§940f Extension of period of existing guarantee

Summary

A borrower with a Federal Financing Bank loan that is guaranteed here can ask to extend the loan’s final maturity date. The Secretary and the Federal Financing Bank must approve the extension for the guarantee to be extended too. The Secretary must first find that the loan’s security is still reasonably adequate and that all loans will be repaid on time. The borrower must give either an official Federal or State finding that the pledged power plant or transmission line will last to the new date, or a licensed engineer’s certificate based on a full analysis. The extended principal cannot be more than the appraised value of that asset. No extension can make the loan mature later than 55 years from the original disbursement or later than the asset’s useful life, and an advance can be extended only once. When an extension is made, the borrower must pay a fee equal to the modification cost calculated under section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). That fee is paid when the guarantee is extended and is credited to the Rural Electrification and Telecommunications Loans Program account to cover the modification costs.