§ 421c. — Conditions of loan for distribution and drainage systems; reconveyance by Secretary of lands, interests in lands, and distribution works heretofore conveyed to the United States; conditions of reconveyance; rights of way.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 43USC421c]
TITLE 43--PUBLIC LANDS
CHAPTER 12--RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT
SUBCHAPTER III--INSTITUTION AND CONSTRUCTION OF PROJECTS
Sec. 421c. Conditions of loan for distribution and drainage
systems; reconveyance by Secretary of lands, interests in lands,
and distribution works heretofore conveyed to the United States;
conditions of reconveyance; rights of way
The Secretary shall require, as conditions to any such loan, that
the borrower contribute in money or materials, labor, lands, or
interests in land, computed at their reasonable value, a portion not in
excess of 10 per centum, of the construction cost of the distribution
and drainage system (including all costs of acquiring lands and
interests in land), that the plans for the system be in accord with
sound engineering practices and be such as will achieve the purposes for
which the system was authorized, and that the borrower agree to account
in full in regard to all disbursements of borrowed funds and to return
at once for application toward amortization of the loan all funds which
are not expended in the construction of the distribution and drainage
system. Every organization contracting for repayment of a loan under
sections 421a to 421h of this title shall operate and maintain its
distribution and drainage works in conformity with reasonable
contractual requirements determined to be appropriate for the protection
of the United States. The Secretary is hereby authorized to reconvey to
borrowers all lands or interests in lands and distribution works
transferred to the United States under the provisions of sections 421a
to 421h of this title: Provided, That any reconveyance shall be upon the
condition that the repayment contract of the borrower be amended to
include such provisions as the Secretary shall deem necessary or proper
to provide assurance of and security for prompt repayment of the loan.
The head of any department or agency of the Government within whose
administrative jurisdiction are lands owned by the United States the use
of which is reasonably necessary for the construction, operation, and
maintenance of distribution and drainage works under sections 421a to
421h of this title may grant to a borrower or prospective borrower under
sections 421a to 421h of this title revocable permission for the use
thereof in like manner as under sections 79 and 524 of title 16,
sections 323 to 328 of title 25, section 8124 of title 38, or sections
931a to 931d, 946 to 950, 956, and 959 of this title, or any other
similar Act which is applicable to the lands involved: Provided, That no
such permission shall be granted in the case of lands being administered
for national park, national monument, or wildlife purposes.
(July 4, 1955, ch. 271, Sec. 3, 69 Stat. 245; May 14, 1956, ch. 268, 70
Stat. 155; Pub. L. 92-487, Oct. 13, 1972, 86 Stat. 804; Pub. L. 102-40,
title IV, Sec. 402(d)(2), May 7, 1991, 105 Stat. 239.)
Codification
``Section 8124 of title 38'' substituted in text (see 1991 Amendment
note below) for ``section 5024 of title 38'', which previously had been
substituted for ``section 5014 of title 38'' as the probable intent of
Congress in view of the renumbering of section 5014 of title 38 as
section 5024 by Pub. L. 96-22, title III, Sec. 301(b)(1), June 13, 1979,
93 Stat. 61. Previously, ``section 5014 of title 38'' had been
substituted for ``section 11i of title 38'' on authority of Pub. L. 85-
857, Sec. 5(a), Sept. 2, 1958, 72 Stat. 1281, the first section of which
enacted Title 38, Veterans' Benefits.
Amendments
1991--Pub. L. 102-40 substituted ``section 8124 of title 38'' for
``section 5024 of title 38''. See Codification note above.
1972--Pub. L. 92-487 inserted provision subjecting drainage systems
to the requirements of this section, substituted provisions authorizing
the Secretary to reconvey to borrowers all land or interests in land and
distribution works transferred to the United States under the provisions
of sections 421a to 421h of this title, with the proviso relating to the
amendment of the repayment contract, for provisions requiring borrowers,
prior to the consummation of any loan, to transfer to the United States
any lands or interests in lands presently held or acquired in the future
which the Secretary finds necessary for the construction, operation, or
maintenance of distribution systems, with title to all such lands, etc.,
subject to retransfer to the borrower by the Secretary upon repayment of
the loan, to remain in the United States, and struck out provisions
which restricted applicability of provisions to provisions relating to
Federal reclamation laws.
1956--Act May 14, 1956, provided that the Secretary, as conditions
to loan, require borrower to account for disbursements of borrowed funds
and return for application toward amortization of the loan all funds not
expended in the construction of the distribution system, required, prior
to the consummation of any loan, the transfer to the United States of
titles to lands or interests in lands held by the borrower, and that
titles to such lands, interests, and distribution works remain in United
States until repayment, and provided for issuance of revocable permits
for the use of lands owned by United States, in lieu of the formerly
authorized actual conveyance to the districts of the rights-of-way.
Section Referred to in Other Sections
This section is referred to in sections 421a, 421b, 421d to 421h,
502 of this title.
