Public Law 74–681

That the Secretary

Bitter Root irrigation project, Mont.

Segregation authorized of repayment obligation.

Vol. 46, p. 852.

of the Interior is authorized and directed to negotiate and execute a contract with the Bitter Root Irrigation District, amending as provided herein articles 3 and 6 of the contract dated August 24, 1931, between the United States of America and said irrigation district. The amended contract shall segregate the district’s obligation into two components: (1) All money advanced to the district under

Liquidating outstanding indebtedness.

section 2, subsection (1) of the Act of July 3, 1930; for liquidating bonded and other outstanding indebtedness of said district; and (2) all money advanced or used under section 2, subsections (2) and

Advances for construction, etc.

(3) of said Act for construction, betterment, and repair work. All money advanced under component (1) shall be repaid to the United

Interest on first component.

States within the period fixed in said contract, with interest at 4 per centum per annum until paid: Provided, That all interest now due

Proviso.

Unpaid, to be merged with principal.

Interest not modified.

and unpaid on component (1) shall be added to and merged with the principal sum advanced under that component. Nothing herein contained shall be construed as authorizing a modification in said amendatory contract of the interest charges heretofore paid by the district under the contract of August 24, 1931.

Sec. 2.

The amended contract shall provide also that all money

District relieved of interest on component

Vol. 46, p. 852.

advanced or used under section 2, subsections (2) and (3) of the Act of July 3, 1930, shall be repaid to the United States without interest within the period fixed in said contract, and in the case of

Default cases excepted.

default in the payment when due of any installment fixed by the Secretary for repayment of money advanced or used under said section 2, subsections (2) and (3), there shall be added to the payment unpaid a penalty of one-half of 1 per centum of the amount unpaid on the 1st day of each month thereafter so long as such default shall continue.