§ 940c. Cushion of credit payments program

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1936

   Pub. L. 100–203 title I § 1403 · 101 Stat. 1330

   Enacted · 7 U.S.C. § 940c

   May 20, 1936, ch. 432, title III, § 313, as added Pub. L. 100–203, title I, § 1403, Dec. 22, 1987, 101 Stat. 1330–21

   Source evidence

   Code source credit
   May 20, 1936, ch. 432, title III, § 313, as added Pub. L. 100–203, title I, § 1403, Dec. 22, 1987, 101 Stat. 1330–21

   Enacted provision · exact public law section
   SEC. 1403. CUSHION OF CREDIT PAYMENTS PROGRAM. Title III of the Rural Electrification Act of 1936 (as amended by section 1402 of this Act) is amended by adding at the end thereof the following new section: “SEC. 313. CUSHION OF CREDIT PAYMENTS PROGRAM. “(a) Establishment.— “(1) In general.— The Administrator 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. “(2) Interest.— Amounts in each cushion of credit account shall accrue interest to the borrower at a rate of 5 percent per annum. “(3) Balance.— 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 Act. “(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.— “(A) Maintenance of account.— The Administrator 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 the 5 percent rate of interest provided to borrowers on cushion of credit payments. “(B) Grants.— The Administrator is authorized, from the interest differential sums credited this subaccount and from any other funds made available thereto, to provide grants or zero interest loans to borrowers under this Act for the purpose of promoting rural economic development and job creation projects, including funding for project feasibility studies, start-up costs, incubator projects, and other reasonable expenses for the purpose of fostering rural development. “(C) Repayments.— In the case of zero interest loans, the Administrator shall establish such reasonable repayment terms as will ensure borrower participation. “(D) Proceeds.— All proceeds from the repayment of such loans shall be returned to the subaccount. “(E) Number of grants.— Such loans and grants shall be made during each fiscal year to the full extent of the amounts held by the rural economic development subaccount, subject only to limitations as may be from time-to-time imposed by law.“.

2. 1994

   Department of Agriculture Reorganization Act of 1994

   Pub. L. 103–354 title II § 235(a)(13) · 108 Stat. 3178

   Substituted · 7 U.S.C. § 940c(a)(1)(b)(2)(A)(C)

   Pub. L. 103–354 substituted “Secretary” for “Administrator”

   Source evidence

   Code amendment note
   Subsecs. (a)(1), (b)(2)(A) to (C). Pub. L. 103–354 substituted “Secretary” for “Administrator”.

   Enacted provision · exact public law section
   (13) except as otherwise provided in this subsection, by striking “Administrator” each place it appears in such Act and inserting “Secretary”.

3. 2018

   Agriculture Improvement Act of 2018

   Pub. L. 115–334 § 6503(1) · 132 Stat. 4490

   1. Amended · 7 U.S.C. § 940c(a)(1)

      Pub. L. 115–334, § 6503(1), designated existing provisions as subpar. (A)

   2. Inserted · 7 U.S.C. § 940c(a)(1)

      Pub. L. 115–334, § 6503(1), inserted heading

   3. Added · 7 U.S.C. § 940c(a)(1)

      Pub. L. 115–334, § 6503(1), added subpar. (B)

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 115–334, § 6503(1), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

   Enacted provision · exact public law section
   (1) in paragraph (1)— (A) by striking “(1) In general.—The” and inserting the following: “(1) In general.— “(A) Development and promotion of program.— The” ; and (B) by adding after and below the end the following: “(B) Termination.— Effective on the date of enactment of this subparagraph, no deposits may be made under subparagraph (A).” ;

4. 2018

   Agriculture Improvement Act of 2018

   Pub. L. 115–334 § 6503(2) · 132 Stat. 4490

   1. Amended · 7 U.S.C. § 940c(a)(2)

      Pub. L. 115–334, § 6503(2), designated existing provisions as subpar. (A)

   2. Inserted · 7 U.S.C. § 940c(a)(2)

      Pub. L. 115–334, § 6503(2), inserted heading

   3. Added · 7 U.S.C. § 940c(a)(2)

      Pub. L. 115–334, § 6503(2), added subpar. (B)

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 115–334, § 6503(2), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

   Enacted provision · exact public law section
   (2) in paragraph (2)— (A) by striking “(2) Interest.—Amounts” and inserting the following: “(2) Interest.— “(A) In general.— Amounts” ; and (B) by adding after and below the end the following: “(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.” ; and

5. 2018

   Agriculture Improvement Act of 2018

   Pub. L. 115–334 § 6503(3) · 132 Stat. 4490

   1. Amended · 7 U.S.C. § 940c(a)(3)

      Pub. L. 115–334, § 6503(3), designated existing provisions as subpar. (A)

   2. Inserted · 7 U.S.C. § 940c(a)(3)

      Pub. L. 115–334, § 6503(3), inserted heading

   3. Added · 7 U.S.C. § 940c(a)(3)

      Pub. L. 115–334, § 6503(3), added subpar. (B)

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 115–334, § 6503(3), designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

   Enacted provision · exact public law section
   (3) in paragraph (3)— (A) by striking “(3) Balance.—A” and inserting the following: “(3) Balance.— “(A) In general.— A” ; and (B) by after and below the end the following: “(B) Prepayment.— Notwithstanding subparagraph (A) and subject to subparagraph (C), beginning on the date of the enactment of this subparagraph 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 Act. “(C) No prepayment premium.— Notwithstanding any other provision of this Act, 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 504 of the Federal Credit Reform Act of 1990, 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 502 of such Act.” .

6. 2018

   Agriculture Improvement Act of 2018

   Pub. L. 115–334 § 6504(b) · 132 Stat. 4490

   1. Struck · 7 U.S.C. § 940c(b)(2)

      Pub. L. 115–334, § 6504(b), struck out subpar. (A) designation and heading before “The Secretary shall”

   2. Substituted · 7 U.S.C. § 940c(b)(2)

      Pub. L. 115–334, § 6504(b), substituted “5 percent.” for “the 5 percent rate of interest provided to borrowers on cushion of credit payments.”

   3. Struck · 7 U.S.C. § 940c(b)(2)

      Pub. L. 115–334, § 6504(b), struck out subpars. (B) to (E) which related to grants, repayments, proceeds, and number of grants, respectively

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 115–334, § 6504(b), struck out subpar. (A) designation and heading before “The Secretary shall”, substituted “5 percent.” for “the 5 percent rate of interest provided to borrowers on cushion of credit payments.”, and struck out subpars. (B) to (E) which related to grants, repayments, proceeds, and number of grants, respectively.

   Enacted provision · exact public law section
   (b) Section 313(b)(2) of such Act (7 U.S.C. 940c(b)(2)) is amended— (1) by striking all that precedes “shall maintain” and inserting the following: “(2) Rural economic development subaccount.— The Secretary” ; and (2) by striking “the 5 percent” and all that follows through subparagraph (E) and inserting “5 percent.”.

14 of 14 references resolved to an enrolled provision