[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1605 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1605

 To repeal the Rural Electrification Act of 1936, require the sale of 
     all loans made under such Act, and authorize the Secretary of 
   Agriculture to make loans to electric generation and transmission 
cooperatives which are unable to obtain needed financing in the private 
                                sector.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1993

  Mr. Zimmer introduced the following bill; which was referred to the 
                        Committee on Agriculture

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                                 A BILL


 
 To repeal the Rural Electrification Act of 1936, require the sale of 
     all loans made under such Act, and authorize the Secretary of 
   Agriculture to make loans to electric generation and transmission 
cooperatives which are unable to obtain needed financing in the private 
                                sector.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REPEAL OF RURAL ELECTRIFICATION ACT OF 1936.

    (a) Repeal.--The Rural Electrification Act of 1936 (7 U.S.C. 901-
950b) is hereby repealed.
    (b) No Effect on Existing Contracts.--The repeal made by subsection 
(a) shall not be construed to permit the violation of any contract 
entered into before the enactment of this Act.
    (c) References.--Any reference in any law to the Administrator of 
the Rural Electrification Administration is deemed to be a reference to 
the Secretary of Agriculture.

SEC. 2. SALE OF OUTSTANDING LOANS.

    Notwithstanding any other provision of law, not later than the end 
of the 3-year period that begins with the date of the enactment of this 
Act, the Secretary of Agriculture shall sell to private investors all 
interests of the United States in the loans made under the Rural 
Electrification Act of 1936 before the enactment of this Act that are 
outstanding at the time of the sale, for cash only, on the most 
favorable terms to the Federal Government that are then obtainable.

SEC. 3. LOANS FOR CERTAIN ELECTRIC GENERATION AND TRANSMISSION 
              COOPERATIVES.

    Section 306(a)(15) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(15)) is amended by adding at the end the 
following:
    ``(E) The Secretary may make loans, not to exceed $1,000,000 for 
any single loan, to any cooperative association for the supply and 
distribution of electric power if the Secretary determines that the 
association cannot obtain sufficient credit elsewhere from reliable 
sources at reasonable rates and terms for such purposes.''.

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