7 U.S.C. § 937: Loans from other credit sources

Summary

The Secretary may ask a borrower to also get part of their loan from a responsible cooperative or other lender if the rates and terms are fair and the borrower can pay, as long as the Secretary still uses all available insured-loan funds. For electric loans, the outside loan can be no more than 30% of the borrower’s total credit needs.

Title 7, §937

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When it appears to the Secretary that the loan applicant is able to obtain a loan for part of his credit needs from a responsible cooperative or other credit source at reasonable rates and terms consistent with the loan applicant’s ability to pay and the achievement of this chapter’s objectives, he may request the loan applicant to apply for and accept such a loan concurrently with an insured loan, subject, however, to full use being made by the Secretary of the funds made available hereunder for such insured loans under this subchapter. The Secretary may not request any applicant for an electric loan under this chapter to apply for and accept a loan in an amount exceeding 30 percent of the credit needs of the applicant.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1994—Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing. 1993—Pub. L. 103–129 inserted at end “The Administrator may not request any applicant for an electric loan under this chapter to apply for and accept a loan in an amount exceeding 30 percent of the credit needs of the applicant.” 1981—Pub. L. 97–35 substituted “an insured loan” for “a loan insured at the standard rate”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as a note under section 930 of this title.

§937 Loans From Other Credit Sources