74th congress. SESS. II. CH. 432. MAY 20, 1936. 1365 



Finance Corporation to the Administrator shall be paid to the 

 Reconstruction Finance Corporation in payment of such loans. 



Sec. 4. The Administrator is authorized and empowered, from the Loans tor financing 



, -i,. ii-ii 11 ^ i- generating plants, dis- 



.sums hereinbetore authorized, to make loans to persons, corporations, tribution lines, etc 

 States, Territories, and subdivisions and agencies thereof, municipali- 

 ties, jjeo^jles utility districts and cooperative nonprofit, or limited- 

 dividend associations organized under the laws of any State or Ter- 

 ritory of the United States, for the purpose of financing the con- 

 struction and operation of generating plants, electric transmission 

 and distribution lines or systems for the furnishing of electric energy 

 to persons in rural areas who are not receiving central station serv- 

 ice: Provided^ however, That the Administrator, in making such pJ°}^™Qtiai joans 

 loans, shall give preference to States, Territories, and subdivisions 

 and agencies thereof, municipalities, peoples utility districts, and 

 cooperative, nonprofit, or limited dividend associations, the pi'ojects 

 of which comply with the requirements of this Act. Such loans 

 shall be on such terms and conditions relating to the expenditure of 

 the moneys loaned and the security therefor as the Administrator 

 shall determine and may be made payable in whole or in part out 

 of income: Provided, however. That all such loans shall be self- liquidiung" ''^ ^*"' 

 liquidating within a period of not to exceed twenty-five years, and 

 shall bear interest at a rate equal to the average rate of interest pay- interest. 

 able by the United States of America on its obligations, having a 

 maturitj' of ten or more years after the dates thereof, issued during 

 the last preceding fiscal year in which any such obligations were 

 issued : Provided further, That no loan for the construction, operation. Consent of state au- 

 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 and section 5 shall not be security; repayment. 

 made unless the Administrator finds and certifies that in his judg- 

 ment the security therefor is reasonably adequate and such loan will 

 be repaid within the time agreed. 



Sec. 5. The Administrator is authorized and empowered, from the 3tamng°appifa'Sife^etc! 

 sums hereinbefore authorized, to make loans for the purpose of finan- 

 cing the wiring of the premises of persons in rural areas and the 

 acquisition ancl installation of electrical and plmnbing appliances 

 and equipment. Such loans may be made to any of the borrowers cmul^l'c^' "'™^' '"' 

 of funds loaned under the provisions of section 4, or to any person, 

 firm, or corporation supplying or installing the said wiring, appli- 

 ances, or equipment. Such loans shall be for such terms, subject 

 to such conditions, and so secured as reasonably to assure repayment interest. 

 thereof, and shall be at a rate of interest equal to the average rate of 

 interest payable by the United States of America on its obligations, 

 having a maturity of ten or more years after the dates thereof, issued 

 during the last preceding fiscal year in which any such obligations 

 •were issued. 



Sec. 6. For the purpose of administering this Act and for the ^^f.P.PJ.^PjLdml-- 

 purpose of making the studies, investigations, publications, and trative, etc., expenses. 

 reports herein provided for, there is hereby authorized to be appro- -P'^M'- i™''. 

 priated, out of any moiiey in the Treasury not otherwise appro- 

 priated, such sums as shall be necessary. 



Sec. 7. The Administrator is authorized and empowered to bid for ga^e'd,"i"c°,°pr'ope°rt'y' 

 and purchase at any foreclosure or other sale, or otherwise to acquire, by Administrator, au- 

 property pledged or mortgaged to secure any loan made pursuant to "^""^^d. 

 this Act; to pay the purchase price and any costs and expenses 

 incurred in connection therewith from the sums authorized in section 

 3 of this Act; to accept title to any property so purchased or acquired 

 in the name of the United States of America; to operate or lease operation, etc., of 

 such property for such period as may be deemed necessary or ""^i""""^ property. 



