Types of eligible borrowers.

CFR · 2024-01-01 · US · Title 7

(a) RUS makes loans to corporations, States, Tribes, territories, and subdivisions and agencies thereof; municipalities; people's utility districts; and cooperative, nonprofit, limited-dividend, or mutual associations that provide or propose to provide: (1) The retail electric service needs of rural areas, or (2) The power supply needs of distribution borrowers under the terms of power supply arrangement satisfactory to RUS, or (3) Eligible purposes under the Rural Energy Savings Program, including energy efficiency, renewable energy, energy storage or energy conservation measures and related services, improvements, investments, financing or relending. (b) In making loans, RUS gives preference to States, Tribes, territories, and subdivisions and agencies thereof; municipalities; people's utility districts; and cooperative, nonprofit, or limited-dividend associations. RUS does not make direct loans to individual consumers. (c) For the purpose of determining eligibility of a distribution borrower not in default on the repayment of a loan made or guaranteed under the RE Act for a loan, loan guarantee, or lien accommodation, a default by a borrower from which a distribution borrower purchases wholesale power shall not: (1) Be considered a default by the distribution borrower; (2) Reduce the eligibility of the distribution borrower for assistance under the RE Act; or (3) Be the cause, directly or indirectly, of imposing any requirement or restriction on the borrower as a condition

official document · source cfr-2024 · id 7:§ 1710.101