Page:United States Statutes at Large Volume 108 Part 5.djvu/1058

 108 STAT. 4548 PUBLIC LAW 103-434—OCT. 31, 1994 calculated by discoiinting the remaining payments due on the loans by the interest rate determined pursuant to subsection (c). (c) INTEREST RATE.— (1) IN GENERAL. —The Secretary shall determine the interest rate in accordance with the guidelines set forth in Circular A-129 issued by the Office of Management and Budget concerning loan sales and prepayment of loans. (2) DETERMINATION. —In determining the interest rate, the Secretary— (A) shall not equate an appropriate amount of prepay- ment with the price of the loan if it were to be sold on the open market to a third party; and (B) shall, in following the guidelines set forth in Circular A-129 regarding an allowance for administrative expenses and possible losses, make such an allowance from the perspective of the Federal Government as lender and not from the perspective of a third party purchasing the loan on the open market. (3) ADJUSTMENT. — If the borrower or purchaser of the loan has access to tax-exempt financing, including tax-exempt bonds, tax-exempt cash reserves, and cash and loans of any kind from any tax-exempt entity, to finance the transaction, and if the Office of Management and Budget grants the Secretary the right to conduct such a transaction, then the interest rate by which the Secretary discounts the remaining payments due on the loan shall be adjusted by an amount that compensates the Federal Government for the direct or indirect loss of future tax revenues. (4) LIMITATION. —Notwithstanding any other provision of law, the interest rate shall not exceed a composite interest rate consisting of the current market yield on Treasury securities of comparable maturities. (5) APPROVAL. — The Secretary shall obtain approval from the Secretary of the Treasury and the Director of the Office of Management and Budget of the final terms of any loan sale or prepa3ment made pursuant to this title. SEC. 1003. TERMINATION AND CONVEYANCE OF RIGHTS. Upon receipt of the payment specified in section 1002(b)— (1) the obligation of the District under the loan contract described in section 1002(a)(2) shall terminate; (2) the Secretary of the Interior shall convey all right and interest of the United States in the Stagecoach Reservoir Project to the District; and (3) the District shall absolve the United States, and its officers and agents, of any liability associated with the Stagecoach Reservoir Project. SEC. 1004. TERMINATION OF AUTHORITY. (a) IN GENERAL. — Subject to subsection (b), the authority granted by this title to sell loans shall terminate 2 years after the date of enactment of this Act. (b) TIME TO RESPOND TO OFFER.— The borrower shall have not less than 60 days to respond to any prepayment ofiFer made by the Secretary.

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