U.S. Code - Sec. 904-REA Act

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-CITE-

7 USC Sec. 904 01/19/04

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 31 - RURAL ELECTRIFICATION AND TELEPHONE SERVICE

SUBCHAPTER I - RURAL ELECTRIFICATION

-HEAD-

Sec. 904. Loans by Secretary of Agriculture for electrical plants

and transmission lines; preferences; consent of State authorities

-STATUTE-

The Secretary is authorized and empowered, from the sums

hereinbefore authorized, to make loans for rural electrification to

persons, corporations, 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 construction 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, including by assisting electric borrowers

to implement demand side management, energy conservation programs,

and on-grid and off-grid renewable energy systems, and loans, from

funds available under section 903 of this title, to cooperative

associations and municipalities for the purpose of enabling said

cooperative associations, and municipalities to the extent that

such indebtedness was incurred with respect to electric

transmission and distribution lines or systems or portions thereof

serving persons in rural areas, to discharge or refinance long-term

debts owned by them to the Tennessee Valley Authority on account of

loans made or credit extended under the terms of the Tennessee

Valley Authority 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, Territories, and subdivisions and agencies

thereof, municipalities, peoples' utility districts, and

cooperative, nonprofit, or limited-dividend associations, the

projects of which comply with the requirements of this chapter.

Such loans shall be on such terms and conditions relating to the

expenditure of the moneys loaned and the security therefor as the

Secretary 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 obtained. Loans under this section shall not

be made unless 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.

-SOURCE-

(May 20, 1936, ch. 432, title I, Sec. 4, 49 Stat. 1365; Sept. 21,

1944, ch. 412, title V, Secs. 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, Secs. 2, 4(e), 63 Stat. 948; June 15,

1955, ch. 139, Sec. 2, 69 Stat. 132; Pub. L. 103-129, Sec. 2(c)(2),

Nov. 1, 1993, 107 Stat. 1363; Pub. L. 103-354, title II, Sec.

235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104-127, title

VII, Sec. 773, Apr. 4, 1996, 110 Stat. 1149.)

-REFTEXT-

REFERENCES IN TEXT

The Tennessee Valley Authority Act of 1933, as amended, referred

to in text, is act May 18, 1933. ch. 32. 48 Stat. 58, as amended,

which is classified generally to chapter 12A (Sec. 831 et seq.) of

Title 16, Conservation. For complete classification of this Act to

the Code, see section 831 of Title 16 and Tables.

-MISC1-

AMENDMENTS

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 service 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 pursuant to this

section prior to September 21, 1944, shall be adjusted to 2 per

centum per annum, and the maturity 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

sentence, struck out "and section 905 of this title" before "shall

not be made".

1994 - Pub. L. 103-354 substituted "Secretary" for

"Administrator".

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 implement demand side

management, energy conservation programs, and on-grid and off-grid

renewable energy 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 electrification"

after "to make loans" in first sentence, and inserted "title I," in

credit of act May 20, 1936.

1948 - Act June 29, 1948, permitted certain municipalities 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 discharge 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 interest.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 907, 912, 922, 931, 932,

936b, 940c-1, 948 of this title; title 16 section 2708.

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