7 U.S. Code § 904 - Loans for electrical plants and transmission lines

(a) In general
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 903 of this title, 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 Valley Authority Act of 1933, as amended [16 U.S.C. 831 et seq.]: 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 chapter.
(b) Terms and conditions
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 935 (c)(1) of this title.
(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) Certification
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.

Source

(May 20, 1936, ch. 432, title I, § 4,49 Stat. 1365; Sept. 21, 1944, ch. 412, title V, §§ 502(a), 503,58 Stat. 739, 740; Dec. 23, 1944, ch. 725, 58 Stat. 925; June 29, 1948, ch. 703, 62 Stat. 1070; Oct. 28, 1949, ch. 776, §§ 2, 4 (e),63 Stat. 948; June 15, 1955, ch. 139, § 2,69 Stat. 132; Pub. L. 103–129, § 2(c)(2),Nov. 1, 1993, 107 Stat. 1363; Pub. L. 103–354, title II, § 235(a)(13),Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104–127, title VII, § 773,Apr. 4, 1996, 110 Stat. 1149; Pub. L. 110–234, title VI, §§ 6101, 6102 (a),May 22, 2008, 122 Stat. 1195; Pub. L. 110–246, § 4(a), title VI, §§ 6101, 6102 (a),June 18, 2008, 122 Stat. 1664, 1956.)
References in Text

The Tennessee Valley Authority Act of 1933, as amended, referred to in subsec. (a), is act May 18, 1933. ch. 32. 48 Stat. 58, which is classified generally to chapter 12A (§ 831 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see section 831 of Title 16 and Tables.
Codification

Pub. L. 110–234and Pub. L. 110–246made identical amendments to this section. The amendments by Pub. L. 110–234were repealed by section 4(a) ofPub. L. 110–246.
Amendments

2008—Pub. L. 110–246, § 6102(a), designated first, second, and third sentences as subsecs. (a), (b), and (d), respectively, and added subsec. (c).
Pub. L. 110–246, § 6101, inserted “efficiency and” before “conservation” in first sentence.
1996—Pub. L. 104–127, in first sentence, struck out “for the furnishing of electric energy to persons in rural areas who are not receiving central station service and” after “transmission and distribution lines or systems” and substituted “section 903 of this title,” for “the provisions of sections 903 (d) and 903 (e) of this title but without regard to the 25 per centum limitation therein contained,”, in second sentence, substituted “, except that” for “: Provided, further, That all such loans shall be self-liquidating within a period of not to exceed thirty-five years, and shall bear interest at the rate of 2 per centum per annum; interest rates on the unmatured and unpaid balance of any loans made pursuant to this section prior to September 21, 1944, shall be adjusted to 2 per centum per annum, and the maturity date of any such loans may be readjusted to occur at a date not beyond thirty-five years from the date of such loan: And provided further, That”, and in third sentence, struck out “and section 905 of this title” before “shall not be made”.
1994—Pub. L. 103–354substituted “Secretary” for “Administrator”.
1993—Pub. L. 103–129inserted “and for the furnishing and improving of electric service to persons in rural areas, including by assisting electric borrowers to implement demand side management, energy conservation programs, and on-grid and off-grid renewable energy systems” after “central station service”.
1955—Act June 15, 1955, substituted “25 per centum” for “10 per centum”.
1949—Act Oct. 28, 1949, inserted “for rural electrification” after “to make loans” in first sentence, and inserted “title I,” in credit of act May 20, 1936.
1948—Act June 29, 1948, permitted certain municipalities to refinance with R.E.A. their indebtedness with T.V.A.
1944—Act Dec. 23, 1944, inserted provision authorizing loans to cooperative associations to enable them to discharge or refinance debts owed to the Tennessee Valley Authority.
Act Sept. 21, 1944, extended limit of self-liquidating period from 25 to 35 years and changing the rate of interest.
Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234by Pub. L. 110–246effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 ofPub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.

7 USCDescription of ChangeSession YearPublic LawStatutes at Large

This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


7 CFR - Agriculture

7 CFR Part 1700 - GENERAL INFORMATION

7 CFR Part 1703 - RURAL DEVELOPMENT

7 CFR Part 1709 - ASSISTANCE TO HIGH ENERGY COST COMMUNITIES

7 CFR Part 1710 - GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO ELECTRIC LOANS AND GUARANTEES

7 CFR Part 1714 - PRE-LOAN POLICIES AND PROCEDURES FOR INSURED ELECTRIC LOANS

7 CFR Part 1717 - POST-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND GUARANTEED ELECTRIC LOANS

7 CFR Part 1718 - LOAN SECURITY DOCUMENTS FOR ELECTRIC BORROWERS

7 CFR Part 1720 - GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR TELEPHONE PURPOSES

7 CFR Part 1721 - POST-LOAN POLICIES AND PROCEDURES FOR INSURED ELECTRIC LOANS

7 CFR Part 1724 - ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES AND DESIGN POLICIES AND PROCEDURES

7 CFR Part 1726 - ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES

7 CFR Part 1728 - ELECTRIC STANDARDS AND SPECIFICATIONS FOR MATERIALS AND CONSTRUCTION

7 CFR Part 1730 - ELECTRIC SYSTEM OPERATIONS AND MAINTENANCE

7 CFR Part 1735 - GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS—TELECOMMUNICATIONS PROGRAM

7 CFR Part 1737 - PRE-LOAN POLICIES AND PROCEDURES COMMON TO INSURED AND GUARANTEED TELECOMMUNICATIONS LOANS

7 CFR Part 1738 - RURAL BROADBAND ACCESS LOANS AND LOAN GUARANTEES

7 CFR Part 1744 - POST-LOAN POLICIES AND PROCEDURES COMMON TO GUARANTEED AND INSURED TELEPHONE LOANS

7 CFR Part 1751 - TELECOMMUNICATIONS SYSTEM PLANNING AND DESIGN CRITERIA, AND PROCEDURES

7 CFR Part 1753 - TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES

7 CFR Part 1755 - TELECOMMUNICATIONS POLICIES ON SPECIFICATIONS, ACCEPTABLE MATERIALS, AND STANDARD CONTRACT FORMS

7 CFR Part 1767 - ACCOUNTING REQUIREMENTS FOR RUS ELECTRIC BORROWERS

7 CFR Part 1770 - ACCOUNTING REQUIREMENTS FOR RUS TELECOMMUNICATIONS BORROWERS

7 CFR Part 1773 - POLICY ON AUDITS OF RUS BORROWERS

7 CFR Part 1785 - LOAN ACCOUNT COMPUTATIONS, PROCEDURES AND POLICIES FOR ELECTRIC AND TELEPHONE BORROWERS

7 CFR Part 1786 - PREPAYMENT OF RUS GUARANTEED AND INSURED LOANS TO ELECTRIC AND TELEPHONE BORROWERS

7 CFR Part 1787

7 CFR Part 1788 - RUS FIDELITY AND INSURANCE REQUIREMENTS FOR ELECTRIC AND TELECOMMUNICATIONS BORROWERS

7 CFR Part 1792 - COMPLIANCE WITH OTHER FEDERAL STATUTES, REGULATIONS, AND EXECUTIVE ORDERS

 

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