7 U.S.C. § 936d — Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

FEDERAL · 7 U.S.C. · Chapter 31

Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

Current through Pub. L. 119-102

Title 7 — Agriculture·Ch. 31 — RURAL ELECTRIFICATION AND TELEPHONE SERVICE·Subch. III

For the purpose of determining the eligibility of a distribution borrower not in default on the repayment of a loan made or guaranteed under this chapter for a loan, loan guarantee, or lien accommodation under this subchapter, a default by a borrower from which the distribution borrower purchases wholesale power shall not—

(1)be considered a default by the distribution borrower;

(2)reduce the eligibility of the distribution borrower for assistance under this chapter; or

(3)be the cause, directly or indirectly, of imposing any requirement or restriction on the borrower as a condition of the assistance, except such requirements or restrictions as are necessary to implement a debt restructuring agreed on by the power supply borrower and the Government.

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For the purpose of determining the eligibility of a distribution borrower not in default on the repayment of a loan made or guaranteed under this chapter for a loan, loan guarantee, or lien accommodation under this subchapter, a default by a borrower from which the distribution borrower purchases wholesale power shall not—
(1) be considered a default by the distribution borrower;
(2) reduce the eligibility of the distribution borrower for assistance under this chapter; or
(3) be the cause, directly or indirectly, of imposing any requirement or restriction on the borrower as a condition of the assistance, except such requirements or restrictions as are necessary to implement a debt restructuring agreed on by the power supply borrower and the Government.

7 U.S.C. § 936d (Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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History

(May 20, 1936, ch. 432, title III, §306D, as added Pub. L. 103–129, §2(c)(7), Nov. 1, 1993, 107 Stat. 1364.)