7 U.S.C. § 936 : US Code - Section 936: Guaranteed loans; accommodations and subordination of liens; interest rates; assignability of guaranteed loans and related guarantees

Search 7 U.S.C. § 936 : US Code - Section 936: Guaranteed loans; accommodations and subordination of liens; interest rates; assignability of guaranteed loans and related guarantees

The Secretary may provide financial assistance to borrowers for
purposes provided in this chapter by guaranteeing loans, in the
full amount thereof, made by the Rural Telephone Bank, National
Rural Utilities Cooperative Finance Corporation, and any other
legally organized lending agency, or by accommodating or
subordinating liens or mortgages in the fund held by the Secretary
as owner or as trustee or custodian for purchases of notes from the
fund, or by any combination of such guarantee, accommodation, or
subordination. The Secretary shall not provide such assistance to
any borrower of a telephone loan under this chapter unless the
borrower specifically applies for such assistance. No fees or
charges shall be assessed for any such guarantee, accommodation, or
subordination. With respect to guarantees issued by the Secretary
under this section, on the request of the borrower of any such loan
so guaranteed, the loan shall be made by the Federal Financing Bank
and at a rate of interest that is not more than the rate of
interest applicable to other similar loans then being made or
purchased by the Bank. Guaranteed loans shall bear interest at the
rate agreed upon by the borrower and the lender. Guaranteed loans,
and accommodation and subordination of liens or mortgages, may be
made concurrently with an insured loan. The amount of guaranteed
loans shall be subject only to such limitations as to amounts as
may be authorized from time to time by the Congress of the United
States: Provided, That any amounts guaranteed hereunder shall not
be included in the totals of the budget of the United States
Government and shall be exempt from any general limitation imposed
by statute on expenditures and net lending (budget outlays) of the
United States. As used in this subchapter a guaranteed loan is one
which is initially made, held, and serviced by a legally organized
lending agency and which is guaranteed by the Secretary hereunder.
A guaranteed loan, including the related guarantee, may be assigned
to the extent provided in the contract of guarantee executed by the
Secretary under this subchapter; the assignability of such loan and
guarantee shall be governed exclusively by said contract of
guarantee.