§ 421b. — Loans for construction of distribution and drainage systems; repayment contract; time period for repayment of loan; "irrigation district or other public agency" defined.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC421b]
TITLE 43--PUBLIC LANDS
CHAPTER 12--RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT
SUBCHAPTER III--INSTITUTION AND CONSTRUCTION OF PROJECTS
Sec. 421b. Loans for construction of distribution and drainage
systems; repayment contract; time period for repayment of loan;
``irrigation district or other public agency'' defined
To assist financially in the construction of the aforesaid local
distribution and drainage systems by irrigation districts and other
public agencies the Secretary is authorized, on application therefor by
such irrigation districts or other public agencies, to make funds
available on a loan basis from moneys appropriated for the construction
of such distribution and drainage systems to any irrigation district or
other public agency in an amount equal to the estimated construction
cost of such system, contingent upon a finding by the Secretary that the
loan can be returned to the United States in accordance with the general
repayment provisions of sections 485a(d) and 485h(d) of this title and
upon a showing that such district or agency already holds or can acquire
all lands and interests in land (except public and other lands or
interests in land owned by the United States which are within the
administrative jurisdiction of the Secretary and subject to disposition
by him) necessary for the construction, operation, and maintenance of
the project. The Secretary shall, upon approval of a loan, including any
loan for a distribution and drainage system receiving water from the San
Luis unit, Central Valley project, authorized by the Act of June 3, 1960
(74 Stat. 156), enter into a repayment contract which includes such
provisions as the Secretary shall deem necessary and proper to provide
assurance of prompt repayment of the loan within not to exceed forty
years plus a development period not to exceed ten years. The term
``irrigation district or other public agency'' shall for the purposes of
sections 421a to 421h of this title mean any conservancy district,
irrigation district, water users' organization, or other organization,
which is organized under State law and which has capacity to enter into
contracts with the United States pursuant to the Federal reclamation
laws.
(July 4, 1955, ch. 271, Sec. 2, 69 Stat. 245; Pub. L. 92-487, Oct. 13,
1972, 86 Stat. 804.)
References in Text
Act of June 3, 1960, referred to in text, is Pub. L. 86-488, June 3,
1960, 74 Stat. 156, which is not classified to the Code.
The Federal reclamation laws, referred to in text, include the act
of June 17, 1902, ch. 1093, 32 Stat. 388, popularly known as the
Reclamation Act, and Acts amendatory thereof and supplementary thereto,
classified generally to this chapter. For complete classification of act
June 17, 1902, to the Code, see Short Title note set out under section
371 of this title and Tables.
Amendments
1972--Pub. L. 92-487 substituted provisions relating to financial
assistance in the construction of local distribution and drainage
systems, for provisions relating to financial assistance in the
construction of local irrigation distribution systems, and inserted
provisions relating to loans for a distribution and drainage system
receiving water from the San Luis unit, Central Valley project, and
provisions setting forth a specified time period for repayment of loans.
Sale of Bureau of Reclamation Loans
Pub. L. 100-203, title V, Sec. 5301, Dec. 22, 1987, 101 Stat. 1330-
268, provided that:
``(a) Sale.--The Secretary of the Interior (hereinafter in this
section referred to as the `Secretary'), under such terms as the
Secretary shall prescribe, shall sell or otherwise dispose of loans made
pursuant to the Distribution System Loans Act (43 U.S.C. 421a-421d) [43
U.S.C. 421a to 421h], the Small Reclamation Projects Act [of 1956] (43
U.S.C. 422a-422l) [43 U.S.C. 422a et seq.], and the Rehabilitation and
Betterment Act (43 U.S.C. 504-505) [43 U.S.C. 504 and note] in such
amounts as to realize net proceeds to the Federal Government of not less
than $130,000,000 in the fiscal year ending September 30, 1988. In the
conduct of such sales, the Secretary shall take such actions as he deems
appropriate to accommodate, effectuate, and otherwise protect the rights
and obligations of the United States and the borrowers under the
contracts executed to provide for repayment of such loans.
``(b) Savings Provisions.--Nothing in this section, including the
prepayment or other disposition of any loan or loans, shall--
``(1) except to the extent that prepayment may have been
authorized heretofore, relieve the borrower from the application of
the provisions of Federal Reclamation law (Act of June 17, 1902, and
Acts amendatory thereof or supplementary thereto [43 U.S.C. 371 et
seq.], including the Reclamation Reform Act of 1982 [43 U.S.C. 390aa
et seq.]), including acreage limitations, to the extent such
provisions would apply absent such prepayment, or
``(2) authorize the transfer of title to any federally owned
facilities funded by the loans specified in subsection (a) of this
section without a specific Act of Congress.
``(c) Fees and Expenses of Program.--Proceeds from the conduct of
the program authorized by this section shall be first used to pay the
fees and expenses of such program and the net proceeds shall be
deposited in the Treasury of the United States as miscellaneous
receipts.
``(d) Termination.--The authority granted by this section to sell or
otherwise dispose of loans shall terminate on December 31, 1988.''
Section Referred to in Other Sections
This section is referred to in sections 421a, 421c to 421h, 502 of
this title.
