7 USC 940c - Cushion of credit payments program

U.S Code last checked for updates: Apr 29, 2024

§ 940c.

Cushion of credit payments program

(a)

Establishment

(1)

In general

(A)

Development and promotion of program

(B)

Termination

(2)

Interest

(A)

In general

(B)

Reduction

Notwithstanding subparagraph (A), amounts in each cushion of credit account shall accrue interest to the borrower at a rate equal to—

(i)

4 percent per annum in fiscal year 2021; and

(ii)

the then applicable 1-year Treasury rate thereafter.

(3)

Balance

(A)

In general

(B)

Prepayment

(C)

No prepayment premium

(D)

Mandatory funding

(b)

Uses of cushion of credit payments

(1)

In general

(A)

Cash balance

(B)

Interest

(C)

Credits

(2)

Rural economic development subaccount

(May 20, 1936, ch. 432, title III, § 313, as added Pub. L. 100–203, title I, § 1403, Dec. 22, 1987, 101 Stat. 1330–21; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, §§ 6503, 6504(b), Dec. 20, 2018, 132 Stat. 4772, 4773.)

cite as: 7 USC 940c