
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1926c]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                     SUBCHAPTER I--REAL ESTATE LOANS
 
Sec. 1926c. Water and waste facility loans and grants to 
        alleviate health risks
        

(a) Loans and grants to persons other than individuals

                           (1) In general

        The Secretary shall make or insure loans and make grants to 
    rural water supply corporations, cooperatives, or similar entities, 
    Indian tribes on Federal and State reservations and other federally 
    recognized Indian tribes, and public agencies, to provide for the 
    conservation, development, use, and control of water (including the 
    extension or improvement of existing water supply systems), and the 
    installation or improvement of drainage or waste disposal facilities 
    and essential community facilities including necessary related 
    equipment. Such loans and grants shall be available only to provide 
    such water and waste facilities and services to communities whose 
    residents face significant health risks, as determined by the 
    Secretary, due to the fact that a significant proportion of the 
    community's residents do not have access to, or are not served by, 
    adequate affordable--
            (A) water supply systems; or
            (B) waste disposal facilities.

                     (2) Certain areas targeted

        (A) In general

            Loans and grants under paragraph (1) shall be made only if 
        the loan or grant funds will be used primarily to provide water 
        or waste services, or both, to residents of a county--
                (i) the per capita income of the residents of which is 
            not more than 70 percent of the national average per capita 
            income, as determined by the Department of Commerce; and
                (ii) the unemployment rate of the residents of which is 
            not less than 125 percent of the national average 
            unemployment rate, as determined by the Bureau of Labor 
            Statistics.

        (B) Exception

            Notwithstanding subparagraph (A), loans and grants under 
        paragraph (1) may also be made if the loan or grant funds will 
        be used primarily to provide water or waste services, or both, 
        to residents of a rural area that was recognized as a colonia as 
        of October 1, 1989.

(b) Loans and grants to individuals

                           (1) In general

        The Secretary shall make or insure loans and make grants to 
    individuals who reside in a community described in subsection (a)(1) 
    of this section for the purpose of extending water supply and waste 
    disposal systems, connecting the systems to the residences of the 
    individuals, or installing plumbing and fixtures within the 
    residences of the individuals to facilitate the use of the water 
    supply and waste disposal systems. Such loans shall be at a rate of 
    interest no greater than the Federal Financing Bank rate on loans of 
    a similar term at the time such loans are made. The repayment of 
    such loans shall be amortized over the expected life of the water 
    supply or waste disposal system to which the residence of the 
    borrower will be connected.

         (2) Manner in which loans and grants are to be made

        Loans and grants to individuals under paragraph (1) shall be 
    made--
            (A) directly to such individuals by the Secretary; or
            (B) to such individuals through the rural water supply 
        corporation, cooperative, or similar entity, or public agency, 
        providing such water supply or waste disposal services, pursuant 
        to regulations issued by the Secretary.

(c) Preference

    The Secretary shall give preference in the awarding of loans and 
grants--
        (1) under subsection (a) of this section to rural water supply 
    corporations, cooperatives, or similar entities, or public agencies, 
    that propose to provide water supply or waste disposal services to 
    the residents of those rural subdivisions commonly referred to as 
    colonias, that are characterized by substandard housing, inadequate 
    roads and drainage, and a lack of adequate water or waste 
    facilities; and
        (2) under subsection (b) of this section to individuals who 
    reside in a rural subdivision commonly referred to as a colonia, 
    that is characterized by substandard housing, inadequate roads and 
    drainage, and a lack of adequate water or waste facilities.

(d) ``Cooperative'' defined

    For purposes of this section, the term ``cooperative'' means a 
cooperative formed specifically for the purpose of the installation, 
expansion, improvement, or operation of water supply or waste disposal 
facilities or systems.

(e) Limitations on authorization of appropriations

    There are authorized to be appropriated--
        (1) for grants under this section, $30,000,000 for each fiscal 
    year; and
        (2) for loans under this section, $30,000,000 for each fiscal 
    year.

(f) Regulations

    Not later than 30 days after October 28, 1992, the Secretary shall 
issue interim final regulations, with a request for public comments, 
implementing this section.

(Pub. L. 87-128, title III, Sec. 306C, as added Pub. L. 101-624, title 
XXIII, Sec. 2327, Nov. 28, 1990, 104 Stat. 4015; amended Pub. L. 102-
237, title VII, Sec. 701(b), Dec. 13, 1991, 105 Stat. 1879; Pub. L. 102-
552, title V, Sec. 516(l), (m), Oct. 28, 1992, 106 Stat. 4139; Pub. L. 
102-554, Sec. 24, Oct. 28, 1992, 106 Stat. 4161.)


                               Amendments

    1992--Subsec. (a)(2). Pub. L. 102-554 amended par. (2) generally. 
Prior to amendment, par. (2) read as follows: ``(2) Certain counties 
targeted.--Loans and grants under paragraph (1) shall be made only if 
the loan or grant funds will be used primarily to provide water or waste 
services, or both, to residents of a county--
        ``(A) the per capita income of the residents of which is not 
    more than 70 percent of the national average per capita income, as 
    determined by the Department of Commerce; and
        ``(B) the unemployment rate of the residents of which is not 
    less than 125 percent of the national average unemployment rate, as 
    determined by the Bureau of Labor Statistics.''
    Subsec. (b)(1). Pub. L. 102-552, Sec. 516(l), substituted ``, 
connecting the systems to the residences of the individuals, or 
installing plumbing and fixtures within the residences of the 
individuals to facilitate the use of the water supply and waste disposal 
systems'' for ``or connecting such systems to the residences of such 
individuals''.
    Subsec. (f). Pub. L. 102-552, Sec. 516(m), added subsec. (f).
    1991--Subsec. (a)(2). Pub. L. 102-237 realigned margins of subpars. 
(A) and (B).


                    Effective Date of 1991 Amendment

    Amendment by Pub. L. 102-237 effective as if included in the 
provision of the Food, Agriculture, Conservation, and Trade Act of 1990, 
Pub. L. 101-624, to which the amendment relates, see section 1101(b)(6) 
of Pub. L. 102-237, set out as a note under section 1421 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 917, 6942 of this title; 
title 8 section 1611.
