12 2 STA T . 11 95PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8Subti t leB—R u ra l E le c tri f icati onA ct of 1936SEC.610 1.E N E RGY E F F I CIENCY P R O GR AM S. Sections2(a) an d4 o f t h e Rur a lE lectrification A ct of 1936 ( 7U. S. C . 9 0 2(a) , 904) are a m ended by insertin g‘ ‘efficiency and ’ ’ before ‘‘conser v ation’’ each p lace it appears. SEC. 610 2 . REINS T ATEMENT OF R U RA L UTILITY SER V ICES D IRECT LENDING. (a) INGE NE RAL . — Section 4 of the Rural Electrification Act of 1936 (7 U.S.C. 904) is amended— (1) by designating the first, second, and third sentences as subsections (a), (b), and (d), respectively
and (2) by inserting after subsection (b) (as so designated) the follo w ing
‘‘(c) DI RE CTLO AN S .— ‘‘(1) DIRECT H AR D SHI P LOANS.—Direct hardship loans under this section shall be for the same purposes and on the same terms and conditions as hardship loans made under section 30 5 (c)(1). ‘‘(2) O THER DIRECT LOANS.—All other direct loans under this section shall bear interest at a rate e q ual to the then current cost of money to the Government of the United States for loans of similar maturity, plus 1⁄8 of 1 percent.’’. (b) ELI M INATION O FF EDERAL FINANCIN GB AN K G U ARANTEED LOANS.—Section 306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is amended— (1) in the third sentence, by stri k ing ‘‘guarantee, accommo - dation, or subordination’’ and inserting ‘‘accommodation or subordination’’; and (2) by striking the fourth sentence. SEC. 610 3 . DEFERMENT OF PAYMENTS TO ALLO W S LOANS FOR IMPROVED ENERGY EFFICIENCY AND DEMAND REDUC - TION AND FOR ENERGY EFFICIENCY AND USE AUDITS. Section 12 of the Rural Electrification Act of 1936 (7 U.S.C. 912) is amended by adding at the end the following: ‘‘(c) DEFERMENT OF P A Y MENTS ON LOANS.— ‘‘(1) IN GENERAL.— T he Secretary shall allow borrowers to defer payment of principal and interest on any direct loan made under this Act to enable the borrower to make loans to residential, commercial, and industrial consumers— ‘‘(A) to conduct energy efficiency and use audits; and ‘‘(B) to install energy efficient measures or devices that reduce the demand on electric systems. ‘‘(2) AMOUNT.—The total amount of a deferment under this subsection shall not e x ceed the sum of the principal and interest on the loans made to a customer of the borrower, as determined by the Secretary. ‘‘(3) TERM.—The term of a deferment under this subsection shall not exceed 60 months.’’. SEC. 610 4 . RURAL ELECTRIFICATION ASSISTANCE. Section 13 of the Rural Electrification Act of 1936 (7 U.S.C. 913) is amended to read as follows:
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