Title 43 — Public LandsRelease 119-73

§421e Municipal and industrial water supply delivery and distribution; allocation of loan funds; loan repayment contract requirements; rate of interest

Title 43 › Chapter CHAPTER 12— - RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT › Subchapter SUBCHAPTER III— - INSTITUTION AND CONSTRUCTION OF PROJECTS › § 421e

Last updated Apr 6, 2026|Official source

Summary

Municipal and industrial water delivery and distribution are allowed project uses unless the law that approved the project says otherwise. When appropriate, loan money must be split between irrigation and municipal/industrial uses in a way the Secretary accepts. Loan contracts must make the borrower pay interest each year on the unpaid loan amount (including interest during construction) assigned to municipal and industrial uses. The rate is the one in the project’s authorizing law, or if none, a rate set by the Secretary of the Treasury at the start of the fiscal year based on the Treasury’s average rate on marketable debt that is not due or callable for 15 years, rounded to the nearest one‑eighth of one percent.

Full Legal Text

Title 43, §421e

Public Lands — Source: USLM XML via OLRC

Unless otherwise provided in the Act authorizing construction of the project, the delivery and distribution of municipal and industrial water supplies shall be deemed to be an authorized project purpose under sections 421a to 421h of this title, and where appropriate, an allocation of loan funds acceptable to the Secretary shall be made between irrigation and municipal and industrial purposes. Loan repayment contracts shall require that the borrower pay interest on that portion of the unamortized loan obligation (including interest during construction) allocated in each year to municipal and industrial purposes at the rate provided in the Act authorizing the project, or absent such an authorized rate, at a rate determined by the Secretary of the Treasury as of the beginning of the fiscal year in which the contract, or contract amendment entered into pursuant to section 421f of this title, is executed, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for redemption for fifteen years from date of issue, and by adjusting such average rate to the nearest one-eighth of 1 per centum.

Reference

Citations & Metadata

Citation

43 U.S.C. § 421e

Title 43 — Public Lands

Last Updated

Apr 6, 2026

Release point: 119-73