7 U.S.C. § 940f : US Code - Section 940F: Extension of period of existing guarantee

Search 7 U.S.C. § 940f : US Code - Section 940F: Extension of period of existing guarantee

(a) In general
Subject to the limitations in this section and the provisions of
the Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.], as
amended, a borrower of a loan made by the Federal Financing Bank
and guaranteed under this chapter may request an extension of the
final maturity of the outstanding principal balance of such loan or
any loan advance thereunder. If the Secretary and the Federal
Financing Bank approve such an extension, then the period of the
existing guarantee shall also be considered extended.
(b) Limitations
(1) Feasibility and security
Extensions under this section shall not be made unless the
Secretary first finds and certifies that, after giving effect to
the extension, in his judgment the security for all loans to the
borrower made or guaranteed under this chapter is reasonably
adequate and that all such loans will be repaid within the time
agreed.
(2) Extension of useful life or collateral
Extensions under this section shall not be granted unless the
borrower first submits with its request either - 
(A) evidence satisfactory to the Secretary that a Federal or
State agency with jurisdiction and expertise has made an
official determination, such as through a licensing proceeding,
extending the useful life of a generating plant or transmission
line pledged as collateral to or beyond the new final maturity
date being requested by the borrower, or
(B) a certificate from an independent licensed engineer
concluding, on the basis of a thorough engineering analysis
satisfactory to the Secretary, that the useful life of the
generating plant or transmission line pledged as collateral
extends to or beyond the new final maturity date being
requested by the borrower.
(3) Amount eligible for extension
Extensions under this section shall not be granted if the
principal balance extended exceeds the appraised value of the
generating plant or transmission line referred to in subsection
paragraph (2).
(4) Period of extension
Extensions under this section shall in no case result in a
final maturity greater than 55 years from the time of original
disbursement and shall in no case result in a final maturity
greater than the useful life of the plant.
(5) Number of extensions
Extensions under this section shall not be granted more than
once per loan advance.
(c) Fees
(1) In general
A borrower that receives an extension under this section shall
pay a fee to the Secretary which shall be credited to the Rural
Electrification and Telecommunications Loans Program account.
Such fees shall remain available without fiscal year limitation
to pay the modification costs for extensions.
(2) Amount
The amount of the fee paid shall be equal to the modification
cost, calculated in accordance with section 502 of the Federal
Credit Reform Act of 1990 [2 U.S.C. 661a], as amended, of such
extension.
(3) Payment
The borrower shall pay the fee required under this section at
the time the existing guarantee is extended by making a payment
in the amount of the required fee.