Source: https://www.law.cornell.edu/uscode/text/7/936c
Timestamp: 2019-04-20 20:28:47
Document Index: 762289171

Matched Legal Cases: ['§ 936', '§\u202f936', '§\u202f306', '§\u202f1201', '§\u202f2', '§\u202f235', '§\u202f2', '§\u202f2', '§\u202f1201', '§\u202f749']

7 U.S. Code § 936c - Refinancing and prepayment of FFB loans | U.S. Code | US Law | LII / Legal Information Institute
Section 936c. Refinancing and prepayment of FFB loans
7 U.S. Code § 936c. Refinancing and prepayment of FFB loans
(1) Determination of penaltyA penalty shall be assessed against a borrower that refinances or prepays a loan or loan advance, or any portion of a loan or advance, under this section. Except as provided in paragraph (2), the penalty shall be equal to the lesser of—
(B) ExceptionIn the case of a loan advanced under an agreement that permits the refinancing or prepayment of the loan advance based on the payment of 1 year of interest on the outstanding principal balance of the loan advance, a borrower may, in lieu of the penalty required by paragraph (1)(A), pay a penalty as provided by—
(A) In generalIn the case of a refinancing under this section, a borrower may, at the option of the borrower, meet the penalty requirements of paragraph (1) by—
(3) Loan termSubject to paragraph (4), the borrower of a loan that is refinanced under this section—
(5) Existing loansIn the case of the refinancing of a loan of a borrower pursuant to this section and the inclusion of a penalty in the outstanding principal balance of the refinanced loan pursuant to subsection (b)(3)—
(May 20, 1936, ch. 432, title III, § 306C, as added Pub. L. 103–66, title I, § 1201(a), Aug. 10, 1993, 107 Stat. 327; amended Pub. L. 103–129, § 2(c)(10), Nov. 1, 1993, 107 Stat. 1365; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)
1994—Subsecs. (b)(3)(A)(ii), (d)(4). Pub. L. 103–354 substituted “Secretary” for “Administrator”.
1993—Subsec. (c)(2). Pub. L. 103–129, § 2(c)(10)(A), inserted before period at end “, except that such rate shall not be greater than 7 percent per year, subject to subsection (d) of this section”.
Subsec. (d). Pub. L. 103–129, § 2(c)(10)(B), added subsec. (d).
Pub. L. 103–66, title I, § 1201(b), Aug. 10, 1993, 107 Stat. 330, provided that:
“Not later than 45 days after the date of enactment of this section [Aug. 10, 1993], the Administrator of the Rural Electrification Administration shall issue interim final regulations to carry out the amendment made by subsection (a) [enacting this section].”
Pub. L. 115–31, div. A, title VII, § 749, May 5, 2017, 131 Stat. 177, provided that:
Subject to subsection (b), the Secretary of Agriculture may conduct a pilot program in accordance with this section that authorizes not more than $600,000,000 in funds from rural electrification loans made by the Federal Financing Bank that are guaranteed under section 306 of the Rural Electrification Act of 1936 [7 U.S.C. 936] to be used for refinancing debt pursuant to section 306C of such Act [7 U.S.C. 936c] (including any associated prepayment penalties and prepayment or refinance premium), notwithstanding subsections (b) and (c)(4) of section 306C of such Act.
The Secretary of Agriculture may not provide an authorization under subsection (a) to a borrower unless the Secretary determines that the refinancing involved will benefit the ratepayers of the borrower.
The Federal Financing Bank shall make a new loan to each borrower refinancing a loan pursuant to this section and section 306 of the Rural Electrification Act of 1936 [7 U.S.C. 936], for the purpose of providing funds for the refinancing, which loan shall be obligated from amounts made available for rural electrification loans, and the Secretary of Agriculture shall guarantee the new loan pursuant to section 306 of the Rural Electrification Act of 1936.
For the cost of refinancing a loan pursuant to this section for any borrower identified by the Federal Financing Bank as having opted since origination of the loan to pay an interest rate premium for the eligibility to prepay at par, including a borrower paying an interest rate premium in the near-term for the right to prepay at par starting in 2020, $13,800,000, to remain available until expended: Provided, That these funds shall also be available for refinancing a loan pursuant to any extension or expansion of this pilot program that is enacted subsequent to this Act [div. A of Pub. L. 115–31, enacted May 5, 2017] for those same borrowers.
The authority for the pilot program provided by this section shall remain in effect through September 30, 2019.”