Title 7, AgricultureRelease 119-102
§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
Summary
If a distribution borrower is current on a loan, a default by the wholesale supplier it buys from must not count as that borrower's default, reduce its eligibility for loans or guarantees, or impose conditions—except to carry out a debt restructuring agreed between the supplier and the Government.
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
Aug 21, 2026
Release point: 119-102