(May 20, 1936, ch. 432, title III, § 305, as added Pub. L. 93–32, § 2,May 11, 1973, 87 Stat. 68; amended Pub. L. 94–570, § 3,Oct. 20, 1976, 90 Stat. 2701; Pub. L. 97–35, title I, § 165(a),Aug. 13, 1981, 95 Stat. 379; Pub. L. 101–624, title XXIII, § 2361,Nov. 28, 1990, 104 Stat. 4042; Pub. L. 103–129, § 2(a)(1), (c)(6),Nov. 1, 1993, 107 Stat. 1356, 1364; Pub. L. 103–354, title II, § 235(a)(8), (13),Oct. 13, 1994, 108 Stat. 3221.)
1994—Pub. L. 103–354
substituted “Secretary” for “Administrator” in heading for subsec. (c)(2)(C)(ii)(II) and wherever appearing in text.
1993—Pub. L. 103–129
, § 2(c)(6)(A), amended section catchline generally.
Subsec. (a). Pub. L. 103–129
, § 2(c)(6)(A), inserted heading.
Subsec. (b). Pub. L. 103–129
, § 2(a)(1)(A), (B), (c)(6)(B), redesignatedsubsec. (c) as (b), inserted heading, and struck out former subsec. (b) which read as follows: “Insured loans made under this subchapter shall bear interest at 5 per centum per annum, except that the Administrator may make insured loans to electric or telephone borrowers at a lesser interest rate, but not less than 2 per centum per annum, if, in the Administrator’s sole discretion, the Administrator finds that the borrower—
“(1) has experienced extreme financial hardship; or
“(2) cannot, in accordance with generally accepted management and accounting principles and without charging rates to its customers or subscribers so high as to create a substantial disparity between such rates and the rates charged for similar service in the same or nearby areas by other suppliers, provide service consistent with the objectives of this chapter.”
Subsec. (c). Pub. L. 103–129
, § 2(a)(1)(C), added subsec. (c). Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 103–129
, § 2(a)(1)(A), (C), added subsec. (d) and struck out former subsec. (d) which read as follows: “The Administrator shall make a telephone loan under this subchapter to an applicant therefor who is otherwise qualified to receive such a loan at the highest interest rate (but not less than the lowest interest rate, nor higher than the highest interest rate, specified in subsection (b) of this section) at which the borrower would be capable of producing net income or margins before interest payments of at least 100 percent (but not more than 150 percent) of the interest requirements on all of the applicant’s outstanding and proposed loans.”
1990—Subsec. (d). Pub. L. 101–624
added subsec. (d).
1981—Subsec. (b). Pub. L. 97–35
substituted provisions establishing an interest rate at 5 per centum per annum and a lower rate, but not less than 2 per cent, under the enumerated criteria, for provisions establishing standard and special rates, with special rates applicable under enumerated criteria.
1976—Subsec. (b). Pub. L. 94–570
struck out from introductory text “meets either of the following conditions” after “borrower which”; limited par. (1) to the telephone borrowers, substituting provision for an average subscriber density of three or fewer per mile at the end of the most recent calendar year ending at least six months before approval of the loan for prior provision for an average consumer or subscriber density of two or fewer per mile; substituted in par. (2) provision, limited to electric borrowers, respecting having an average consumer density of two or fewer per mile or an average adjusted plant revenue ratio of over 9.0 at end of the most recent calendar year ending at least six months before approval of the loan, determination of such ratio, and defining sum of distribution plant and general plant, gross revenue, and cost of power for prior provision for and 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; and inserted in proviso of par. (2) “to a telephone or electric borrower” after “make a loan”.
Effective Date of 1981 Amendment
Section 165(d) ofPub. L. 97–35
provided that: “The amendments made by subsection (a) of this section [amending this section] shall apply to loans the applications for which are received by the Rural Electrification Administration after July 24, 1981.”
Effective Date of 1976 Amendment; Interest Rate
Section 4 ofPub. L. 94–570
provided that: “This Act [amending this section and section
of this title] shall take effect upon enactment [Oct. 20, 1976] except that insured loans made pursuant to applications for such loans which would otherwise lose eligibility for special rate financing upon such enactment, received by the Rural Electrification Administration and still pending on the date of enactment of this Act [Oct. 20, 1976], shall bear interest as determined under section 305(b) of the Rural Electrification Act of 1936 before its amendment by this Act [former provisions of subsec. (b) of this section].”
Section effective May 11, 1973, see section 12 ofPub. L. 93–32
, set out as a note under section
of this title.