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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 09:52:37 -04:00

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LegalText 7 U.S.C. § 936d Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations us united_states_code code_section 7 AGRICULTURE 31 RURAL ELECTRIFICATION AND TELEPHONE SERVICE 936d 7 U.S.C. § 936d current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc07@119-100.zip /us/usc/t7/s936d data/legal/raw/us/code/title-07/usc07.xml 0fe8cf3d41b2c3469da5c675b02de7bc408a26fc39adcaa60564a8df086ba3a2 50edab1679a711653797362c0aeb8f2273303fe473fb7fa16df1ee76bdd6e984 77c14db83bddce09be7bfbfbfeefb24c1e9a4ecefca7b0da0b1a90258603b73c 2026-07-04 official
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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. 103129, § 2(c)(7), Nov. 1, 1993, 107 Stat. 1364.)