7 USC 936d - Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

U.S Code last checked for updates: May 07, 2024

§ 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.)

cite as: 7 USC 936d