7 U.S.C. § 937 — Loans from other credit sources

Page 545 TITLE 7—AGRICULTURE § 940 Editorial Notes REFERENCES IN TEXT The date of enactment of this section, referred to in subsec. (d), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. 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 L. 110–234 was repealed by section 4(a) of Pub.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. § 937. Loans from other credit sources When it appears to the Secretary that the loan applicant is able to obtain a loan for part of his credit needs from a responsible cooperative or other credit source at reasonable rates and terms consistent with the loan applicant’s abil- ity to pay and the achievement of this chapter’s objectives, he may request the loan applicant to apply for and accept such a loan concurrently with an insured loan, subject, however, to full use being made by the Secretary of the funds made available hereunder for such insured loans under this subchapter. The Secretary may not request any applicant for an electric loan under this chapter to apply for and accept a loan in an amount exceeding 30 percent of the credit needs of the applicant. (May 20, 1936, ch. 432, title III, § 307, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 70; amended Pub. L. 97–35, title I, § 165(c), Aug. 13, 1981, 95 Stat. 379; Pub. L. 103–129, § 2(c)(8), Nov. 1, 1993, 107 Stat. 1365; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.) Editorial Notes AMENDMENTS 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’ wherever appearing. 1993—Pub. L. 103–129 inserted at end ‘‘The Adminis- trator may not request any applicant for an electric loan under this chapter to apply for and accept a loan in an amount exceeding 30 percent of the credit needs of the applicant.’’ 1981—Pub. L. 97–35 substituted ‘‘an insured loan’’ for ‘‘a loan insured at the standard rate’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as a note under section 930 of this title. § 938. Full faith and credit of the United States Any contract of insurance or guarantee exe- cuted by the Secretary under this subchapter shall be an obligation supported by the full faith and credit of the United States and incontest- able except for fraud or misrepresentation of which the holder had actual knowledge at the time it became a holder. (May 20, 1936, ch. 432, title III, § 308, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 70; amended Pub. L. 94–124, § 2, Nov. 4, 1975, 89 Stat. 677; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.) Editorial Notes AMENDMENTS 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’. 1975—Pub. L. 94–124 substituted ‘‘of which the holder had actual knowledge at the time it became a holder’’ for ‘‘of which the holder has actual knowledge’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as a note under section 930 of this title. § 939. Loan terms and conditions Loans made from or insured through the fund shall be for the same purposes and on the same terms and conditions as are provided for loans in subchapters I and II of this chapter except as otherwise provided in sections 933 to 938 inclu- sive. (May 20, 1936, ch. 432, title III, § 309, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 70; amended Pub. L. 101–624, title XXIII, § 2360, Nov. 28, 1990, 104 Stat. 4042; Pub. L. 103–129, § 2(b)(2), Nov. 1, 1993, 107 Stat. 1363; Pub. L. 104–127, title VII, § 779, Apr. 4, 1996, 110 Stat. 1151; Pub. L. 115–334, title VI, § 6602(b)(11), Dec. 20, 2018, 132 Stat. 4777.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–334 struck out at end ‘‘The pre- ceding sentence shall not be construed to make section 948(b)(2) or 950b of this title applicable to this sub- chapter.’’ 1996—Pub. L. 104–127 struck out subsec. (a) designa- tion and heading ‘‘In general’’ and heading and text of subsec. (b). Prior to amendment, text read as follows: ‘‘The term of any telephone loan made under this sub- chapter shall be determined by the borrower at the time the loan application is submitted.’’ 1993—Subsec. (a). Pub. L. 103–129 inserted at end ‘‘The preceding sentence shall not be construed to make sec- tion 948(b)(2) or 950b of this title applicable to this sub- chapter.’’ 1990—Pub. L. 101–624 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as a note under section 930 of this title. § 940. Refinancing of rural development loans At the request of the borrower, the Secretary is authorized and directed to refinance with loans which will be insured under this chapter at the interest rates provided in section 935 of this title any loans made for rural electric and tele- phone facilities under any provision of the Con- solidated Farm and Rural Development Act [7 U.S.C. 1921 et seq.]. (May 20, 1936, ch. 432, title III, § 310, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 70;