§ 421e. — Municipal and industrial water supply delivery and distribution; allocation of loan funds; loan repayment contract requirements; rate of interest.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC421e]
TITLE 43--PUBLIC LANDS
CHAPTER 12--RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT
SUBCHAPTER III--INSTITUTION AND CONSTRUCTION OF PROJECTS
Sec. 421e. Municipal and industrial water supply delivery and
distribution; allocation of loan funds; loan repayment contract
requirements; rate of interest
Unless otherwise provided in the Act authorizing construction of the
project, the delivery and distribution of municipal and industrial water
supplies shall be deemed to be an authorized project purpose under
sections 421a to 421h of this title, and where appropriate, an
allocation of loan funds acceptable to the Secretary shall be made
between irrigation and municipal and industrial purposes. Loan repayment
contracts shall require that the borrower pay interest on that portion
of the unamortized loan obligation (including interest during
construction) allocated in each year to municipal and industrial
purposes at the rate provided in the Act authorizing the project, or
absent such an authorized rate, at a rate determined by the Secretary of
the Treasury as of the beginning of the fiscal year in which the
contract, or contract amendment entered into pursuant to section 421f of
this title, is executed, on the basis of the computed average interest
rate payable by the Treasury upon its outstanding marketable public
obligations which are neither due nor callable for redemption for
fifteen years from date of issue, and by adjusting such average rate to
the nearest one-eighth of 1 per centum.
(July 4, 1955, ch. 271, Sec. 5, as added Pub. L. 92-487, Oct. 3, 1972,
86 Stat. 805.)
Section Referred to in Other Sections
This section is referred to in sections 421a to 421d, 421f to 421h
of this title.
