the following new sentence: "The Administrator may not request any applicant for an electric loan under this Act to apply for and accept a loan in an amount exceeding 30 percent of the credit needs of the applicant.". (9) CAPITALIZATION. —Section 406 of such Act (7 U.S.C. 946) is amended by adding at the end the following new subsection: "(i) The Governor of the telephone bank may invest in obligations of the United States the amounts in the account in me Treasury of the United States numbered 12X8139 (known as the ' R TB Equity Fund').". (10) REFINANCING OF FFB LOANS. —Section 306C of such Act is amended by— 7 USC 936c. (A) inserting before the period at the end of subsection (c)(2) the following: ", except that such rate shall not be greater than 7 percent per year, subject to subsection (d)"; and (B) adding at the end the following new subsection: "(d) MAXIMUM RATE OPTION.— "(1) IN GENERAL.—Except as provided in paragraphs (2), (3), and (4), a borrower of a loan or loan advance, or any portion of the loan or advance, that is refinanced under this section shall have the option of ensuring that the interest rate on such loan, loan advance, or portion thereof does not exceed 7 percent per year. "(2) LIMITATION.— A borrower may not exercise the option under paragraph (1) in the case of a loan or loan advance, or portion thereof, if the totel amount of such loans for which such option would be exercised exceeds 50 percent of the outstanding principal balance of the loans made to such borrower and guaranteed under section 306.

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