PUBLIC LAW 107-171—MAY 13, 2002 116 STAT. 413 for applications for loans and grants described in subsection (b) that are pending on the date of enactment of this Act only to the extent that funds for the loans and grants appropriated in the annual appropriations Act for fiscal year 2002 have been exhausted. (2) PROGRAM REQUIREMENTS. — The Secretary may use funds made available under this section to provide funds for a pending application for a loan or grant described in subsection (b) only if the Secretary processes, reviews, and approves the application in accordance with regulations in effect on the date of enactment of this Act. (3) PRIORITY.— In providing funding under this section for pending applications for loans or grants described in subsection (b), the Secretary shall provide funding in the following order of priority (until funds made available under this section are exhausted): (A) Pending applications for water systems. (B) Pending applications for waste disposal systems, (d) FUNDING.— Notwithstanding any other provision of law, of the funds of the Commodity Credit Corporation, the Secretary shall use $360,000,000 to carry out this section, to remain available until expended. Subtitle B—Rural Electrification Act of 1936 SEC. 6101. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELEC- TRIFICATION OR TELEPHONE PURPOSES. (a) IN GENERAL.— The Rural Electrification Act of 1936 is amended by inserting after section 313 (7 U.S.C. 940c) the following: "SEC. 313A- GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELEC- 7 USC 940c-l. TRIFICATION OR TELEPHONE PURPOSES. "(a) IN GENERAL. —Subject to subsection (b), the Secretary shall guarantee payments on bonds or notes issued by cooperative or other lenders organized on a not-for-profit basis if the proceeds of the bonds or notes are used to make loans for any electrification or telephone purpose eligible for assistance under this Act, including section 4 or 201 or to refinance bonds or notes issued for such purposes. "(b) LIMITATIONS.— "(1) OUTSTANDING LOANS. —^A lender shall not receive a guarantee under this section for a bond or note if, at the time of the guarantee, the total principal amount of such guaranteed bonds or notes outstanding of the lender would exceed the principal amount of outstanding loans of the lender for electrification or telephone purposes that have been made concurrently with loans approved for such purposes under this Act. "(2) GENERATION OF ELECTRICITY.—The Secretary shall not guarantee payment on a bond or note issued by a lender, the proceeds of which are used for the generation of electricity. "(3) QUALIFICATIONS.—The Secretary may deny the request of a lender for the guarantee of a bond or note under this section if the Secretary determines that—
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