§ 940c. Cushion of credit payments program
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/usc/title-7/section-940cA research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Establishment
(1)In general
(A)Development and promotion of program The Secretary shall develop and promote a program to encourage borrowers to voluntarily make deposits into cushion of credit accounts established within the Rural Electrification and Telephone Revolving Fund.
(B)Termination Effective on December 20, 2018, no deposits may be made under subparagraph (A).
(2)Interest
(A)In general Amounts in each cushion of credit account shall accrue interest to the borrower at a rate of 5 percent per annum.
(B)Reduction Notwithstanding subparagraph (A), amounts in each cushion of credit account shall accrue interest to the borrower at a rate equal to—
(i)4 percent per annum in fiscal year 2021; and
(ii)the then applicable 1-year Treasury rate thereafter.
(3)Balance
(A)In general A borrower may reduce the balance of its cushion of credit account only if the amount obtained from the reduction is used to make scheduled payments on loans made or guaranteed under this chapter.
(B)Prepayment Notwithstanding subparagraph
(A)and subject to subparagraph (C), beginning on December 20, 2018, and ending with September 30, 2020, a borrower may, at the sole discretion of the borrower, reduce the balance of its cushion of credit account if the amount obtained from the reduction is used to prepay loans made or guaranteed under this chapter.
(C)No prepayment premium Notwithstanding any other provision of this chapter, no prepayment premium shall be imposed or collected with respect to that portion of a loan that is prepaid by a borrower in accordance with subparagraph (B).
(D)Mandatory funding Notwithstanding section 661c of title 2, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall make available such sums as necessary to cover any loan modification costs as defined in section 661a of title 2.
(b)Uses of cushion of credit payments
(1)In general
(A)Cash balance Cushion of credit payments shall be held in the Rural Electrification and Telephone Revolving Fund as a cash balance in the cushion of credit accounts of borrowers.
(B)Interest All cash balance amounts (obtained from cushion of credit payments, loan payments, and other sources) held by the Fund shall bear interest to the Fund at a rate equal to the weighted average rate on outstanding certificates of beneficial ownership issued by the Fund.
(C)Credits The amount of interest accrued on the cash balances shall be credited to the Fund as an offsetting reduction to the amount of interest paid by the Fund on its certificates of beneficial ownership.
(2)Rural economic development subaccount The Secretary shall maintain a subaccount within the Rural Electrification and Telephone Revolving Fund to which shall be credited, on a monthly basis, a sum determined by multiplying the outstanding cushion of credit payments made after October 1, 1987, by the difference (converted to a monthly basis) between the average weighted interest rate paid on outstanding certificates of beneficial ownership issued by the Fund and 5 percent.
(May 20, 1936, ch. 432, title III, § 313, as added Pub. L. 100–203, title I, § 1403, Dec. 22, 1987, 101 Stat. 1330–21; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 115–334, title VI, §§ 6503, 6504(b), Dec. 20, 2018, 132 Stat. 4772, 4773.)
Connections115 cite this · traces to 3
Cited by 115 sections · top 60
public-private-law
- Public Law 116-260Consolidated Appropriations Act, 2021
- Public Law 115-334Agriculture Improvement Act of 2018
- Public Law 116-94Further Consolidated Appropriations Act, 2020
- Public Law 113-79Agricultural Act of 2014
- Public Law 117-103Consolidated Appropriations Act, 2022
- Public Law 116-6Consolidated Appropriations Act, 2019
U.S. Code
statutes-at-large
- Public Law 110–5
- Public Law 108–199Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for the fiscal year ending September 30, 2004, and for other purposes
- Public Law 116–6
- Public Law 117–103Making consolidated appropriations for the fiscal year ending September 30, 2022, and for providing emergency assistance for the situation in Ukraine, and for other purposes
- Public Law 115–334To provide for the reform and continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2023, and for other purposes
- Public Law 116–260Making consolidated appropriations for the fiscal year ending September 30, 2021, providing coronavirus emergency response and relief, and for other purposes
- Public Law 108–7
- Public Law 108–447Making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 2005, and for other purposes
- Public Law 110–161Making appropriations for the Department of State, foreign operations, and related programs for the fiscal year ending September 30, 2008, and for other purposes
- Public Law 107–171To provide for the continuation of agricultural programs through fiscal year 2007, 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 116–94Making further consolidated appropriations for the fiscal year ending September 30, 2020, and for other purposes
- Public Law 109–97Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for the fiscal year ending September 30, 2006, and for other purposes
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- Rules and RegulationsFinal rule
- NoticesInterim rule with request for comments
- NoticesInterim final rule
- UnknownFinal rule; request for comments
- Proposed RulesProposed rule
- NoticesProposed rule
- NoticesNotice
- NoticesNotice
statute-compilations
- Sec. 313A.2GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR TELEPHONE PURPOSES
- Sec. 775### (a)
- Sec. 755Section 313(b) of the Rural Electrification Act of 1936, as amended (7 U.S.C. 940c(b)), shall be applied for fiscal year 2022 and each fiscal year thereafter until the specified funding has been expended as if the following were inserted after the final period in subsection (b)(2): “In addition, the Secretary shall use $425,000,000 of funds available in this subaccount in fiscal year 2019 for an additional amount for the same purpose and under the same terms and conditions as funds appropriated by section 779 of Public Law 115-141, shall use $255,000,000 of funds available in this subaccount in fiscal year 2020 for an additional amount for the same purpose and under the same terms and conditions as funds appropriated by section 779 of Public Law 115-141, shall use $104,000,000 of funds available in this subaccount in fiscal year 2021 for an additional amount for the same purpose and under the same terms and conditions as funds appropriated by section 779 of Public Law 115-141, and shall use $50,000,000 of funds available in this subaccount in fiscal year 2022 for an additional amount for the same purpose and under the same terms and conditions as funds appropriated by section 779 of Public Law 115-141.”: * Provided*, That any use of such funds shall be treated as a reprogramming of funds under section 716 of this Act: * Provided further*, That section 775(b) of division A of Public Law 116-260 shall no longer apply.
- Sec. 6504EXTENSION OF THE RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM
- Sec. 313CUSHION OF CREDIT PAYMENTS PROGRAM
- Sec. 787### (a)
- Sec. 762### (a)
- Sec. 6209PROGRAM METRICS
- Sec. 6503CUSHION OF CREDIT PAYMENTS PROGRAM
Traces to 3 documents
public-private-law
7 references not yet in our index
- May 20, 1936, ch. 432
- Pub. L. 100–203, title I, § 1403
- 101 Stat. 1330–21
- Pub. L. 103–354, title II, § 235(a)(13)
- 108 Stat. 3221
- 132 Stat. 4772
- Pub. L. 103–354
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§ 940c
Cushion of credit payments program
Fed. Reg.×40
Bills×38
Stat.×14
Stat. Comp.×9
Pub. L.×7
U.S.C.×7
ActMay 20, 1936, ch. 432
Pub. L.Pub. L. 100–203, title I, § 1403
Stat.101 Stat. 1330–21
Pub. L.Pub. L. 103–354, title II, § 235(a)(13)
Stat.108 Stat. 3221
Cites 10 · showing 8Cited by 115 across 6 sources