
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC912]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
 
                   SUBCHAPTER I--RURAL ELECTRIFICATION
 
Sec. 912. Extension of time for repayment of loans

    (a) The Secretary is authorized and empowered to extend the time of 
payment of interest or principal of any loans made by the Secretary 
pursuant to this chapter, except that, with respect to any loan made 
under section 904 or 922 of this title, the payment of interest or 
principal shall not be extended more than five years after such payment 
shall have become due.
    (b)(1) Subject to limitations established in appropriations Acts, 
the Secretary shall permit any borrower to defer the payment of 
principal and interest on any insured or direct loan made under this 
chapter under circumstances described in this subsection, 
notwithstanding any limitation contained in subsection (a) of this 
section, except that such deferment shall not be permitted based on the 
determination of the Secretary of the financial hardship of the 
borrower.
    (2)(A) In the case of deferments made to enable the borrower to 
provide financing to local businesses, the deferment shall be repaid in 
equal installments, without the accrual of interest, over the 60-month 
period beginning on the date of the deferment, and the total amount of 
such payments shall be equal to the amount of the payment deferred.
    (B) In the case of deferments made to enable the borrower to provide 
community development assistance, technical assistance to businesses, 
and for other community, business, or economic development projects not 
included under subparagraph (A), the deferment shall be repaid in equal 
installments, without the accrual of interest, over the 120-month period 
beginning on the date of the deferment, and the total amount of such 
payments shall be equal to the amount of the payment deferred.
    (3)(A) A borrower may defer its debt service payments only in an 
amount equal to an investment made by such borrower as described in 
paragraph (2).
    (B) The amount of the deferment shall not exceed 50 percent of the 
total cost of a community or economic development project for which a 
deferment is provided under this subsection.
    (C) The total amount of deferments under this subsection during each 
of the fiscal years 1990 through 1993 shall not exceed 3 percent of the 
total payments due during such fiscal year from all borrowers on direct 
and insured loans made under this chapter and shall not exceed 5 percent 
of such total payments due in each subsequent fiscal year.
    (D) At the time of a deferment, the borrower shall make a payment to 
a cushion of credit account established and maintained pursuant to 
section 940c of this title in an amount equal to the amount of the 
payment deferred. The balance of such account shall not be reduced by 
the borrower below the level of the unpaid balance of the payment 
deferred. Subject to limitations established in annual appropriations 
Acts, such cushion of credit amounts and any other cushion of credit and 
advance payments of any borrower shall be included in the interest 
differential calculation under section 940c(b)(2)(A) of this title.
    (4) The Secretary shall undertake all reasonable efforts to permit 
the full amount of deferments authorized by this subsection during each 
fiscal year.

(May 20, 1936, ch. 432, title I, Sec. 12, 49 Stat. 1366; Oct. 28, 1949, 
ch. 776, Secs. 2, 4(f), 63 Stat. 948; Pub. L. 101-624, title XXIII, 
Sec. 2344, Nov. 28, 1990, 104 Stat. 4028; Pub. L. 103-354, title II, 
Sec. 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104-127, title 
VII, Sec. 774(b), Apr. 4, 1996, 110 Stat. 1150.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127 substituted ``, except that, with 
respect to any loan'' for ``: Provided, however, That with respect to 
any loan'' and struck out ``, and with respect to any loan made under 
section 905 of this title, the payment of principal or interest shall 
not be extended more than two years after such payment shall have become 
due: And provided further, That the provisions of this section shall not 
apply to any obligations or the security therefor which may be held by 
the Reconstruction Finance Corporation under the provisions of section 
903 of this title'' after ``such payment shall have become due''.
    1994--Subsecs. (a), (b)(1), (4). Pub. L. 103-354 substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    1990--Pub. L. 101-624 designated existing provisions as subsec. (a) 
and added subsec. (b).
    1949--Act Oct. 28, 1949, inserted ``or section 922'' after ``904'' 
in first proviso, and inserted ``title I,'' in credit of act May 20, 
1936.

             Abolition of Reconstruction Finance Corporation

    Section 6(a) of 1957 Reorg. Plan No. 1, eff. June 30, 1957, 22 F.R. 
4633, 71 Stat. 647, set out in the Appendix to Title 5, Government 
Organization and Employees, abolished Reconstruction Finance 
Corporation.

                  Section Referred to in Other Sections

    This section is referred to in section 912a of this title.
