Summary: H.R.3123 — 103rd Congress (1993-1994)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Passed House amended (09/28/1993)

Rural Electrification Loan Restructuring Act of 1993 - Amends the Rural Electrification Act of 1936 to prescribe guidelines under which the Rural Electrification Administrator (the Administrator) shall make insured electric and telephone loans (including hardship, municipal rate, and cost of money loans). Repeals authority for the current two-percent interest hardship loan, setting such rate at five percent. Repeals authority for the current five-percent interest direct electric and telephone loan program. Caps both electric and telephone interest rates at seven percent, depending on specified circumstances.

Directs the Administrator to approve State telecommunications modernization plans if they meet specified requirements. Prescribes guidelines for loans made by the Governor of a telephone bank in the rural telephone bank loan program.

Authorizes appropriations for: (1) electric hardship loans; (2) electric municipal rate loans; (3) telephone hardship loans; and (4) telephone cost-of-money loans. Amends the parameters of the rural telephone bank loan program.

Prohibits the Administrator and the Governor of the telephone bank from imposing any charges not expressly provided for in this Act in connection with any loan or guarantee made under this Act. Specifies circumstances under which the Administrator may use consultants funded by the borrower.

Redefines the size of a statutorily defined rural area. Prescribes guidelines for: (1) distribution borrower eligibility for loans, loan guarantees, and lien accommodations; and (2) administrative prohibitions applicable to electric borrowers.

Grants borrowers who refinance a loan the option to limit the new interest rate to seven percent per year, for a fee equal to one percent of the loan's outstanding principal balance, so long as the total amount of the borrower's loans for which such option would be exercised does not exceed 50 percent of the outstanding principal balance of all the borrower's loans under such Act.

Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to make loans for water and waste disposal facilities serving certain rural residents to any borrower to whom a loan has been made under the Rural Electrification Act of 1936.

Declares that no Federal rural development program assistance shall be conditioned on any requirement that the recipient accept or receive electric service from any particular utility, supplier, or cooperative. Requires the Secretary to establish adequate safeguards to ensure compliance with such prohibition.

States that a borrower of a loan or loan guarantee under the Rural Electrification Act of 1936 is eligible for assistance under all programs administered by the Rural Development Administration.