---
type: "LegalText"
title: "7 U.S.C. § 936d"
description: "Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 7
title_name: "AGRICULTURE"
chapter_number: "31"
chapter_name: "RURAL ELECTRIFICATION AND TELEPHONE SERVICE"
section: "936d"
citation: "7 U.S.C. § 936d"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc07@119-100.zip"
source_identifier: "/us/usc/t7/s936d"
source_file: "data/legal/raw/us/code/title-07/usc07.xml"
source_hash: "0fe8cf3d41b2c3469da5c675b02de7bc408a26fc39adcaa60564a8df086ba3a2"
raw_snapshot_hash: "50edab1679a711653797362c0aeb8f2273303fe473fb7fa16df1ee76bdd6e984"
text_hash: "77c14db83bddce09be7bfbfbfeefb24c1e9a4ecefca7b0da0b1a90258603b73c"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---

# 7 U.S.C. § 936d - Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

## Text

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.

(May 20, 1936, ch. 432, title III, § 306D, as added Pub. L. 103–129, § 2(c)(7), Nov. 1, 1993, 107 Stat. 1364.)