Page:United States Statutes at Large Volume 92 Part 1.djvu/476

 92 STAT. 422

PUBLIC LAW 95-334—AUG. 4, 1978 LOANS FOR POWER TRANSMISSION

FACILITIES

SEC. 107. (a) Section 306(a) of the Consolidated F a r m and Kural 7 USC 1926. Development Act is amended by adding at the end thereof a new paragraph (14) as follows: " ( 1 4)(A) The Secretary may make or insure loans in the full amount thereof, but not to exceed $1,000,000 for any such loan, to associations, including corporations not operated for profit, Indian tribes on Federal and State reservations and other federally recognized Indian tribes, and public and quasi-public agencies, for the purpose of financing the construction, acquisition, and operation of transmission facilities for any electric system that is owned and operated by a public body located in a rural area and as of October 1, 1976, was receiving bulk power from any of the following agencies of the Department of the Interior: " (i) the Southwestern Power Administration, " (ii) the Southeastern Power Administration, " (iii) the Bonneville Power Administration, " ( i v) the Bureau of Reclamation, or " (v) the Alaska Power Administration. A loan may not be made or insured under this paragraph unless the Secretary determines that the applicant for the loan cannot obtain sufficient credit elsewhere from reliable sources at reasonable rates and terms for financing the construction, acquisition, and operation of such facilities. " (B) Interest or other income from obligations evidencing loans guaranteed under this paragraph shall be included in gross income for the purposes of chapter 1 of the Internal Revenue 26 USC 1 et seq. Code of 1954. " (C) The Administrator of the R u r a l Electrification Administration shall administer loans made or insured under this paragraph. " (D) The authority provided to the Secretary by subparagraph (A) of this paragraph shall teraiinate September 30, 2006.". (b) Section 309A(a) of the Consolidated F a r m and Rural Devel7 USC 1929a. opment Act is amended by inserting "306(a) ( 1 4), " immediately after "sections 3 0 4 (b), 306(a)(1),". INTEREST RATES FOR LOANS UNDER SUBTITLE A; DELETION OF ESCROW AGENT PROVISION

7 USC 1927.

Post, p. 424.

SEC. 108. Section 307 of the Consolidated F a r m and Rural Development Act is amended by— (1) amending subsection (a) to read as follows: " (a)(1) The period for repayment of loans under this subtitle shall not exceed forty years. " (2) E x c e p t as otherwise provided in paragraph s (3), (4), and (5) of this subsection, the interest rates on loans under this subtitle shall be as determined by the Secretary, but not in excess of the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, plus not to exceed 1 per centum, as determined by the Secretary, and adjusted to the nearest one-eighth of 1 per centum. " (3) The interest rates on loans (other than guaranteed loans) under section 310D of this title, and loans (other than guaranteed loans) to public bodies or nonprofit associations (including Indian tribes on Federal and State reservations and other federally recog-

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