---
kind: "section"
citation: "7 U.S.C. § 950bb–5"
title: "7"
title_heading: "Agriculture"
number: "950bb–5"
heading: "Default and deobligation; deferral"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/950bb-5"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter VI — Rural Broadband Access"
---

# §950bb–5. Default and deobligation; deferral

- (a) **Default and deobligation—** In addition to other authority under applicable law, the [Secretary](/usc/7/913.md?p=5) shall establish written procedures for all broadband programs so that, to the maximum extent practicable, the programs are administered to—
  - (1) recover funds from loan and grant defaults;
  - (2) deobligate any awards, less allowable costs that demonstrate an insufficient level of performance (including metrics determined by the [Secretary](/usc/7/913.md?p=5)) or fraudulent spending, to the extent funds with respect to the award are available in the account relating to the program established by this subchapter;
  - (3) award those funds, on a competitive basis, to new or existing applicants consistent with this subchapter; and
  - (4) minimize overlap among the programs.
- (b) **Deferral period—** In determining the terms and conditions of assistance provided under this subchapter, the [Secretary](/usc/7/913.md?p=5) may establish a deferral period of not shorter than the buildout period established for the project involved in order to support the financial feasibility and long-term sustainability of the project.

## Source credit

(May 20, 1936, ch. 432, title VI, § 606, as added Pub. L. 115–334, title VI, § 6206, Dec. 20, 2018, 132 Stat. 4739.)