[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1988 Introduced in Senate (IS)]
103d CONGRESS
2d Session
S. 1988
To authorize the transfer of a certain loan contract to the Upper Yampa
Water Conservancy Project, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
March 25 (legislative day, February 22), 1994
Mr. Brown (for himself and Mr. Campbell) introduced the following bill;
which was read twice and referred to the Committee on Energy and
Natural Resources
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A BILL
To authorize the transfer of a certain loan contract to the Upper Yampa
Water Conservancy Project, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stagecoach Reservoir Project Act of
1993''.
SEC. 2. SALE OF THE STAGECOACH RESERVOIR PROJECT LOAN.
(a) Agreement.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary of the Interior shall
conduct appropriate investigations regarding, and is authorized
to sell, or accept prepayment on, the loan contract described
in paragraph (2) to the Upper Yampa Water Conservancy District
in Colorado (referred to in this Act as the ``District'') for
the Stagecoach Reservoir Project.
(2) Loan contract.--The loan contract described in
paragraph (1) is numbered 7-07-40-R0480 and was entered into
pursuant to the Small Reclamation Projects Act of 1956 (43
U.S.C. 422a et seq.).
(b) Payment.--Any agreement negotiated pursuant to subsection (a)
shall realize an amount to the Federal Government calculated by
discounting the remaining payments due on the loans by the interest
rate determined pursuant to subsection (c).
(c) Interest Rate.--
(1) In general.--The Secretary shall determine the interest
rate in accordance with the guidelines set forth in Circular A-
129 issued by the Office of Management and Budget concerning
loan sales and prepayment of loans.
(2) Determination.--In determining the interest rate, the
Secretary--
(A) shall not equate an appropriate amount of
prepayment with the price of the loan if it were to be
sold on the open market to a third party; and
(B) shall, in following the guidelines set forth in
Circular A-129 regarding an allowance for
administrative expenses and possible losses, make such
an allowance from the perspective of the Federal
Government as lender and not from the perspective of a
third party purchasing the loan on the open market.
(3) Adjustment.--If the borrower or purchaser of the loan
has access to tax-exempt financing, including tax-exempt bonds,
tax-exempt cash reserves, and cash and loans of any kind from
any tax-exempt entity, to finance the transaction, and if the
Office of Management and Budget grants the Secretary the right
to conduct such a transaction, then the interest rate by which
the Secretary discounts the remaining payments due on the loan
shall be adjusted by an amount that compensates the Federal
Government for the direct or indirect loss of future tax
revenues.
(4) Limitation.--Notwithstanding any other provision of
law, the interest rate shall not exceed a composite interest
rate consisting of the current market yield on Treasury
securities of comparable maturities.
SEC. 3. TERMINATION AND CONVEYANCE OF RIGHTS.
Upon receipt of the payment specified in section 2(b)--
(1) the obligation of the District under the loan contract
described in section 2(a)(2) shall terminate;
(2) the Secretary of the Interior shall convey all right
and interest of the United States in the Stagecoach Reservoir
Project to the District; and
(3) the District shall absolve the United States, and its
officers and agents, of any liability associated with the
Stagecoach Reservoir Project.
SEC. 4. TERMINATION OF AUTHORITY.
(a) In General.--Subject to subsection (b), the authority granted
by this Act to sell loans shall terminate 2 years after the date of
enactment of this Act.
(b) Time To Respond to Offer.--The borrower shall have not less
than 60 days to respond to any prepayment offer made by the Secretary.
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