7 USC § 940h - Bonding requirements

---
identifier: "/us/usc/t7/s940h"
source: "usc"
legal_status: "official_prima_facie"
title: "7 USC § 940h - Bonding requirements"
title_number: 7
title_name: "AGRICULTURE"
section_number: "940h"
section_name: "Bonding requirements"
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, § 318, as added Pub. L. 110–234, title VI, § 6109, May 22, 2008, 122 Stat. 1198, and Pub. L. 110–246, § 4(a), title VI, § 6109, June 18, 2008, 122 Stat. 1664, 1960.)"
---


# § 940h. Bonding requirements

The Secretary shall review the bonding requirements for all programs administered by the Rural Utilities Service under this chapter to ensure that bonds are not required if—

**(1)** the interests of the Secretary are adequately protected by product warranties; or

**(2)** the costs or conditions associated with a bond exceed the benefit of the bond.

---

**Source Credit**: (May 20, 1936, ch. 432, title III, § 318, as added Pub. L. 110–234, title VI, § 6109, May 22, 2008, 122 Stat. 1198, and Pub. L. 110–246, § 4(a), title VI, § 6109, June 18, 2008, 122 Stat. 1664, 1960.)

## Editorial Notes

### Codification

and  enacted identical sections.  was repealed by .

## Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of  by  effective , the date of enactment of , see , set out as a note under .