§1949. Graduation of borrowers with operating loans or guarantees to private commercial credit
(a) Graduation plan
The Secretary shall establish a plan, in coordination with activities under sections 2006a, 2006b, 2006c, and 2006d of this title, to encourage each borrower with an outstanding loan under this subchapter or with respect to whom there is an outstanding guarantee under this subchapter to graduate to private commercial or other sources of credit.
(b) Limitation on period for which borrowers are eligible for assistance under this subchapter
Notwithstanding any other provision of this subchapter:
(1) General rule
Except as provided in paragraph (2), the Secretary shall not-
(A) make a loan to a borrower under this subchapter for any year after the 10th year for which such a loan is made to the borrower; or
(B) guarantee for any year a loan made to a borrower for a purpose specified in this subchapter, after the 15th year for which loans under this subchapter are made to, or such a guarantee is provided with respect to, the borrower.
(2) Transition rule
If, as of October 28, 1992, the Secretary has made a loan to a borrower under this subchapter for 5 or more years, or has provided a guarantee for 10 or more years with respect to one or more loans made to the borrower for a purpose specified in this subchapter, the Secretary shall not make a loan to the borrower under this subchapter, or provide such a guarantee with respect to a loan made to the borrower for a purpose specified in this subchapter, after the 5th year occurring after October 28, 1992, for which a loan is made under this subchapter to, or such a guarantee is provided with respect to, the borrower.
(Pub. L. 87 128, title III, §319, as added Pub. L. 102 554, §9, Oct. 28, 1992,
Section Referred to in Other Sections
This section is referred to in section 1948 of this title.