 To make payments on the Loup Project bonds, the Loup River Public Power District had to find a market for its electricity.Rural electrification was not expanding rapidly, and private power companies in Nebraska were only willing to buy a small fraction of the project's power.Although the provisions of the Public Utility Holding Company Act of 1935 gave East Coast holding companies an incentive to sell off their Nebraska subsidiaries, bankers were unwilling to finance their sale to the Loup District because of its debts from the canal project.