U.S. Code > Title 7 Agriculture > CHAPTER 31—RURAL ELECTRIFICATION AND TELEPHONE SERVICE (§§ 901—950bb1) > SUBCHAPTER III—RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS (§§ 930—940h) > § 936d. Eligibility of distribution borrowers for loans, loan guarantees, and lien accommodations

§ 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.