7 U.S.C. § 904 — Loans for electrical plants and trans-

Page 521 TITLE 7—AGRICULTURE § 904 RESTRICTIONS ON BORROWER Act June 21, 1938, ch. 554, title IV, § 401, 52 Stat. 818, as amended by Pub. L. 103–182, title III, § 381(d), Dec. 8, 1993, 107 Stat. 2129; Pub. L. 103–354, title II, § 235(b)(3), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 103–465, title III, § 342(g), Dec. 8, 1994, 108 Stat. 4954, in addition to amend- ing subsecs. (a) and (e), provided in part as follows: ‘‘In making loans pursuant to this title [title IV of such act] and pursuant to the Rural Electrification Act of 1936 [this chapter], the Secretary of Agriculture shall require that, to the extent practicable and the cost of which is not unreasonable, the borrower agree to use in connection with the expenditure of such funds only such unmanufactured articles, materials, and supplies, as have been mined or produced in the United States or in any eligible country, and only such manufactured articles, materials, and supplies as have been manufac- tured in the United States or in any eligible country substantially all from articles, materials, or supplies mined, produced, or manufactured, as the case may be, in the United States or in any eligible country. For purposes of this section, an ‘eligible country’ is any country that applies with respect to the United States an agreement ensuring reciprocal access for United States products and services and United States sup- pliers to the markets of that country, as determined by the United States Trade Representative.’’ [Amendment by section 342(g) of Pub. L. 103–465 to section 401 of act June 21, 1938, set out above, effective on the date on which the WTO Agreement enters into force with respect to the United States (Jan. 1, 1995), see section 344(b) of Pub. L. 103–465, set out as an Effec- tive Date of 1994 Amendment note under section 2512 of Title 19, Customs Duties.] [Amendment by section 381(d) of Pub. L. 103–182 to section 401 of act June 21, 1938, set out above, effective on the date the North American Free Trade Agreement enters into force with respect to the United States (Jan. 1, 1994), see section 381(e) of Pub. L. 103–182, for- merly set out as an Effective Date of 1993 Amendment note under section 2511 of Title 19, Customs Duties.] § 904. Loans for electrical plants and trans- mission lines (a) In general The Secretary is authorized and empowered, from the sums hereinbefore authorized, to make loans for rural electrification to persons, cor- porations, 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 con- struction 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, includ- ing 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 coop- erative associations and municipalities for the purpose of enabling said cooperative associa- tions, and municipalities to the extent that such indebtedness was incurred with respect to elec- tric transmission and distribution lines or sys- tems or portions thereof serving persons in rural areas, to discharge or refinance long-term debts owed by them to the Tennessee Valley Author- ity on account of loans made or credit extended under the terms of the Tennessee Valley Author- ity 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, Terri- tories, and subdivisions and agencies thereof, municipalities, peoples’ utility districts, and co- operative, nonprofit, or limited-dividend asso- ciations, the projects of which comply with the requirements of this chapter. (b) Terms and conditions Such loans shall be on such terms and condi- tions relating to the expenditure of the moneys loaned and the security therefor as the Sec- retary 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 ob- tained. (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 matu- rity, plus 1⁄8 of 1 percent. (d) Certification Loans under this section shall not be made un- less 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. (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.) Editorial Notes REFERENCES IN TEXT The Tennessee Valley Authority Act of 1933, 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 classifica- tion of this Act to the Code, see section 831 of Title 16 and Tables. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2008—Pub. L. 110–246, § 6102(a), designated first, sec- ond, and third sentences as subsecs. (a), (b), and (d), re- spectively, and added subsec. (c). Page 522 TITLE 7—AGRICULTURE § 905 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 serv- ice 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 pur- suant to this section prior to September 21, 1944, shall be adjusted to 2 per centum per annum, and the matu- rity 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 sen- tence, struck out ‘‘and section 905 of this title’’ before ‘‘shall not be made’’. 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’. 1993—Pub. L. 103–129 inserted ‘‘and for the furnishing and improving of electric service to persons in rural areas, including by assisting electric borrowers to im- plement demand side management, energy conserva- tion programs, and on-grid and off-grid renewable en- ergy 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 electrifica- tion’’ after ‘‘to make loans’’ in first sentence, and in- serted ‘‘title I,’’ in credit of act May 20, 1936. 1948—Act June 29, 1948, permitted certain municipali- ties 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 dis- charge 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 in- terest. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. § 905. Fees for certain loan guarantees (a) In general For electrification baseload generation loan guarantees, the Secretary shall, at the request of the borrower, charge an upfront fee to cover the costs of the loan guarantee. (b) Fee The fee described in subsection (a) for a loan guarantee shall be equal to the costs of the loan guarantee (within the meaning of section 661a(5)(C) of title 2). (c) Limitation Funds received from a borrower to pay the fee described in this section shall not be derived from a loan or other debt obligation that is made or guaranteed by the Federal Government. (May 20, 1936, ch. 432, title I, § 5, as added Pub. L. 113–79, title VI, § 6101, Feb. 7, 2014, 128 Stat. 850.) Editorial Notes PRIOR PROVISIONS A prior section 905, acts May 20, 1936, ch. 432, title I, § 5, 49 Stat. 1365; Sept. 21, 1944, ch. 412, title V, § 502(b), 58 Stat. 739; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Oct. 13, 1994, Pub. L. 103–354, title II, § 235(a)(13), 108 Stat. 3221, related to loans for electrical and plumbing equip- ment and persons eligible for such loans, prior to repeal by Pub. L. 104–127, title VII, § 774(a), Apr. 4, 1996, 110 Stat. 1150. § 906. Funding for administrative expenses For the purpose of administering this chapter and for the purpose of making the studies, inves- tigations, publications, and reports herein pro- vided for, there is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as shall be necessary. (May 20, 1936, ch. 432, title I, § 6, 49 Stat. 1365; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 94–124, § 3, Nov. 4, 1975, 89 Stat. 677; Pub. L. 103–437, § 4(a)(3), Nov. 2, 1994, 108 Stat. 4581; Pub. L. 104–127, title VII, § 775, Apr. 4, 1996, 110 Stat. 1150.) Editorial Notes AMENDMENTS 1996—Pub. L. 104–127 struck out at end ‘‘On or before February 15, of each calendar year beginning with cal- endar year 1976, or such other date as may be specified by the appropriate committee, the Secretary of Agri- culture shall testify before the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry and provide justification in de- tail of the amount requested in the budget to be appro- priated for the next fiscal year for the purpose of ad- ministering this chapter and for the purpose of making the studies, investigations, publications, and reports herein authorized.’’ 1994—Pub. L. 103–437 substituted ‘‘Committee on Agri- culture, Nutrition, and Forestry’’ for ‘‘Committee on Agriculture and Forestry’’. 1975—Pub. L. 94–124 inserted requirement that the Secretary of Agriculture testify before the House Com- mittee on Agriculture and the Senate Committee on Agriculture and Forestry each calendar year on or be- fore February 15th or other date specified by the Com- mittees to provide justification in detail of the amount requested in the budget to be appropriated for the next fiscal year. 1949—Act Oct. 28, 1949, inserted ‘‘title I,’’ in credit of act May 20, 1936. § 906a. Use of funds outside the United States or its territories prohibited No funds provided under the Rural Electrifica- tion Act of 1936, as amended [7 U.S.C. 901 et seq.], shall be used outside the United States or any of its territories. (Pub. L. 93–32, § 10, May 11, 1973, 87 Stat. 71.) Editorial Notes REFERENCES IN TEXT The Rural Electrification Act of 1936, referred to in text, is act May 20, 1936, ch. 432, 49 Stat. 1363, which is classified generally to this chapter. For complete clas- sification of this Act to the Code, see section 901 of this title and Tables. CODIFICATION Section was not enacted as part of the Rural Elec- trification Act of 1936 which comprises this chapter.