AUTHORIZATION LEVELS FOR RURAL ELECTRIC AND TELEPHONE LOANS.

SEC. 1201. AUTHORIZATION LEVELS FOR RURAL ELECTRIC AND TELEPHONE LOANS. Title III of the Rural Electrification Act of 1936 (7 U.S.C. 931 et seq.) is amended by adding at the end the following new section: 104 STAT. 1388–8 “SEC. 314. AUTHORIZATION LEVELS FOR RURAL ELECTRIC AND TELEPHONE LOANS. “(a) In General.—Subject to the other provisions of this section and notwithstanding any other provision of law, for each of fiscal years 1991 through 1995, insured loans may be made in accordance with this title from the Rural Electrification and Telephone Revolving Fund established under section 301 in amounts equal to the following levels: “(1) For fiscal year 1991, $896,000,000. “(2) For fiscal year 1992, $932,000,000. “(3) For fiscal year 1993, $969,000,000. “(4) For fiscal year 1994, $1,008,000,000. “(5) For fiscal year 1995, $1,048,000,000. “(b) Reduction.—Notwithstanding any other provision of law, for each of fiscal years 1991 through 1995, the Administrator shall— “(1) reduce the amounts otherwise made available for insured loans made from the Rural Electrification and Telephone Revolving Fund by— “(A) $224,000,000 for fiscal year 1991; “(B) $234,000,000 for fiscal year 1992; “(C) $244,000,000 for fiscal year 1993; “(D) $256,000,000 for fiscal year 1994; and “(E) $267,000,000 for fiscal year 1995; and “(2) use the funds made available from such reductions in each fiscal year to guarantee loans under subsection (d). “(c) Mandatory Levels.—Notwithstanding any other provision of law, the Administrator shall make insured loans at the levels authorized by this section for each of fiscal years 1991 through 1995 taking into account any reductions under subsection (b). “(d) Guaranteed Loans.— “(1) In general.—Except as otherwise provided in this subsection and subsection (e) and notwithstanding any other provision of law, in carrying out this Act, the Administrator shall guarantee loans made by legally organized lending agencies to the extent of the reduction in insured loans as provided in subsection (b). “(2) Amount of guarantee.—The guarantees authorized under paragraph (1) shall be 90 percent of the principal of and interest on the loan and shall be made only upon the request of the borrower. “(3) No federal instrumentality.—The Administrator may not provide any such guarantee for a loan made by the Federal Financing Bank, the Rural Telephone Bank, or any other lending agency that is an agency or instrumentality of the United States other than banks for cooperatives. “(4) Authority.—The Administrator is authorized to approve such guarantees subject to full use being made during each fiscal year of insured loan amounts made available during the fiscal year. “(5) Construction.—Nothing in this subsection shall be construed as modifying the authority provided in section 306. “(e) Implementation.— “(1) In general.—The Administrator shall implement the reduction in insured loans provided by subsection (b) in a manner that will lessen its adverse effect. 104 STAT. 1388–9 “(2) Allocation between electric and telephone programs.—The reductions required by subsection (b) shall be allocated between the electric and telephone programs for each fiscal year in proportion to the amount of insured funds made available for each such program during the fiscal year in annual appropriations Acts. “(3) Electric borrower’s option.— If the amount of an insured electric loan is reduced as a result of the requirements of subsection (b), the electric borrower may, at the option of such borrower, obtain capital to replace the amount of the reduction— “(A) with the assistance of a loan guarantee (as provided by subsection (d)); “(B) from internally generated funds of the electric borrower; “(C) from private credit sources with a lien accommodation provided by the Administrator; or “(D) from other private sources.“.