7 U.S.C. § 904 : US Code - Section 904: Loans by Secretary of Agriculture for electrical plants and transmission lines; preferences; consent of State authorities

Search 7 U.S.C. § 904 : US Code - Section 904: Loans by Secretary of Agriculture for electrical plants and transmission lines; preferences; consent of State authorities

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.