Title 7 — AgricultureRelease 119-73
§940h Bonding requirements
Title 7 › Chapter CHAPTER 31— - RURAL ELECTRIFICATION AND TELEPHONE SERVICE › Subchapter SUBCHAPTER III— - RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS › § 940h
Summary
The Secretary must check bond rules for programs run by the Rural Utilities Service and avoid requiring bonds when product warranties protect the Secretary or when bond costs or conditions are higher than the bond's benefit.
Full Legal Text
Title 7, §940h
Agriculture — Source: USLM XML via OLRC
The Secretary shall review the bonding requirements for all programs administered by the Rural Utilities Service under this chapter to ensure that bonds are not required if—
(1)the interests of the Secretary are adequately protected by product warranties; or
(2)the costs or conditions associated with a bond exceed the benefit of the bond.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.
Statutory Notes and Related Subsidiaries
Effective Date
Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.
Reference
Citations & Metadata
Citation
7 U.S.C. § 940h
Title 7 — Agriculture
Last Updated
Apr 6, 2026
Release point: 119-73