7 USC 940c-1 - Guarantees for bonds and notes issued for electrification or telephone purposes

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

§ 940c–1.

Guarantees for bonds and notes issued for electrification or telephone purposes

(a)

In general

(1)

Guarantees

(2)

Terms

A bond or note guaranteed under this section shall, by agreement between the Secretary and the borrower—

(A)

be for a term of 30 years (or another term of years that the Secretary determines is appropriate); and

(B)

be repaid by the borrower—

(i)

in periodic installments of principal and interest;

(ii)

in periodic installments of interest and, at the end of the term of the bond or note, as applicable, by the repayment of the outstanding principal; or

(iii)

through a combination of the methods described in clauses (i) and (ii).

(b)

Limitations

(1)

Outstanding loans

(2)

Qualifications

The Secretary may deny the request of a lender for the guarantee of a bond or note under this section if the Secretary determines that—

(A)

the lender does not have appropriate expertise or experience or is otherwise not qualified to make loans for eligible purposes described in subsection (a)(1);

(B)

the bond or note issued by the lender would not be investment grade quality without a guarantee; or

(C)

the lender has not provided to the Secretary a list of loan amounts approved by the lender that the lender certifies are for eligible purposes described in subsection (a)(1).

(3)

Annual amount

(c)

Fees

(1)

In general

(2)

Amount

(A)

In general

(B)

Prohibition

(3)

Payment

(A)

In general

(B)

Structured schedule

(4)

Rural economic development subaccount

Subject to subsection (e)(2), fees collected under this subsection shall be—

(A)

deposited into the rural economic development subaccount that shall be maintained as required by sections 940c(b)(2) and 940c–2(f) of this title, to remain available until expended; and

(B)

used for the purposes described in section 940c(b)(2) of this title.

(d)

Guarantees

(1)

In general

A guarantee issued under this section shall—

(A)

be for the full amount of a bond or note, including the amount of principal, interest, and call premiums;

(B)

be fully assignable and transferable; and

(C)

represent the full faith and credit of the United States.

(2)

Limitation

(3)

Department opinion

(e)

Authorization of appropriations

(1)

In general

(2)

Fees

(f)

Termination

(May 20, 1936, ch. 432, title III, § 313A, as added Pub. L. 107–171, title VI, § 6101(a), May 13, 2002, 116 Stat. 413; amended Pub. L. 110–234, title VI, § 6106(a), May 22, 2008, 122 Stat. 1197; Pub. L. 110–246, § 4(a), title VI, § 6106(a), June 18, 2008, 122 Stat. 1664, 1958; Pub. L. 113–79, title VI, § 6102, Feb. 7, 2014, 128 Stat. 851; Pub. L. 115–334, title VI, §§ 6504(d), 6505(a), Dec. 20, 2018, 132 Stat. 4774.)

cite as: 7 USC 940c-1