Title 7 — AgricultureRelease 119-73
§936d Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations
Title 7 › Chapter CHAPTER 31— - RURAL ELECTRIFICATION AND TELEPHONE SERVICE › Subchapter SUBCHAPTER III— - RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS › § 936d
Summary
Protects a distribution borrower who is not in default: a wholesale power supplier's default will not (1) count as its default, (2) reduce its eligibility for assistance, or (3) impose conditions, except those needed to implement a debt restructuring agreed by the power supply borrower and the Government.
Full Legal Text
Title 7, §936d
Agriculture — Source: USLM XML via OLRC
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.
Reference
Citations & Metadata
Citation
7 U.S.C. § 936d
Title 7 — Agriculture
Last Updated
Apr 6, 2026
Release point: 119-73