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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.