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U.S. Code as of:
01/19/04
Section 1006a. Loans or advancements for financing local share of costs; repayment; interest; maximum amount
The Secretary is authorized to make loans or advancements (a) to
local organizations to finance the local share of costs of carrying
out works of improvement provided for in this chapter, and (b) to
State and local agencies to finance the local share of costs of
carrying out works of improvement (as defined in section 1002 of
this title) in connection with the eleven watershed improvement
programs authorized by section 13 of the Act of December 22, 1944
(58 Stat. 887), as amended and supplemented: Provided, That the
works of improvement in connection with said eleven watershed
improvement programs shall be integral parts of watershed or
subwatershed work plans agreed upon by the Secretary of Agriculture
and the concerned State and local agencies. A loan or advance under
this section shall be made under a contract or agreement that
provides, under such terms and conditions as the Secretary
considers appropriate, for the repayment of the loan or advance in
not more than 50 years from the date when the principal benefits of
the works of improvement first become available, with interest at a
rate not to exceed the current market yield for outstanding
municipal obligations with remaining periods to maturity comparable
to the average maturity for the loan, adjusted to the nearest 1/8
of 1 percent. With respect to any single plan for works of
improvement, the amount of any such loan or advancement shall not
exceed $10,000,000.
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