Title 7 — AgricultureRelease 119-73not60

§936d Eligibility of Distribution Borrowers for Loans, Loan Guarantees, and Lien Accommodations

Title 7 › Chapter 31— RURAL ELECTRIFICATION AND TELEPHONE SERVICE › Subchapter III— RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS › § 936d

Last updated Apr 3, 2026|Official source

Summary

When deciding if a distribution borrower who is not in default on a loan made or guaranteed under this chapter can get a loan, loan guarantee, or lien accommodation, a default by the borrower that sells it wholesale power must not be treated as the distribution borrower's default. That supplier's default must not reduce the distribution borrower's eligibility or be used to add conditions or restrictions to the assistance, except for requirements needed to carry out a debt restructuring that the power supply borrower and the Government agree to.

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 3, 2026

Release point: 119-73not60