126 



Enclosure 2 



Source: The Federal Colu»bi« River Transmission 

 System Ace of 197A 



21 



whoHy owned Government corporations named in section 101 of such Act (31 

 U.S.C. 846), but nothing in the proviso of section 850 of title 31, United 

 States Code, shall be construed as affecting the powers granted ir^ subsection 

 {b)(ll) of this section and in sections 2(f), 10(b). and 12(a) of the Bonneville 

 Project Act (16 U.S.C. 832 et seq.). 



(d) Notwithstanding the provisions of sections 105 and 106 of the 

 Government Corporation Control Act the financial transactions of the 

 Administrator shall be audited by the Comptroller General at such times and to 

 such' extent as the Comptroller General deems necessary, and reporu of the 

 results of each such audit shall be made to the Congress within 6-1/2 months 

 following the end of the fiscal year covered by the audit. 



SEC. 12. (a) If the Administrator determines that moneys in the fund 

 are in excess of current needs he may request the investment of such amounts' 

 a; he deems advisable by the Secretary, of the Treasury in direct, general 

 obligations of. or obligations guaranteed as to both principal and interest by. 

 the United States of America. 



(b) With the approval of the Secretary of the Treasury, the Adminis- 

 trator may deposit moneys of the fund in any Federal Reserve bank or other 

 depository for funds of the United States of America, or in such other banks 

 and financial institutions and under such terms and conditions as the 

 Administrator and the Secretary of the Treasury may mutually agree. 



SEC. 13. (a) The Administrator is authorized to issue and sell to the 

 Secretary of the Treasury from time to time in the name and for and on behalf 

 of the Bonneville Power Administratioh bonds, notes, and other evidences of 

 indebtedness (in this Act collectively referred to as "bonds") to assist in 

 financing the construction, acquisition, and replacement of the transmission 

 system, and to issue and sell bonds to refund such bonds. Such bonds shall be 

 in such forms and denominations, bear such maturities, and be subject to such 

 terms and conditions as may be prescribed by the Secretary of the Treasury 

 taking into account terms and conditions prevailing in the market for sinfiilar 

 bonds, the useful life of the facilities for which the bonds are issued, and 

 financing practices of the utility industry. Refunding provisions may be 

 prescribed by the Administrator. Such bortds shall bear irvterest at a rate 

 determined by the Secretary of the Treasury taking into consideration the 

 current average market yiiiid on outstanding marketable obligations of the 

 United States of comparable maturities^ plus an amount in the judgment of the 

 Secretary of the Treasury to provide for a rate comparable to the rates 

 prevailing in the market. for similar bonds. The aggregate principal amount of 

 any such bonds Outstanding at any one time shall not exceed $1,250,000,000. 



(b) The principal of, premiums, if any, and interest on such bonds shall 

 be payable solely from the Administrator's net proceeds as hereinafter defined. 

 "Net proceeds" shall mean for the purposes of this section the remainder of 

 the Administrator's gross receipts from all sources after first deducting trust 

 funds and the costs listed in section 11(b)(2) through 11(b)(7) and ll(b)(11), 

 and shall include reserve or other funds created from such receipts. 



(c) The Secretary of the Treasury shall purchase forthwith any bonds 

 Issued by the Administrator under this Act and for that purpose is authorized 

 to use as a public debt transaction the proceeds from the sale of any securities 



16 use 832«. 

 832i, e32k. 



Awdit. report 



to Conjren. 

 31 use 8S0. 

 8S>. 



l6USCS38i. 



Sfif and 

 itiu«nc«. 

 16 use 638ii. 



Ttrrr>» »nC 

 conditio"}. 



Inttrttl r««e. 

 Mtcrtni nation. 



UmiUtien, 



"Net Oroe««dt.* 



Bond}, purehaic- 

 31 use 774. 



