---
kind: "section"
citation: "7 U.S.C. § 936d"
title: "7"
title_heading: "Agriculture"
number: "936d"
heading: "Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/936d"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter III — Rural Electric and Telephone Direct Loan Programs"
---

# §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.

## 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.)