[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 134 Reported in House (RH)]





                                                 Union Calendar No. 190

105th CONGRESS

  1st Session

                               H. R. 134

                          [Report No. 105-327]

_______________________________________________________________________

                                 A BILL

To authorize the Secretary of the Interior to provide a loan guarantee 
    to the Olivenhain Water Storage Project, and for other purposes.

_______________________________________________________________________

                            October 21, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
                                                 Union Calendar No. 190
105th CONGRESS
  1st Session
                                H. R. 134

                          [Report No. 105-327]

To authorize the Secretary of the Interior to provide a loan guarantee 
    to the Olivenhain Water Storage Project, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

Mr. Cunningham introduced the following bill; which was referred to the 
                         Committee on Resources

                            October 21, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
To authorize the Secretary of the Interior to provide a loan guarantee 
    to the Olivenhain Water Storage Project, and for other purposes.

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

<DELETED>SECTION 1. OLIVENHAIN WATER STORAGE PROJECT LOAN 
              GUARANTEE.</DELETED>

<DELETED>    (a) Loan Guarantee.--The Secretary of the Interior is 
authorized to provide a loan guarantee to either the Olivenhain 
Municipal Water District (hereinafter referred to as the ``District'') 
or to a nongovernmental developer selected by the District for the 
purpose of building and financing the Olivenhain Water Storage Project 
in northern San Diego County, California. The guaranteed loan shall be 
available under the existing authorization ceiling contained in the 
Small Reclamation Projects Act of 1956 (43 U.S.C. 422a et seq.). The 
guaranteed loan shall bear interest at the rate agreed upon by the 
borrower and lender. As used in this section, a guaranteed loan is one 
which is initially made, held, and serviced by a legally organized 
lending institution, and which is guaranteed by the Secretary of the 
Interior. Any guarantee issued pursuant to this section shall 
constitute an obligation, in accordance with the terms of such 
guarantee, of the United States Government and the full faith and 
credit of the United States is hereby pledged to the full performance 
of the obligation.</DELETED>
<DELETED>    (b) Security.--To ensure the repayment of any loan 
guaranteed under this section and as a condition for receiving the 
guarantee, the Secretary of the Interior shall require the District to 
furnish such security as may be considered necessary and appropriate by 
the Secretary of the Interior in making the guarantee.</DELETED>

SECTION 1. OLIVENHAIN WATER STORAGE PROJECT LOAN GUARANTEE.

    (a) Loan Guarantee.--The Secretary of the Interior may guarantee a 
loan made to either the Olivenhain Municipal Water District (in this 
Act referred to as the ``District'') or to a nongovernmental developer 
selected by the District, for building and financing the Olivenhain 
Water Storage Project in northern San Diego County, California. The 
amount of a loan guaranteed under this subsection may not exceed 
$70,000,000.
    (b) Interest Rate.--Any loan guaranteed under subsection (a) shall 
bear interest at a rate agreed upon by the borrower and lender.
    (c) Obligation of United States.--Any loan guarantee under this 
section shall constitute an obligation, in accordance with the terms 
and conditions of such guarantee, of the United States Government, and 
the full faith and credit of the United States is hereby pledged to 
full performance of the obligation.
    (d) Security.--
            (1) Reserve fund and commitment of district revenues.--To 
        ensure the repayment of any loan guaranteed under this section 
        and as a condition of providing the guarantee, the Secretary of 
        the Interior shall require that--
                    (A) the borrower establish and maintain, with a 
                trustee designated by the Secretary, a reserve fund in 
                the amount of 115 percent of the next year's principal 
                and interest payments on the loan;
                    (B) the District agree to use its revenues to make 
                all payments required under the terms of the loan prior 
                to any payment by the United States under the 
                guarantee, and to make those payments through the 
                trustee designated under subparagraph (A); and
                    (C) the trustee designated under subparagraph (A) 
                agree to use all amounts received for repayment of the 
                loan to repay the loan.
            (2) Reserve fund requirements.--The reserve fund under this 
        subsection shall be established under terms that provide that--
                    (A) all moneys in the reserve fund shall constitute 
                a trust fund for the repayment of the loan guaranteed 
                under subsection (a); and
                    (B) the reserve fund shall be administered in 
                accordance with and pursuant to provisions agreed upon 
                by the borrower and lender for the loan guaranteed 
                under subsection (a).
            (3) Payment of loan amounts.--Proceeds from the loan 
        guaranteed under subsection (a) shall--
                    (A) be deposited directly with the trustee 
                designated by the Secretary of the Interior under 
                paragraph (1)(A); and
                    (B) be disbursed by the trustee consistent with the 
                terms of the loan.
            (4) Qualifications of trustee.--Any trustee designated by 
        the Secretary of the Interior under paragraph (1) must, at a 
        minimum--
                    (A) be a trust company or a bank having the powers 
                of a trust company;
                    (B) have a combined capital and surplus of at least 
                $100,000,000; and
                    (C) be otherwise subject to supervision or 
                examination by a Federal agency.