Rural development loans and grants

Section 313B of the Rural Electrification Act of 1936 (7 U.S.C. 940c–2) is amended— (1) in subsection (b), by striking the subsection designation and heading and all that follows through In the case and inserting the following: (b) Zero interest loans (1) Collateral (A) Acceptable forms The Secretary may, at the sole discretion of the Secretary, accept as collateral for a zero interest loan under this section any of the following: (i) An irrevocable letter of credit. (ii) A performance bond. (iii) A revenue pledge. (iv) A senior preferred security interest. (v) The assignment of a mortgage. (vi) Such other forms of security as the Secretary determines are reasonably adequate and acceptable. (B) Consideration of past performance In determining an adequate and acceptable form of collateral for a zero interest loan under this section, the Secretary shall consider the past financial and project performance of— (i) a borrower of a loan or a recipient of a grant under this section; and (ii) any recipients of the funds provided by a borrower or recipient described in clause (i). (C) Consideration of administrative costs In determining an adequate and acceptable form of collateral for a zero interest loan under this section, the Secretary shall make every practicable effort to accept a form of collateral that minimizes the administrative costs of securing collateral, for the purpose of maximizing the benefits of the program under this section for the ultimate recipients of the funds provided through zero interest loans. (D) No effect of the acceptance of collateral on subsidies The Secretary shall ensure that accepting collateral for zero interest loans under this section has no impact on the subsidy rate of— (i) loans guaranteed by the Secretary under this title; or (ii) direct loans issued by the Secretary under this title. (2) Repayments In the case; and (2) in subsection (e)— (A) in paragraph (1), by striking 2023 and inserting 2031; and (B) in paragraph (2), by striking 2024 and inserting 2031.