§918 — Title 7 Agriculture | U.S. Code

Summary

The Secretary cannot refuse or cut a loan or loan advance just because a borrower has low general funds. The Secretary also cannot charge any fee that is not clearly allowed under this law. To speed up application reviews, the Secretary can use consultants paid from the borrower’s general funds for financial, legal, engineering, or other technical advice. The Secretary must set rules so those consultants have no conflicts of interest. The Secretary cannot force a borrower to pay consultant costs as a condition of processing the application. The Secretary may make contracts or grants and may also hire consultants with the Secretary’s own funds.

Title 7, §918

Agriculture — Source: USLM XML via OLRC

(a)The Secretary shall not deny or reduce any loan or loan advance under this chapter based on a borrower’s level of general funds.

(b)The Secretary may not charge any fee or charge not expressly provided in this chapter in connection with any loan made or guaranteed under this chapter.

(c)(1)To facilitate timely action on applications by borrowers for financial assistance under this chapter and for approvals required of the Rural Electrification Administration pursuant to the terms of outstanding loan or security instruments or otherwise, the Secretary may use consultants funded by the borrower, paid for out of the general funds of the borrower, for financial, legal, engineering, and other technical advice and services in connection with the review of the application by the Rural Electrification Administration.

(2)The Secretary shall establish procedures for the selection and the provision of technical services by consultants to ensure that the consultants have no financial or other conflicts of interest in the outcome of the application of the borrower.

(3)The Secretary may not, without the consent of the borrower, require, as a condition of processing an application for approval, that the borrower agree to pay the costs, fees, and expenses of consultants hired to provide technical or advisory services to the Secretary.

(4)The Secretary may enter into such contracts, grants, or cooperative agreements as are necessary to carry out this section.

(5)Nothing in this subsection shall limit the authority of the Secretary to retain the services of consultants from funds made available to the Secretary or otherwise.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Subsecs. (a), (b). Pub. L. 115–334 struck out “and the Governor of the telephone bank” after “The Secretary”. 1994—Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing. 1993—Pub. L. 103–129 designated existing provisions as subsec. (a), inserted heading, and added subsecs. (b) and (c).

§918 General Prohibitions

Summary

Title 7, §918

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata