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

---
identifier: "/us/usc/t7/s936d"
source: "usc"
legal_status: "official_prima_facie"
title: "7 USC § 936d - Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations"
title_number: 7
title_name: "AGRICULTURE"
section_number: "936d"
section_name: "Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations"
chapter_number: 31
chapter_name: "RURAL ELECTRIFICATION AND TELEPHONE SERVICE"
subchapter_number: "III"
subchapter_name: "RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(May 20, 1936, ch. 432, title III, § 306D, as added Pub. L. 103–129, § 2(c)(7), Nov. 1, 1993, 107 Stat. 1364.)"
---


# § 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.

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**Source Credit**: (May 20, 1936, ch. 432, title III, § 306D, as added Pub. L. 103–129, § 2(c)(7), Nov. 1, 1993, 107 Stat. 1364.)