US Code-Secs 901 thru 904 Re Act

G:\COMP\CONSFARM\RURAL ELECTRIFICATION ACT OF 1936.XML
3

RURAL ELECTRIFICATION ACT OF 1936

Sec. 4

Be it enacted by the Senate, and House of Representatives of the
United States of America in Congress assembled,
TITLE I
SECTION 1. ø7 U.S.C. 901¿ SHORT TITLE.

This Act may be cited as the ‘‘Rural Electrification Act of
1936’’.
SEC. 2. ø7 U.S.C. 902¿ GENERAL AUTHORITY OF THE SECRETARY OF
AGRICULTURE.
(a) LOANS.—The Secretary of Agriculture (referred to in this

Act as the ‘‘Secretary’’) is authorized and empowered to make
loans, or refinance loans made by the Secretary under this Act, in
the several States and Territories of the United States for rural
electrification and for the purpose of furnishing and improving electric and telephone service in rural areas, as provided in this Act,
and for the purpose of assisting electric borrowers to implement demand side management, energy efficiency and conservation programs, and on-grid and off-grid renewable energy systems.
(b) INVESTIGATIONS AND REPORTS.—The Secretary may make,
or cause to be made, studies, investigations, and reports regarding
matters, including financial, technological, and regulatory matters,
affecting the condition and progress of electric, telecommunications,
and economic development in rural areas, and publish and disseminate information with respect to the matters.
(c) TECHNICAL ASSISTANCE.—Not later than 180 days after the
date of enactment of this subsection, the Secretary shall enter into
a memorandum of understanding with the Secretary of Energy
under which the Secretary of Energy shall provide technical assistance to the Rural Utilities Service on loans to be made under subsection (a) of this section and section 4(a).
SEC. 3. ø7 U.S.C. 903¿ AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as are necessary to carry out this Act.
SEC. 4. ø7 U.S.C. 904¿ (a) The Secretary is authorized and empowered, from the sums hereinbefore authorized, to make loans for
rural electrification to persons, corporations, States, Territories,
and subdivisions and agencies thereof, municipalities, peoples’ utility districts and cooperative, nonprofit, or limited-dividend associations organized under the laws of any State or Territory of the
United States, for the purpose of financing the construction and operation of generating plants, electric transmission and distribution
lines or systems for the furnishing and improving of electric service
to persons in rural areas, including by assisting electric borrowers
to implement demand side management, energy efficiency and conservation programs, and on-grid and off-grid renewable energy systems, and loans, from funds available under section 3, to cooperative associations and municipalities for the purpose of enabling
said cooperative associations, and municipalities to the extent that
such indebtedness was incurred with respect to electric transmission and distribution lines or systems or portions thereof serving persons in rural areas, to discharge or refinance long-term
debts owned by them to the Tennessee Valley Authority on account
of loans made or credit extended under the terms of the Tennessee
January 18, 2019

VerDate Nov 24 2008

16:11 Jan 18, 2019

As Amended Through P.L. 115-334, Enacted December 20, 2018

Jkt 000000

PO 00000

Frm 00003

Fmt 9001

Sfmt 9001

G:\COMP\CONSFARM\REAO1.BEL

HOLCPC

G:\COMP\CONSFARM\RURAL ELECTRIFICATION ACT OF 1936.XML
Sec. 5

RURAL ELECTRIFICATION ACT OF 1936

4

Valley Authority Act of 1933, as amended: Provided, That the Secretary, in making such loans, shall give preference to States, Territories, and subdivisions and agencies thereof, municipalities, peoples’ utility districts, and cooperative, nonprofit, or limited-dividend
associations, the projects of which comply with the requirements of
this Act.
(b) Such loans shall be on such terms and conditions relating
to the expenditure of the moneys loaned and the security therefor
as the Secretary shall determine and may be made payable in
whole or in part out of the income, except that no loan for the construction, operation, or enlargement of any generating plant shall
be made unless the consent of the State authority having jurisdiction in the premises is first obtained.
(c) DIRECT LOANS.—
(1) DIRECT HARDSHIP LOANS.—Direct hardship loans under
this section shall be for the same purposes and on the same
terms and conditions as hardship loans made under section
305(c)(1).
(2) OTHER DIRECT LOANS.—All other direct loans under
this section shall bear interest at a rate equal to the then current cost of money to the Government of the United States for
loans of similar maturity, plus 1⁄8 of 1 percent.
(d) Loans under this section shall not be made unless the Secretary finds and certifies that in his judgment the security therefor
is reasonably adequate and such loan will be repaid within the
time agreed.
SEC. 5. ø7 U.S.C. 905¿ FEES FOR CERTAIN LOAN GUARANTEES.
(a) IN GENERAL.—For electrification baseload generation

loan
guarantees, the Secretary shall, at the request of the borrower,
charge an upfront fee to cover the costs of the loan guarantee.
(b) FEE.—The fee described in subsection (a) for a loan guarantee shall be equal to the costs of the loan guarantee (within the
meaning of section 502(5)(C) of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a(5)(C))).
(c) LIMITATION.—Funds received from a borrower to pay the fee
described in this section shall not be derived from a loan or other
debt obligation that is made or guaranteed by the Federal Government.
SEC. 6. ø7 U.S.C. 906¿ For the purpose of administering this
Act and for the purpose of making the studies, investigations, publications, and reports herein provided for, there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as shall be necessary.
SEC. 7. ø7 U.S.C. 907¿ The Secretary is authorized and empowered to bid for and purchase at any foreclosure or other sale,
or otherwise to acquire, property pledged or mortgaged to secure
any loan made pursuant to this Act; to pay the purchase price and
any costs and expenses incurred in connection therewith from the
sums authorized in section 3 of this Act; to accept title to any property so purchased or acquired in the name of the United States of
America; to operate or lease such property for such period as may
be deemed necessary or advisable to protect the investment therein, but not to exceed five years after the acquisition thereof; and
January 18, 2019

VerDate Nov 24 2008

16:11 Jan 18, 2019

As Amended Through P.L. 115-334, Enacted December 20, 2018

Jkt 000000

PO 00000

Frm 00004

Fmt 9001

Sfmt 9001

G:\COMP\CONSFARM\REAO1.BEL

HOLCPC