7 U.S.C. § 932 — Liabilities and uses of Rural Electrification

Page 533 TITLE 7—AGRICULTURE § 932 1 See References in Text note below. ‘‘notwithstanding section 903(a) of this title,’’ before ‘‘all collections’’ in par. (3). 1994—Subsec. (a)(1). Pub. L. 103–354 substituted ‘‘Sec- retary’’ for ‘‘Administrator’’. 1976—Subsec. (a)(4). Pub. L. 94–570 provided for inclu- sion in the fund the unobligated balances of any funds made available for loans under item ‘‘Rural Electrifica- tion Administration’’ in the Department of Agriculture and Agriculture-Environmental and Consumer Protec- tion Appropriation Acts. 1973—Pub. L. 93–32 substituted provisions establishing the Rural Electrification and Telephone Revolving Fund and enumerating its constituent parts, for provi- sions establishing a rural telephone account in the United States Treasury. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–570 effective Oct. 20, 1976, see section 4 of Pub. L. 94–570, set out as a note under section 935 of this title. EFFECTIVE DATE OF 1973 AMENDMENT Amendment by Pub. L. 93–32 effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as an Effective Date note under section 930 of this title. EFFECTIVE DATE Pub. L. 92–12, § 7, May 14, 1971, 85 Stat. 37, provided that: ‘‘This Act [enacting this section and sections 921a, 932, and 941 to 950b of this title, amending sections 903 and 922 of this title and sections 856 and 868 of former Title 31, and enacting provisions set out as notes under sections 856 and 868 of former Title 31] shall take effect upon enactment [May 7, 1971].’’ RESERVATION OF RIGHT TO REPEAL, ALTER, OR AMEND PUB. L. 92–12 Pub. L. 92–12, § 6, May 14, 1971, 85 Stat. 37, provided that: ‘‘The right to repeal, alter, or amend this Act [en- acting this section and sections 921a, 932, and 941 to 950b of this title, amending sections 903 and 922 of this title and sections 856 and 868 of former Title 31, and en- acting provisions set out as notes under sections 856 and 868 of former Title 31] is expressly reserved.’’ § 931a. Level of loan programs under Rural Elec- trification and Telephone Revolving Fund On and after October 28, 1991, no funds in this Act or any other Act shall be available to carry out loan programs under the Rural Electrifica- tion and Telephone Revolving Fund at levels other than those provided for in advance in ap- propriations Acts. (Pub. L. 102–142, title III, Oct. 28, 1991, 105 Stat. 903.) Editorial Notes CODIFICATION Section was enacted as part of the Agriculture, Rural Development, Food and Drug Administration, and Re- lated Agencies Appropriations Act, 1992, and not as part of the Rural Electrification Act of 1936 which com- prises this chapter. § 932. Liabilities and uses of Rural Electrification and Telephone Revolving Fund (a) Liabilities and obligations of fund The notes of the Secretary to the Secretary of the Treasury to obtain funds for loans under sec- tions 904, 905,1 and 922 of this title, and all other liabilities against the appropriations or assets in the fund in connection with electrification and telephone loan operations shall be liabilities of the fund, and all other obligations against such appropriations or assets in the fund arising out of electrification and telephone loan oper- ations shall be obligations of the fund. (b) Uses of fund assets The assets of the fund shall be available only for the following purposes: (1) loans which could be insured under this subchapter, and for advances in connection with such loans and loans previously made, as of May 11, 1973, under sections 904, 905,1 and 922 of this title; (2) payment of principal when due (without interest) on outstanding loans to the Sec- retary from the Secretary of the Treasury for electrification and telephone purposes and payment of principal and interest when due on loans to the Secretary from the Secretary of the Treasury pursuant to section 934(a) of this title; (3) payment of amounts to which the holder of notes is entitled on insured loans: Provided, That payments other than final payments need not be remitted to the holder until due or until the next agreed annual, semiannual, or quarterly remittance date; (4) payment to the holder of insured notes of any defaulted installment or, upon assignment of the note to the Secretary at his request, the entire balance due on the note; (5) purchase of notes in accordance with con- tracts of insurance entered into by the Sec- retary; (6) payment in compliance with contracts of guarantee; (7) payment of taxes, insurance, prior liens, expenses necessary to make fiscal adjustments in connection with the application, and trans- mittal of collections or necessary to obtain credit reports on applicants or borrowers, ex- penses for necessary services, including con- struction inspections, commercial appraisals, loan servicing, consulting business advisory or other commercial and technical services, and other program services, and other expenses and advances authorized in section 907 of this title in connection with insured loans. Such items may be paid in connection with guaran- teed loans after or in connection with the ac- quisition of such loans or security thereof after default, to the extent determined to be necessary to protect the interest of the Gov- ernment, or in connection with any other ac- tivity authorized in this chapter; (8) payment of the purchase price and any costs and expenses incurred in connection with the purchase, acquisition, or operation of property pursuant to section 907 of this title. (c) Separate electric and telephone accounts (1) The Secretary shall maintain two separate accounts within the fund, which shall be known as the electric account and the telephone ac- count, respectively. (2)(A) The Secretary shall account for the as- sets, liabilities, income, expenses, and equity of the fund attributable to electrification loan op- erations in the electric account. Page 534 TITLE 7—AGRICULTURE § 933 (B) The Secretary shall account for the assets, liabilities, income, expenses, and equity of the fund attributable to telephone loan operations in the telephone account. (3)(A) The assets accounted for in the electric account shall be available solely for electrifica- tion loan operations under this chapter. (B) The assets accounted for in the telephone account shall be available solely for telephone loan operations under this chapter (other than under subchapter IV). (May 20, 1936, ch. 432, title III, § 302, as added Pub. L. 92–12, § 2, May 7, 1971, 85 Stat. 30; amend- ed Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 66; Pub. L. 101–624, title XXIII, § 2359, Nov. 28, 1990, 104 Stat. 4041; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104–127, title VII, § 772(b)(2), Apr. 4, 1996, 110 Stat. 1149.) Editorial Notes REFERENCES IN TEXT Section 905 of this title, referred to in subsecs. (a) and (b)(1), was repealed by Pub. L. 104–127, title VII, § 774(a), Apr. 4, 1996, 110 Stat. 1150. AMENDMENTS 1996—Subsec. (b)(2). Pub. L. 104–127 struck out ‘‘pursu- ant to section 903(a) of this title’’ after ‘‘purposes’’. 1994—Subsecs. (a), (b)(2), (4), (5), (c)(1), (2). Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing. 1990—Subsec. (c). Pub. L. 101–624 added subsec. (c). 1973—Pub. L. 93–32 substituted provisions setting out the liabilities of the Rural Electrification and Tele- phone Revolving Fund and the allowable purposes for which fund assets shall be available, for provisions, that the monies in the rural telephone account should remain on deposit in the Treasury of the United States until disbursed. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1973 AMENDMENT Amendment by Pub. L. 93–32 effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as an Effective Date note under section 930 of this title. EFFECTIVE DATE Section effective May 7, 1971, see section 7 of Pub. L. 92–12, set out as a note under section 931 of this title. § 933. Moneys in the Rural Electrification and Telephone Revolving Fund Moneys in the fund shall remain on deposit in the Treasury of the United States until dis- bursed. (May 20, 1936, ch. 432, title III, § 303, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 67.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as a note under section 930 of this title. § 934. Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens (a) The Secretary is authorized to make and issue interim notes to the Secretary of the Treasury for the purpose of obtaining funds nec- essary for discharging obligations of the fund and for making loans, advances and authorized expenditures out of the fund. Such notes shall be in such form and denominations and have such maturities and be subject to such terms and conditions as may be agreed upon by the Sec- retary and the Secretary of the Treasury. Such notes shall bear interest at a rate fixed by the Secretary of the Treasury, taking into consider- ation the current average market yield of out- standing marketable obligations of the United States having maturities comparable to the notes issued by the Secretary under this section. The Secretary of the Treasury is authorized and directed to purchase any notes of the Secretary issued hereunder, and, for that purpose, the Sec- retary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which such securi- ties may be issued under such chapter are ex- tended to include the purchase of notes issued by the Secretary. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes shall be treated as public debt trans- actions of the United States: Provided, however, That such interim notes to the Secretary of the Treasury shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation im- posed by statute on expenditures and net lend- ing (budget outlays) of the United States. (b) The Secretary of the Treasury is author- ized and directed to purchase for resale obliga- tions insured through the fund when offered by the Secretary. Such resales shall be upon such terms and conditions as the Secretary of the Treasury shall determine. Purchases and resales by the Secretary of the Treasury hereunder shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and not lending (budget outlays) of the United States. (c) The Secretary may, on an insured basis or otherwise, sell and assign any notes in the fund or sell certificates of beneficial ownership there- in to the Secretary of the Treasury or in the pri- vate market. Any sale by the Secretary of notes individually or in blocks shall be treated as a sale of assets for the purposes of chapter 11 of title 31, notwithstanding the fact that the Sec- retary, under an agreement with the purchaser or purchasers, holds the debt instruments evi- dencing the loans and holds or reinvests pay- ments thereon as trustee and custodian for the purchaser or purchasers of the individual note or of the certificate of beneficial ownership in a number of such notes. Security instruments taken by the Secretary in connection with any notes in the fund may constitute liens running to the United States notwithstanding the fact that such notes may be thereafter held by pur- chasers thereof. (May 20, 1936, ch. 432, title III, § 304, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 67; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)