§ 918. — General prohibitions.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 7USC918]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER I--RURAL ELECTRIFICATION
Sec. 918. General prohibitions
(a) No consideration of borrower's level of general funds
The Secretary and the Governor of the telephone bank shall not deny
or reduce any loan or loan advance under this chapter based on a
borrower's level of general funds.
(b) Loan origination fees
The Secretary and the Governor of the telephone bank may not charge
any fee or charge not expressly provided in this chapter in connection
with any loan made or guaranteed under this chapter.
(c) Consultants
(1) In general
To facilitate timely action on applications by borrowers for
financial assistance under this chapter and for approvals required
of the Rural Electrification Administration pursuant to the terms of
outstanding loan or security instruments or otherwise, the Secretary
may use consultants funded by the borrower, paid for out of the
general funds of the borrower, for financial, legal, engineering,
and other technical advice and services in connection with the
review of the application by the Rural Electrification
Administration.
(2) Conflicts of interest
The Secretary shall establish procedures for the selection and
the provision of technical services by consultants to ensure that
the consultants have no financial or other conflicts of interest in
the outcome of the application of the borrower.
(3) Payment of costs
The Secretary may not, without the consent of the borrower,
require, as a condition of processing an application for approval,
that the borrower agree to pay the costs, fees, and expenses of
consultants hired to provide technical or advisory services to the
Secretary.
(4) Contracts, grants, and agreements
The Secretary may enter into such contracts, grants, or
cooperative agreements as are necessary to carry out this section.
(5) Use of consultants
Nothing in this subsection shall limit the authority of the
Secretary to retain the services of consultants from funds made
available to the Secretary or otherwise.
(May 20, 1936, ch. 432, title I, Sec. 18, as added Pub. L. 101-624,
title XXIII, Sec. 2353, Nov. 28, 1990, 104 Stat. 4039; amended Pub. L.
103-129, Sec. 2(c)(4), Nov. 1, 1993, 107 Stat. 1364; Pub. L. 103-354,
title II, Sec. 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)
Amendments
1994--Pub. L. 103-354 substituted ``Secretary'' for
``Administrator'' wherever appearing.
1993--Pub. L. 103-129 designated existing provisions as subsec. (a),
inserted heading, and added subsecs. (b) and (c).
