Public Law 78–725

That section 502 (a)

Department of Agriculture Organic Act of 1944, amendment.

Ante, p. 739.

of the Department of Agriculture Organic Act of 1944 (Public Law 425, Seventy-eighth Congress) is amended to read as follows:

“Sec. 502.

(a)(a)

Section 4 of the Rural Electrification Act of 1936, as amended (7 U. S. C. 901–914), is amended to read as follows:

49 Stat. 1365.

7 U. S. C. § 904.

Loans for electrical plants, etc.

“‘Sec. 4.

The Administrator is authorized and empowered, from the sums hereinbefore authorized, to make loans 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 of electric energy to

Loans for discharging or refinancing debts owed TVA.

49 Stat. 1364.

7 U. S. C. § 903 (d), (e).

Ante, p. 739.

persons in rural areas who are not receiving central station service, and loans, from funds available under the provisions of sections 3 (d) and 3 (e) but without regard to the 10 per centum limitation therein contained, to cooperative associations for the purpose of enabling said cooperative associations to discharge or refinance long-term debts owed by them to the Tennessee Valley Authority on account of loans made

48 Stat. 58.

16 U. S. C. §§ 831–831dd; Supp. III, § 831cet seq.

or credit extended under the terms of the Tennessee Valley Authority Act of 1933, as amended: Provided, That the Administrator, in making such loans, shall give preference to States, Territories, and subdivisions

Preferential loans.

and agencies thereof, municipalities, peoples’ utility districts, and cooperative, nonprofit, or limited-dividend associations, the projects of which comply with the requirements of this Act. Such loans shall be on such terms and conditions relating to the expenditure of the moneys loaned and the security therefor as the Administrator shall determine and may be made payable in whole or in

Loans to be self-liquidation.

part out of the income: Provided further, That all such loans shall be self-liquidating within a period of not to exceed thirty-five years,

Interest.

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 the effective date of this amendment 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,

Consent of State authority.

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

Security; repayment.

49 Stat. 1365.

7 U. S. C. § 905.

Ante, p. 739.

obtained. Loans under this section and section 5 shall not be made unless the Administrator finds and certifies that in his judgment the security therefor is reasonably adequate and such loan will be repaid within the time agreed.’”

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