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Title 7, AgricultureRelease 119-110

§918 General Prohibitions

Title 7 › CHAPTER 31 — RURAL ELECTRIFICATION AND TELEPHONE SERVICE › SUBCHAPTER I — RURAL ELECTRIFICATION › § 918

Last updated Sep 22, 2026|Official source

Summary

The Secretary must not deny or cut any loan or loan advance under this chapter just because of how much general funds a borrower has. The Secretary also cannot add fees that the chapter does not already allow. The Secretary may use consultants paid by the borrower from the borrower’s general funds to help review applications and approvals involving the Rural Electrification Administration. The Secretary must set rules to prevent consultant conflicts of interest. The Secretary cannot require a borrower to agree to pay those consultant costs as a condition of processing the application without the borrower’s consent. The Secretary may make contracts or use other funds to hire consultants.

Full Legal Text

Title 7, §918

Agriculture, Source: USLM XML via OLRC

(a)No consideration of borrower’s level of general funds
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)Loan origination fees
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)Consultants
(1)In general
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)Conflicts of interest
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)Payment of costs
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)Contracts, grants, and agreements
The Secretary may enter into such contracts, grants, or cooperative agreements as are necessary to carry out this section.
(5)Use of consultants
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.

Legislative History

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).

Reference

Citations & Metadata

Citation

7 U.S.C. § 918

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110