---
kind: "section"
citation: "7 U.S.C. § 940b"
title: "7"
title_heading: "Agriculture"
number: "940b"
heading: "Use of funds"
release: "119-102"
url: "https://uscodex.org/usc/7/940b"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter III — Rural Electric and Telephone Direct Loan Programs"
---

# §940b. Use of funds


A [borrower](/usc/7/1991.md?p=b-1) of an insured or guaranteed electric loan under this chapter may, without restriction or prior approval of the [Secretary](/usc/7/913.md?p=5), invest its own [funds](/usc/7/4531.md?p=5) or make loans or guarantees, not in excess of 15 percent of its total utility [plant](/usc/7/8901.md?p=10).


## Source credit

(May 20, 1936, ch. 432, title III, § 312, as added Pub. L. 100–203, title I, § 1402, Dec. 22, 1987, 101 Stat. 1330–21; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)

## Notes

### Editorial Notes

### Amendments

1994—Pub. L. 103–354 substituted “Secretary” for “Administrator”.