§ 936a. Prepayment of loans
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/usc/title-7/section-936aA research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Conditions for prepayment Except as provided in subsection (c), a borrower of a loan made by the Federal Financing Bank and guaranteed under section 936 of this title may prepay such loan (or any loan advance thereunder) by paying the outstanding principal balance due on the loan (or advance), if—
(1)the loan is outstanding on July 2, 1986;
(2)private capital, with the existing loan guarantee, is used to replace the loan; and
(3)the borrower certifies that any savings from such prepayment will be passed on to its customers or used to improve the financial strength of the borrower in cases of financial hardship.
(b)Charges on prepayment prohibited No sums in addition to the payment of the outstanding principal balance due on the loan may be charged as the result of such prepayment against the borrower, the fund, or the Secretary.
(c)Disqualification for prepayment on finding of adverse affect on Federal Financing Bank
(1)A borrower will not qualify for prepayment under this section if, in the opinion of the Secretary of the Treasury, to prepay in such borrower’s case would adversely affect the operation of the Federal Financing Bank.
(2)Paragraph
(1)shall be effective in fiscal year 1987 only for any loan the prepayment of the principal amount of which will cause the cumulative amount of net proceeds from all such prepayments made during such year to exceed $2,017,500,000.
(d)Amount of permissible prepayments; establishment of eligibility criteria
(1)The Secretary shall permit, subject to subsection (a), prepayments of principal on loans in fiscal year 1987 under this section or Public Law 99–349 in such amounts as to realize net proceeds from all such prepayments in fiscal year 1987 in an amount not less than $2,017,500,000.
(2)The Secretary shall establish—
(A)eligibility criteria to ensure that any loan prepayment activity required to be carried out under this subsection will be directed to those cooperative borrowers in greatest need of the benefits associated with prepayment, as determined by the Secretary; and
(B)such other eligibility criteria as the Secretary determines are necessary to carry out this subsection.
(e)Assignability and transferability of guarantees of loans Any guarantee of a loan prepaid under this section shall be fully assignable under the provisions of section 936 of this title and transferable. However, the Secretary may require that any such guarantee, if transfered 1 or assigned, be transferred or assigned to a loan or security that, if sold, will be grouped with nonguaranteed loans or securities and sold in a manner to ensure that such sale will not unreasonably compete with the marketing of obligations of the United States.
(May 20, 1936, ch. 432, title III, § 306A, as added Pub. L. 99–509, title I, § 1011(a), Oct. 21, 1986, 100 Stat. 1875; amended Pub. L. 103–354, title II, § 235(a)(7), (13), Oct. 13, 1994, 108 Stat. 3221.)
Connections14 cite this · traces to 2
Cited by 14 sections · top 7
U.S. Code
statutes-at-large
- Public Law 99–508To amend title 18, United States Code, with respect to the interception of certain communications, other forms of surveillance, and for other purposes
- Public Law 100–201To authorize the acceptance of a donation of land for addition to Big Bend National Park, in the State of Texas
- Public Law 100–71Making supplemental appropriations for the fiscal year ending September 30, 1987, and for other purposes
statute-compilations
19 references not yet in our index
- Public Law 99–349
- 1
- May 20, 1936, ch. 432
- Pub. L. 99–509, title I, § 1011(a)
- 100 Stat. 1875
- Pub. L. 103–354, title II, § 235(a)(7)
- 108 Stat. 3221
- Pub. L. 99–349
- 100 Stat. 710
- Pub. L. 99–509, title I, § 1011(b)
- 100 Stat. 1876
- Pub. L. 103–354
- Pub. L. 100–203, title I, § 1401
- 101 Stat. 1330–20
- Pub. L. 100–202, § 101(k) [title VI, § 633]
- 101 Stat. 1329–322
- Pub. L. 100–71, title I
- 101 Stat. 429
- Pub. L. 99–509, title I, § 1011(c)
Citation graph
cites case law
§ 936a
Prepayment of loans
Stat.×7
U.S.C.×4
Bills×2
Stat. Comp.×1
Pub. L.Public Law 99–349
Cite1
ActMay 20, 1936, ch. 432
Pub. L.Pub. L. 99–509, title I, § 1011(a)
Stat.100 Stat. 1875
Cites 21 · showing 7Cited by 14 across 4 sources