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2026-07-06 09:52:37 -04:00

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LegalText 7 U.S.C. § 918 General prohibitions us united_states_code code_section 7 AGRICULTURE 31 RURAL ELECTRIFICATION AND TELEPHONE SERVICE 918 7 U.S.C. § 918 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/s918 data/legal/raw/us/code/title-07/usc07.xml e5608c723082161687c39c0ff71e4c449647f7cf380de0281fb9b08cf939e1d8 50edab1679a711653797362c0aeb8f2273303fe473fb7fa16df1ee76bdd6e984 815a07f8eb13bbf9a021f17aafcd7b0ac27833495ba2f0ab77bc39f9885cab6c 2026-07-04 official
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7 U.S.C. § 918 - General prohibitions

Text

(a) No consideration of borrowers level of general funds The Secretary shall not deny or reduce any loan or loan advance under this chapter based on a borrowers level of general funds.

(b) Loan origination fees The Secretary may not charge any fee or charge not expressly provided in this chapter in connection with any loan made or guaranteed under this chapter.

(c) Consultants (1) In general To facilitate timely action on applications by borrowers for financial assistance under this chapter and for approvals required of the Rural Electrification Administration pursuant to the terms of outstanding loan or security instruments or otherwise, the Secretary may use consultants funded by the borrower, paid for out of the general funds of the borrower, for financial, legal, engineering, and other technical advice and services in connection with the review of the application by the Rural Electrification Administration.

(2) Conflicts of interest The Secretary shall establish procedures for the selection and the provision of technical services by consultants to ensure that the consultants have no financial or other conflicts of interest in the outcome of the application of the borrower.

(3) Payment of costs The Secretary may not, without the consent of the borrower, require, as a condition of processing an application for approval, that the borrower agree to pay the costs, fees, and expenses of consultants hired to provide technical or advisory services to the Secretary.

(4) Contracts, grants, and agreements The Secretary may enter into such contracts, grants, or cooperative agreements as are necessary to carry out this section.

(5) Use of consultants Nothing in this subsection shall limit the authority of the Secretary to retain the services of consultants from funds made available to the Secretary or otherwise.

(May 20, 1936, ch. 432, title I, § 18, as added Pub. L. 101624, title XXIII, § 2353, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L. 103129, § 2(c)(4), Nov. 1, 1993, 107 Stat. 1364; Pub. L. 103354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115334, title VI, § 6602(b)(1), Dec. 20, 2018, 132 Stat. 4776.)

Notes

Editorial Notes

Amendments2018—Subsecs. (a), (b). Pub. L. 115334 struck out “and the Governor of the telephone bank” after “The Secretary”. 1994—Pub. L. 103354 substituted “Secretary” for “Administrator” wherever appearing. 1993—Pub. L. 103129 designated existing provisions as subsec. (a), inserted heading, and added subsecs. (b) and (c).