---
kind: "section"
citation: "7 U.S.C. § 940h"
title: "7"
title_heading: "Agriculture"
number: "940h"
heading: "Bonding requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/940h"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter III — Rural Electric and Telephone Direct Loan Programs"
---

# §940h. Bonding requirements


The [Secretary](/usc/7/913.md?p=5) 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](/usc/7/913.md?p=5) 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.)

## Notes

### Editorial Notes

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.