Sec. 6503. CUSHION OF CREDIT PAYMENTS PROGRAM
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## SEC. 6503 CUSHION OF CREDIT PAYMENTS PROGRAM Section 313(a) of the Rural Electrification Act of 1936 (7 U.S.C. 940c(a)) is amended— ####
(1)in paragraph (1)— #####
(A)by striking “
(1)In general.—The ” and inserting the following: > > #### “(1) In general > > > ##### “(A) Development and promotion of program > > The” > ; and #####
(B)by adding after and below the end the following: > > ##### “(B) Termination > > Effective on the date of enactment of this subparagraph, no deposits may be made under subparagraph (A).” > ; ####
(2)in paragraph (2)— #####
(A)by striking “
(2)Interest.—Amounts ” and inserting the following: > > #### “(2) Interest > > > ##### “(A) In general > > Amounts” > ; and #####
(B)by adding after and below the end the following: > > ##### “(B) Reduction > > Notwithstanding subparagraph (A), amounts in each cushion of credit account shall accrue interest to the borrower at a rate equal to— > > > ###### “(i) > > 4 percent per annum in fiscal year 2021; and > > > ###### “(ii) > > the then applicable 1-year Treasury rate thereafter.” > ; and ####
(3)in paragraph (3)— #####
(A)by striking “
(3)Balance.—A ” and inserting the following: > > #### “(3) Balance > > > ##### “(A) In general > > A” > ; and #####
(B)by after and below the end the following: > > ##### “(B) Prepayment > > Notwithstanding subparagraph
(A)and subject to subparagraph (C), beginning on the date of the enactment of this subparagraph and ending with September 30, 2020, a borrower may, at the sole discretion of the borrower, reduce the balance of its cushion of credit account if the amount obtained from the reduction is used to prepay loans made or guaranteed under this Act. > > > ##### “(C) No prepayment premium > > Notwithstanding any other provision of this Act, no prepayment premium shall be imposed or collected with respect to that portion of a loan that is prepaid by a borrower in accordance with subparagraph (B). > > > ##### “(D) Mandatory funding > > Notwithstanding section 504 of the Federal Credit Reform Act of 1990, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall make available such sums as necessary to cover any loan modification costs as defined in section 502 of such Act.” > .
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Sec. 6503
CUSHION OF CREDIT PAYMENTS PROGRAM
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