FEDERAL · 7 U.S.C. · Chapter 31
Administrative prohibitions applicable to certain electric borrowers
Current through Pub. L. 119-102
(a)In general
For the purpose of relieving borrowers of unnecessary and burdensome requirements, the Secretary, guided by the practices of private lenders with respect to similar credit risks, shall issue regulations, applicable to any electric borrower under this chapter whose net worth exceeds 110 percent of the outstanding principal balance on all loans made or guaranteed to the borrower by the Secretary, to minimize those approval rights, requirements, restrictions, and prohibitions that the Secretary otherwise may establish with respect to the operations of such a borrower.
(b)Subordination or sharing of liens
At the request of a private lender providing financing to such a borrower for a capital investment, the Secretary shall, expeditiously, either offer to share the government's
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Source Credit
History
(May 20, 1936, ch. 432, title III, §306E, as added Pub. L. 103–129, §2(c)(7), Nov. 1, 1993, 107 Stat. 1365; amended Pub. L. 103–201, §1, Dec. 17, 1993, 107 Stat. 2342; Pub. L. 103–354, title II, §235(a)(8), (13), Oct. 13, 1994, 108 Stat. 3221.)
Editorial Notes
Editorial Notes
Amendments
1994—Pub. L. 103–354 substituted "Secretary" for "Administrator" in heading of subsec. (d) and wherever appearing in text.
1993—Pub. L. 103–201 inserted "certain" before "electric" in section catchline and amended text generally. Prior to amendment, text read as follows: "The Administrator may not require prior approval of, impose any requirement, restriction, or prohibition with respect to the operations of, or deny or delay the granting of a lien accommodation to, any electric borrower under this chapter whose net worth exceeds 110 percent of the outstanding principal balance on all loans made or guaranteed to the borrower by the Administrator."
Statutory Notes and Related Subsidiaries
Regulations
Pub. L. 103–201, §2, Dec. 17, 1993, 107 Stat. 2342, provided that: "The Administrator of the Rural Electrification Administration shall issue interim final regulations implementing this Act [amending this section] not later than 180 days after enactment [Dec. 17, 1993]. If the regulations are not issued within such period of time, the Administrator may not, until the Administrator issues such regulations, require prior approval of, establish any requirement, restriction, or prohibition, with respect to the operations of any electric borrower under the Rural Electrification Act of 1936 [7 U.S.C. 90 et seq.] whose net worth exceeds 110 percent of the outstanding principal balance on all loans made or guaranteed to the borrower by the Administrator."
Amendments
1994—Pub. L. 103–354 substituted "Secretary" for "Administrator" in heading of subsec. (d) and wherever appearing in text.
1993—Pub. L. 103–201 inserted "certain" before "electric" in section catchline and amended text generally. Prior to amendment, text read as follows: "The Administrator may not require prior approval of, impose any requirement, restriction, or prohibition with respect to the operations of, or deny or delay the granting of a lien accommodation to, any electric borrower under this chapter whose net worth exceeds 110 percent of the outstanding principal balance on all loans made or guaranteed to the borrower by the Administrator."
Statutory Notes and Related Subsidiaries
Regulations
Pub. L. 103–201, §2, Dec. 17, 1993, 107 Stat. 2342, provided that: "The Administrator of the Rural Electrification Administration shall issue interim final regulations implementing this Act [amending this section] not later than 180 days after enactment [Dec. 17, 1993]. If the regulations are not issued within such period of time, the Administrator may not, until the Administrator issues such regulations, require prior approval of, establish any requirement, restriction, or prohibition, with respect to the operations of any electric borrower under the Rural Electrification Act of 1936 [7 U.S.C. 90 et seq.] whose net worth exceeds 110 percent of the outstanding principal balance on all loans made or guaranteed to the borrower by the Administrator."