7 U.S.C. § 936e : US Code - Section 936E: Administrative prohibitions applicable to certain electric borrowers

Search 7 U.S.C. § 936e : US Code - Section 936E: Administrative prohibitions applicable to certain electric borrowers

(a) In general
For the purpose of relieving borrowers of unnecessary and
burdensome requirements, the Secretary, guided by the practices of
private lenders with respect to similar credit risks, shall issue
regulations, applicable to any electric borrower under this chapter
whose net worth exceeds 110 percent of the outstanding principal
balance on all loans made or guaranteed to the borrower by the
Secretary, to minimize those approval rights, requirements,
restrictions, and prohibitions that the Secretary otherwise may
establish with respect to the operations of such a borrower.
(b) Subordination or sharing of liens
At the request of a private lender providing financing to such a
borrower for a capital investment, the Secretary shall,
expeditiously, either offer to share the government's lien on the
borrower's system or offer to subordinate the government's lien on
that property financed by the private lender.
(c) Issuance of regulations
In issuing regulations implementing this section, the Secretary
may establish requirements, guided by the practices of private
lenders, to ensure that the security for any loan made or
guaranteed under this chapter is reasonably adequate.
(d) Authority of Secretary
Nothing in this section limits the authority of the Secretary to
establish terms and conditions with respect to the use by borrowers
of the proceeds of loans made or guaranteed under this chapter or
to take any other action specifically authorized by law.