12 2 STA T . 1 956PUBLIC LA W 11 0– 2 4 6 —J U NE 1 8, 2008 (3)PRIO RI TY.—Inprovid in gfu nding und e r th i s se c tion for pending a pp l ications for loans or grants descri b ed in subsection (b) , the S ecretar y shall provide funding in the follo w ing order of priority (until funds m ade available under this section are e x hausted)
( A ) Pending applications for water systems. ( B ) Pending applications for waste disposal systems. (d) FUND IN G .— N otwithstanding any other provision of law, of the funds of the C ommodity Credit Corporation, the Secretary shall use to carry out this section $120 ,000,000, to remain available until expended. Subti 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. Sections 2(a) and 4 of the R ural E lectrification Act of 1 9 3 6 ( 7U .S.C. 902(a), 904) are amended by inserting ‘ ‘efficiency and ’ ’ before ‘‘conservation’’ each place it appears. SEC. 610 2 . REINS T ATEMENT OF R U RA L UTILITY SER V ICES D IRECT LENDING. (a) IN GE NER AL .—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 following: ‘‘(c) D IRE C T L OAN S .— ‘‘(1) DIRECT H ARDSHI 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 F FEDERAL FINANCING BAN K GUARANTEED 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 PAYMENTS 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
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