Page:United States Statutes at Large Volume 87.djvu/101

 87 STAT.]

PUBLIC LAW 93-32-MAY 11, 1973

69

" (b) Insured loans made under this title shall bear interest at either 2 per centum per annum (hereinafter called the 'special rate'), or 5 "Special rate." per centum per annum (hereinafter called the 'standard rate'). Loans ^^"/^f"'^^''' bearing the special rate shall be available only for an electric or telephone borrower which meets either of the following conditions: "(1) has an average consumer or subscriber density of two or fewer per mile, or "(2) has an average gross revenue per mile which is at least $450 below the average gross revenue per mile of REA-financed electric systems, in the case of electric borrowers, or at least $300 below the average gross revenue per mile of REA-financed telephone systems, in the case of telephone borrowers: Provided., however., That the Administrator may, in his sole discretion, make a loan at the special rate if he finds that the borrower: " (A) has experienced extenuating circumstances or extreme hardship; or " (B) cannot, in accordance with generally accepted management and accounting principles, produce net income or margins before interest at least equal to 150 per centum of its total interest requirements on all outstanding and proposed loans w'ith an interest rate greater than 2 per centum per annum on the entire current loan, and still meet the objectives of the Act, or " (C) cannot, in accordance with generally accepted management and accounting principles and without an excessive increase in the rates charged by such borrowers to their consumers or subscribers, provide service consistent with the objectives of the Act. "(c) Loans made under this section shall be insured by the Administrator when purchased by a lender. As used in this Act, an insured loan is one which is made, held, and serviced by the Administrator, and sold and insured by the Administrator hereunder; such loans shall be sold and insured by the Administrator without undue delay. "SEC. 306. GUARANTEED LOANS; ACCOMMODATION AND SUBORDINATION

OF LIENS.—The Administrator may provide financial assistance to borrowers for purposes provided in the Rural Electrification Act of 1936, as amended, by guaranteeing loans, in the full amount thereof, made '•^ ^tat. isss; by the Rural Telephone Bank, National Rural Utilities Cooperative 7 USC 901. Finance Corporation, and any other legally organized lending agency, or by accommodating or subordinating liens or mortgages in the fund held by the Administrator as owner or as trustee or custodian for purchases of notes from the fund, or by any combination of such guarantee, accommodation, or subordination. No fees or charges shall be assessed for any such guarantee, accommodation, or subordination. Guaranteed loans shall bear interest at the rate agreed upon by the borrower and the lender. Guaranteed loans, and accommodation and subordination of liens or mortgages, may be made concurrently with a loan insured at the standard rate. The amount of guaranteed loans shall be subject only to such limitations as to amounts as may be authorized from time to time by the Congress of the United States: Provided, That any amounts guaranteed hereunder shall not be u.s. budget included in the totals of the budget of the United States Government *°*^ ^' ^'^'^ "^^°"and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States. As used in this title a guaranteed loan is one which is made, held, and Definition.. serviced by a legally organized lending agency and which is guaranteed by the Administrator hereunder.

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