Notice: The uscode.house.gov website is currently operating in a temporary format. While the United States Code remains available from its authoritative source, some website features and functionality are temporarily unavailable.
The United States Code Online is current through Public Law 119-120 (October 7, 2026).
Search & Browse Currency and Updating Classification Tables Popular Name Tool Positive Law Codification Editorial Reclassification Downloads
7 U.S.C. 936d: Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodationsText contains those laws in effect through Public Law 119-120 (October 7, 2026).
From Title 7-AGRICULTURECHAPTER 31-RURAL ELECTRIFICATION AND TELEPHONE SERVICE
Jump To: Source Credit

§936d. Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

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 .)