Title 7 -- Agriculture


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     7 USC CHAPTER 50 - AGRICULTURAL CREDIT                      01/05/99
 
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    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    .
 
-HEAD-
    CHAPTER 50 - AGRICULTURAL CREDIT
 
-MISC1-
    Sec.
    1921. Congressional findings.
                      SUBCHAPTER I - REAL ESTATE LOANS
    1922. Persons eligible for loans.
                  (a) Authorization and conditions.
                  (b) Direct loans.
    1923. Purposes of loans.
                  (a) Allowed purposes.
                  (b) Preferences.
                  (c) Hazard insurance requirement.
    1924. Soil and water conservation and protection.
                  (a) In general.
                  (b) Priority.
                  (c) Loan maximum.
    1925. Limitations on amount of farm ownership loans.
                  (a) In general.
                  (b) Determination of value.
                  (c) Inflation percentage.
    1926. Water and waste facility loans and grants.
                  (a) Criteria; definitions; limitation on allowable
                        uses of Federal funds; inclusion of interest or
                        other income in gross income on sale of insured
                        loan.
                  (b) Curtailment or limitation of service prohibited.
                  (c) Repealed.
                  (d) Carryover of unused authorizations for
                        appropriations.
    1926-1. Repealed.
    1926a. Emergency community water assistance grant program.
                  (a) In general.
                  (b) Priority.
                  (c) Eligibility.
                  (d) Uses.
                  (e) Restrictions.
                  (f) Maximum grants.
                  (g) Full funding.
                  (h) Application.
                  (i) Authorization of appropriations.
    1926b. Repealed.
    1926c. Water and waste facility loans and grants to alleviate
      health risks.
                  (a) Loans and grants to persons other than
                        individuals.
                  (b) Loans and grants to individuals.
                  (c) Preference.
                  (d) ''Cooperative'' defined.
                  (e) Limitations on authorization of appropriations.
                  (f) Regulations.
    1926d. Water systems for rural and Native villages in Alaska.
                  (a) In general.
                  (b) Matching funds.
                  (c) Consultation with State of Alaska.
                  (d) Authorization of appropriations.
    1927. Repayment requirements.
                  (a) Period of repayment; interest rates.
                  (b) Payment of charges; prepayment of taxes and
                        insurance.
                  (c) Mortgages, liens, and other security.
                  (d) Mineral rights as collateral.
                  (e) Additional collateral.
    1927a. Loan interest rates charged by Farmers Home Administration;
      grant funds associated with loans.
    1928. Full faith and credit.
                  (a) In general.
                  (b) Contestability.
    1929. Agricultural Credit Insurance Fund.
                  (a) Revolving fund.
                  (b) Deposits of funds; investments; purchase of
                        notes.
                  (c) Notes; form and denominations; maturities; terms
                        and conditions; interest rate; purchase by
                        Treasury; public debt transaction.
                  (d) Notes and security as part of fund; collection or
                        sale of notes; deposit of net proceeds in fund.
                  (e) Deposit in fund of portion of charge on
                        outstanding principal obligations; availability
                        of remainder of charge, and merger with
                        appropriations, for administrative expenses.
                  (f) Utilization of fund.
                  (g) Transfer of funds from Farmers Home
                        Administration direct loan account and
                        Emergency Credit Revolving Fund; abolition of
                        such account and fund; payments from
                        Agricultural Credit Insurance Fund; interest.
                  (h) Guaranteed loans; interest rate for loans sold
                        into secondary market; loan fees.
                  (i) Coordination of assistance for qualified
                        beginning farmers and ranchers.
    1929-1. Level of loan programs under Agricultural Credit Insurance
      Fund.
    1929a. Rural Development Insurance Fund
                  (a) Creation; revolving fund; rural development
                        loans.
                  (b) Transfer of assets and liabilities.
                  (c) Credits in the Treasury; investments; notes,
                        purchasing authority of the Secretary.
                  (d) Notes, issuing authority of the Secretary; use of
                        funds; terms and conditions, form,
                        denominations, maturities, and interest rate of
                        notes; notes, purchasing authority of the
                        Secretary of the Treasury; public debt
                        transactions.
                  (e) Notes and security as part of Insurance Fund;
                        collection and sale of notes and other
                        obligations; deposit of net proceeds in
                        Insurance Fund.
                  (f) Deposit of loan service charges in Insurance
                        Fund.
                  (g) Use of Insurance Fund.
                  (h) Gross income; interest or other income on insured
                        loans.
    1929b. Purchase of guaranteed portions of loans; terms and
      conditions; exercise of authorities.
    1930. Continued availability of appropriated funds for direct real
      estate loans to farmers and ranchers.
    1931. Repealed.
    1932. Rural industrialization assistance.
                  (a) Loans for private business enterprises; pollution
                        abatement and control; aquaculture; solar
                        energy; loan guarantees.
                  (b) Solid waste management grants.
                  (c) Rural business enterprise grants.
                  (d) Joint loans or grants for private business
                        enterprises; restrictions; system of
                        certification for expeditious processing of
                        requests for assistance; prior approval of
                        grant or loan; equity investment as condition
                        for loan commitment; issuance of certificates
                        of beneficial ownership of notes.
                  (e) Rural cooperative development grants.
                  (f) Grants to broadcasting systems.
                  (g) Loan guarantees for purchase of cooperative
                        stock.
                  (h) Grants to defray administrative costs.
                  (i) Loans for business telecommunications
                        partnerships.
                  (j) Grants to broadcasting systems.
    1933. Guaranteed rural housing loans; Hawaiian home lands.
    1934. Low-income farm ownership loan program; eligibility;
      repayment requirements.
    1935. Down payment loan program.
                  (a) In general.
                  (b) Loan terms.
                  (c) Limitations.
                  (d) Administration.
    1936. Repealed.
                      SUBCHAPTER II - OPERATING LOANS
    1941. Persons eligible for loans.
                  (a) Requirements.
                  (b) Rural youths in 4-H Clubs, Future Farmers of
                        America, etc.
                  (c) Direct loans.
    1942. Purposes of loans.
                  (a) In general.
                  (b) Guaranteed loans.
                  (c) Hazard insurance requirement.
                  (d) Private reserve.
    1943. Limitations on amount of operating loans.
                  (a) In general.
                  (b) Inflation percentage.
    1944. Soil conservation district loans; limitation; purchase of
      conservation equipment.
    1945. Repealed.
    1946. Liability of borrower.
                  (a) Determination of interest rates.
                  (b) Payment period; consolidation and rescheduling of
                        loans.
                  (c) Line-of-credit loans.
    1947, 1948. Repealed.
    1949. Graduation of borrowers with operating loans or guarantees to
      private commercial credit.
                  (a) Graduation plan.
                  (b) Limitation on period borrowers are eligible for
                        guaranteed assistance.
                      SUBCHAPTER III - EMERGENCY LOANS
    1961. Eligibility for loans.
                  (a) Persons eligible.
                  (b) Hazard insurance requirement.
                  (c) Family farm system.
                  (d) Definitions.
    1962. Loan determination factors; written credit declinations.
    1963. Purpose and extent of loans.
    1964. Terms of loans.
                  (a) Maximum amount of loan.
                  (b) Interest rates.
                  (c) Interest subsidies.
                  (d) Repayment.
                  (e) Grant eligibility.
    1965. Repealed.
    1966. Emergency Credit Revolving Fund utilization.
    1967. Addition to Emergency Credit Revolving Fund of sums from
      liquidation of loans; authorization of appropriations.
    1968, 1969. Repealed.
    1970. Eligibility for assistance based on production loss.
    1971. Repealed.
                 SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
    1981. Farmers Home Administration.
                  (a) Appointment and compensation of Administrator;
                        transfer of powers, duties, and assets
                        pertaining to agricultural credit.
                  (b) Powers of Secretary of Agriculture.
                  (c) Delinquent claims and obligations.
                  (d) Temporary authority to enter into contracts.
                  (e) Private collection agency.
    1981a. Loan moratorium and policy on foreclosures.
    1981b. Farm loan interest rates.
    1981c. Oil and gas royalty payments on loans.
    1981d. Notice of loan service programs.
                  (a) Requirement.
                  (b) Contents.
                  (c) Contained in regulations.
                  (d) Timing.
                  (e) Consideration of borrowers for loan service
                        programs.
    1981e. Planting and production history guidelines.
                  (a) In general.
                  (b) Calculation of yields.
    1981f. Underwriting forms and standards.
    1982. Repealed.
    1983. Special conditions and limitations on loans.
    1983a. Prompt approval of loans and loan guarantees.
                  (a) Applications; time for action by Secretary;
                        notice; statement of reasons.
                  (b) Loan proceeds; time for receipt.
                  (c) Reconsideration of applications; time for action
                        by Secretary.
                  (d) Approved lender designation applications; time
                        for decision by Secretary.
                  (e) Processing loan applications; personnel and other
                        resources made available; use of authorities of
                        law.
                  (f) Graduation of seasoned direct loan borrowers to
                        loan guarantee program.
                  (g) Simplified application for guaranteed loans of
                        $50,000 or less.
    1983b. Repealed.
    1983c. Provision of information to borrowers.
                  (a) In general.
                  (b) Construction of section.
    1984. Taxation.
    1985. Security servicing.
                  (a) Preservation and protection of security, lien, or
                        priority of lien securing loan.
                  (b) Operation or lease of realty.
                  (c) Sale of property.
                  (d) Easements; condemnations.
                  (e) Real property located within Indian reservation;
                        conservation practices; adverse effects
                        prohibition.
                  (f) Normal security income.
                  (g) Easements on inventoried property.
    1986. Conflicts of interests.
                  (a) Acceptance of fees, commissions, gifts, or other
                        considerations prohibited.
                  (b) Acquisition of interest in land by certain
                        officers or employees of Department of
                        Agriculture prohibited; 3-year period.
                  (c) Certifications on loans to family members
                        prohibited.
                  (d) Penalties.
    1987. Debt adjustment and credit counseling; ''summary period''
      defined; loan summary statements.
    1988. Appropriations.
                  (a) Authorization.
                  (b) Sale by lender and any holder of guaranteed
                        portion of loan pursuant to regulations
                        governing such sales; limitations; issuance of
                        pool certificates representing ownership of
                        guaranteed portion of guaranteed loan; terms
                        and conditions, etc.; reporting requirements.
    1989. Rules and regulations.
                  (a) In general.
                  (b) Debt service margin requirements.
                  (c) Certified Lenders Program.
                  (d) Preferred Certified Lenders Program.
    1990. Transfer of lands to Secretary.
    1991. Definitions.
    1992. Loan limitations.
    1993. Repealed.
    1994. Maximum amounts for loans authorized; long-term cost
      projections.
                  (a) Maximum aggregate principal amounts for loans
                        authorized.
                  (b) Authorization for loans.
                  (c) Development of long-term cost projections for
                        loan program authorizations.
                  (d) Low-income, limited-resource borrowers.
    1995. Participation and financial and technical assistance by other
      Federal departments, etc., to program participants.
    1996. Loans to resident aliens.
    1997. Conservation easements.
                  (a) Definitions.
                  (b) Contracts on loan security properties.
                  (c) Limitations.
                  (d) Terms and conditions.
                  (e) Purchase; limitation upon cancellation or
                        prepayment.
                  (f) Consultations with Director of Fish and Wildlife
                        Service.
                  (g) Enforcement.
    1998. Guaranteed farm loan programs.
    1999. Interest rate reduction program.
                  (a) Establishment of program.
                  (b) Contracts with lenders.
                  (c) Payments to lenders.
                  (d) Duration of contracts.
                  (e) Agricultural Credit Insurance Fund use
                        limitation.
                  (f) List of lender participants in guaranteed loan
                        program.
                  (g) Foreclosure action provision in farm loan
                        guarantees.
    2000. Homestead protection.
                  (a) Definitions.
                  (b) Occupancy of homestead upon foreclosure,
                        bankruptcy, or liquidation; appraisal; period
                        of occupancy.
                  (c) Terms and conditions.
                  (d) First right of refusal of reacquisition.
                  (e) Value as measure of reacquisition payment of
                        principal.
                  (f) Contract authority.
                  (g) Conflict between Federal and State law.
    2001. Debt restructuring and loan servicing.
                  (a) In general.
                  (b) Eligibility.
                  (c) Restructuring determinations.
                  (d) Principal and interest write-down.
                  (e) Shared appreciation arrangements.
                  (f) Determination to restructure.
                  (g) Prerequisites to foreclosure or liquidation.
                  (h) Time limits for restructuring.
                  (i) Notice of ineligibility for restructuring.
                  (j) Independent appraisals.
                  (k) Partial liquidations.
                  (l) Disposition of normal income security.
                  (m) Only 1 write-down or net recovery buy-out per
                        borrower for loan made after January 6, 1988.
                  (n) Liquidation of assets.
                  (o) Lifetime limitation on debt forgiveness per
                        borrower.
    2001a. Debt restructuring and loan servicing for community facility
      loans.
    2002. Transfer of inventory lands.
                  (a) In general.
                  (b) Conditions.
    2003. Target participation rates.
                  (a) Establishment.
                  (b) Reservation and allocation.
                  (c) Operating loans.
                  (d) Report.
                  (e) Definitions.
                  (f) Implementation consistent with Supreme Court
                        holding.
    2004. Expedited clearing of title to inventory property.
    2005. Payment of losses on guaranteed loans.
                  (a) Payments to lenders.
                  (b) Administration.
    2006. Waiver of mediation rights by borrowers.
    2006a. Borrower training.
                  (a) In general.
                  (b) Contract.
                  (c) Eligibility for loans.
                  (d) Guidelines and curriculum.
                  (e) Payment.
                  (f) Waivers.
    2006b. Loan assessments.
                  (a) In general.
                  (b) Determinations.
                  (c) Contract.
                  (d) Review of loans.
                  (e) Guidelines.
    2006c. Supervised credit.
    2006d. Market placement.
    2006e. Prohibition on use of loans for certain purposes.
    2006f. Rural development certified lenders program.
                  (a) Certified lenders program.
                  (b) Preferred certified lenders program.
    2007 to 2008c. Repealed.
    2008d. Recordkeeping of loans by borrower's gender.
    2008e. Prohibition under rural development programs.
                  (a) Prohibition.
                  (b) Ensuring compliance.
                  (c) Regulations.
    2008f. Crop insurance requirement.
                  (a) In general.
                  (b) Applicable benefits.
    2008g. Payment of interest as condition of loan servicing for
      borrowers.
    2008h. Loan and loan servicing limitations.
                  (a) Delinquent borrowers prohibited from obtaining
                        direct operating loans.
                  (b) Prohibition of loans for borrowers that have
                        received debt forgiveness.
                  (c) No more than 1 debt forgiveness for borrower on
                        direct loan.
    2008i. Short form certification of farm program borrower
      compliance.
    2008j. National Sheep Industry Improvement Center.
                  (a) Definitions.
                  (b) Establishment of Center.
                  (c) Purposes.
                  (d) Strategic plan.
                  (e) Revolving Fund.
                  (f) Board of Directors.
                  (g) Officers and employees.
                  (h) Consultation.
                  (i) Oversight.
             SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
    2009. Definitions.
    2009a. Establishment.
    2009b. National objectives.
    2009c. Strategic plans.
                  (a) In general.
                  (b) Assistance.
                  (c) Review.
                  (d) Contents.
    2009d. Rural Development Trust Fund.
                  (a) Establishment.
                  (b) Accounts.
                  (c) Deposits into accounts.
                  (d) Function categories.
                  (e) National reserve account.
                  (f) Federally recognized Indian tribe account.
                  (g) Allocation among States.
                  (h) Availability of funds allocated for States.
    2009e. Transfers of funds.
                  (a) General authority.
                  (b) Limitation.
                  (c) Exceptions.
    2009f. Grants to States.
                  (a) Simple grants.
                  (b) Matching grants.
                  (c) Use of funds.
                  (d) Maintenance of effort.
                  (e) Appeals.
                  (f) Administrative costs.
                  (g) Expenditure of funds by State.
                  (h) No entitlement to contract, grant, or assistance.
    2009g. Guarantee and commitment to guarantee loans.
                  (a) ''Eligible public entity'' defined.
                  (b) Guarantee and commitment.
                  (c) Limitation.
                  (d) Payment of principal, interest, and costs.
                  (e) Repayment contract; security.
                  (f) Pledged grants for repayments.
                  (g) Outstanding obligations.
                  (h) Purchase of guaranteed obligations by Federal
                        Financing Bank.
                  (i) Full faith and credit.
    2009h. Local involvement.
    2009i. Interstate collaboration.
    2009j. Annual report.
                  (a) In general.
                  (b) Submission.
    2009k. Rural development interagency working group.
                  (a) In general.
                  (b) Duties.
    2009l. Duties of Rural Economic and Community Development State
      Offices.
    2009m. Electronic transfer.
    2009n. Rural venture capital demonstration program.
                  (a) In general.
                  (b) Rural business investment pool.
 
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                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in sections 940, 2204f, 2279, 2279a
    of this title; title 12 sections 2219d, 2279aa; title 15 section
    636; title 16 sections 590h, 3811, 3821; title 21 section 889;
    title 38 section 3711; title 40 App. sections 204, 214; title 42
    sections 8813, 9817.
 
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     7 USC Sec. 1921                                             01/05/99
 
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    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
 
-HEAD-
    Sec. 1921. Congressional findings
 
-STATUTE-
      The Congress finds that the statutory authority of the Secretary
    of Agriculture, hereinafter referred to in this chapter as the
    ''Secretary,'' for making and insuring loans to farmers and
    ranchers should be revised and consolidated to provide for more
    effective credit services to farmers.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 301(b), Aug. 8, 1961, 75 Stat.
    307.)
 
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                             REFERENCES IN TEXT
      This chapter, referred to in text, was in the original ''this
    title'', meaning title III of Pub. L. 87-128, Aug. 8, 1961, 75
    Stat. 307, as amended, known as the Consolidated Farm and Rural
    Development Act. For complete classification of title III to the
    Code, see Short Title note set out below and Tables.
 
-COD-
                                CODIFICATION
      Section is comprised of subsec. (b) of section 301 of Pub. L.
    87-128. Subsec. (a) of such section 301 is set out as a Short Title
    note below.
 
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                               EFFECTIVE DATE
      Former section 300.1 of Title 6, Code of Federal Regulations,
    promulgated on Oct. 15, 1961, by the Administrator of the Farmers
    Home Administration, published in 26 F.R. 10031, provided: ''The
    Consolidated Farmers Home Administration Act of 1961 (7 U.S.C.
    1921) (this chapter), is hereby made effective on October 15, 1961,
    except (a) as to its authorizations to make and sell insured loans
    with 4 1/2 percent yield to the lender and a three-year repurchase
    agreement which was made effective by regulations issued on
    September 13, 1961 (26 F.R. 9307), pursuant to assignment of
    functions contained in 26 F.R. 7888, and (b) that the provisions of
    Title IV of the Bankhead-Jones Farm Tenant Act which requires
    mineral reservations in lands disposed of under Title III of that
    Act (sections 1010 to 1012 and 1013a of this title) shall not
    become effective until December 7, 1961.'' See section 341(a) of
    Pub. L. 87-128, set out as a note under this section.
                       SHORT TITLE OF 1994 AMENDMENT
      Pub. L. 103-248, Sec. 1, May 11, 1994, 108 Stat. 619, provided
    that: ''This Act (amending section 1981 of this title) may be cited
    as the 'Farmers Home Administration Improvement Act of 1994'.''
                       SHORT TITLE OF 1992 AMENDMENT
      Pub. L. 102-554, Sec. 1(a), Oct. 28, 1992, 106 Stat. 4142,
    provided that: ''This Act (enacting sections 1935, 1936, 1948,
    1949, and 2008d of this title, amending sections 1925, 1926c, 1929,
    1932, 1981d, 1982, 1983, 1983a, 1985, 1989, 1991, 1994, 2003, and
    5102 of this title, and enacting provisions set out as notes under
    sections 1929 and 1989 of this title) may be cited as the
    'Agricultural Credit Improvement Act of 1992'.''
                       SHORT TITLE OF 1990 AMENDMENT
      Pub. L. 101-624, title XXIII, Sec. 2301, Nov. 28, 1990, 104 Stat.
    3979, provided that: ''This title (see Tables for classification)
    may be cited as the 'Rural Economic Development Act of 1990'.''
                       SHORT TITLE OF 1986 AMENDMENT
      Pub. L. 99-409, Sec. 1, Aug. 28, 1986, 100 Stat. 923, provided:
    ''That this Act (amending section 1932 of this title and enacting
    provisions set out as a note under section 1932 of this title) may
    be cited as the 'Rural Industrial Assistance Act of 1986'.''
                       SHORT TITLE OF 1984 AMENDMENT
      Pub. L. 98-258, title VI, Sec. 601, Apr. 10, 1984, 98 Stat. 138,
    provided that: ''This title (enacting section 1981b of this title,
    amending sections 1943, 1946, 1961, 1964, 1986, and 1994 of this
    title, enacting provisions set out as notes under sections 1961 and
    1981 of this title, and amending provisions set out as a note
    preceding section 1961 of this title) may be cited as the
    'Emergency Agricultural Credit Act of 1984'.''
                       SHORT TITLE OF 1978 AMENDMENT
      Pub. L. 95-334, Sec. 1, Aug. 4, 1978, 92 Stat. 420, provided:
    ''That this Act (enacting sections 1929b, 1934, 1981a, 1994, and
    1995 of this title and sections 2201 to 2205 of Title 16,
    Conservation, amending sections 1309, 1922, 1924 to 1927, 1929,
    1929a, 1932, 1941 to 1943, 1946, 1961, 1964, 1968, 1981, 1983,
    1991, and 2908 of this title, repealing section 1965 of this title,
    and enacting provisions set out as notes under this section and
    sections 1309, 1926, preceding 1961, and 1964 of this title and
    section 2201 of Title 16) may be cited as the 'Agricultural Credit
    Act of 1978'.''
                       SHORT TITLE OF 1972 AMENDMENT
      Section 1 of Pub. L. 92-419 provided: ''That this Act (enacting
    sections 1010a, 1929a, 1931 to 1933, 1947, 1992, 2204a, 2212a, 2651
    to 2654, and 2661 to 2668 of this title, amending sections 1006a,
    1011, 1924 to 1927, 1929, 1941 to 1943, 1981, 1983, 1985, 1991,
    2201, and 2204 of this title, section 5315 of Title 5, Government
    Organization and Employees, sections 590g, 590h, 590o, and 1001 to
    1005 of Title 16, Conservation, and section 3122 of Title 42, The
    Public Health and Welfare, and amending provisions set out as a
    note under this section) may be cited as the 'Rural Development Act
    of 1972'.''
                                SHORT TITLE
      Section 301(a) of title III of Pub. L. 87-128, as amended by Pub.
    L. 92-419, title I, Sec. 101, Aug. 30, 1972, 86 Stat. 657, provided
    that: ''This title (enacting this section and sections 1013a, 1922
    to 1933, 1941 to 1947, 1961 to 1968, 1969, 1970, 1971, and 1981 to
    1993 of this title, amending sections 1924 to 1927, 1929, 1941 to
    1943, 1981, 1983, 1985, and 1991 of this title, repealing sections
    1001 to 1005d, 1006c to 1006e, 1007, 1008, 1009, 1014 to 1025, 1027
    to 1029 of this title, sections 1148a-1 to 1148a-3 of Title 12,
    Banks and Banking, and sections 590r to 590x-4 of Title 16,
    Conservation, and enacting provisions set out as a note under this
    section) may be cited as the 'Consolidated Farm and Rural
    Development Act'.''
                                REGULATIONS
      Section 2396 of title XXIII of Pub. L. 101-624 provided that:
    ''Except as otherwise provided in this title (see Short Title of
    1990 Amendment note set out above), no later than 180 days after
    the date of the enactment of this Act (Nov. 28, 1990), the
    Secretary shall promulgate such regulations as may be necessary to
    carry out this title and the amendments made by this title.''
    PRESERVATION OF ELIGIBILITY FOR CREDIT ASSISTANCE UNDER FEDERAL LAW
      Section 2395 of title XXIII of Pub. L. 101-624 provided that:
    ''Notwithstanding any other provision of law, this title (see Short
    Title of 1990 Amendment note set out above) shall not be construed
    to adversely affect the eligibility, as it existed on the date of
    enactment of this Act (Nov. 28, 1990), of cooperatives and other
    entities for any other credit assistance under Federal law.''
        USE OF QUALIFIED PERSONNEL BY THE DEPARTMENT OF AGRICULTURE
      Pub. L. 95-334, title I, Sec. 126, Aug. 4, 1978, 92 Stat. 429,
    provided that: ''It is the sense of Congress that, in carrying out
    the provisions of the Consolidated Farm and Rural Development Act
    (see Short Title note set out above), the Secretary of Agriculture
    should ensure that -
        ''(1) only officers and employees of the Department of
      Agriculture who are adequately prepared to understand the
      particular needs and problems of farmers in an area are assigned
      to such area; and
        ''(2) a high priority is placed on keeping existing farm
      operations operating.''
    REFERENCES IN OTHER LAWS TO BANKHEAD-JONES FARM TENANT ACT OR WATER
        FACILITIES ACT; REPEALS; SAVINGS AND SEPARABILITY PROVISIONS
      Section 341 of Pub. L. 87-128 provided that:
      ''(a) Reference to any provisions of the Bankhead-Jones Farm
    Tenant Act (see section 1000 of this title) or the Act of August
    28, 1937 (50 Stat. 869), as amended, superseded by any provision of
    this title (this chapter) shall be construed as referring to the
    appropriate provision of this title (this chapter).  Titles I, II,
    and IV of the Bankhead-Jones Farm Tenant Act, as amended, and the
    Act of August 28, 1937 (50 Stat. 869), as amended, the Act of April
    6, 1949 (63 Stat. 43), as amended, and the Act of August 31, 1954
    (68 Stat. 999), as amended, are hereby repealed effective one
    hundred and twenty days after enactment hereof (Aug. 8, 1961), or
    such earlier date as the provisions of this title (this chapter)
    are made effective by the Secretary's regulations except that the
    repeal of section 2(c) of the Act of April 6, 1949, shall not be
    effective prior to January 1, 1962. The foregoing provisions shall
    not have the effect of repealing the amendments to section 24,
    chapter 6 of the Federal Reserve Act (section 371 of Title 12), as
    amended, section 5200 of the Revised Statutes (section 84 of Title
    12), section 35 of chapter III of the Act approved June 19, 1934
    (D.C. Code, title 35, section 535), enacted by section 15 of the
    Bankhead-Jones Farm Tenant Act, as amended, and by section 10(f) of
    the Act of August 28, 1937 (50 Stat. 869), as amended.
      ''(b) The repeal of any provision of law by this title (this
    chapter) shall not -
        ''(1) affect the validity of any action taken or obligation
      entered into pursuant to the authority of any of said Acts, or
        ''(2) prejudice the application of any person with respect to
      receiving assistance under the provisions of this title (this
      chapter), solely because such person is obligated to the
      Secretary under authorization contained in any such repealed
      provision.
      ''(c) If any provision of this title (this chapter) or the
    application thereof to any person or circumstances is held invalid,
    the remainder of the title (this chapter) and the application of
    such provision to other persons or circumstances shall not be
    affected thereby.''
 
-CITE-
     7 USC SUBCHAPTER I - REAL ESTATE LOANS                      01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
    .
 
-HEAD-
    SUBCHAPTER I - REAL ESTATE LOANS
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in sections 1961, 1963, 1964,
    1981b, 1983, 1983a, 1985, 1994, 2000, 2003 of this title.
 
-CITE-
     7 USC Sec. 1922                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1922. Persons eligible for loans
 
-STATUTE-
    (a) Authorization and conditions
      The Secretary is authorized to make and insure loans under this
    subchapter to farmers and ranchers in the United States, and to
    farm cooperatives and private domestic corporations, partnerships,
    and joint operations that are controlled by farmers and ranchers
    and engaged primarily and directly in farming or ranching in the
    United States, subject to the conditions specified in this
    section.  To be eligible for such loans, applicants who are
    individuals, or, in the case of cooperatives, corporations,
    partnerships, and joint operations, individuals holding a majority
    interest in such entity, must (1) be citizens of the United States,
    (2) for direct loans only, have either training or farming
    experience that the Secretary determines is sufficient to assure
    reasonable prospects of success in the proposed farming operations,
    (3) be or will become owner-operators of not larger than family
    farms (or in the case of cooperatives, corporations, partnerships,
    and joint operations in which a majority interest is held by
    individuals who are related by blood or marriage, as defined by the
    Secretary, such individuals must be or will become either owners or
    operators of not larger than a family farm and at least one such
    individual must be or will become an operator of not larger than a
    family farm or, in the case of holders of the entire interest who
    are related by blood or marriage and all of whom are or will become
    farm operators, the ownership interest of each such holder
    separately constitutes not larger than a family farm, even if their
    interests collectively constitute larger than a family farm, as
    defined by the Secretary), and (4) be unable to obtain sufficient
    credit elsewhere to finance their actual needs at reasonable rates
    and terms, taking into consideration prevailing private and
    cooperative rates and terms in the community in or near which the
    applicant resides for loans for similar purposes and periods of
    time.  In addition to the foregoing requirements of this section,
    in the case of corporations, partnerships, and joint operations,
    the family farm requirement of clause (3) of the preceding sentence
    shall apply as well to the farm or farms in which the entity has an
    ownership and operator interest and the requirement of clause (4)
    of the preceding sentence shall apply as well to the entity in the
    case of cooperatives, corporations, partnerships, and joint
    operations.
    (b) Direct loans
      (1) In general
        Subject to paragraph (3), the Secretary may make a direct loan
      under this subchapter only to a farmer or rancher who has
      operated a farm or ranch for not less than 3 years and -
          (A) is a qualified beginning farmer or rancher;
          (B) has not received a previous direct farm ownership loan
        made under this subchapter; or
          (C) has not received a direct farm ownership loan under this
        subchapter more than 10 years before the date the new loan
        would be made.
      (2) Youth loans
        The operation of an enterprise by a youth under section 1941(b)
      of this title shall not be considered the operation of a farm or
      ranch for purposes of paragraph (1).
      (3) Transition rule
        (A) In general
          Subject to subparagraphs (B) and (C), the Secretary may make
        a direct loan under this subchapter to a farmer or rancher who
        has a direct loan outstanding under this subchapter on April 4,
        1996.
        (B) Less than 5 years
          If, as of April 4, 1996, a farmer or rancher has had a direct
        loan outstanding under this subchapter for less than 5 years,
        the Secretary shall not make a loan to the farmer or rancher
        under subparagraph (A) after the date that is 10 years after
        April 4, 1996.
        (C) 5 years or more
          If, as of April 4, 1996, a farmer or rancher has had a direct
        loan outstanding under this subchapter for 5 years or more, the
        Secretary shall not make a loan to the farmer or rancher under
        subparagraph (A) after the date that is 5 years after April 4,
        1996.
        (D) Notice
          Beginning with fiscal year 2000 not later than 12 months
        before a borrower will become ineligible for direct loans under
        this subchapter by reason of this paragraph, the Secretary
        shall notify the borrower of such impending ineligibility.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 302, Aug. 8, 1961, 75 Stat. 307;
    Pub. L. 91-620, Sec. 2, Dec. 31, 1970, 84 Stat. 1862; Pub. L.
    95-334, title I, Sec. 101, Aug. 4, 1978, 92 Stat. 420; Pub. L.
    97-98, title XVI, Sec. 1601(a), Dec. 22, 1981, 95 Stat. 1346; Pub.
    L. 99-198, title XIII, Sec. 1301(a), 1302(a), 1303, Dec. 23, 1985,
    99 Stat. 1518, 1519; Pub. L. 104-127, title VI, Sec. 601, Apr. 4,
    1996, 110 Stat. 1084; Pub. L. 105-277, div.  A, Sec. 101(a) (title
    VIII, Sec. 804, 805(1)), Oct. 21, 1998, 112 Stat. 2681, 2681-39.)
 
-MISC1-
                                 AMENDMENTS
      1998 - Subsec. (a). Pub. L. 105-277, Sec. 101(a) (title VIII,
    Sec. 805(1)), inserted ''for direct loans only,'' before ''have
    either'' in cl. (2).
      Subsec. (b)(3)(D). Pub. L. 105-277, Sec. 101(a) (title VIII, Sec.
    804), added subpar. (D).
      1996 - Subsec. (b). Pub. L. 104-127 added subsec. (b) and struck
    out former subsec. (b) which read as follows: ''The Secretary may
    not restrict eligibility for loans made or insured under this
    subchapter for purposes set forth in section 1923 of this title
    solely to borrowers of loans that are outstanding on December 23,
    1985.''
      1985 - Subsec. (a). Pub. L. 99-198, Sec. 1301(a), 1302(a)(1),
    designated existing provisions as subsec. (a) and substituted -
        (1) '', partnerships, and joint operations'' for ''and
      partnerships'' wherever appearing after ''corporations'';
        (2) '', partnerships, and joint operations'' for '', and
      partnerships'' wherever appearing after ''corporations''; and
        (3) ''individuals'' for ''members, stockholders, or partners,
      as applicable,'' wherever appearing.
      Pub. L. 99-198, Sec. 1303, in cl. (3) parenthetical, inserted
    provision treating blood or marriage related owner-operators of the
    entire farm interest as separate interest holders of not larger
    than family farms though collective ownership constitutes a larger
    than a family farm.
      Subsec. (b). Pub. L. 99-198, Sec. 1302(a)(2), added subsec. (b).
      1981 - Pub. L. 97-98 substituted ''corporations and partnerships,
    the family farm'' for ''cooperatives, corporations, and
    partnerships, the family farm'', and inserted ''in the case of
    cooperatives, corporations, and partnerships'' at end.
      1978 - Pub. L. 95-334 substituted provisions setting forth
    eligibility criteria for loans to farmers and ranchers in the
    United States, and to farm cooperatives and private domestic
    corporations and partnerships controlled by farmers and ranchers
    and engaged primarily and directly in farming or ranching in the
    United States, for provisions setting forth eligibility criteria
    for loans to farmers and ranchers in the United States, Puerto
    Rico, and the Virgin Islands.
      1970 - Pub. L. 91-620 provided that with respect to veterans as
    defined in section 1983(e) of this title, a farm background shall
    not be required as a condition precedent to obtaining any loan.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 663 of title VI of Pub. L. 104-127 provided that:
      ''(a) In General. - Except as provided in subsection (b), the
    amendments made by this title (enacting sections 2008g to 2008i of
    this title, amending this section and sections 1631, 1923, 1924,
    1927, 1928, 1929, 1929a, 1932, 1934, 1941, 1942, 1946, 1949, 1961
    to 1964, 1981, 1981d, 1983, 1983a, 1985, 1991, 1992, 1994, 1997,
    1999, 2000, 2001, 2002, and 2003 of this title, repealing sections
    1936, 1945, 1947, 1948, and 1968 of this title, and repealing
    provisions set out as a note under section 1999 of this title)
    shall become effective on the date of enactment of this Act (Apr.
    4, 1996).
      ''(b) Delayed Effective Dates. - The amendments made by sections
    601, 606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1),
    648(a), and 649 (enacting sections 2008g and 2008i of this title
    and amending this section and sections 1929, 1941, 1942, 1962,
    1963, 1964, 1981d, 1991, 1997, and 2001 of this title) shall become
    effective 90 days after the date of enactment of this Act (Apr. 4,
    1996).
      ''(c) Transition Provision. - The amendments made by sections 638
    and 644 (amending sections 1985 and 2000 of this title) shall not
    apply with respect to a complete application to acquire inventory
    property submitted prior to the date of enactment of this Act (Apr.
    4, 1996).
      ''(d) Regulations. - Notwithstanding any other provision of law,
    regulations to implement the amendments made by this title shall be
    published as interim final rules with request for comments and may
    be made effective immediately on publication.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section
    1801 of Pub. L. 97-98, set out as an Effective Date note under
    section 4301 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1925, 1934, 1983, 1994,
    2006a of this title.
 
-CITE-
     7 USC Sec. 1923                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1923. Purposes of loans
 
-STATUTE-
    (a) Allowed purposes
      (1) Direct loans
        A farmer or rancher may use a direct loan made under this
      subchapter only for -
          (A) acquiring or enlarging a farm or ranch;
          (B) making capital improvements to a farm or ranch;
          (C) paying loan closing costs related to acquiring,
        enlarging, or improving a farm or ranch; or
          (D) paying for activities to promote soil and water
        conservation and protection described in section 1924 of this
        title on a farm or ranch.
      (2) Guaranteed loans
        A farmer or rancher may use a loan guaranteed under this
      subchapter only for -
          (A) acquiring or enlarging a farm or ranch;
          (B) making capital improvements to a farm or ranch;
          (C) paying loan closing costs related to acquiring,
        enlarging, or improving a farm or ranch;
          (D) paying for activities to promote soil and water
        conservation and protection described in section 1924 of this
        title on a farm or ranch; or
          (E) refinancing indebtedness.
    (b) Preferences
      In making or guaranteeing a loan under this subchapter for
    purchase of a farm or ranch, the Secretary shall give preference to
    a person who -
        (1) has a dependent family;
        (2) to the extent practicable, is able to make an initial down
      payment on the farm or ranch; or
        (3) is an owner of livestock or farm or ranch equipment that is
      necessary to successfully carry out farming or ranching
      operations.
    (c) Hazard insurance requirement
      (1) In general
        After the Secretary makes the determination required by
      paragraph (2), the Secretary may not make a loan to a farmer or
      rancher under this subchapter unless the farmer or rancher has,
      or agrees to obtain, hazard insurance on any real property to be
      acquired or improved with the loan.
      (2) Determination
        Not later than 180 days after April 4, 1996, the Secretary
      shall determine the appropriate level of insurance to be required
      under paragraph (1).
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 303, Aug. 8, 1961, 75 Stat. 307;
    Pub. L. 87-703, title IV, Sec. 401(1), Sept. 27, 1962, 76 Stat.
    631; Pub. L. 90-488, Sec. 1, Aug. 15, 1968, 82 Stat. 770; Pub. L.
    95-113, title XIV, Sec. 1448(a), Sept. 29, 1977, 91 Stat. 1011;
    Pub. L. 96-438, Sec. 1(1), Oct. 13, 1980, 94 Stat. 1871; Pub. L.
    97-98, title XVI, Sec. 1602, Dec. 22, 1981, 95 Stat. 1346; Pub. L.
    104-127, title VI, Sec. 602(a), Apr. 4, 1996, 110 Stat. 1085.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 amended section generally, substituting
    present provisions for provisions outlining preferences for loans
    made or insured under this subchapter and defining terms
    ''improving farms'' and ''qualified non-fossil energy system''.
      1981 - Subsec. (a). Pub. L. 97-98 substituted ''who have
    dependent families'' for ''who are married or have dependent
    families''.
      1980 - Subsec. (b)(1). Pub. L. 96-438 substituted ''the
    acquisition, installation, and modification'' for ''the acquisition
    and installation'' and struck out ''in any residential structure''
    after ''energy system''.
      1977 - Pub. L. 95-113 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1968 - Pub. L. 90-488 designated existing provisions as cls. (1),
    (2), (4), (5), and added cl. (3).
      1962 - Pub. L. 87-703 authorized loans to be made or insured for
    recreational uses and facilities.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 602(b) of Pub. L. 104-127 provided that: ''Section
    303(c)(1) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1923(c)(1)) shall not apply until the Secretary of
    Agriculture makes the determination required by section 303(c)(2)
    of the Act.'' (The Secretary's determination relating to hazard
    insurance under this provision was contained in interim rules
    published Mar. 3, 1997, and effective Mar. 24, 1997, see 62 F.R.
    9351.)
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section
    1801 of Pub. L. 97-98, set out as an Effective Date note under
    section 4301 of this title.
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section
    1901 of Pub. L. 95-113, set out as a note under section 1307 of
    this title.
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      Powers, duties, and assets of agencies, offices, and other
    entities within Department of Agriculture relating to rural
    development functions transferred to Rural Development
    Administration by section 2302(b) of Pub. L. 101-624.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1925, 1934, 1991, 2008f
    of this title.
 
-CITE-
     7 USC Sec. 1924                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1924. Soil and water conservation and protection
 
-STATUTE-
    (a) In general
      Loans may also be made or insured under this subchapter for soil
    and water conservation and protection.  Such loans may be made to
    farm owners or tenants who are eligible borrowers under this
    subchapter for -
        (1) the installation of conservation structures, including
      terraces, sod waterways, permanently vegetated stream borders and
      filter strips, windbreaks (tree or grass), shelterbelts, and
      living snow fences;
        (2) the establishment of forest cover for sustained yield
      timber management, erosion control, or shelterbelt purposes;
        (3) the establishment or improvement of permanent pasture;
        (4) the conversion to and maintenance of sustainable
      agricultural production systems, as described by Department
      technical guides and handbooks;
        (5) the payment of costs of complying with section 3812 of
      title 16; and
        (6) other purposes consistent with plans for soil and water
      conservation, integrated farm management, water quality
      protection and enhancement, and wildlife habitat improvement.
    (b) Priority
      In making or guaranteeing loans under this subsection, (FOOTNOTE
    1) the Secretary shall give priority to producers who use such
    loans to build conservation structures or establish conservation
    practices to comply with section 3812 of title 16.
       (FOOTNOTE 1) So in original.  Probably should be ''this
    section,''.
    (c) Loan maximum
      The Secretary shall not make or insure a loan under this section
    that exceeds the lesser of -
        (1) the value of the farm or other security for such loan; or
        (2) $50,000.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 304, Aug. 8, 1961, 75 Stat. 308;
    Pub. L. 90-488, Sec. 2, Aug. 15, 1968, 82 Stat. 770; Pub. L.
    92-419, title I, Sec. 102, Aug. 30, 1972, 86 Stat. 657; Pub. L.
    95-334, title I, Sec. 102, Aug. 4, 1978, 92 Stat. 421; Pub. L.
    101-624, title XVIII, Sec. 1802(a), Nov. 28, 1990, 104 Stat. 3817;
    Pub. L. 102-237, title V, Sec. 501(a), Dec. 13, 1991, 105 Stat.
    1865; Pub. L. 104-127, title VI, Sec. 603, Apr. 4, 1996, 110 Stat.
    1085.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Pub. L. 104-127, Sec. 603(2), inserted section catchline.
      Subsec. (a). Pub. L. 104-127, Sec. 603(2), (5), redesignated
    subsec. (a)(1) as (a), inserted heading, and redesignated subpars.
    (A) to (F) as pars. (1) to (6), respectively.  Former pars. (2) and
    (3) redesignated subsecs. (b) and (c), respectively.
      Subsec. (b). Pub. L. 104-127, Sec. 603(1), (3), redesignated
    subsec. (a)(2) as (b), inserted heading, substituted ''guaranteeing
    loans'' for ''insuring loans'', and struck out former subsec. (b)
    which read as follows: ''Loans may also be made or insured under
    this subchapter to residents of rural areas without regard to the
    requirements of clauses (2) and (3) of section 1922 of this title
    to acquire or establish in rural areas small business enterprises
    to provide such residents with essential income.''
      Subsec. (c). Pub. L. 104-127, Sec. 603(1), (4), (6), redesignated
    subsec. (a)(3) as (c), inserted heading, redesignated subpars. (A)
    and (B) as pars. (1) and (2), respectively, and struck out former
    subsec. (c) which read as follows: ''Loans may also be made or
    insured under this subchapter to any farm owners or tenants without
    regard to the requirements of clauses (1), (2), and (3) of section
    1922 of this title for the purposes of meeting Federal, State, or
    local requirements for agricultural, animal, or poultry waste
    pollution abatement and control facilities, including the
    construction, modification, or relocation of farm or other
    structures necessary to comply with such pollution abatement
    requirements.''
      1991 - Subsecs. (a), (d). Pub. L. 102-237 redesignated subsec.
    (d) as (a) and moved it to appear before subsec. (b) and struck out
    former subsec. (a) which read as follows: ''Loans may also be made
    or insured under this subchapter to any farmowners or tenants
    without regard to the requirements of section 1922(1), (2), and (3)
    of this title for the purposes only of land and water development,
    use and conservation, not including recreational uses and
    facilities, and without regard to the requirements of section
    1922(2) and (3) of this title, to farmowners or tenants to finance
    outdoor recreational enterprises or to convert to recreational uses
    their farming or ranching operations, including those heretofore
    financed under this chapter.''
      1990 - Subsec. (d). Pub. L. 101-624 added subsec. (d).
      1978 - Subsec. (a). Pub. L. 95-334, Sec. 102(1), struck out
    ''individual'' after ''title, to''.
      Subsec. (c). Pub. L. 95-334, Sec. 102(2), added subsec. (c).
      1972 - Pub. L. 92-419 designated existing provisions as subsec.
    (a) and struck out item (a) and (b) designations appearing before
    ''to any farmowner'' and ''without regard to'', respectively, and
    added subsec. (b).
      1968 - Pub. L. 90-488 designated existing provisions as cl. (a),
    excluded recreational uses and facilities, and added cl. (b).
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by Pub. L. 102-237 effective as if included in the
    provision of the Food, Agriculture, Conservation, and Trade Act of
    1990, Pub. L. 101-624, to which the amendment relates, see section
    1101(b)(3) of Pub. L. 102-237, set out as a note under section 1421
    of this title.
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      Powers, duties, and assets of agencies, offices, and other
    entities within Department of Agriculture relating to rural
    development functions transferred to Rural Development
    Administration by section 2302(b) of Pub. L. 101-624.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 917, 1923, 1925, 1934,
    1991, 6613 of this title.
 
-CITE-
     7 USC Sec. 1925                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1925. Limitations on amount of farm ownership loans
 
-STATUTE-
    (a) In general
      The Secretary shall make or insure no loan under sections 1922,
    1923, 1924, 1934, and 1935 of this title that would cause the
    unpaid indebtedness under such sections of any one borrower to
    exceed the smaller of (1) the value of the farm or other security,
    or (2) in the case of a loan other than a loan guaranteed by the
    Secretary, $200,000, or, in the case of a loan guaranteed by the
    Secretary, $700,000 (increased, beginning with fiscal year 2000, by
    the inflation percentage applicable to the fiscal year in which the
    loan is guaranteed and reduced by the amount of any unpaid
    indebtedness of the borrower on loans under subchapter II of this
    chapter that are guaranteed by the Secretary).
    (b) Determination of value
      In determining the value of the farm, the Secretary shall
    consider appraisals made by competent appraisers under rules
    established by the Secretary.
    (c) Inflation percentage
      For purposes of this section, the inflation percentage applicable
    to a fiscal year is the percentage (if any) by which -
        (1) the average of the Prices Paid By Farmers Index (as
      compiled by the National Agricultural Statistics Service of the
      Department of Agriculture) for the 12-month period ending on
      August 31 of the immediately preceding fiscal year; exceeds
        (2) the average of such index (as so defined) for the 12-month
      period ending on August 31, 1996.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 305, Aug. 8, 1961, 75 Stat. 308;
    Pub. L. 91-620, Sec. 1, Dec. 31, 1970, 84 Stat. 1862; Pub. L.
    92-419, title I, Sec. 103, Aug. 30, 1972, 86 Stat. 658; Pub. L.
    91-524, title VIII, Sec. 807, as added Pub. L. 93-86, Sec.
    1(27)(B), Aug. 10, 1973, 87 Stat. 237; Pub. L. 95-334, title I,
    Sec. 103, Aug. 4, 1978, 92 Stat. 421; Pub. L. 102-554, Sec. 3, Oct.
    28, 1992, 106 Stat. 4142; Pub. L. 105-277, div.  A, Sec. 101(a)
    (title VIII, Sec. 806(a)), Oct. 21, 1998, 112 Stat. 2681, 2681-39.)
 
-MISC1-
                                 AMENDMENTS
      1998 - Pub. L. 105-277 inserted section catchline, designated
    first sentence as subsec. (a), inserted heading, and substituted
    ''$700,000 (increased, beginning with fiscal year 2000, by the
    inflation percentage applicable to the fiscal year in which the
    loan is guaranteed and reduced by the amount of any unpaid
    indebtedness of the borrower on loans under subchapter II of this
    chapter that are guaranteed by the Secretary)'' for ''$300,000'',
    designated second sentence as subsec. (b) and inserted heading, and
    added subsec. (c).
      1992 - Pub. L. 102-554 inserted reference to section 1935 of this
    title.
      1978 - Pub. L. 95-334 substituted provisions setting forth
    requirements for loans under sections 1922, 1923, 1924, and 1934 of
    this title for provisions setting forth requirements for loans
    under sections 1922, 1923, and 1924 of this title.
      1973 - Pub. L. 91-524, Sec. 807, as added by Pub. L. 93-86,
    substituted ''$225,000'' for ''$100,000'' in cl. (a), added cl.
    (b), and redesignated former cl. (b) as (c).
      1972 - Pub. L. 92-419 struck out ''normal'' before ''value'' in
    first and second sentences and before ''market value'' in last
    sentence.
      1970 - Pub. L. 91-620 substituted ''$100,000'' for ''$60,000''.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1943 of this title.
 
-CITE-
     7 USC Sec. 1926                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1926. Water and waste facility loans and grants
 
-STATUTE-
    (a) Criteria; definitions; limitation on allowable uses of Federal
        funds; inclusion of interest or other income in gross income on
        sale of insured loan
      (1) The Secretary is also authorized to make or insure loans to
    associations, including corporations not operated for profit,
    Indian tribes on Federal and State reservations and other federally
    recognized Indian tribes, and public and quasi-public agencies to
    provide for the application or establishment of soil conservation
    practices, shifts in land use, the conservation, development, use,
    and control of water, and the installation or improvement of
    drainage or waste disposal facilities, recreational developments,
    and essential community facilities including necessary related
    equipment, all primarily serving farmers, ranchers, farm tenants,
    farm laborers, rural businesses, and other rural residents, and to
    furnish financial assistance or other aid in planning projects for
    such purposes.  The Secretary may also make loans to any borrower
    to whom a loan has been made under the Rural Electrification Act of
    1936 (7 U.S.C. 901 et seq.), for the conservation, development,
    use, and control of water, and the installation of drainage or
    waste disposal facilities, primarily serving farmers, ranchers,
    farm tenants, farm laborers, rural businesses, and other rural
    residents.  When any loan made for a purpose specified in this
    paragraph is sold out of the Agricultural Credit Insurance Fund as
    an insured loan, the interest or other income thereon paid to an
    insured holder shall be included in gross income for purposes of
    chapter 1 of title 26. With respect to loans of less than $500,000
    made or insured under this paragraph that are evidenced by notes
    and mortgages, as distinguished from bond issues, borrowers shall
    not be required to appoint bond counsel to review the legal
    validity of the loan whenever the Secretary has available legal
    counsel to perform such review.
      (2) The Secretary is authorized to make grants aggregating not to
    exceed $590,000,000 in any fiscal year to such associations to
    finance specific projects for works for the development, storage,
    treatment, purification, or distribution of water or the
    collection, treatment, or disposal of waste in rural areas.  The
    amount of any grant made under the authority of this paragraph
    shall not exceed 75 per centum of the development cost of the
    project to serve the area which the association determines can be
    feasibly served by the facility and to adequately serve the
    reasonably foreseeable growth needs of the area.  The Secretary
    shall fix the grant rate for each project in conformity with
    regulations issued by the Secretary that shall provide for a
    graduated scale of grant rates establishing higher rates for
    projects in communities that have lower community population and
    income levels.
      (3) No grant shall be made under paragraph (2) of this subsection
    in connection with any project unless the Secretary determines that
    the project (i) will serve a rural area which, if such project is
    carried out, is not likely to decline in population below that for
    which the project was designed, (ii) is designed and constructed so
    that adequate capacity will or can be made available to serve the
    present population of the area to the extent feasible and to serve
    the reasonably foreseeable growth needs of the area, and (iii) is
    necessary for an orderly community development consistent with a
    comprehensive community water, waste disposal, or other development
    plan of the rural area.
      (4)(A) The term ''development cost'' means the cost of
    construction of a facility and the land, easements, and
    rights-of-way, and water rights necessary to the construction and
    operation of the facility.
      (B) The term ''project'' shall include facilities providing
    central service or facilities serving individual properties, or
    both.
      (5) Application requirements. - Not earlier than 60 days before a
    preliminary application is filed for a loan under paragraph (1) or
    a grant under paragraph (2) for a water or waste disposal purpose,
    a notice of the intent of the applicant to apply for the loan or
    grant shall be published in a general circulation newspaper.  The
    selection of engineers for a project design shall be done by a
    request for proposals by the applicant.
      (6) The Secretary may make grants aggregating not to exceed
    $30,000,000 in any fiscal year to public bodies or such other
    agencies as the Secretary may determine having authority to prepare
    comprehensive plans for the development of water or waste disposal
    systems in rural areas which do not have funds available for
    immediate undertaking of the preparation of such plan.
      (7) Definition of rural and rural areas. - For the purpose of
    water and waste disposal grants and direct and guaranteed loans
    provided under paragraphs (1) and (2), the terms ''rural'' and
    ''rural area'' mean a city, town, or unincorporated area that has a
    population of no more than 10,000 inhabitants.
      (8) In each instance where the Secretary receives two or more
    applications for financial assistance for projects that would serve
    substantially the same group of residents within a single rural
    area, and one such application is submitted by a city, town, county
    or other unit of general local government, he shall, in the absence
    of substantial reasons to the contrary, provide such assistance to
    such city, town, county or other unit of general local government.
      (9) Conformity with state drinking water standards. - No Federal
    funds shall be made available under this section for a water system
    unless the Secretary determines that the water system will make
    significant progress toward meeting the standards established under
    title XIV of the Public Health Service Act (commonly known as the
    ''Safe Drinking Water Act'') (42 U.S.C. 300f et seq.).
      (10) Conformity with federal and state water pollution control
    standards. - No Federal funds shall be made available under this
    section for a water treatment discharge or waste disposal system
    unless the Secretary determines that the effluent from the system
    conforms with applicable Federal and State water pollution control
    standards.
      (11) Rural business opportunity grants. -
        (A) In general. - The Secretary may make grants, not to exceed
      $1,500,000 annually, to public bodies, private nonprofit
      community development corporations or entities, or such other
      agencies as the Secretary may select to enable the recipients -
          (i) to identify and analyze business opportunities, including
        opportunities in export markets, that will use local rural
        economic and human resources;
          (ii) to identify, train, and provide technical assistance to
        existing or prospective rural entrepreneurs and managers;
          (iii) to establish business support centers and otherwise
        assist in the creation of new rural businesses, the development
        of methods of financing local businesses, and the enhancement
        of the capacity of local individuals and entities to engage in
        sound economic activities;
          (iv) to conduct regional, community, and local economic
        development planning and coordination, and leadership
        development; and
          (v) to establish centers for training, technology, and trade
        that will provide training to rural businesses in the
        utilization of interactive communications technologies to
        develop international trade opportunities and markets.
        (B) Criteria. - In awarding the grants, the Secretary shall
      consider, among other criteria to be established by the Secretary
      -
          (i) the extent to which the applicant provides development
        services in the rural service area of the applicant; and
          (ii) the capability of the applicant to accomplish the
        activities described in the relevant clauses of subparagraph
        (A).
        (C) Coordination. - The Secretary shall ensure, to the maximum
      extent practicable, that assistance provided under this paragraph
      is coordinated with and delivered in cooperation with similar
      services or assistance provided to rural residents by the
      Cooperative State Research, Education, and Extension Service or
      other Federal agencies.
        (D) Authorization of appropriations. - There are authorized to
      be appropriated to carry out this paragraph $7,500,000 for each
      of fiscal years 1996 through 2002.
      (12)(A) The Secretary shall, in cooperation with institutions
    eligible to receive funds under the Act of July 2, 1862 (12 Stat.
    503-505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of
    August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and
    328), including the Tuskegee Institute and State, substate, and
    regional planning bodies, establish a system for the dissemination
    of information and technical assistance on federally sponsored or
    funded programs.  The system shall be for the use of institutions
    eligible to receive funds under the Act of July 2, 1862 (12 Stat.
    503-505, as amended; 7 U.S.C. 301-305, 307, and 308), or the Act of
    August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and
    328), including the Tuskegee Institute and State, substate, and
    regional planning bodies, and other persons concerned with rural
    development.
      (B) The informational system developed under this paragraph shall
    contain all pertinent information, including, but not limited to,
    information contained in the Federal Procurement Data System,
    Federal Assistance Program Retrieval System, Catalogue of Federal
    Domestic Assistance, Geographic Distribution of Federal Funds,
    United States Census, and Code of Federal Regulations.
      (C) The Secretary shall obtain from all other Federal departments
    and agencies comprehensive, relevant, and applicable information on
    programs under their jurisdiction that are operated in rural areas.
      (D) Of the sums authorized to be appropriated to carry out the
    provisions of this chapter, not more than $1,000,000 per year may
    be expended to carry out the provisions of this paragraph.
      (13) In the making of loans and grants for community waste
    disposal and water facilities under paragraphs (1) and (2) of this
    subsection the Secretary shall accord highest priority to the
    application of any municipality or other public agency (including
    an Indian tribe on a Federal or State reservation or other
    federally recognized Indian tribal group) in a rural community
    having a population not in excess of five thousand five hundred and
    which, in the case of water facility loans, has a community water
    supply system, where the Secretary determines that due to
    unanticipated diminution or deterioration of its water supply,
    immediate action is needed, or in the case of waste disposal, has a
    community waste disposal system, where the Secretary determines
    that due to unanticipated occurrences the system is not adequate to
    the needs of the community.  The Secretary shall utilize the Soil
    Conservation Service in rendering technical assistance to
    applicants under this paragraph to the extent he deems appropriate.
      (14) Rural water and wastewater technical assistance and training
    programs. -
        (A) In general. - The Secretary may make grants to private
      nonprofit organizations for the purpose of enabling them to
      provide to associations described in paragraph (1) of this
      subsection technical assistance and training to -
          (i) identify, and evaluate alternative solutions to, problems
        relating to the obtaining, storage, treatment, purification, or
        distribution of water or the collection, treatment, or disposal
        of waste in rural areas;
          (ii) prepare applications to receive financial assistance for
        any purpose specified in paragraph (2) of this subsection from
        any public or private source; and
          (iii) improve the operation and maintenance practices at any
        existing works for the storage, treatment, purification, or
        distribution of water or the collection, treatment, or disposal
        of waste in rural areas.
        (B) Selection priority. - In selecting recipients of grants to
      be made under subparagraph (A), the Secretary shall give priority
      to private nonprofit organizations that have experience in
      providing the technical assistance and training described in
      subparagraph (A) to associations serving rural areas in which
      residents have low income and in which water supply systems or
      waste facilities are unhealthful.
        (C) Funding. - Not less than 1 nor more than 3 percent of any
      funds appropriated to carry out paragraph (2) of this subsection
      for any fiscal year shall be reserved for grants under
      subparagraph (A) unless the applications, qualifying for grants,
      received by the Secretary from eligible nonprofit organizations
      for the fiscal year total less than 1 per centum of those funds.
      (15) In the case of water and waste disposal facility projects
    serving more than one separate rural community, the Secretary shall
    use the median population level and the community income level of
    all the separate communities to be served in applying the standards
    specified in paragraph (2) of this subsection and section
    1927(a)(3)(A) of this title.
      (16) Grants under paragraph (2) of this subsection may be used to
    pay the local share requirements of another Federal grant-in-aid
    program to the extent permitted under the law providing for such
    grant-in-aid program.
      (17)(A) In the approval and administration of a loan made under
    paragraph (1) for a water or waste disposal facility, the Secretary
    shall consider fully any recommendation made by the loan applicant
    or borrower concerning the technical design and choice of materials
    to be used for such facility.
      (B) If the Secretary determines that a design or materials, other
    than those that were recommended, should be used in the water or
    waste disposal facility, the Secretary shall provide such applicant
    or borrower with a comprehensive justification for such
    determination.
      (18) In making or insuring loans or making grants under this
    subsection, the Secretary may not condition approval of such loans
    or grants upon any requirement, condition or certification other
    than those specified under this chapter.
      (19) Community facilities grant program. -
        (A) In general. - The Secretary may make grants, in a total
      amount not to exceed $10,000,000 for any fiscal year, to
      associations, units of general local government, nonprofit
      corporations, and federally recognized Indian tribes to provide
      the Federal share of the cost of developing specific essential
      community facilities in rural areas.
        (B) Federal share. -
          (i) In general. - Except as provided in clauses (ii) and
        (iii), the Secretary shall, by regulation, establish the amount
        of the Federal share of the cost of the facility under this
        paragraph.
          (ii) Maximum amount. - The amount of a grant provided under
        this paragraph for a facility shall not exceed 75 percent of
        the cost of developing the facility.
          (iii) Graduated scale. - The Secretary shall provide for a
        graduated scale for the amount of the Federal share provided
        under this paragraph, with higher Federal shares for facilities
        in communities that have lower community population and income
        levels, as determined by the Secretary.
    (b) Curtailment or limitation of service prohibited
      The service provided or made available through any such
    association shall not be curtailed or limited by inclusion of the
    area served by such association within the boundaries of any
    municipal corporation or other public body, or by the granting of
    any private franchise for similar service within such area during
    the term of such loan; nor shall the happening of any such event be
    the basis of requiring such association to secure any franchise,
    license, or permit as a condition to continuing to serve the area
    served by the association at the time of the occurrence of such
    event.
    (c) Repealed. Pub. L. 91-606, title III, Sec. 302(2), Dec. 31,
        1970, 84 Stat. 1759
    (d) Carryover of unused authorizations for appropriations
      Any amounts appropriated under this section shall remain
    available until expended, and any amounts authorized for any fiscal
    year under this section but not appropriated may be appropriated
    for any succeeding fiscal year.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 306, Aug. 8, 1961, 75 Stat. 308;
    Pub. L. 87-703, title IV, Sec. 401(2), Sept. 27, 1962, 76 Stat.
    632; Pub. L. 89-240, Sec. 1, Oct. 7, 1965, 79 Stat. 931; Pub. L.
    89-769, Sec. 6(b), Nov. 6, 1966, 80 Stat. 1318; Pub. L. 90-488,
    Sec. 3-5, Aug. 15, 1968, 82 Stat. 770; Pub. L. 91-524, title VIII,
    Sec. 806(a), Nov. 30, 1970, 84 Stat. 1383; Pub. L. 91-606, title
    III, Sec. 302(2), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 91-617,
    Sec. 1(a), Dec. 31, 1970, 84 Stat. 1855; Pub. L. 92-419, title I,
    Sec. 104-112, Aug. 30, 1972, 86 Stat. 658, 659; Pub. L. 91-524,
    title VIII, Sec. 816(c), as added Pub. L. 93-86, Sec. 1(27)(B),
    Aug. 10, 1973, 87 Stat. 240; Pub. L. 95-334, title I, Sec.
    104-107(a), Aug. 4, 1978, 92 Stat. 421, 422; Pub. L. 96-355, Sec.
    7, Sept. 24, 1980, 94 Stat. 1174; Pub. L. 96-438, Sec. 2(1), Oct.
    13, 1980, 94 Stat. 1871; Pub. L. 97-35, title I, Sec. 121, Aug. 13,
    1981, 95 Stat. 368; Pub. L. 99-198, title XIII, Sec. 1304(a), Dec.
    23, 1985, 99 Stat. 1519; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100
    Stat. 2095; Pub. L. 101-624, title XXIII, Sec. 2316(b), 2321, 2328,
    2329, 2341, 2342, 2393, Nov. 28, 1990, 104 Stat. 4008, 4010, 4017,
    4026, 4027, 4057; Pub. L. 102-237, title VII, Sec. 701(a),
    (h)(1)(A), (B), Dec. 13, 1991, 105 Stat. 1879, 1880; Pub. L.
    103-129, Sec. 3, Nov. 1, 1993, 107 Stat. 1366; Pub. L. 103-354,
    title II, Sec. 235(b)(5), Oct. 13, 1994, 108 Stat. 3222; Pub. L.
    104-127, title VII, Sec. 741(a), 758, 763, Apr. 4, 1996, 110 Stat.
    1122, 1132, 1148.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Rural Electrification Act of 1936, referred to in subsec.
    (a)(1), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended,
    which is classified generally to chapter 31 (Sec. 901 et seq.) of
    this title.  For complete classification of this Act to the Code,
    see section 901 of this title and Tables.
      The Public Health Service Act, referred to in subsec. (a)(9), is
    act July 1, 1944, ch. 373, 58 Stat. 682, as amended.  Title XIV of
    the Act, known as the Safe Drinking Water Act, is classified
    principally to subchapter XII (Sec. 300f et seq.) of chapter 6A of
    Title 42, The Public Health and Welfare. For complete
    classification of these Acts to the Code, see Short Title note and
    Short Title of 1974 Amendments note set out under section 201 of
    Title 42 and Tables.
      Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C.
    301-305, 307 and 308), referred to in subsec. (a)(12)(A), is act
    July 2, 1862, ch. 130, 12 Stat. 503, as amended, popularly known as
    the Morrill Act and also as the First Morrill Act, which is
    classified generally to subchapter I (Sec. 301 et seq.) of chapter
    13 of this title.  For complete classification of this Act to the
    Code, see Short Title note set out under section 301 of this title
    and Tables.
      Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C.
    321-326 and 328), referred to in subsec. (a)(12)(A), is act Aug.
    30, 1890, ch. 841, 26 Stat. 417, as amended, popularly known as the
    Agricultural College Act of 1890 and also as the Second Morrill
    Act, which is classified generally to subchapter II (Sec. 321 et
    seq.) of chapter 13 of this title.  For complete classification of
    this Act to the Code, see Short Title note set out under section
    321 of this title and Tables.
      For definition of ''this chapter'', referred to in subsec.
    (a)(12)(D), (18), see note set out under section 1921 of this
    title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (a)(2). Pub. L. 104-127, Sec. 741(a)(1),
    substituted ''$590,000,000'' for ''$500,000,000''.
      Subsec. (a)(5). Pub. L. 104-127, Sec. 758, added par. (5).
      Subsec. (a)(7). Pub. L. 104-127, Sec. 741(a)(2), added par. (7)
    and struck out former par. (7) which read as follows: ''As used in
    this chapter, the terms 'rural' and 'rural area' shall not include
    any area in any city or town which has a population in excess of
    ten thousand inhabitants, except that (A) for the purpose of loans
    for essential community facilities under subsection (a)(1) of this
    section, the terms 'rural' and 'rural area' may include any area in
    any city or town that has a population not in excess of twenty
    thousand inhabitants; and (B) for purposes of loans and grants for
    private business enterprises under sections 1924(b), 1932 and
    1942(b), (c), and (d) of this title the terms 'rural' and 'rural
    area' may include all territory of a State that is not within the
    outer boundary of any city having a population of fifty thousand or
    more and its immediately adjacent urbanized and urbanizing areas
    with a population density of more than one hundred persons per
    square mile, as determined by the Secretary of Agriculture
    according to the latest decennial census of the United States:
    Provided, That special consideration for such loans and grants
    shall be given to areas other than cities having a population of
    more than twenty-five thousand.''
      Subsec. (a)(9), (10). Pub. L. 104-127, Sec. 741(a)(3), added
    pars. (9) and (10) and struck out former pars. (9) and (10) which
    read as follows:
      ''(9) No Federal funds shall be authorized for use unless it be
    certified by the appropriate State water pollution control agency
    that the water supply system authorized will not result in
    pollution of waters of the State in excess of standards established
    by that agency.
      ''(10) In the case of sewers and waste disposal systems, no
    Federal funds shall be advanced hereunder unless the appropriate
    State water pollution control agency shall certify that the
    effluent therefrom shall conform with appropriate State and Federal
    water pollution control standards when and where established.''
      Subsec. (a)(11). Pub. L. 104-127, Sec. 741(a)(3), added par. (11)
    and struck out former par. (11) which authorized grants to public
    bodies, private nonprofit community development corporations or
    entities, or other agencies to enable such recipients to (1)
    identify and analyze business opportunities, including
    opportunities in export markets, that would use local rural
    economic and human resources, (2) identify, train, and provide
    technical assistance to existing or prospective rural entrepreneurs
    and managers, (3) establish business support centers and otherwise
    assist in creation of new rural businesses, development of methods
    of financing local businesses, and enhancing capacity of local
    individuals and entities to engage in sound economic activities,
    and (4) conduct regional, community, and local economic development
    planning and coordination, and leadership development.
      Subsec. (a)(14). Pub. L. 104-127, Sec. 741(a)(6)(A)-(D)(i),
    inserted par. heading and headings for subpars. (A) to (C), and
    realigned margins of subpars. and cls. (i) to (iii) of subpar. (A).
      Pub. L. 104-127, Sec. 741(a)(4), (5), redesignated par. (16) as
    (14) and struck out former par. (14) which read as follows:
      ''(14)(A) The Secretary, under such reasonable rules and
    conditions as he shall establish, shall make grants to eligible
    volunteer fire departments for up to 50 per centum of the cost of
    firefighting equipment needed by such departments but which such
    departments are unable to purchase through the resources otherwise
    available to them, and for the cost of the training necessary to
    enable such departments to use such equipment efficiently.
      ''(B) For the purposes of this subsection, the term 'eligible
    volunteer fire department' means any established volunteer fire
    department in a rural town, village, or unincorporated area where
    the population is less than two thousand but greater than two
    hundred, as reasonably determined by the Secretary.''
      Subsec. (a)(14)(C). Pub. L. 104-127, Sec. 741(a)(6)(D)(ii), which
    directed substitution of ''3 percent of any funds appropriated''
    for ''2 per centum of any funds provided in appropriations Acts'',
    was executed by making the substitution for ''2 per centum of any
    funds provided in Appropriations Acts'', to reflect the probable
    intent of Congress.
      Subsec. (a)(15). Pub. L. 104-127, Sec. 741(a)(4), (5),
    redesignated par. (17) as (15) and struck out former par. (15)
    which authorized making or insuring of loans to associations,
    including corporations not operated for profit, Indian tribes on
    Federal and State reservations and other federally recognized
    Indian tribes, and public and quasi-public agencies, for purpose of
    financing construction, acquisition, and operation of transmission
    facilities for any electric system owned and operated by a public
    body located in a rural area which was, as of October 1, 1976,
    receiving bulk power from designated agencies of Department of the
    Interior.
      Subsec. (a)(16) to (18). Pub. L. 104-127, Sec. 741(a)(5),
    redesignated pars. (18) to (20) as (16) to (18), respectively.
    Former pars. (16) to (18) redesignated (14) to (16), respectively.
      Subsec. (a)(19). Pub. L. 104-127, Sec. 763, added par. (19).
      Pub. L. 104-127, Sec. 741(a)(5), redesignated par. (19) as (17).
      Subsec. (a)(20). Pub. L. 104-127, Sec. 741(a)(5), redesignated
    par. (20) as (18).
      1994 - Subsec. (a)(15)(C), (D). Pub. L. 103-354 redesignated
    subpar. (D) as (C) and struck out former subpar. (C) which read as
    follows: ''The Administrator of the Rural Electrification
    Administration shall administer loans made or insured under this
    paragraph.''
      1993 - Subsec. (a)(1). Pub. L. 103-129 inserted after first
    sentence ''The Secretary may also make loans to any borrower to
    whom a loan has been made under the Rural Electrification Act of
    1936 (7 U.S.C. 901 et seq.), for the conservation, development,
    use, and control of water, and the installation of drainage or
    waste disposal facilities, primarily serving farmers, ranchers,
    farm tenants, farm laborers, rural businesses, and other rural
    residents.''
      1991 - Subsec. (a)(11)(B)(ii). Pub. L. 102-237, Sec. 701(a)(1),
    in subcl. (I) inserted ''and'' after semicolon and in subcl. (II)
    substituted a period for ''; and''.
      Subsec. (a)(12)(D), (20). Pub. L. 102-237, Sec. 701(h)(1)(A),
    (B), substituted ''this chapter'' for ''this Act''.
      Subsec. (a)(21). Pub. L. 102-237, Sec. 701(a)(2), struck out par.
    (21) which was identical to par. (20).
      1990 - Subsec. (a)(1). Pub. L. 101-624, Sec. 2328, inserted
    ''rural businesses,'' after ''farm laborers,''.
      Subsec. (a)(2). Pub. L. 101-624, Sec. 2321, struck out '':
    Provided, That for fiscal years commencing after September 30,
    1981, such grants may not exceed $154,900,000 in any fiscal year''
    after ''in rural areas''.
      Subsec. (a)(3). Pub. L. 101-624, Sec. 2316(b), struck out ''and
    not inconsistent with any planned development provided in any
    State, multijurisdictional, county, or municipal plan approved by
    competent authority for the area in which the rural community is
    located, and the Secretary shall require the submission of all
    applications for financial assistance under this section to the
    multijurisdictional substate areawide general purpose planning and
    development agency that has been officially designated as a
    clearinghouse agency under Office of Management and Budget Circular
    A-95 and to the county or municipal government having jurisdiction
    over the area in which the proposed project is to be located for
    review and comment within a designated period of time not to exceed
    30 days concerning among other considerations, the effect of the
    project upon the areawide goals and plans of such agency or
    government.  No loan under this section shall be made that is
    inconsistent with any multijurisdictional planning and development
    district areawide plan of such agency.  The Secretary is authorized
    to reimburse such agency or government for the cost of making the
    required review.  Until October 1, 1973, the Secretary may make
    grants prior to the completion of the comprehensive plan, if the
    preparation of such plan has been undertaken for the area'' after
    ''of the rural area''.
      Subsec. (a)(11). Pub. L. 101-624, Sec. 2341, 2342, amended par.
    (11) generally.  Prior to amendment, par. (11) read as follows:
    ''The Secretary may make grants, not to exceed $15,000,000
    annually, to public bodies or such other agencies as the Secretary
    may select to provide rural development technical assistance, rural
    community leadership development, and community and areawide rural
    development planning.''
      Subsec. (a)(20). Pub. L. 101-624, Sec. 2329, added par. (20).
      Subsec. (a)(21). Pub. L. 101-624, Sec. 2393, added par. (21).
      1986 - Subsec. (a)(1), (15)(B). Pub. L. 99-514 substituted
    ''Internal Revenue Code of 1986'' for ''Internal Revenue Code of
    1954'', which for purposes of codification was translated as
    ''title 26'' thus requiring no change in text.
      1985 - Subsec. (a)(2). Pub. L. 99-198 provided for graduated
    scale of grant rates for each project and higher rates in
    communities having lower community population and income levels.
      Subsec. (a)(16) to (19). Pub. L. 99-198 added pars. (16) to (19).
      1981 - Subsec. (a)(2). Pub. L. 97-35 inserted provisions limiting
    grants for fiscal years after Sept. 30, 1981.
      1980 - Subsec. (a)(7). Pub. L. 96-438 provided that for the
    purpose of loans for essential community facilities under
    subsection (a)(1) of this section, terms ''rural'' and ''rural
    area'' may include any area in any city or town with a population
    not in excess of twenty thousand.
      Subsec. (a)(11) to (15). Pub. L. 96-355 in par. (11) substituted
    provisions authorizing annual grants not to exceed $15,000,000 for
    rural development technical assistance, rural community leadership
    development, etc., for provisions authorizing annual grants not to
    exceed $10,000,000 for preparation of comprehensive plans for rural
    development or designated aspects of such rural development, added
    par. (12), and redesignated former pars. (12) to (14) as (13) to
    (15), respectively.
      1978 - Subsec. (a)(1). Pub. L. 95-334, Sec. 104, inserted
    provisions respecting bond counsel requirements for loans under
    $500,000.
      Subsec. (a)(2). Pub. L. 95-334, Sec. 105, substituted
    ''$500,000,000'' for ''$300,000,000'' and ''75'' for ''50''.
      Subsec. (a)(7). Pub. L. 95-334, Sec. 106, struck out references
    to the Commonwealth of Puerto Rico and the Virgin Islands.
      Subsec. (a)(14). Pub. L. 95-334, Sec. 107(a), added par. (14).
      1973 - Subsec. (a)(13). Pub. L. 91-524, title VIII, Sec. 816(c),
    as added by Pub. L. 93-86 added par. (13).
      1972 - Subsec. (a)(1). Pub. L. 92-419, Sec. 104(1), (2),
    authorized loans to Indian tribes on Federal and State reservations
    and other federally recognized Indian tribes and included as an
    allowable use provision for essential community facilities
    including necessary related equipment, respectively.
      Subsec. (a)(2). Pub. L. 92-419, Sec. 105, substituted
    ''$300,000,000'' for ''$100,000,000''.
      Subsec. (a)(3). Pub. L. 92-419, Sec. 106, 107, substituted
    ''project'' for ''facility'' where first appearing; in item (i),
    substituted ''project'' for ''facility'' and inserted in such text
    '', if such project is carried out,''; in item (ii), substituted
    ''will or can be'' for ''will be or can be''; substituted ''and
    (iii)'' for ''or (iii)'' and in such item (iii), substituted ''an
    orderly community development consistent with a comprehensive
    community water, waste disposal, or other development plan'' and
    ''development provided in any State, multijurisdictional, county,
    or municipal plan approved by competent authority'' for ''orderly
    community development consistent with a comprehensive community
    water or sewer development plan'' and ''development under State,
    county, or municipal plans approved as official plans by competent
    authority'', substituted ''Secretary shall require the submission
    of all applications for financial assistance under this section to
    the multijurisdictional substate areawide general purpose planning
    and development agency that has been officially designated as a
    clearinghouse agency under Office of Management and Budget Circular
    A-95 and to the county or municipal government having jurisdiction
    over the area in which the proposed project is to be located for
    review and comment within a designated period of time not to exceed
    30 days concerning among other considerations, the effect of the
    project upon the areawide goals and plans of such agency or
    government'' for ''Secretary shall establish regulations requiring
    the submission of all applications for financial assistance under
    this chapter to the county or municipal government in which the
    proposed project is to be located for review and comment by such
    agency within a designated period of time''; prohibited loans
    inconsistent with multijurisdictional planning and development
    district areawide plan of the agency; authorized agency or
    government reimbursement for cost of making the review; and
    extended authority for making grants prior to completion of the
    comprehensive plan from Oct. 1, 1971 to Oct. 1, 1973.
      Subsec. (a)(5). Pub. L. 92-419, Sec. 110, struck out provisions
    of former par. (5) which prohibited any loan or grant under subsec.
    (a) of this section which would cause the unpaid principal
    indebtedness of any association under this chapter and Act Aug. 28,
    1937, as amended (superseded by this chapter), together with amount
    of any assistance in the form of a grant to exceed $4,000,000 at
    any one time.
      Subsec. (a)(6). Pub. L. 92-419, Sec. 108, substituted
    ''$30,000,000'' for ''$15,000,000'', struck out ''official'' before
    ''comprehensive plans'', and substituted ''waste disposal systems''
    for ''sewer systems''.
      Subsec. (a)(7). Pub. L. 92-419, Sec. 109, substituted definition
    of ''rural'' and ''rural area'' as excluding an area in a city or
    town with a population in excess of ten thousand inhabitants for
    prior provision for rural areas for purposes of water and waste
    disposal projects excluding an area in a city or town with a
    population in excess of 5,500 inhabitants, provided exception
    provision and special consideration for loans and grants to areas
    other than cities having a population of more than twenty-five
    thousand.
      Subsec. (a)(11), (12). Pub. L. 92-419, Sec. 111, 112, added pars.
    (11) and (12).
      1970 - Subsec. (a)(1). Pub. L. 91-617 required inclusion in gross
    income of the interest or other income paid to an insured holder
    when any loan made for a purpose specified in subsec. (a)(1) is
    sold out of the Agricultural Credit Insurance Fund as an insured
    loan.
      Subsec. (c). Pub. L. 91-606 repealed subsec. (c), added by Pub.
    L. 89-769, Sec. 6(b), Nov. 6, 1966, 80 Stat. 1318, which related to
    loans to associations in areas suffering major disasters.  See
    section 4401 et seq. of Title 42, The Public Health and Welfare.
      Subsec. (d). Pub. L. 91-524 added subsec. (d).
      1968 - Subsec. (a). Pub. L. 90-488 substituted ''$100,000,000''
    for ''$50,000,000'' in par. (2), ''1971'' for ''1968'' in par. (3),
    and ''$15,000,000'' for ''$5,000,000'' in par. (6), respectively.
      1966 - Subsec. (c). Pub. L. 89-769 added subsec. (c).
      1965 - Subsec. (a). Pub. L. 89-240 designated existing provisions
    as par. (1), struck out ''including the development of recreational
    facilities'' after ''shifts in land use'', substituted ''drainage
    or waste disposal facilities'' for ''drainage facilities'',
    inserted ''and recreational developments'', deleted provisions
    which prohibited loans which would cause an association's unpaid
    principal indebtedness to exceed $500,000, in the case of direct
    loans and $1,000,000 in the case of insured loans at any one time,
    and added pars. (2) to (10).
      1962 - Subsec. (a). Pub. L. 87-703 authorized loans to be made or
    insured to provide for the application or establishment of shifts
    in land use including the development of recreational facilities.
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by section 701(a) of Pub. L. 102-237 effective as if
    included in the provision of the Food, Agriculture, Conservation,
    and Trade Act of 1990, Pub. L. 101-624, to which the amendment
    relates, and amendment by section 701(h)(1)(A), (B) of Pub. L.
    102-237 to any provision specified therein effective as if included
    in act that added provision so specified at the time such act
    became law, see section 1101(b)(6), (c) of Pub. L. 102-237, set out
    as a note under section 1421 of this title.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-355 effective Oct. 1, 1980, see section
    10 of Pub. L. 96-355, set out as an Effective Date note under
    section 2204b of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 105 of Pub. L. 95-334 provided that the amendment made by
    that section is effective Oct. 1, 1978.
                     EFFECTIVE DATE OF 1970 AMENDMENTS
      Section 1(b) of Pub. L. 91-617 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to the
    insured loans sold out of the Agricultural Credit Insurance Fund
    after the date of the enactment of this Act (Dec. 31, 1970).''
      Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section
    304 of Pub. L. 91-606, set out as a note under section 165 of Title
    26, Internal Revenue Code.
                      EFFECTIVE DATE OF 1966 AMENDMENT
      Amendment by Pub. L. 89-769 applicable with respect to any major
    disaster occurring after Oct. 3, 1964, see section 14 of Pub. L.
    89-769.
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      Powers, duties, and assets of agencies, offices, and other
    entities within Department of Agriculture relating to rural
    development functions transferred to Rural Development
    Administration by section 2302(b) of Pub. L. 101-624.
 
-MISC5-
         TEMPORARY EXPANDED ELIGIBILITY OF CERTAIN TIMBER-DEPENDENT
      COMMUNITIES IN PACIFIC NORTHWEST FOR LOANS AND GRANTS FROM RURAL
                         DEVELOPMENT ADMINISTRATION
      Pub. L. 103-427, Oct. 31, 1994, 108 Stat. 4373, provided that:
      ''(a) Findings. - Congress finds the following:
        ''(1) Timber-dependent communities in the Pacific Northwest
      have contributed significantly to the economic needs of the
      United States and have helped ensure an adequate national supply
      of timber and timber products.
        ''(2) A significant portion of the timber traditionally
      harvested in the Pacific Northwest is derived from Federal forest
      lands, and these forests have played an important role in
      sustaining local economies.
      ''(b) Expanded Eligibility. - During the period beginning on the
    date of the enactment of this Act (Oct. 31, 1994) and ending on
    September 30, 1998, the terms 'rural' and 'rural area', as used in
    the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
    seq.), shall include any town, city, or municipality -
        ''(1) part or all of which lies within 100 miles of the
      boundary of a national forest covered by the Federal document
      entitled 'Forest Plan for a Sustainable Economy and a Sustainable
      Environment', dated July 1, 1993;
        ''(2) that is located in a county in which at least 15 percent
      of the total primary and secondary labor and proprietor income is
      derived from forestry, wood products, or forest-related
      industries such as recreation and tourism; and
        ''(3) that has a population of not more than 25,000
      inhabitants.
      ''(c) Effect on State Allotments of Funds. - This section shall
    not be taken into consideration in allotting funds to the various
    States for purposes of the Consolidated Farm and Rural Development
    Act (7 U.S.C. 1921 et seq.), or otherwise affect or alter the
    manner under which such funds were allotted to States before the
    date of the enactment of this Act (Oct. 31, 1994).''
              RURAL WASTEWATER TREATMENT CIRCUIT RIDER PROGRAM
      Section 2324 of Pub. L. 101-624 directed Secretary to establish
    national rural wastewater circuit rider grant program that was to
    be modeled after existing National Rural Water Association Rural
    Water Circuit Rider Program that received funding from Farmers Home
    Administration and authorized $4,000,000 for each fiscal year to
    carry out such program, prior to repeal by Pub. L. 104-127, title
    VII, Sec. 703, Apr. 4, 1996, 110 Stat. 1108.
             INTEREST RATE RESTRUCTURING FOR CERTAIN BORROWERS
      Pub. L. 100-233, title VI, Sec. 615(b)(2), Jan. 6, 1988, 101
    Stat. 1682, provided that: ''Effective July 29, 1987, the interest
    rate charged on any loan of $2,000,000 or more made on such date
    under section 306 (7 U.S.C. 1926) to any nonprofit corporation
    shall be the interest rate quoted to such nonprofit corporation by
    the Farmers Home Administration on June 22, 1987, in the request
    for obligation of funds made with respect to the loan.''
                     LEASE OF CERTAIN ACQUIRED PROPERTY
      Pub. L. 100-233, title VI, Sec. 620, Jan. 6, 1988, 101 Stat.
    1684, provided that: ''Notwithstanding any other provision of law,
    the Secretary of Agriculture may lease to public or private
    nonprofit organizations, for a nominal rent, any facilities
    acquired in connection with the disposition of a loan made by the
    Secretary under section 306 (7 U.S.C. 1926). Any such lease shall
    be for such reasonable period of time as the Secretary determines
    is appropriate.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 917, 1927, 1929, 1929a,
    1983, 1983a, 1992, 2001a, 2009, 2009d, 2204b, 2204b-1, 6613, 6942,
    6944 of this title; title 16 section 2106; title 42 section 5153.
 
-CITE-
     7 USC Sec. 1926-1                                           01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1926-1. Repealed. Pub. L. 104-127, title VII, Sec. 702, Apr.
        4, 1996, 110 Stat. 1108
 
-MISC1-
      Section, Pub. L. 101-624, title XXIII, Sec. 2322, Nov. 28, 1990,
    104 Stat. 4010; Pub. L. 102-237, title VII, Sec. 702(f), Dec. 13,
    1991, 105 Stat. 1880; Pub. L. 103-354, title II, Sec. 235(b)(6),
    Oct. 13, 1994, 108 Stat. 3222, related to water and waste facility
    financing, including provisions relating to authority, limitation,
    priority, coordination, terms, private sector capital,
    appropriations, repayment, full use, and replenishment of water and
    waste facility fund.
 
-CITE-
     7 USC Sec. 1926a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1926a. Emergency community water assistance grant program
 
-STATUTE-
    (a) In general
      The Secretary shall provide grants in accordance with this
    section to assist the residents of rural areas and small
    communities to secure adequate quantities of safe water -
        (1) after a significant decline in the quantity or quality of
      water available from the water supplies of such rural areas and
      small communities; or
        (2) when repairs, partial replacement, or significant
      maintenance efforts on established water systems would remedy -
          (A) an acute shortage of quality water; or
          (B) a significant decline in the quantity or quality of water
        that is available.
    (b) Priority
      In carrying out subsection (a) of this section, the Secretary
    shall -
        (1) give priority to projects described in subsection (a)(1) of
      this section; and
        (2) provide at least 70 percent of all such grants to such
      projects.
    (c) Eligibility
      To be eligible to obtain a grant under this section, an applicant
    shall -
        (1) be a public or private nonprofit entity; and
        (2) in the case of a grant made under subsection (a)(1) of this
      section, demonstrate to the Secretary that the decline referred
      to in such subsection occurred within 2 years of the date the
      application was filed for such grant.
    (d) Uses
      (1) In general
        Grants made under this section may be used for waterline
      extensions from existing systems, laying of new waterlines,
      repairs, significant maintenance, digging of new wells, equipment
      replacement, hook and tap fees, and any other appropriate purpose
      associated with developing sources of, or treating, storing, or
      distributing water, and to assist communities in complying with
      the requirements of the Federal Water Pollution Control Act (33
      U.S.C. 1251 et seq.) or the Safe Drinking Water Act (42 U.S.C.
      300f et seq.).
      (2) Joint proposals
        Nothing in this section shall preclude rural communities from
      submitting joint proposals for emergency water assistance,
      subject to the restrictions contained in subsection (e) of this
      section.  Such restrictions should be considered in the
      aggregate, depending on the number of communities involved.
    (e) Restrictions
      (1) Maximum population and income
        No grant provided under this section shall be used to assist
      any rural area or community that -
          (A) includes any area in any city or town with a population
        in excess of 10,000 inhabitants according to the most recent
        decennial census of the United States; or
          (B) has a median household income in excess of the State
        nonmetropolitan median household income according to the most
        recent decennial census of the United States.
      (2) Set-aside for smaller communities
        Not less than 50 percent of the funds allocated under this
      section shall be allocated to rural communities with populations
      that do not exceed 3,000 inhabitants.
    (f) Maximum grants
      Grants made under this section may not exceed -
        (1) in the case of each grant made under subsection (a)(1) of
      this section, $500,000; and
        (2) in the case of each grant made under subsection (a)(2) of
      this section, $75,000.
    (g) Full funding
      Subject to subsection (e) of this section, grants under this
    section shall be made in an amount equal to 100 percent of the
    costs of the projects conducted under this section.
    (h) Application
      (1) Nationally competitive application process
        The Secretary shall develop a nationally competitive
      application process to award grants under this section.  The
      process shall include criteria for evaluating applications,
      including population, median household income, and the severity
      of the decline in quantity or quality of water.
      (2) Timing
        The Secretary shall make every effort to review and act on
      applications within 60 days of the date that such applications
      are submitted.
    (i) Authorization of appropriations
      There are authorized to be appropriated to carry out this section
    $35,000,000 for each of fiscal years 1996 through 2002.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 306A, as added Pub. L. 101-82,
    title V, Sec. 501(a), Aug. 14, 1989, 103 Stat. 584; amended Pub. L.
    104-127, title VII, Sec. 742, Apr. 4, 1996, 110 Stat. 1124.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Federal Water Pollution Control Act, referred to in subsec.
    (d)(1), is act June 30, 1948, ch. 758, as amended generally by Pub.
    L. 92-500, Sec. 2, Oct. 18, 1972, 86 Stat. 816, which is classified
    generally to chapter 26 (Sec. 1251 et seq.) of Title 33, Navigation
    and Navigable Waters. For complete classification of this Act to
    the Code, see Short Title note set out under section 1251 of Title
    33 and Tables.
      The Safe Drinking Water Act, referred to in subsec. (d)(1), is
    title XIV of act July 1, 1944, as added Dec. 16, 1974, Pub. L.
    93-523, Sec. 2(a), 88 Stat. 1660, as amended, which is classified
    generally to subchapter XII (Sec. 300f et seq.) of chapter 6A of
    Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 201 of Title 42 and Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (e)(1)(A). Pub. L. 104-127, Sec. 742(1)(A),
    substituted ''10,000'' for ''15,000''.
      Subsec. (e)(2). Pub. L. 104-127, Sec. 742(1)(B), substituted
    ''3,000'' for ''5,000''.
      Subsec. (i). Pub. L. 104-127, Sec. 742(2), added subsec. (i) and
    struck out heading and text of former subsec. (i). Text read as
    follows: ''There are authorized to be appropriated to carry out
    this section, $35,000,000 for each of the fiscal years 1990 and
    1991, such sums to remain authorized until fully appropriated.''
                               IMPLEMENTATION
      Section 501(b) of Pub. L. 101-82 provided that:
      ''(1) Regulations. - The Secretary of Agriculture shall publish -
        ''(A) interim final regulations to carry out section 306A of
      the Consolidated Farm and Rural Development Act (7 U.S.C. 1926a)
      (as added by subsection (a) of this section) not later than 45
      days after the date of enactment of this Act (Aug. 14, 1989); and
        ''(B) final regulations to carry out section 306A of such Act
      not later than 90 days after the date of enactment of this Act.
      ''(2) Funds. -
        ''(A) Obligation. - The Secretary shall designate 70 percent of
      the funds made available for the first fiscal year for which
      appropriations are made under section 306A(i) of the Consolidated
      Farm and Rural Development Act not later than 5 months after the
      date such funds are appropriated.
        ''(B) Release. - The Secretary may release funds prior to the
      issuance of final regulations under paragraph (1)(B) for grants
      under section 306A(a)(1) of the Consolidated Farm and Rural
      Development Act.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 917, 2009d, 6942 of this
    title.
 
-CITE-
     7 USC Sec. 1926b                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1926b. Repealed. Pub. L. 104-127, title VII, Sec. 743, Apr. 4,
        1996, 110 Stat. 1125
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 306B, as added Pub. L.
    101-624, title XXIII, Sec. 2326(a), Nov. 28, 1990, 104 Stat. 4014,
    related to emergency community water assistance grant program,
    including general provisions and provisions relating to priority,
    eligibility, uses, restrictions, maximum grants, full funding,
    application, and limitations on authorization of appropriations.
 
-CITE-
     7 USC Sec. 1926c                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1926c. Water and waste facility loans and grants to alleviate
        health risks
 
-STATUTE-
    (a) Loans and grants to persons other than individuals
      (1) In general
        The Secretary shall make or insure loans and make grants to
      rural water supply corporations, cooperatives, or similar
      entities, Indian tribes on Federal and State reservations and
      other federally recognized Indian tribes, and public agencies, to
      provide for the conservation, development, use, and control of
      water (including the extension or improvement of existing water
      supply systems), and the installation or improvement of drainage
      or waste disposal facilities and essential community facilities
      including necessary related equipment.  Such loans and grants
      shall be available only to provide such water and waste
      facilities and services to communities whose residents face
      significant health risks, as determined by the Secretary, due to
      the fact that a significant proportion of the community's
      residents do not have access to, or are not served by, adequate
      affordable -
          (A) water supply systems; or
          (B) waste disposal facilities.
      (2) Certain areas targeted
        (A) In general
          Loans and grants under paragraph (1) shall be made only if
        the loan or grant funds will be used primarily to provide water
        or waste services, or both, to residents of a county -
            (i) the per capita income of the residents of which is not
          more than 70 percent of the national average per capita
          income, as determined by the Department of Commerce; and
            (ii) the unemployment rate of the residents of which is not
          less than 125 percent of the national average unemployment
          rate, as determined by the Bureau of Labor Statistics.
        (B) Exception
          Notwithstanding subparagraph (A), loans and grants under
        paragraph (1) may also be made if the loan or grant funds will
        be used primarily to provide water or waste services, or both,
        to residents of a rural area that was recognized as a colonia
        as of October 1, 1989.
    (b) Loans and grants to individuals
      (1) In general
        The Secretary shall make or insure loans and make grants to
      individuals who reside in a community described in subsection
      (a)(1) of this section for the purpose of extending water supply
      and waste disposal systems, connecting the systems to the
      residences of the individuals, or installing plumbing and
      fixtures within the residences of the individuals to facilitate
      the use of the water supply and waste disposal systems.  Such
      loans shall be at a rate of interest no greater than the Federal
      Financing Bank rate on loans of a similar term at the time such
      loans are made.  The repayment of such loans shall be amortized
      over the expected life of the water supply or waste disposal
      system to which the residence of the borrower will be connected.
      (2) Manner in which loans and grants are to be made
        Loans and grants to individuals under paragraph (1) shall be
      made -
          (A) directly to such individuals by the Secretary; or
          (B) to such individuals through the rural water supply
        corporation, cooperative, or similar entity, or public agency,
        providing such water supply or waste disposal services,
        pursuant to regulations issued by the Secretary.
    (c) Preference
      The Secretary shall give preference in the awarding of loans and
    grants -
        (1) under subsection (a) of this section to rural water supply
      corporations, cooperatives, or similar entities, or public
      agencies, that propose to provide water supply or waste disposal
      services to the residents of those rural subdivisions commonly
      referred to as colonias, that are characterized by substandard
      housing, inadequate roads and drainage, and a lack of adequate
      water or waste facilities; and
        (2) under subsection (b) of this section to individuals who
      reside in a rural subdivision commonly referred to as a colonia,
      that is characterized by substandard housing, inadequate roads
      and drainage, and a lack of adequate water or waste facilities.
    (d) ''Cooperative'' defined
      For purposes of this section, the term ''cooperative'' means a
    cooperative formed specifically for the purpose of the
    installation, expansion, improvement, or operation of water supply
    or waste disposal facilities or systems.
    (e) Limitations on authorization of appropriations
      There are authorized to be appropriated -
        (1) for grants under this section, $30,000,000 for each fiscal
      year; and
        (2) for loans under this section, $30,000,000 for each fiscal
      year.
    (f) Regulations
      Not later than 30 days after October 28, 1992, the Secretary
    shall issue interim final regulations, with a request for public
    comments, implementing this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 306C, as added Pub. L. 101-624,
    title XXIII, Sec. 2327, Nov. 28, 1990, 104 Stat. 4015; amended Pub.
    L. 102-237, title VII, Sec. 701(b), Dec. 13, 1991, 105 Stat. 1879;
    Pub. L. 102-552, title V, Sec. 516(l), (m), Oct. 28, 1992, 106
    Stat. 4139; Pub. L. 102-554, Sec. 24, Oct. 28, 1992, 106 Stat.
    4161.)
 
-MISC1-
                                 AMENDMENTS
      1992 - Subsec. (a)(2). Pub. L. 102-554 amended par. (2)
    generally.  Prior to amendment, par. (2) read as follows: ''(2)
    Certain counties targeted. - Loans and grants under paragraph (1)
    shall be made only if the loan or grant funds will be used
    primarily to provide water or waste services, or both, to residents
    of a county -
        ''(A) the per capita income of the residents of which is not
      more than 70 percent of the national average per capita income,
      as determined by the Department of Commerce; and
        ''(B) the unemployment rate of the residents of which is not
      less than 125 percent of the national average unemployment rate,
      as determined by the Bureau of Labor Statistics.''
      Subsec. (b)(1). Pub. L. 102-552, Sec. 516(l), substituted '',
    connecting the systems to the residences of the individuals, or
    installing plumbing and fixtures within the residences of the
    individuals to facilitate the use of the water supply and waste
    disposal systems'' for ''or connecting such systems to the
    residences of such individuals''.
      Subsec. (f). Pub. L. 102-552, Sec. 516(m), added subsec. (f).
      1991 - Subsec. (a)(2). Pub. L. 102-237 realigned margins of
    subpars. (A) and (B).
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by Pub. L. 102-237 effective as if included in the
    provision of the Food, Agriculture, Conservation, and Trade Act of
    1990, Pub. L. 101-624, to which the amendment relates, see section
    1101(b)(6) of Pub. L. 102-237, set out as a note under section 1421
    of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 917, 6942 of this title;
    title 8 section 1611.
 
-CITE-
     7 USC Sec. 1926d                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1926d. Water systems for rural and Native villages in Alaska
 
-STATUTE-
    (a) In general
      The Secretary may make grants to the State of Alaska for the
    benefit of rural or Native villages in Alaska to provide for the
    development and construction of water and wastewater systems to
    improve the health and sanitation conditions in those villages.
    (b) Matching funds
      To be eligible to receive a grant under subsection (a) of this
    section, the State of Alaska shall provide 25 percent in matching
    funds from non-Federal sources.
    (c) Consultation with State of Alaska
      The Secretary shall consult with the State of Alaska on a method
    of prioritizing the allocation of grants under subsection (a) of
    this section according to the needs of, and relative health and
    sanitation conditions in, each village.
    (d) Authorization of appropriations
      There are authorized to be appropriated to carry out this section
    $20,000,000 for each of fiscal years 1996 through 2002.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 306D, as added Pub. L. 104-127,
    title VII, Sec. 757, Apr. 4, 1996, 110 Stat. 1131; amended Pub. L.
    105-277, div.  A, Sec. 101(a) (title VII, Sec. 745), Oct. 21, 1998,
    112 Stat. 2681, 2681-32.)
 
-MISC1-
                                 AMENDMENTS
      1998 - Subsec. (b). Pub. L. 105-277 substituted ''25 percent in
    matching'' for ''equal matching''.
      Subsec. (d). Pub. L. 105-277 substituted ''$20,000,000'' for
    ''$15,000,000''.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 917 of this title.
 
-CITE-
     7 USC Sec. 1927                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1927. Repayment requirements
 
-STATUTE-
    (a) Period of repayment; interest rates
      (1) The period for repayment of loans under this subchapter shall
    not exceed forty years.
      (2) Except as otherwise provided in paragraphs (3), (4), (5), and
    (6) of this subsection, the interest rates on loans under this
    subchapter shall be as determined by the Secretary, but not in
    excess of the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    plus not to exceed 1 per centum, as determined by the Secretary,
    and adjusted to the nearest one-eighth of 1 per centum.
      (3)(A) Notwithstanding the provisions of the constitution or laws
    of any State limiting the rate or amount of interest that may be
    charged, taken, received, or reserved, except as provided in
    paragraph (6), the interest rates on loans (other than guaranteed
    loans), to public bodies or nonprofit associations (including
    Indian tribes on Federal and State reservations and other federally
    recognized Indian tribal groups) for water and waste disposal
    facilities and essential community facilities shall be set by the
    Secretary at rates not to exceed the current market yield for
    outstanding municipal obligations with remaining periods to
    maturity comparable to the average maturity for such loans, and
    adjusted to the nearest one-eighth of 1 per centum; and not in
    excess of 5 per centum per annum for any such loans which are for
    the upgrading of existing facilities or construction of new
    facilities as required to meet applicable health or sanitary
    standards in areas where the median household income of the persons
    to be served by such facility is below the higher of 80 per centum
    of the statewide nonmetropolitan median household income or the
    poverty line established by the Office of Management and Budget, as
    revised under section 9902(2) of title 42 and in other areas as the
    Secretary may designate where a significant percentage of the
    persons to be served by such facilities are of low income, as
    determined by the Secretary; and not in excess of 7 per centum per
    annum on loans for such facilities that do not qualify for the 5
    per centum per annum interest rate but are located in areas where
    the median household income of the persons to be served by the
    facility does not exceed 100 per centum of the statewide
    nonmetropolitan median household income.
      (B) Except as provided in subparagraph (D) and in paragraph (6),
    the interest rate on loans (other than guaranteed loans) under
    section 1934 of this title shall not be -
        (i) greater than the sum of -
          (I) an amount that does not exceed one-half of the current
        average market yield on outstanding marketable obligations of
        the United States with maturities of 5 years; and
          (II) an amount not exceeding 1 percent per year, as the
        Secretary determines is appropriate; or
        (ii) less than 5 percent per year.
      (C) Notwithstanding subparagraph (A), the Secretary shall
    establish loan rates for health care and related facilities based
    solely on the income of the area to be served, and such rates shall
    be otherwise consistent with such subparagraph.
      (D) Joint financing arrangement. - If a direct farm ownership
    loan is made under this subchapter as part of a joint financing
    arrangement and the amount of the direct farm ownership loan does
    not exceed 50 percent of the total principal amount financed under
    the arrangement, the interest rate on the direct farm ownership
    loan shall be at least 4 percent annually.
      (4) Except as provided in paragraph (6), the interest rates on
    loans under sections 1926(a)(1) and 1932 of this title (other than
    guaranteed loans and loans as described in paragraph (3) of this
    subsection) shall be as determined by the Secretary, but not less
    than such rates as determined by the Secretary of the Treasury
    taking into consideration the current average market yield on
    outstanding marketable obligations of the United States with
    remaining periods to maturity comparable to the average maturities
    of such loans, adjusted in the judgment of the Secretary of the
    Treasury to provide for rates comparable to the rates prevailing in
    the private market for similar loans and considering the
    Secretary's insurance of the loans, plus an additional charge,
    prescribed by the Secretary, to cover the Secretary's losses and
    cost of administration, which charge shall be deposited in the
    Rural Development Insurance Fund, and further adjusted to the
    nearest one-eighth of 1 per centum.
      (5)(A) Except as provided in subparagraph (B), the interest rate
    on any loan made under this subchapter as a guaranteed loan shall
    be such rate as may be agreed upon by the borrower and the lender,
    but not in excess of a rate as may be determined by the Secretary.
      (B) In the case of a loan made under section 1932 of this title
    as a guaranteed loan, subparagraph (A) shall apply notwithstanding
    the provisions of the constitution or laws of any State limiting
    the rate or amount of interest that may be charged, taken,
    received, or reserved.
      (6)(A) Notwithstanding any other provision of this section, in
    the case of loans (other than guaranteed loans) made or insured
    under the authorities of this chapter specified in subparagraph (B)
    for activities that involve the use of prime farmland as defined in
    subparagraph (C), the interest rates shall be the interest rates
    otherwise applicable under this section increased by 2 per centum
    per annum.  Wherever practicable, construction by a State,
    municipality, or other political subdivision of local government
    that is supported by loans described in the preceding sentence
    shall be placed on land that is not prime farmland, in order to
    preserve the maximum practicable amount of prime farmlands for
    production of food and fiber.  Where other options exist for the
    siting of such construction and where the governmental authority
    still desires to carry out such construction on prime farmland, the
    2 per centum interest rate increase provided by this clause shall
    apply, but such increased interest rate shall not apply where such
    other options do not exist.
      (B) The authorities referred to in subparagraph (A) are -
        (i) the provisions of section 1926(a)(1) of this title relating
      to loans for recreational developments and essential community
      facilities,
        (ii) clause (1) of section 1932(a) of this title, and
        (iii) section 1932(d) of this title.
      (C) For purposes of this paragraph, the term ''prime farmland''
    means prime farmlands and unique farmland as those terms are
    defined in sections 657.5(a) and (b) of title 7, Code of Federal
    Regulations (1980).
    (b) Payment of charges; prepayment of taxes and insurance
      The borrower shall pay such fees and other charges as the
    Secretary may require, and borrowers under this chapter shall
    prepay to the Secretary such taxes and insurance as the Secretary
    may require, on such terms and conditions as the Secretary may
    prescribe.
    (c) Mortgages, liens, and other security
      The Secretary shall take as security for the obligations entered
    into in connection with loans, mortgages on farms with respect to
    which such loans are made or such other security as the Secretary
    may require, and for obligations in connection with loans to
    associations under section 1926 of this title, shall take liens on
    the facility or such other security as he may determine to be
    necessary.  Such security instruments may constitute liens running
    to the United States notwithstanding the fact that the notes may be
    held by lenders other than the United States. A borrower may use
    the same collateral to secure two or more loans made, insured, or
    guaranteed under this subchapter, except that the outstanding
    amount of such loans may not exceed the total value of the
    collateral so used.
    (d) Mineral rights as collateral
      With respect to a farm ownership loan made after December 23,
    1985, unless appraised values of the rights to oil, gas, or other
    minerals are specifically included as part of the appraised value
    of collateral securing the loan, the rights to oil, gas, or other
    minerals located under the property shall not be considered part of
    the collateral securing the loan.  Nothing in this subsection shall
    prevent the inclusion of, as part of the collateral securing the
    loan, any payment or other compensation the borrower may receive
    for damages to the surface of the collateral real estate resulting
    from the exploration for or recovery of minerals.
    (e) Additional collateral
      The Secretary may not -
        (1) require any borrower to provide additional collateral to
      secure a farmer program loan made or insured under this chapter,
      if the borrower is current in the payment of principal and
      interest on the loan; or
        (2) bring any action to foreclose, or otherwise liquidate, any
      such loan as a result of the failure of a borrower to provide
      additional collateral to secure a loan, if the borrower was
      current in the payment of principal and interest on the loan at
      the time the additional collateral was requested.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 307, Aug. 8, 1961, 75 Stat. 308;
    Pub. L. 92-419, title I, Sec. 113, 114, 128(b), Aug. 30, 1972, 86
    Stat. 660, 666; Pub. L. 95-334, title I, Sec. 108, Aug. 4, 1978, 92
    Stat. 422; Pub. L. 97-35, title I, Sec. 160(a), Aug. 13, 1981, 95
    Stat. 376; Pub. L. 99-198, title XIII, Sec. 1304A, 1305, Dec. 23,
    1985, 99 Stat. 1521; Pub. L. 100-233, title VI, Sec. 603, 604, Jan.
    6, 1988, 101 Stat. 1665, 1666; Pub. L. 101-624, title XVIII, Sec.
    1803(a), title XXIII, Sec. 2383, Nov. 28, 1990, 104 Stat. 3818,
    4050; Pub. L. 102-552, title V, Sec. 516(c)(1), Oct. 28, 1992, 106
    Stat. 4137; Pub. L. 103-328, title I, Sec. 113(a), Sept. 29, 1994,
    108 Stat. 2366; Pub. L. 104-127, title VI, Sec. 604, 661(a), title
    VII, Sec. 747(b)(1), Apr. 4, 1996, 110 Stat. 1086, 1106, 1128.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs.
    (a)(6)(A) and (e)(1), see note set out under section 1921 of this
    title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (a)(3)(B). Pub. L. 104-127, Sec. 604(1), inserted
    ''subparagraph (D) and in'' after ''Except as provided in''.
      Subsec. (a)(3)(D). Pub. L. 104-127, Sec. 604(2), added subpar.
    (D).
      Subsec. (a)(4). Pub. L. 104-127, Sec. 661(a)(1), substituted
    ''1926(a)(1) and 1932 of this title'' for ''1924(b), 1926(a)(1),
    and 1932 of this title''.
      Subsec. (a)(6)(B). Pub. L. 104-127, Sec. 661(a)(2), inserted
    ''and'' at end of cl. (v), substituted a period for '', and'' at
    end of cl. (vi), redesignated cls. (iii), (v), and (vi) as (i),
    (ii), and (iii), respectively, and struck out cls. (i), (ii), (iv),
    and (vii) which read as follows:
      ''(i) clauses (2) and (3) of section 1923(a) of this title,
      ''(ii) section 1924(b) of this title,
      ''(iv) section 1926(a)(15) of this title,
      ''(vii) section 1934(a) of this title as it relates to the making
    or insuring of loans under clauses (2) and (3) of section 1923(a)
    of this title.''
      Subsec. (a)(6)(B)(iii). Pub. L. 104-127, Sec. 747(b)(1),
    substituted ''section 1932(d) of this title'' for ''subsections (d)
    and (e) of section 1932 of this title''.
      1994 - Subsec. (a)(3)(A). Pub. L. 103-328, Sec. 113(a)(1),
    substituted ''Notwithstanding the provisions of the constitution or
    laws of any State limiting the rate or amount of interest that may
    be charged, taken, received, or reserved, except'' for ''Except''.
      Subsec. (a)(5). Pub. L. 103-328, Sec. 113(a)(2), substituted
    ''(5)(A) Except as provided in subparagraph (B), the'' for ''(5)
    The'' and added subpar. (B).
      1992 - Subsec. (a)(6)(B)(ii) to (viii). Pub. L. 102-552
    redesignated cls. (iii) to (viii) as (ii) to (vii) and struck out
    former cl. (ii) which read as follows: ''the provisions of section
    1924(a) of this title, relating to the financing of outdoor
    recreational enterprises or the conversion of farming or ranching
    operations to recreational uses,''.
      1990 - Subsec. (a)(3)(A). Pub. L. 101-624, Sec. 2383(1),
    substituted ''guaranteed'' for ''guranteed''.
      Subsec. (a)(3)(B). Pub. L. 101-624, Sec. 1803(a), amended subpar.
    (B) generally.  Prior to amendment, subpar. (B) read as follows:
    ''Except as provided in paragraph (6), the interest rates on loans
    (other than guaranteed loans) under section 1934 of this title
    shall be as determined by the Secretary, but not in excess of
    one-half of the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans, nor
    less than 5 per centum per annum.''
      Subsec. (a)(3)(C). Pub. L. 101-624, Sec. 2383(2), added subpar.
    (C).
      1988 - Subsec. (c). Pub. L. 100-233, Sec. 603, inserted
    provisions at end relating to use of same collateral to secure two
    or more loans made, insured, or guaranteed under this subchapter.
      Subsec. (e). Pub. L. 100-233, Sec. 604, added subsec. (e).
      1985 - Subsec. (a)(3)(A). Pub. L. 99-198, Sec. 1304A, substituted
    ''where the median household income of the persons to be served by
    such facility is below the higher of 80 per centum of the statewide
    nonmetropolitan median household income or the poverty line
    established by the Office of Management and Budget, as revised
    under section 9902(2) of title 42'' for ''where the median family
    income of the persons to be served by such facility is below the
    poverty line prescribed by the Office of Management and Budget as
    adjusted under section 2971d of title 42'' and prescribed a 7 per
    centum per annum ceiling on loans for facilities that do not
    qualify for the 5 per centum per annum interest rate but are
    located in areas where the median household income of the persons
    to be served by the facility does not exceed 100 per centum of the
    statewide nonmetropolitan median household income.
      Subsec. (d). Pub. L. 99-198, Sec. 1305, added subsec. (d).
      1981 - Subsec. (a). Pub. L. 97-35 in par. (2) inserted reference
    to par. (6), in par. (3) designated existing provisions as subpar.
    (A), expanded provisions to take into account provisions of par.
    (6) and revised criteria for determination of applicable interest
    rates, and added subpar. (B), in par. (4) inserted exception for
    par. (6), and added par. (6).
      1978 - Subsec. (a). Pub. L. 95-334, Sec. 108(1), substituted
    provisions relating to determination of interest rates on loans,
    except as provided in pars. (3) to (5), as not in excess of the
    current average market yield on outstanding marketable obligations
    of the United States, with comparable remaining periods of maturity
    to the average maturities of such loans plus additional adjusted
    amounts, for provisions relating to establishment of interest rates
    on loans, except as specifically provided, but not in excess of 5
    per centum per annum.
      Subsecs. (b), (c). Pub. L. 95-334, Sec. 108(2), (3), added
    subsec. (b) and redesignated former subsec. (b) as (c).
      1972 - Subsec. (a). Pub. L. 92-419, Sec. 113, 114, prescribed
    interest rates on rural development other than guaranteed and
    guaranteed loans and escrow payment of taxes and insurance,
    respectively.
      Subsec. (b). Pub. L. 92-419, Sec. 128(b), substituted ''may'' for
    ''shall'' in second sentence.
                      EFFECTIVE DATE OF 1994 AMENDMENT
      Section 113(b) of Pub. L. 103-328 provided that:
      ''(1) In general. - Except as provided in paragraphs (2) and (3),
    the amendments made by subsection (a) (amending this section) shall
    apply to a loan made, insured, or guaranteed under the Consolidated
    Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in a State
    on or after the date of enactment of this Act (Sept. 29, 1994).
      ''(2) State option. - Except as provided in paragraph (3), the
    amendments made by subsection (a) shall not apply to a loan made,
    insured, or guaranteed under the Consolidated Farm and Rural
    Development Act in a State after the date (that occurs during the
    3-year period beginning on the date of enactment of this Act) on
    which the State adopts a law or certifies that the voters of the
    State have voted in favor of a provision of the constitution or law
    of the State that states that the State does not want the
    amendments made by subsection (a) to apply with respect to loans
    made, insured, or guaranteed under such Act in the State.
      ''(3) Transitional period. - In any case in which a State takes
    an action described in paragraph (2), the amendments made by
    subsection (a) shall continue to apply to a loan made, insured, or
    guaranteed under the Consolidated Farm and Rural Development Act in
    the State after the date the action was taken pursuant to a
    commitment for the loan that was entered into during the period
    beginning on the date of enactment of this Act, and ending on the
    date on which the State takes the action.''
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 516(c)(2) of Pub. L. 102-552 provided that: ''The
    amendments made by paragraph (1) of this subsection (amending this
    section) shall take effect at the same time as the amendments made
    by section 501(a) of the Food, Agriculture, Conservation, and Trade
    Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1865)
    (amending section 1924 of this title) took effect.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 160(c) of Pub. L. 97-35 provided that: ''The amendments
    made by this section (amending this section and section 1946 of
    this title) shall apply to loans approved after September 30,
    1981.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 935, 1926, 1929, 1991 of
    this title; title 25 section 492.
 
-CITE-
     7 USC Sec. 1927a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1927a. Loan interest rates charged by Farmers Home
        Administration; grant funds associated with loans
 
-STATUTE-
      Effective October 1, 1981, and thereafter, in the case of water
    and waste disposal and community facility borrowers, and effective
    November 12, 1983, and thereafter, in the case of housing and farm
    borrowers, upon request of the borrower, the interest rate charged
    by the Farmers Home Administration to such borrowers shall be the
    lower of the rates in effect at either the time of loan approval or
    loan closing and any Farmers Home Administration grant funds
    associated with such loans shall be set in amount based on the
    interest rate in effect at the time of loan approval.
 
-SOURCE-
    (Pub. L. 99-88, title I, Sec. 100, Aug. 15, 1985, 99 Stat. 296;
    Pub. L. 100-233, title VI, Sec. 615(b)(1)(A), Jan. 6, 1988, 101
    Stat. 1681.)
 
-COD-
                                CODIFICATION
      Section was enacted as part of the Supplemental Appropriations
    Act, 1985, and not as part of the Consolidated Farm and Rural
    Development Act which comprises this chapter.
 
-MISC3-
                                 AMENDMENTS
      1988 - Pub. L. 100-233 substituted ''Effective October 1, 1981,
    and thereafter, in the case of water and waste disposal and
    community facility borrowers, and effective November 12, 1983, and
    thereafter, in the case of housing and farm borrowers'' for
    ''Effective November 12, 1983, and thereafter'' and ''to such
    borrowers'' for ''to housing, farm, water and waste disposal, and
    community facility borrowers''.
                      APPLICABILITY OF 1988 AMENDMENT
      Section 615(b)(1)(B) of Pub. L. 100-233 provided that: ''The
    amendment made by subparagraph (A) (amending this section) shall
    not apply to any note or other obligation sold under section 1001
    of the Omnibus (Budget) Reconciliation Act of 1986 (Pub. L. 99-509,
    7 U.S.C. 1929a note) on or before the date of the enactment of this
    paragraph (Jan. 6, 1988).''
 
-CITE-
     7 USC Sec. 1928                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1928. Full faith and credit
 
-STATUTE-
    (a) In general
      A contract of insurance or guarantee executed by the Secretary
    under this chapter shall be an obligation supported by the full
    faith and credit of the United States.
    (b) Contestability
      A contract of insurance or guarantee executed by the Secretary
    under this chapter shall be incontestable except for fraud or
    misrepresentation that the lender or any holder -
        (1) has actual knowledge of at the time the contract or
      guarantee is executed; or
        (2) participates in or condones.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 308, Aug. 8, 1961, 75 Stat. 308;
    Pub. L. 87-798, Oct. 11, 1962, 76 Stat. 908; Pub. L. 89-240, Sec.
    2(a), Oct. 7, 1965, 79 Stat. 932; Pub. L. 90-488, Sec. 6, Aug. 15,
    1968, 82 Stat. 770; Pub. L. 92-133, Oct. 5, 1971, 85 Stat. 364;
    Pub. L. 101-624, title XXIII, Sec. 2388(a), Nov. 28, 1990, 104
    Stat. 4052; Pub. L. 104-127, title VI, Sec. 605, Apr. 4, 1996, 110
    Stat. 1086.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 amended section generally.  Prior to
    amendment, section read as follows: ''Loans under this subchapter
    may be insured by the Secretary whenever funds are advanced or a
    loan is purchased by a lender other than the United States. In
    connection with insurance of loans, the Secretary -
        ''(1) is authorized to make agreements with respect to the
      servicing of loans insured hereunder and to purchase such loans
      on such terms and conditions as he may prescribe; and
        ''(2) may retain out of payments by the borrower a charge at a
      rate specified in the insurance agreement applicable to the loan.
    Any contract of insurance executed by the Secretary under this
    subchapter shall be an obligation supported by the full faith and
    credit of the United States and incontestable except for fraud or
    misrepresentation of which the holder has actual knowledge.''
      1990 - Pub. L. 101-624 redesignated pars. (a) and (b) as pars.
    (1) and (2), respectively, and in par. (1), substituted
    ''prescribe;'' for ''prescribe,;''.
      1971 - Pub. L. 92-133 eliminated October 1, 1971, as time
    limitation for insurance of loans.
      1968 - Pub. L. 90-488 authorized insurance of loans until Oct. 1,
    1971, without the $450,000,000 limitation on aggregate amount in
    any one year.
      1965 - Pub. L. 89-240 substituted ''$450,000,000'' for
    ''$200,000,000'', ''may retain'' for ''shall retain'', and
    ''specified in the insurance agreement applicable to the loan'' for
    ''determined by the Secretary from time to time equivalent to not
    less than one-half of 1 per centum per annum on the principal
    unpaid balance of the loan'', and struck out ''except that no
    agreement shall provide for purchase by the Secretary at a date
    sooner than three years from the date of the note'' after ''he may
    prescribe''.
      1962 - Pub. L. 87-798 increased aggregate amount of loans that
    may be insured in any one year from $150,000,000 to $200,000,000.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 25 section 488; title 42
    section 1485.
 
-CITE-
     7 USC Sec. 1929                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1929. Agricultural Credit Insurance Fund
 
-STATUTE-
    (a) Revolving fund
      The fund established pursuant to section 11(a) of the
    Bankhead-Jones Farm Tenant Act, as amended, shall hereafter be
    called the Agricultural Credit Insurance Fund and is hereinafter in
    this subchapter referred to as the ''fund''. The fund shall remain
    available as a revolving fund for the discharge of the obligations
    of the Secretary under agreements insuring loans under this
    subchapter and loans and mortgages insured under prior authority.
    (b) Deposits of funds; investments; purchase of notes
      Moneys in the fund not needed for current operations shall be
    deposited in the Treasury of the United States to the credit of the
    fund or invested in direct obligations of the United States or
    obligations guaranteed by the United States. The Secretary may
    purchase with money in the fund any notes issued by the Secretary
    to the Secretary of the Treasury for the purpose of obtaining money
    for the fund.
    (c) Notes; form and denominations; maturities; terms and
        conditions; interest rate; purchase by Treasury; public debt
        transaction
      The Secretary is authorized to make and issue notes to the
    Secretary of the Treasury for the purpose of obtaining funds
    necessary for discharging obligations under this section and for
    authorized expenditures out of the fund.  Such notes shall be in
    such form and denominations and have such maturities and be subject
    to such terms and conditions as may be prescribed by the Secretary
    with the approval of the Secretary of the Treasury. Such notes
    shall bear interest at a rate fixed by the Secretary of the
    Treasury, taking into consideration the current average market
    yield of outstanding marketable obligations of the United States
    having maturities comparable to the notes issued by the Secretary
    under this subchapter.  The Secretary of the Treasury is authorized
    and directed to purchase any notes of the Secretary issued
    hereunder, and, for that purpose, the Secretary of the Treasury is
    authorized to use as a public debt transaction the proceeds from
    the sale of any securities issued under chapter 31 of title 31, and
    the purposes for which such securities may be issued under such
    chapter are extended to include the purchase of notes issued by the
    Secretary. All redemptions, purchases, and sales by the Secretary
    of the Treasury of such notes shall be treated as public debt
    transactions of the United States.
    (d) Notes and security as part of fund; collection or sale of
        notes; deposit of net proceeds in fund
      Notes and security acquired by the Secretary in connection with
    loans insured under this subchapter and under prior authority shall
    become a part of the fund.  Notes may be held in the fund and
    collected in accordance with their terms or may be sold by the
    Secretary with or without agreements for insurance thereof at the
    balance due thereon, or on such other basis as the Secretary may
    determine from time to time.  All net proceeds from such
    collections, including sales of notes or property, shall be
    deposited in and become a part of the fund.
    (e) Deposit in fund of portion of charge on outstanding principal
        obligations; availability of remainder of charge, and merger
        with appropriations, for administrative expenses
      The Secretary shall deposit in the fund all or a portion, not to
    exceed one-half of 1 per centum of the unpaid principal balance of
    the loan, of any charge collected in connection with the insurance
    of loans; and any remainder of any such charge shall be available
    for administrative expenses of the Farmers Home Administration and
    the Rural Development Administration, in proportion to such charges
    collected in connection with the insurance of loans by such agency,
    to be transferred annually and become merged with any appropriation
    for administrative expenses for such agency.
    (f) Utilization of fund
      The Secretary may utilize the fund -
        (1) to pay amounts to which the holder of the note is entitled
      on loans heretofore or hereafter insured accruing between the
      date of any payments made by the borrower and the date of
      transmittal of any such payments to the lender.  In the
      discretion of the Secretary, payments other than final payments
      need not be remitted to the holder until due or until the next
      agreed annual or semiannual remittance date;
        (2) to pay to the holder of the notes any deferred or defaulted
      installment or, upon assignment of the note to the Secretary at
      the Secretary's request, the entire balance due on the loan;
        (3) to purchase notes in accordance with agreements previously
      entered into;
        (4) to pay for contract services, taxes, insurance, prior
      liens, expenses necessary to make fiscal adjustments in
      connection with the application and transmittal of collections
      and other expenses and advances authorized in connection with
      insured loans, including the difference between interest payable
      by borrowers and interest to which insured lenders or insured
      holders are entitled under agreements with the Secretary included
      in contracts of insurance;
        (5) to pay the Secretary's costs of administration necessary to
      insure, make grants, service, and otherwise carry out the
      programs under this chapter not specifically covered by the Rural
      Development Insurance Fund of section 1929a of this title,
      including costs of the Secretary incidental to guaranteeing loans
      under this chapter, either directly from the Fund or by transfers
      from the Fund to, and merger with, any appropriations for
      administrative expenses.
    (g) Transfer of funds from Farmers Home Administration direct loan
        account and Emergency Credit Revolving Fund; abolition of such
        account and fund; payments from Agricultural Credit Insurance
        Fund; interest
      (1) The assets and liabilities of, and authorizations applicable
    to, the Farmers Home Administration direct loan account created by
    section 1988(c) of this title (before the amendment made by section
    749(a)(1) of the Federal Agriculture Improvement and Reform Act of
    1996) and the Emergency Credit Revolving Fund referred to in
    section 1966 of this title are hereby transferred to the fund, and
    such account and such revolving fund are hereby abolished.  Such
    assets and their proceeds, including loans made out of the fund
    pursuant to this section, shall be subject to the provisions of
    this section, the last sentence of section 1926(a)(1), and the last
    sentence of section 1927 of this title.
      (2) From time to time, and at least at the close of each fiscal
    year, the Secretary shall pay from the fund into the Treasury as
    miscellaneous receipts interest on the value as determined by the
    Secretary, with the approval of the Comptroller General, of the
    Government's equity transferred to the fund pursuant to the first
    sentence of this subsection plus the cumulative amount of
    appropriations made available after enactment of this provision as
    capital and for administration of the programs financed from the
    fund, less the average undisbursed cash balance in the fund during
    the year.  The rate of such interest shall be determined by the
    Secretary of the Treasury, taking into consideration the current
    average yield on outstanding marketable obligations of the United
    States with remaining periods to maturity comparable to the average
    maturities of loans made or insured from the fund, adjusted to the
    nearest one-eighth of 1 per centum.  Interest payments may be
    deferred with the approval of the Secretary of the Treasury, but
    any interest payments so deferred shall themselves bear interest.
    If at any time the Secretary determines that moneys in the fund
    exceed present and any reasonably prospective future requirements
    of the fund, such excess may be transferred to the general fund of
    the Treasury.
    (h) Guaranteed loans; interest rate for loans sold into secondary
        market; loan fees
      (1) The Secretary may provide financial assistance to borrowers
    for purposes provided in this chapter by guaranteeing loans made by
    any Federal or State chartered bank, savings and loan association,
    cooperative lending agency, or other legally organized lending
    agency.
      (2) The interest rate payable by a borrower on the portion of a
    guaranteed loan that is sold by a lender to the secondary market
    under this chapter may be lower than the interest rate charged on
    the portion retained by the lender, but shall not exceed the
    average interest rate charged by the lender on loans made to farm
    and ranch borrowers.
      (3) With regard to any loan guarantee on a loan made by a
    commercial or cooperative lender related to a loan made by the
    Secretary under section 1935 of this title -
        (A) the Secretary shall not charge a fee to any person
      (including a lender); and
        (B) a lender may charge a loan origination and servicing fee in
      an amount not to exceed 1 percent of the amount of the loan.
      (4) Maximum guarantee of 90 percent. - Except as provided in
    paragraphs (5) and (6), a loan guarantee under this chapter shall
    be for not more than 90 percent of the principal and interest due
    on the loan.
      (5) Refinanced loans guaranteed at 95 percent. - The Secretary
    shall guarantee 95 percent of -
        (A) in the case of a loan that solely refinances a direct loan
      made under this chapter, the principal and interest due on the
      loan on the date of the refinancing; or
        (B) in the case of a loan that is used for multiple purposes,
      the portion of the loan that refinances the principal and
      interest due on a direct loan made under this chapter that is
      outstanding on the date the loan is guaranteed.
      (6) Beginning farmer loans guaranteed up to 95 percent. - The
    Secretary may guarantee not more than 95 percent of -
        (A) a farm ownership loan for acquiring a farm or ranch to a
      borrower who is participating in the down payment loan program
      under section 1935 of this title; or
        (B) an operating loan to a borrower who is participating in the
      down payment loan program under section 1935 of this title that
      is made during the period that the borrower has a direct loan
      outstanding under this subchapter for acquiring a farm or ranch.
    (i) Coordination of assistance for qualified beginning farmers and
        ranchers
      (1) Not later than 60 days after any State expresses to the
    Secretary, in writing, a desire to coordinate the provision of
    financial assistance to qualified beginning farmers and ranchers in
    the State, the Secretary and the State shall conclude a joint
    memorandum of understanding that shall govern the coordination of
    the provision of the financial assistance by the State and the
    Secretary.
      (2) The memorandum of understanding shall provide that if a State
    beginning farmer program makes a commitment to provide a qualified
    beginning farmer or rancher with financing to establish or maintain
    a viable farming or ranching operation, the Secretary shall,
    subject to applicable law, normal loan approval criteria, and the
    availability of funds provide the farmer or rancher with a down
    payment loan under section 1935 of this title or a guarantee of the
    financing provided by the State program, or both.
      (3) The Secretary shall not charge any person (including a
    lender) any fee with respect to the provision of any guarantee
    under this subsection.
      (4) The Secretary shall notify each State of the provisions of
    this subsection.
      (5) As used in paragraph (1), the term ''State beginning farmer
    program'' means any program that is -
        (A) carried out by, or under contract with, a State; and
        (B) designed to assist persons in obtaining the financial
      assistance necessary to enter agriculture and establish viable
      farming or ranching operations.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 309, Aug. 8, 1961, 75 Stat. 309;
    Pub. L. 87-703, title IV, Sec. 401(3), Sept. 27, 1962, 76 Stat.
    632; Pub. L. 89-240, Sec. 2(b), (c), Oct. 7, 1965, 79 Stat. 932;
    Pub. L. 89-633, Oct. 8, 1966, 80 Stat. 879; Pub. L. 90-488, Sec. 7,
    Aug. 15, 1968, 82 Stat. 771; Pub. L. 92-419, title I, Sec. 115,
    Aug. 30, 1972, 86 Stat. 660; Pub. L. 95-113, title XV, Sec.
    1510(a), Sept. 29, 1977, 91 Stat. 1022; Pub. L. 95-334, title I,
    Sec. 109(a), Aug. 4, 1978, 92 Stat. 423; Pub. L. 101-624, title
    XXIII, Sec. 2302(a)(2), Nov. 28, 1990, 104 Stat. 3980; Pub. L.
    102-554, Sec. 4, 5(a), Oct. 28, 1992, 106 Stat. 4143; Pub. L.
    104-127, title VI, Sec. 606, 661(b), title VII, Sec. 744,
    749(b)(1), Apr. 4, 1996, 110 Stat. 1086, 1106, 1125, 1129.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 11(a) of the Bankhead-Jones Farm Tenant Act, as amended,
    referred to in subsec. (a), refers to section 11(a) of act July 22,
    1937, ch. 517, title I, as added Aug. 14, 1946, ch. 964, Sec. 5, 60
    Stat. 1072, which was classified to section 1005a of this title and
    was repealed by section 341(a) of Pub. L. 87-128.
      For definition of ''this chapter'', referred to in subsecs.
    (f)(5) and (h)(1), (2), (4), (5), see note set out under section
    1921 of this title.
      Section 1988(c) of this title (before the amendment made by
    section 749(a)(1) of the Federal Agriculture Improvement and Reform
    Act of 1996), referred to in subsec. (g)(1), means subsec. (c) of
    section 1988 of this title prior to repeal by section 749(a)(1) of
    Pub. L. 104-127.
 
-COD-
                                CODIFICATION
      In subsec. (c), ''chapter 31 of title 31'' and ''such chapter''
    substituted for ''the Second Liberty Bond Act, as amended'' and
    ''such Act, as amended,'' respectively, on authority of Pub. L.
    97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section
    of which enacted Title 31, Money and Finance.
 
-MISC3-
                                 AMENDMENTS
      1996 - Subsec. (f). Pub. L. 104-127, Sec. 744, redesignated pars.
    (2) to (6) as (1) to (5), respectively, and struck out former par.
    (1) which read as follows: ''to make loans which could be insured
    under this subchapter whenever the Secretary has reasonable
    assurance that they can be sold without undue delay, and may sell
    and insure such loans;''.
      Subsec. (g)(1). Pub. L. 104-127, Sec. 749(b)(1), inserted
    ''(before the amendment made by section 749(a)(1) of the Federal
    Agriculture Improvement and Reform Act of 1996)'' after ''section
    1988(c) of this title''.
      Pub. L. 104-127, Sec. 661(b), struck out ''section 1928,'' after
    ''provisions of this section,''.
      Subsec. (h)(4) to (6). Pub. L. 104-127, Sec. 606, added pars. (4)
    to (6).
      1992 - Subsec. (h). Pub. L. 102-554, Sec. 4, designated existing
    provisions as par. (1) and added pars. (2) and (3).
      Subsec. (i). Pub. L. 102-554, Sec. 5(a), added subsec. (i).
      1990 - Subsec. (e). Pub. L. 101-624 inserted ''and the Rural
    Development Administration, in proportion to such charges collected
    in connection with the insurance of loans by such agency'' and
    substituted ''expenses for such agency'' for ''expenses''.
      1978 - Subsec. (f)(1), (6). Pub. L. 95-334 in par. (1) struck out
    provisions limiting amount of loans outstanding at any one time,
    and added par. (6).
      1977 - Subsec. (f)(3). Pub. L. 95-113 substituted ''any deferred
    or defaulted installment'' for ''any defaulted installment''.
      1972 - Subsec. (f)(1). Pub. L. 92-419, Sec. 115(a)(1),
    substituted ''$500,000,000'' for ''$100,000,000''.
      Subsec. (f)(2). Pub. L. 92-419, Sec. 115(a)(2), substituted
    ''amounts'' for ''the interest'' and ''payments'' for
    ''prepayments'' in three places and inserted ''or until the next
    agreed annual or semi-annual remittance date'' after ''until due''.
      Subsec. (f)(5). Pub. L. 92-419, Sec. 115(a)(3), (4), substituted
    ''connection with insured loans, including the difference between
    interest payable to borrowers and interest to which insured lenders
    or insured holders are entitled under agreements with the Secretary
    included in contracts of insurance'' for ''section 1985(a) of this
    title in connection with insured loans,'' and provided payment for
    contract services.
      Subsecs. (g), (h). Pub. L. 92-419, Sec. 115(b), added subsecs.
    (g) and (h).
      1968 - Subsec. (f)(1). Pub. L. 90-488 increased from $50,000,000
    to $100,000,000 the aggregate amount of loans to be sold and
    insured and undisposed of at any one time.
      1966 - Subsec. (f)(2). Pub. L. 89-633 substituted ''until due''
    for ''until the due date of the annual installment''.
      1965 - Subsec. (e). Pub. L. 89-240, Sec. 2(b), substituted ''all
    or a portion, not to exceed one-half of 1 per centum of the unpaid
    principal balance of the loan of any charge collected in connection
    with the insurance of loans; and any remainder of any such charge''
    for ''such portion of the charge collected in connection with the
    insurance of loans at least equal to a rate of one-half of 1 per
    centum per annum on the outstanding principal obligations and the
    remainder of such charge''.
      Subsec. (f)(1). Pub. L. 89-240, Sec. 2(c), substituted
    ''$50,000,000'' for ''$25,000,000''.
      1962 - Subsec. (f)(1). Pub. L. 87-703 increased from $10,000,000
    to $25,000,000 the aggregate amount of loans to be sold and insured
    and undisposed of at any one time.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 606 of Pub. L. 104-127 effective 90 days
    after Apr. 4, 1996, and amendment by section 661(b) of Pub. L.
    104-127 effective Apr. 4, 1996, see section 663(a), (b) of Pub. L.
    104-127, set out as a note under section 1922 of this title.
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section
    1901 of Pub. L. 95-113, set out as a note under section 1307 of
    this title.
            ADVISORY COMMITTEE ON BEGINNING FARMERS AND RANCHERS
      Section 5(b) of Pub. L. 102-554 provided that:
      ''(1) Establishment; purpose. - Not later than 18 months after
    the date of enactment of this Act (Oct. 28, 1992), the Secretary of
    Agriculture shall establish an advisory committee, to be known as
    the 'Advisory Committee on Beginning Farmers and Ranchers', which
    shall provide advice to the Secretary on -
        ''(A) the development of the program of coordinated assistance
      to qualified beginning farmers and ranchers under section 309(i)
      of the Consolidated Farm and Rural Development Act (7 U.S.C.
      1929(i)) (as added by subsection (a) of this section);
        ''(B) methods of maximizing the number of new farming and
      ranching opportunities created through the program;
        ''(C) methods of encouraging States to participate in the
      program;
        ''(D) the administration of the program; and
        ''(E) other methods of creating new farming or ranching
      opportunities.
      ''(2) Membership. - The Secretary shall appoint the members of
    the Advisory Committee. The Advisory Committee shall include
    representatives from the following:
        ''(A) The Farmers Home Administration.
        ''(B) State beginning farmer programs (as defined in section
      309(i)(5) of the Consolidated Farm and Rural Development Act (as
      added by subsection (a) of this section)).
        ''(C) Commercial lenders.
        ''(D) Private nonprofit organizations with active beginning
      farmer or rancher programs.
        ''(E) The Cooperative Extension Service.
        ''(F) Community colleges or other educational institutions with
      demonstrated experience in training beginning farmers or
      ranchers.
        ''(G) Other entities or persons providing lending or technical
      assistance for qualified beginning farmers or ranchers.''
        LIMITATION ON SALES FROM AGRICULTURAL CREDIT INSURANCE FUND
      Pub. L. 99-509, title I, Sec. 1002, Oct. 21, 1986, 100 Stat.
    1875, provided that: ''During fiscal years 1987 through 1989, no
    note shall be sold out of the Agricultural Credit Insurance Fund,
    except in connection with transactions with the Secretary of the
    Treasury, without prior approval by Congress.''
                              LOANS TO INDIANS
      Authority of the Secretary of Agriculture to make loans to Indian
    tribes and tribal corporations to acquire land within reservations,
    see sections 488 to 492 of Title 25, Indians.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1929a, 1983a, 1991, 1994,
    1999, 6942 of this title; title 25 section 488; title 42 sections
    1485, 1487, 8813.
 
-CITE-
     7 USC Sec. 1929-1                                           01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1929-1. Level of loan programs under Agricultural Credit
        Insurance Fund
 
-STATUTE-
      On and after October 28, 1991, no funds in this Act or any other
    Act shall be available to carry out loan programs under the
    Agricultural Credit Insurance Fund at levels other than those
    provided for in advance in appropriations Acts.
 
-SOURCE-
    (Pub. L. 102-142, title III, Oct. 28, 1991, 105 Stat. 899.)
 
-COD-
                                CODIFICATION
      Section was enacted as part of the Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 1992, and not as part of the Consolidated Farm
    and Rural Development Act which comprises this chapter.
 
-CITE-
     7 USC Sec. 1929a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1929a. Rural Development Insurance Fund
 
-STATUTE-
    (a) Creation; revolving fund; rural development loans
      There is hereby created the Rural Development Insurance Fund
    (hereinafter in this section referred to as the ''Insurance Fund'')
    which shall be used by the Secretary as a revolving fund for the
    discharge of the obligations of the Secretary under contracts
    guaranteeing or insuring rural development loans.  For the purpose
    of this section ''rural development loans'' shall be those provided
    for by sections 1926(a)(1) and 1932 of this title, except loans
    (other than for water systems and waste disposal facilities) of a
    type authorized by section 1926(a)(1) of this title prior to its
    amendment by the Rural Development Act of 1972.
    (b) Transfer of assets and liabilities
      The assets and liabilities of the Agricultural Credit Insurance
    Fund referred to in section 1929(a) of this title applicable to
    loans for water systems and waste disposal facilities under section
    1926(a)(1) of this title are hereby transferred to the Insurance
    Fund. Such assets (including the proceeds thereof) and liabilities
    and rural development loans guaranteed or insured pursuant to this
    chapter shall be subject to the provisions of this section.
    (c) Credits in the Treasury; investments; notes, purchasing
        authority of the Secretary
      Moneys in the Insurance Fund not needed for current operations
    shall be deposited in the Treasury of the United States to the
    credit of the Insurance Fund or invested in direct obligations of
    the United States or obligations guaranteed by the United States.
    The Secretary may purchase with money in the Insurance Fund any
    notes issued by the Secretary to the Secretary of the Treasury for
    the purpose of obtaining money for the Insurance Fund.
    (d) Notes, issuing authority of the Secretary; use of funds; terms
        and conditions, form, denominations, maturities, and interest
        rate of notes; notes, purchasing authority of the Secretary of
        the Treasury; public debt transactions
      The Secretary is authorized to make and issue notes to the
    Secretary of the Treasury for the purpose of obtaining funds
    necessary for discharging obligations under this section and for
    making loans, advances, and authorized expenditures out of the
    Insurance Fund. Such notes shall be in such form and denominations
    and have such maturities and be subject to such terms and
    conditions as may be prescribed by the Secretary with the approval
    of the Secretary of the Treasury. Such notes shall bear interest at
    a rate fixed by the Secretary of the Treasury, taking into
    consideration the current average market yield of outstanding
    marketable obligations of the United States having maturities
    comparable to the average maturities of rural development loans
    made, guaranteed, or insured under this chapter.  The Secretary of
    the Treasury is authorized and directed to purchase any notes of
    the Secretary issued hereunder, and, for that purpose, the
    Secretary of the Treasury is authorized to use as a public debt
    transaction the proceeds from the sale of any securities issued
    under chapter 31 of title 31, and the purposes for which such
    securities may be issued under such chapter are extended to include
    the purchase of notes issued by the Secretary hereunder.  All
    redemptions, purchases, and sales by the Secretary of the Treasury
    of such notes shall be treated as public debt transactions of the
    United States.
    (e) Notes and security as part of Insurance Fund; collection and
        sale of notes and other obligations; deposit of net proceeds in
        Insurance Fund
      Notes and security acquired by the Secretary in connection with
    rural development loans made, guaranteed, or insured under this
    chapter or transferred by subsection (b) of this section shall
    become a part of the Insurance Fund. Notes and other obligations
    may be held in the Insurance Fund and collected in accordance with
    their terms or may be sold by the Secretary with or without
    agreements for insurance thereof at the balance due thereon, or on
    such other basis as the Secretary may determine from time to time,
    including sale on a nonrecourse basis.  The Secretary and any
    subsequent purchaser of such notes and other obligations sold by
    the Secretary on a nonrecourse basis shall be relieved of any
    responsibilities that might have been imposed had the borrower
    remained indebted to the Secretary. All net proceeds from such
    collections, including sales of notes or property, shall be
    deposited in and become a part of the Insurance Fund.
    (f) Deposit of loan service charges in Insurance Fund
      The Secretary shall deposit in the Insurance Fund any charges
    collected for loan services provided by the Secretary as well as
    charges assessed for losses and costs of administration in
    connection with making, guaranteeing, or insuring rural development
    loans under this chapter.
    (g) Use of Insurance Fund
      The Secretary may utilize the Insurance Fund -
        (1) to pay amounts to which the holder of insured notes is
      entitled on loans heretofore or hereafter insured accruing
      between the date of any payments by the borrower and the date of
      transmittal of any such payments to the holder.  In the
      discretion of the Secretary, payments other than final payments
      need not be remitted to the holder until due or until the next
      agreed annual or semiannual remittance date;
        (2) to pay to the holder of insured notes any deferred or
      defaulted installment, or upon assignment of the note to the
      Secretary at the Secretary's request, the entire balance due on
      the loan;
        (3) to purchase notes in accordance with contracts of insurance
      heretofore or hereafter entered into by the Secretary;
        (4) to make payments in compliance with the Secretary's
      obligations under contracts of guarantee entered into by him;
        (5) to pay taxes, insurance, prior liens, expenses necessary to
      make fiscal adjustments in connection with the application and
      transmittal of collections or necessary to obtain credit reports
      on applicants or borrowers, expenses for necessary services,
      including construction inspections, commercial appraisals, loan
      servicing, consulting business advisory or other commercial and
      technical services, and other program services, and other
      expenses and advances authorized in section 1985(a) of this title
      in connection with insured loans.  Such items may be paid in
      connection with guaranteed loans after or in connection with
      acquisition by the Secretary of such loans or security therefor
      after default, to an extent determined by the Secretary to be
      necessary to protect the interest of the Government, or in
      connection with grants and any other activity authorized in this
      chapter;
        (6) to pay the difference between interest payments by
      borrowers and interest to which holders of insured notes are
      entitled under contracts of insurance heretofore or hereafter
      entered into by the Secretary; and
        (7) to pay the Secretary's costs of administration necessary to
      insure loans under the programs referred to in subsection (a) of
      this section, make grants under sections 1926(a) and 1932 of this
      title, service, and otherwise carry out such programs, including
      costs of the Secretary incidental to guaranteeing rural
      development loans under this chapter, either directly from the
      Insurance Fund or by transfers from the Fund to, and merger with,
      any appropriations for administrative expenses.
    (h) Gross income; interest or other income on insured loans
      When any loan is sold out of the Insurance Fund as an insured
    loan, the interest or other income thereon paid to an insured
    holder shall be included in gross income for purposes of chapter 1
    of title 26.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 309A, as added Pub. L. 92-419,
    title I, Sec. 116, Aug. 30, 1972, 86 Stat. 661; amended Pub. L.
    95-113, title XV, Sec. 1510(b), Sept. 29, 1977, 91 Stat. 1022; Pub.
    L. 95-334, title I, Sec. 107(b), 110, Aug. 4, 1978, 92 Stat. 422,
    424; Pub. L. 99-509, title I, Sec. 1001(b), Oct. 21, 1986, 100
    Stat. 1874; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095;
    Pub. L. 99-500, title III, Sec. 381(b), Oct. 18, 1986, 100 Stat.
    1783-369, and Pub. L. 99-591, title III, Sec. 381(b), Oct. 30,
    1986, 100 Stat. 3341-372; Pub. L. 104-127, title VI, Sec. 661(c),
    title VII, Sec. 741(b), 745, Apr. 4, 1996, 110 Stat. 1106, 1124,
    1125.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For statutory changes to section 1926(a)(1) of this title by the
    Rural Development Act of 1972, referred to in subsec. (a), see 1972
    Amendment note for section 104 of Pub. L. 92-419, set out under
    section 1926 of this title.  For complete classification of the
    Rural Development Act of 1972 to the Code, see Short Title of 1972
    Amendment note set out under section 1921 of this title and Tables.
      For definition of ''this chapter'', referred to in subsecs. (b),
    (d), (e), (f), and (g)(5), (7), see note set out under section 1921
    of this title.
 
-COD-
                                CODIFICATION
      Pub. L. 99-591 is a corrected version of Pub. L. 99-500.
      In subsec. (d), ''chapter 31 of title 31'' and ''such chapter''
    substituted for ''the Second Liberty Bond Act, as amended'' and
    ''such Act, as amended,'' respectively, on authority of Pub. L.
    97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section
    of which enacted Title 31, Money and Finance.
 
-MISC3-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-127, Sec. 741(b), struck out '',
    1926(a)(14),'' after ''1926(a)(1)''.
      Pub. L. 104-127, Sec. 661(c)(1), substituted ''1926(a)(1),
    1926(a)(14), and 1932 of this title'' for ''1924(b), 1926(a)(1),
    1926(a)(14), 1932, and 1942(b) of this title''.
      Subsec. (b). Pub. L. 104-127, Sec. 661(c)(2), which directed
    amendment of first sentence of subsec. (b) by striking ''and
    section 1928 of this title'', was executed by striking that
    language in second sentence after ''provisions of this section'' to
    reflect the probable intent of Congress.
      Subsec. (g). Pub. L. 104-127, Sec. 745, redesignated pars. (2) to
    (8) as (1) to (7), respectively, and struck out former par. (1)
    which read as follows: ''to make rural development loans which
    could be insured under this chapter whenever he has a reasonable
    assurance that they can be sold without undue delay, and he may
    sell and insure such loans;''.
      1986 - Subsec. (e). Pub. L. 99-500, Pub. L. 99-509, and Pub. L.
    99-591 amended second sentence of subsec. (e) identically,
    substituting ''Notes and other obligations'' for ''Notes'' and
    substituting '', including sale on a nonrecourse basis.  The
    Secretary and any subsequent purchaser of such notes or other
    obligations sold by the Secretary on a nonrecourse basis shall be
    relieved of any responsibilities that might have been imposed had
    the borrower remained indebted to the Secretary.'' for period at
    end.
      Subsec. (h). Pub. L. 99-514 substituted ''Internal Revenue Code
    of 1986'' for ''Internal Revenue Code of 1954'', which for purposes
    of codification was translated as ''title 26'' thus requiring no
    change in text.
      1978 - Subsec. (a). Pub. L. 95-334, Sec. 107(b), inserted
    reference to section 1926(a)(14) of this title.
      Subsec. (g)(8). Pub. L. 95-334, Sec. 110, substituted provisions
    relating to payment of costs of administration necessary to insure
    loans under subsec. (a) of this section, make grants under sections
    1926(a) and 1932 of this title, and otherwise carry out such
    programs for provisions relating to payment of costs of
    administration of the rural loan development program.
      1977 - Subsec. (g)(3). Pub. L. 95-113 substituted ''any deferred
    or defaulted installment'' for ''any defaulted installment''.
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section
    1901 of Pub. L. 95-113, set out as a note under section 1307 of
    this title.
             DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES
      Pub. L. 101-82, title IV, Sec. 401, Aug. 14, 1989, 103 Stat. 583,
    as amended by Pub. L. 101-220, Sec. 9(d), Dec. 12, 1989, 103 Stat.
    1882, provided that:
      ''(a) Loan Guarantees. - The Secretary of Agriculture shall
    guarantee loans made in rural areas to -
        ''(1) public, private, or cooperative organizations, to Indian
      tribes on Federal and State reservations or other federally
      recognized Indian tribal groups, or to any other business
      entities to assist such organizations, tribes, or entities in
      alleviating the distress caused to such organizations, tribes, or
      entities, directly or indirectly, by the drought, freeze, storm,
      excessive moisture, earthquake, or related condition in 1988 or
      1989; and
        ''(2) such organizations, tribes, or entities that refinance or
      restructure debt as a result of losses incurred, directly or
      indirectly, because of such natural disasters in 1988 or 1989.
      ''(b) Eligible Loans. -
        ''(1) In general. - Loans guaranteed under this section shall
      be loans made by any Federal or State chartered bank, savings and
      loan association, cooperative lending agency, insurance company,
      or other legally organized lending agency.
        ''(2) Production agriculture. - No application for a loan
      guarantee under this section shall be denied on the basis that
      such organization, tribe, or entity engages in whole or in part
      in production agriculture.
      ''(c) Loan Guarantee Limits. -
        ''(1) Percentage of principal and interest. - No guarantee
      under this section shall exceed 90 percent of the principal and
      interest amount of the loan or $2,500,000, whichever is the
      lesser amount.
        ''(2) Total amount. - The total amount of loan guarantee under
      this section shall not exceed $300,000,000.
      ''(d) Use of the Rural Development Insurance Fund. - The
    Secretary shall use the Rural Development Insurance Fund
    established under section 309A of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1929a) for the purposes of discharging
    the obligations of the Secretary under this section.''
      Similar provisions were contained in the following prior act:
      Pub. L. 100-387, title III, Sec. 331, Aug. 11, 1988, 102 Stat.
    951.
           SALE OF RURAL DEVELOPMENT NOTES AND OTHER OBLIGATIONS
      Section 1001 of Pub. L. 99-509, as amended by Pub. L. 100-233,
    title VIII, Sec. 803, Jan. 6, 1988, 101 Stat. 1714; Pub. L.
    101-220, Sec. 12, Dec. 12, 1989, 103 Stat. 1883, provided that:
      ''(a) Sales Required. - The Secretary of Agriculture, under such
    terms as the Secretary may prescribe, shall sell notes and other
    obligations held in the Rural Development Insurance Fund
    established under section 309A of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1929a) in such amounts as to realize net
    proceeds to the Government of not less than -
        ''(1) $1,000,000,000 from such sales during fiscal year 1987,
        ''(2) $552,000,000 from such sales during fiscal year 1988, and
        ''(3) $547,000,000 from such sales during fiscal year 1989.
      ''(b) (Amended subsec. (e) of this section)
      ''(c) Contract Provisions. - Consistent with section 309A(e) of
    the Consolidated Farm and Rural Development Act (7 U.S.C.
    1929a(e)), as amended by subsection (b), any sale of notes or other
    obligations, as described in subsection (a), shall not alter the
    terms specified in the note or other obligation, except that, on
    sale, a note or other obligation shall not be subject to the
    provisions of section 333(c) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1983(c)).
      ''(d) Eligibility to Purchase Notes. - Notwithstanding any other
    provision of law, each institution of the Farm Credit System shall
    be eligible to purchase notes and other obligations held in the
    Rural Development Insurance Fund and to service (including the
    extension of additional credit and all other actions necessary to
    preserve, conserve, or protect the institution's interest in the
    purchased notes or other obligations), collect, and dispose of such
    notes and other obligations, subject only to such terms and
    conditions as may be agreed to by the Secretary of Agriculture and
    the purchasing institution and as may be approved by the Farm
    Credit Administration.
      ''(e) Loan Servicing. - Prior to selling any note or other
    obligation, as described in subsection (a), the Secretary of
    Agriculture shall require persons offering to purchase the note or
    other obligation to demonstrate -
        ''(1) an ability or resources to provide such servicing, with
      respect to the loans represented by the note or other obligation,
      that the Secretary deems necessary to ensure the continued
      performance on the loan; and
        ''(2) the ability to generate capital to provide the borrowers
      of the loans such additional credit as may be necessary in proper
      servicing of the loans.
      ''(f) Right of First Refusal. -
        ''(1) In general. - Before conducting a sale of a portfolio of
      notes or other obligations under this section, the Secretary of
      Agriculture shall -
          ''(A) determine whether the issuer of any unsold note or
        other obligation desires to purchase the note or other
        obligation; and
          ''(B) if so, hold open for 30 days, an offer to sell the note
        or other obligation to the issuer at a price to be determined
        under paragraph (2).
        ''(2) Determination of offering price. -
          ''(A) Authority. - The Secretary of Agriculture shall
        determine, in accordance with subparagraph (B), the price at
        which a note or other obligation shall be offered for sale
        under this subsection.
          ''(B) Price. - Such price shall be determined by discounting
        the payment stream of such note or other obligation at the
        yield on the then most recent sale of the portfolio, adjusted
        for changes in market interest rates, servicing and sales
        expenses, and the maturity and interest rate of such note.
        ''(3) Prohibitions. -
          ''(A) Purchase of obligation not tied to purchase of other
        obligations. - The Secretary of Agriculture shall not require
        the issuer of any unsold note or other obligation to be offered
        for sale under this subsection to purchase any other such note
        or other obligation as a condition of the sale of any such note
        or other obligation to the issuer.
          ''(B) Offer to be made without regard to financing. - The
        Secretary shall offer notes or other obligations for sale to
        the issuers thereof under this subsection without regard to the
        manner in which such issuers intend to finance the purchase of
        such notes or other obligations.  However, the price of sale to
        any issuer using tax exempt financing shall be determined using
        a yield reflective of the Schedule of Certified Interest Rates
        as published monthly by the Secretary of the Treasury.
      ''(g) Applicability of Prohibition on Curtailment or Limitation
    of Service. - Section 306(b) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(b)) shall be applicable to all notes
    or other obligations sold or intended to be sold under this
    section.
      ''(h)(1) Notwithstanding the provisions of section 633 of the
    Rural Development, Agriculture, and Related Agencies Appropriations
    Act, 1989 (Public Law 100-460) (title VI, Oct. 1, 1988, 102 Stat.
    2263), the Secretary of Agriculture shall offer to the issuer of
    any unsold note or other obligation described in paragraph (2)(A)
    for which such issuer made the good faith deposit described in
    paragraph (2)(A) the opportunity to purchase such note or other
    obligation consistent with the provisions of this subsection and
    subsections (f)(2) and (f)(3).
      ''(2) The provisions of this subsection shall apply only to those
    issuers who:
        ''(A) on or before March 9, 1989, made a good faith deposit
      under this section for fiscal year 1989 with the Secretary to
      purchase a note or other obligation held in the Rural Development
      Insurance Fund; and
        ''(B) otherwise meet all eligibility criteria, as such criteria
      existed immediately prior to May 9, 1989, at the time the
      purchase occurs under this subsection.
      ''(3) The opportunity to purchase any such note or other
    obligation shall be held open, under the policies and procedures in
    effect under subsections (f)(2) and (f)(3) immediately prior to May
    9, 1989, for 150 days after the date of enactment of this
    subsection (Dec. 12, 1989). The Secretary shall not require any
    further good faith deposit from issuers who qualify under this
    subsection.  The Secretary shall notify eligible issuers of the
    opportunity afforded under this subsection within 30 days after the
    date of enactment of this subsection and may require such issuers
    to express an intention to purchase their note or other obligation
    by a date certain.''
      Section 381 of Pub. L. 99-500 and Pub. L. 99-591 provided that:
      ''(a) In General. - The Secretary of Agriculture shall, under
    such terms as the Secretary may prescribe, sell notes and other
    obligations held in the Rural Development Insurance Fund
    established under section 309A of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1929a) in such amounts as to realize net
    proceeds of not less than -
        ''(1) $25,000,000 from such sales during fiscal year 1987;
        ''(2) $36,000,000 from such sales during fiscal year 1988; and
        ''(3) $37,000,000 from such sales during fiscal year 1989.
      ''(b) (Amended subsec. (e) of this section)
      ''(c) Farm Credit System Institutions. - Notwithstanding any
    other provision of law, institutions of the Farm Credit System
    operating under the Farm Credit Act of 1971 (12 U.S.C. 2001) shall
    be eligible to purchase notes and other obligations held in the
    Rural Development Insurance Fund and to service (including the
    extension of additional credit and all other actions necessary to
    preserve, conserve, or protect the institutions' interests in such
    notes and other obligations), collect, and dispose of such notes
    and other obligations, subject only to such terms and conditions as
    may be agreed to by the Secretary of Agriculture and such
    purchasing institutions and as are approved by the Farm Credit
    Administration.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1929, 1929b, 6942 of this
    title; title 42 section 8813.
 
-CITE-
     7 USC Sec. 1929b                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1929b. Purchase of guaranteed portions of loans; terms and
        conditions; exercise of authorities
 
-STATUTE-
      The Secretary may purchase, on such terms and conditions as the
    Secretary deems appropriate, the guaranteed portion of any loan
    guaranteed under this chapter: Provided, That the Secretary may not
    pay for any such guaranteed portion of a loan in excess of an
    amount equal to the unpaid principal balance and accrued interest
    on the guaranteed portion of the loan.  The Secretary may use for
    such purchases funds from the Rural Development Insurance Fund with
    respect to rural development loans as defined in section 1929a(a)
    of this title and funds from the Agricultural Credit Insurance Fund
    with respect to all other loans under this chapter.  This authority
    may be exercised only if the Secretary determines that an adequate
    secondary market is not available in the private sector.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 309B, as added Pub. L. 95-334,
    title I, Sec. 111, Aug. 4, 1978, 92 Stat. 424.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 2001 of this title.
 
-CITE-
     7 USC Sec. 1930                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1930. Continued availability of appropriated funds for direct
        real estate loans to farmers and ranchers
 
-STATUTE-
      Funds appropriated for the purpose of making direct real estate
    loans to farmers and ranchers under this subchapter shall remain
    available until expended.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 310, as added Pub. L. 91-524,
    title VIII, Sec. 806(b), Nov. 30, 1970, 84 Stat. 1383.)
 
-CITE-
     7 USC Sec. 1931                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1931. Repealed. Pub. L. 104-127, title VII, Sec. 746, Apr. 4,
        1996, 110 Stat. 1125
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 310A, as added Pub. L.
    92-419, title I, Sec. 117, Aug. 30, 1972, 86 Stat. 663, related to
    insured watershed and resource conservation and development loans.
 
-CITE-
     7 USC Sec. 1932                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1932. Rural industrialization assistance
 
-STATUTE-
    (a) Loans for private business enterprises; pollution abatement and
        control; aquaculture; solar energy; loan guarantees
      The Secretary may also make and insure loans to public, private,
    or cooperative organizations organized for profit or nonprofit, to
    Indian tribes on Federal and State reservations or other federally
    recognized Indian tribal groups, or to individuals for the purposes
    of (1) improving, developing, or financing business, industry, and
    employment and improving the economic and environmental climate in
    rural communities, including pollution abatement and control, (2)
    the conservation, development, and use of water for aquaculture
    purposes in rural areas, (3) reducing the reliance on nonrenewable
    energy resources by encouraging the development and construction of
    solar energy systems, including the modification of existing
    systems, in rural areas, and (4) to facilitate economic opportunity
    for industries undergoing adjustment from terminated Federal
    agricultural price and income support programs or increased
    competition from foreign trade.  For the purposes of this
    subsection, the term ''solar energy'' means energy derived from
    sources (other than fossil fuels) and technologies included in the
    Federal Nonnuclear Energy Research and Development Act of 1974, as
    amended (42 U.S.C. 5901 et seq.).  Such loans, when originated,
    held, and serviced by other lenders, may be guaranteed by the
    Secretary under this section without regard to paragraphs (1) and
    (4) of section 1983 of this title.  As used in this subsection, the
    term ''aquaculture'' means the culture or husbandry of aquatic
    animals or plants by private industry for commercial purposes
    including the culture and growing of fish by private industry for
    the purpose of creating or augmenting publicly owned and regulated
    stocks of fish.  No loan may be made, insured, or guaranteed under
    this subsection that exceeds $25,000,000 in principal amount.
    (b) Solid waste management grants
      The Secretary may make grants to nonprofit organizations for the
    provision of regional technical assistance to local and regional
    governments and related agencies for the purpose of reducing or
    eliminating pollution of water resources and improving the planning
    and management of solid waste disposal facilities.  Grants made
    under this paragraph for the provision of technical assistance
    shall be made for 100 percent of the cost of such assistance.
    (c) Rural business enterprise grants
      (1) In general
        The Secretary may also make grants, not to exceed $50,000,000
      annually, to public bodies and private nonprofit corporations for
      measures designed to finance and facilitate development of small
      and emerging private business enterprises (including nonprofit
      entities) or the creation, expansion, and operation of rural
      distance learning networks or rural learning programs that
      provide educational instruction or job training instruction
      related to potential employment or job advancement to adult
      students, including the development, construction or acquisition
      of land, buildings, plants, equipment, access streets and roads,
      parking areas, utility extensions, necessary water supply and
      waste disposal facilities, refinancing, services and fees.
      (2) Passenger transportation services or facilities
        The Secretary may award grants on a competitive basis to
      qualified nonprofit organizations for the provision of technical
      assistance and training to rural communities for the purpose of
      improving passenger transportation services or facilities.
      Assistance provided under this paragraph may include on-site
      technical assistance to local and regional governments, public
      transit agencies, and related nonprofit and for-profit
      organizations in rural areas, the development of training
      materials, and the provision of necessary training assistance to
      local officials and agencies in rural areas.
      (3) Grants to aid industries in adjusting to terminated Federal
          agricultural programs or increased foreign competition
        The Secretary may make grants under this section to facilitate
      economic opportunity for industries undergoing adjustment from
      terminated Federal agricultural price and income support programs
      or increased competition from foreign trade.
    (d) Joint loans or grants for private business enterprises;
        restrictions; system of certification for expeditious
        processing of requests for assistance; prior approval of grant
        or loan; equity investment as condition for loan commitment;
        issuance of certificates of beneficial ownership of notes
      (1) The Secretary may participate in joint financing to
    facilitate development of private business enterprises in rural
    areas with the Economic Development Administration, the Small
    Business Administration, and the Department of Housing and Urban
    Development and other Federal and State agencies and with private
    and quasi-public financial institutions, through joint loans to
    applicants eligible under subsection (a) of this section for the
    purpose of improving, developing, or financing business, industry,
    and employment and improving the economic and environmental climate
    in rural areas or through joint grants to applicants eligible under
    subsection (c) of this section for such purposes, including in the
    case of loans or grants the development, construction, or
    acquisition of land, buildings, plants, equipment, access streets
    and roads, parking areas, utility extensions, necessary water
    supply and waste disposal facilities, refining, service and fees.
      (2) No financial or other assistance shall be extended under any
    provision of this section, except for cases in which such
    assistance does not exceed $1,000,000 or for cases in which direct
    employment will not be increased by more than fifty employees, that
    is calculated to or is likely to result in the transfer from one
    area to another of any employment or business activity provided by
    operations of the applicant, but this limitation shall not be
    construed to prohibit assistance for the expansion of an existing
    business entity through the establishment of a new branch,
    affiliate, or subsidiary of such entity if the establishment of
    such branch, affiliate, or subsidiary will not result in an
    increase in unemployment in the area of original location or in any
    other area where such entity conducts business operations unless
    there is reason to believe that such branch, affiliate, or
    subsidiary is being established with the intention of closing down
    the operations of the existing business entity in the area of its
    original location or in any other area where it conducts such
    operations.
      (3) No financial or other assistance shall be extended under any
    provision of this section, except for cases in which such
    assistance does not exceed $1,000,000 or for cases in which direct
    employment will not be increased by more than fifty employees,
    which is calculated to or likely to result in an increase in the
    production of goods, materials, or commodities, or the availability
    of services or facilities in the area, when there is not sufficient
    demand for such goods, materials, commodities, services or
    facilities, to employ the efficient capacity of existing
    competitive commercial or industrial enterprises, unless such
    financial or other assistance will not have an adverse effect upon
    existing competitive enterprises in the area.
      (4) No financial or other assistance shall be extended under any
    provision of this section, except for cases in which such
    assistance does not exceed $1,000,000 or for cases in which direct
    employment will not be increased by more than fifty employees, if
    the Secretary of Labor certifies within 30 days after the matter
    has been submitted to him by the Secretary of Agriculture that the
    provisions of paragraphs (2) and (3) of this subsection have not
    been complied with.  The Secretary of Labor shall, in cooperation
    with the Secretary of Agriculture, develop a system of
    certification which will insure the expeditious processing of
    requests for assistance under this section.
      (5) No grant or loan authorized to be made under this chapter
    shall require or be subject to the prior approval of any officer,
    employee, or agency of any State.
      (6) No loan commitment issued under this section shall be
    conditioned upon the applicant investing in excess of 10 per centum
    in the business or industrial enterprise for which purpose the loan
    is to be made unless the Secretary determines there are special
    circumstances which necessitate an equity investment by the
    applicant greater than 10 per centum.
      (7) No provision of law shall prohibit issuance by the Secretary
    of certificates evidencing beneficial ownership in a block of notes
    insured or guaranteed under this chapter or Title V of the Housing
    Act of 1949 (42 U.S.C. 1471 et seq.); any sale by the Secretary of
    such certificates shall be treated as a sale of assets for the
    purposes of chapter 11 of title 31. Any security representing
    beneficial ownership in a block of notes guaranteed or insured
    under this chapter or Title V of the Housing Act of 1949 issued by
    a private entity shall be exempt from laws administered by the
    Securities and Exchange Commission, except sections 77q, 77v, and
    77x of title 15; however, the Secretary shall require (i) that the
    issuer place such notes in the custody of an institution chartered
    by a Federal or State agency to act as trustee and (ii) that the
    issuer provide such periodic reports of sales as the Secretary
    deems necessary.
    (e) Rural cooperative development grants
      (1) Definitions
        In this subsection:
        (A) Nonprofit institution
          The term ''nonprofit institution'' means any organization or
        institution, including an accredited institution of higher
        education, no part of the net earnings of which inures, or may
        lawfully inure, to the benefit of any private shareholder or
        individual.
        (B) United States
          The term ''United States'' means the several States, the
        District of Columbia, the Commonwealth of Puerto Rico, the
        Virgin Islands, Guam, American Samoa, and the other territories
        and possessions of the United States.
      (2) Grants
        The Secretary shall make grants, effective October 1, 1996,
      under this subsection to nonprofit institutions for the purpose
      of enabling the institutions to establish and operate centers for
      rural cooperative development.
      (3) Goals
        The goals of a center funded under this subsection shall be to
      facilitate the creation of jobs in rural areas through the
      development of new rural cooperatives, value added processing,
      and rural businesses.
      (4) Application
        Any nonprofit institution seeking a grant under paragraph (2)
      shall submit to the Secretary an application containing a plan
      for the establishment and operation by the institution of a
      center or centers for cooperative development.  The Secretary may
      approve the application if the plan contains the following:
          (A) A provision that substantiates that the center will
        effectively serve rural areas in the United States.
          (B) A provision that the primary objective of the center will
        be to improve the economic condition of rural areas through
        cooperative development.
          (C) A description of the activities that the center will
        carry out to accomplish the objective.  The activities may
        include the following:
            (i) Programs for applied research and feasibility studies
          that may be useful to individuals, cooperatives, small
          businesses, and other similar entities in rural areas served
          by the center.
            (ii) Programs for the collection, interpretation, and
          dissemination of information that may be useful to
          individuals, cooperatives, small businesses, and other
          similar entities in rural areas served by the center.
            (iii) Programs providing training and instruction for
          individuals, cooperatives, small businesses, and other
          similar entities in rural areas served by the center.
            (iv) Programs providing loans and grants to individuals,
          cooperatives, small businesses, and other similar entities in
          rural areas served by the center.
            (v) Programs providing technical assistance, research
          services, and advisory services to individuals, cooperatives,
          small businesses, and other similar entities in rural areas
          served by the center.
            (vi) Programs providing for the coordination of services
          and sharing of information among the center. (FOOTNOTE 1)
       (FOOTNOTE 1) So in original.  Probably should be ''centers.''
          (D) A description of the contributions that the activities
        are likely to make to the improvement of the economic
        conditions of the rural areas for which the center will provide
        services.
          (E) Provisions that the center, in carrying out the
        activities, will seek, where appropriate, the advice,
        participation, expertise, and assistance of representatives of
        business, industry, educational institutions, the Federal
        Government, and State and local governments.
          (F) Provisions that the center will take all practicable
        steps to develop continuing sources of financial support for
        the center, particularly from sources in the private sector.
          (G) Provisions for -
            (i) monitoring and evaluating the activities by the
          nonprofit institution operating the center; and
            (ii) accounting for money received by the institution under
          this section.
      (5) Awarding grants
        Grants made under paragraph (2) shall be made on a competitive
      basis.  In making grants under paragraph (2), the Secretary shall
      give preference to grant applications providing for the
      establishment of centers for rural cooperative development that -
          (A) demonstrate a proven track record in administering a
        nationally coordinated, regionally or State-wide operated
        project;
          (B) demonstrate previous expertise in providing technical
        assistance in rural areas;
          (C) demonstrate the ability to assist in the retention of
        businesses, facilitate the establishment of cooperatives and
        new cooperative approaches, and generate employment
        opportunities that will improve the economic conditions of
        rural areas;
          (D) demonstrate the ability to create horizontal linkages
        among businesses within and among various sectors in rural
        areas of the United States and vertical linkages to domestic
        and international markets;
          (E) commit to providing technical assistance and other
        services to underserved and economically distressed areas in
        rural areas of the United States; and
          (F) commit to providing greater than a 25 percent matching
        contribution with private funds and in-kind contributions.
      (6) 1-year grants; authority to approve grant for 1 additional
          year without application
        The Secretary shall make grants under this subsection for a
      period of 1 year.  The Secretary shall evaluate programs
      receiving assistance under this subsection.  If the Secretary
      determines it to be in the best interest of the program, the
      Secretary may award an additional grant to the program for the
      immediately succeeding year without application for the grant.
      (7) Technical assistance to prevent excessive unemployment or
          underemployment
        In carrying out this subsection, the Secretary may provide
      technical assistance to alleviate or prevent conditions of
      excessive unemployment, underemployment, outmigration, or low
      employment growth in economically distressed rural areas that the
      Secretary determines have a substantial need for the assistance.
      The assistance may include planning and feasibility studies,
      management and operational assistance, and studies evaluating the
      need for development potential of projects that increase
      employment and improve economic growth in the areas.
      (8) Grants to defray administrative costs
        The Secretary may make grants to defray not to exceed 75
      percent of the costs incurred by organizations and public bodies
      to carry out projects for which grants or loans are made under
      this subsection.  For purposes of determining the non-Federal
      share of the costs, the Secretary shall consider contributions in
      cash and in kind, fairly evaluated, including premises,
      equipment, and services.
      (9) Authorization of appropriations
        There are authorized to be appropriated to carry out this
      subsection $50,000,000 for each of fiscal years 1996 through
      2002.
    (f) Grants to broadcasting systems
      (1) ''Statewide'' defined
        In this subsection, the term ''statewide'' means having a
      coverage area of not less than 90 percent of the population of a
      State and not less than 80 percent of the rural land area of the
      State (as determined by the Secretary).
      (2) Grants
        The Secretary may make grants to statewide private nonprofit
      public television systems, whose coverage area is predominately
      rural, for the purpose of demonstrating the effectiveness of such
      systems in providing information on agriculture and other issues
      of importance to farmers and other rural residents.  Grants
      available under this paragraph may be used for capital equipment
      expenditures, start-up and program costs, and other costs
      necessary to the operation of such demonstrations.
    (g) Loan guarantees for purchase of cooperative stock
      (1) ''Farmer'' defined
        In this subsection, the term ''farmer'' means any farmer that
      the Secretary determines is a family farmer.
      (2) Loan guarantees
        The Secretary may guarantee loans under this section to
      individual farmers for the purpose of purchasing start-up capital
      stock of a farmer cooperative established for the purpose of
      processing an agricultural commodity.
      (3) Eligibility
        To be eligible for a loan guarantee under this subsection, a
      farmer must produce the agricultural commodity that will be
      processed by the cooperative.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 310B, as added Pub. L. 92-419,
    title I, Sec. 118(a), Aug. 30, 1972, 86 Stat. 663; amended Pub. L.
    91-524, title VIII, Sec. 817, as added Pub. L. 93-86, Sec.
    1(27)(B), Aug. 10, 1973, 87 Stat. 241; Pub. L. 95-113, title XV,
    Sec. 1503(b), Sept. 29, 1977, 91 Stat. 1021; Pub. L. 95-334, title
    I, Sec. 112, Aug. 4, 1978, 92 Stat. 424; Pub. L. 96-358, Sec. 5,
    Sept. 25, 1980, 94 Stat. 1187; Pub. L. 96-438, Sec. 1(2), Oct. 13,
    1980, 94 Stat. 1871; Pub. L. 99-409, Sec. 2, Aug. 28, 1986, 100
    Stat. 923; Pub. L. 100-203, title I, Sec. 1504, Dec. 22, 1987, 101
    Stat. 1330-28; Pub. L. 101-624, title XXIII, Sec. 2325, 2337, 2347,
    formerly 2347(a), 2386, 2388(b), (c), Nov. 28, 1990, 104 Stat.
    4013, 4022, 4034, 4051, 4052; Pub. L. 102-237, title VII, Sec.
    701(c), (h)(1)(C), (D), Dec. 13, 1991, 105 Stat. 1879, 1880; Pub.
    L. 102-552, title V, Sec. 516(d), Oct. 28, 1992, 106 Stat. 4137;
    Pub. L. 102-554, Sec. 6, Oct. 28, 1992, 106 Stat. 4144; Pub. L.
    104-127, title VI, Sec. 635(b), 661(d), title VII, Sec. 705(1),
    747(a), 759B, Apr. 4, 1996, 110 Stat. 1093, 1107, 1112, 1125, 1138;
    Pub. L. 104-180, title VII, Sec. 731, Aug. 6, 1996, 110 Stat.
    1600.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Federal Nonnuclear Energy Research and Development Act of
    1974, as amended, referred to in subsec. (a), is Pub. L. 93-577,
    Dec. 31, 1974, 88 Stat. 1878, as amended, which is classified
    generally to chapter 74 (Sec. 5901 et seq.) of Title 42, The Public
    Health and Welfare. For complete classification of this Act to the
    Code, see Short Title note set out under section 5901 of Title 42
    and Tables.
      For definition of ''this chapter'', referred to in subsec.
    (d)(5), (7), see note set out under section 1921 of this title.
      Title V of the Housing Act of 1949, referred to in subsec.
    (d)(7), is title V of act July 15, 1949, ch. 338, 63 Stat. 432, as
    amended, which is classified generally to subchapter III (Sec. 1471
    et seq.) of chapter 8A of Title 42, The Public Health and Welfare.
    For complete classification of this Act to the code, see References
    in Text note set out under section 1441 of Title 42 and Tables.
 
-COD-
                                CODIFICATION
      In subsec. (d)(7), ''chapter 11 of title 31'' substituted for
    ''the Budget and Accounting Act of 1921 (31 U.S.C. 1 et seq.)'' on
    authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat.
    1067, the first section of which enacted Title 31, Money and
    Finance.
 
-MISC3-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-127, Sec. 747(a)(1), in first
    sentence, struck out ''and'' before ''(3)'' and inserted before
    period at end '', and (4) to facilitate economic opportunity for
    industries undergoing adjustment from terminated Federal
    agricultural price and income support programs or increased
    competition from foreign trade''.
      Pub. L. 104-127, Sec. 635(b), in third sentence, substituted
    ''(4) of'' for ''(3) of''.
      Subsec. (b). Pub. L. 104-127, Sec. 747(a)(2), inserted heading,
    redesignated par. (2) as subsec. (b), struck out ''(2)'' before
    ''The Secretary'', and struck out par. (1) which read as follows:
    ''Secretary may make grants, not to exceed $50,000,000 annually, to
    eligible applicants under this section for pollution abatement and
    control projects in rural areas.  No such grant shall exceed 50 per
    centum of the development cost of such a project.''
      Subsec. (c). Pub. L. 104-127, Sec. 747(a)(3), inserted heading,
    in par. (1), inserted par. heading and inserted ''(including
    nonprofit entities)'' after ''private business enterprises'', in
    par. (2), inserted par. heading and substituted ''award grants on a
    competitive basis'' for ''make grants'', and added par. (3).
      Subsec. (d)(2) to (4). Pub. L. 104-127, Sec. 661(d)(1),
    substituted ''provision of this section'' for ''provision of this
    section and sections 1924(b) and 1942(b) of this title''.
      Subsec. (d)(6). Pub. L. 104-127, Sec. 661(d)(2), substituted
    ''this section'' for ''this section, section 1924 of this title, or
    section 1942 of this title''.
      Subsec. (e). Pub. L. 104-127, Sec. 747(a)(4), added subsec. (e)
    and struck out former subsec. (e) which authorized the insuring or
    guaranteeing of loans for the purpose of constructing or improving
    subterminal facilities.
      Subsec. (e)(2). Pub. L. 104-180 amended Pub. L. 104-127, Sec.
    747(a)(4), which enacted subsec. (e), to insert ''effective October
    1, 1996,'' after ''The Secretary shall make grants'' in par. (2).
      Subsec. (f). Pub. L. 104-127, Sec. 759B, added par. (1),
    redesignated existing provisions as par. (2), and added par.
    heading.
      Pub. L. 104-127, Sec. 747(a)(5), (6), redesignated subsec. (j) as
    (f) and struck out former subsec. (f) which authorized grants to
    nonprofit institutions for the purpose of establishing and
    operating centers for rural technology or cooperative development.
    See subsec. (e) of this section.
      Pub. L. 104-127, Sec. 705(1), made technical amendment to
    directory language of Pub. L. 101-624, Sec. 2347(a). See 1990
    Amendment note below.
      Subsec. (g). Pub. L. 104-127, Sec. 747(a)(5), (7), added subsec.
    (g) and struck out former subsec. (g) which read as follows: ''In
    carrying out subsection (f) of this section, the Secretary may
    provide technical assistance to alleviate or prevent conditions of
    excessive unemployment or underemployment of persons residing in
    economically distressed rural areas that the Secretary determines
    have a substantial need for such assistance.  Such assistance shall
    include planning and feasibility studies, management and
    operational assistance, and studies evaluating the needs for
    development potential of projects that increase employment and
    improve economic growth in such areas.''
      Pub. L. 104-127, Sec. 705(1), made technical amendment to
    directory language of Pub. L. 101-624, Sec. 2347(a). See 1990
    Amendment note below.
      Subsec. (h). Pub. L. 104-127, Sec. 747(a)(5), struck out subsec.
    (h) which read as follows: ''The Secretary may make grants to
    defray not to exceed 75 percent of the administrative costs
    incurred by organizations and public bodies to carry out projects
    for which grants or loans are made under subsection (f) of this
    section.  For purposes of determining the non-Federal share of such
    costs, the Secretary shall consider contributions in cash and in
    kind, fairly evaluated, including but not limited to premises,
    equipment, and services.''
      Pub. L. 104-127, Sec. 705(1), made technical amendment to
    directory language of Pub. L. 101-624, Sec. 2347(a). See 1990
    Amendment note below.
      Subsec. (i). Pub. L. 104-127, Sec. 747(a)(5), struck out subsec.
    (i) which authorized making of loans at low interest rates and at
    market rates to 1 or more businesses, local governments, or public
    agencies in rural areas to fund facilities in which recipients of
    such loans share telecommunications terminal equipment, computers,
    computer software, and computer hardware.
      Subsec. (j). Pub. L. 104-127, Sec. 747(a)(6), redesignated
    subsec. (j) as (f).
      1992 - Subsec. (c). Pub. L. 102-554 designated existing
    provisions as par. (1) and added par. (2).
      Pub. L. 102-552, which directed the substitution of ''business
    enterprises or the creation, expansion, and operation of rural
    distance learning networks or rural learning programs that provide
    educational instruction or job training instruction related to
    potential employment or job advancement to adult students,'' for
    ''business enterprises,'' in section 310B(c) without specifying the
    name of the act, was executed to this section, which is section
    310B of the Consolidated Farm and Rural Development Act, to reflect
    the probable intent of Congress.
      1991 - Subsec. (d)(5), (7). Pub. L. 102-237, Sec. 701(h)(1)(C),
    (D), substituted ''this chapter'' for ''this Act''.
      Subsec. (f)(4). Pub. L. 102-237, Sec. 701(c)(3), (4),
    redesignated par. (4), relating to grants to statewide private
    nonprofit public television systems, as subsec. (j), and
    transferred such provision to follow subsec. (i).
      Subsec. (i)(2)(B)(iv). Pub. L. 102-237, Sec. 701(c)(1),
    substituted ''(iii) of this subparagraph'' for ''(ii) of this
    subsection''.
      Subsec. (i)(5)(A). Pub. L. 102-237, Sec. 701(c)(2), inserted
    closing parenthesis after ''section 2008(b)(3) of this title''.
      Subsec. (j). Pub. L. 102-237, Sec. 701(c)(3)-(5), redesignated
    subsec. (f)(4), relating to grants to statewide private nonprofit
    public television systems, as subsec. (j), transferred such
    provision to follow subsec. (i), and inserted heading.
      1990 - Subsec. (a). Pub. L. 101-624, Sec. 2388(b), substituted
    ''paragraphs (1) and (3)'' for ''subsections (a) and (c)''.
      Subsec. (b). Pub. L. 101-624, Sec. 2325, designated existing
    provisions as par. (1) and added par. (2).
      Subsec. (d). Pub. L. 101-624, Sec. 2388(c), designated first par.
    and and pars. (1) to (6) as (1) to (7), respectively, substituted
    ''paragraphs (2) and (3)'' for ''paragraph (1) and (2)'' in par.
    (4), and realigned margins of pars. (5) to (7).
      Subsec. (f). Pub. L. 101-624, Sec. 2386, added par. (4) relating
    to grants to statewide private nonprofit public television systems.
      Pub. L. 101-624, Sec. 2347, formerly Sec. 2347(a), as renumbered
    by Pub. L. 104-127, Sec. 705(1), added subsec. (f) and struck out
    former subsec. (f) which read as follows:
      ''(1) The Secretary may make grants under this subsection to
    public and nonprofit private institutions for the purpose of
    enabling them to establish and operate centers of rural technology
    development that have, as a primary objective, the improvement of
    the economic condition of rural areas by promoting the development
    (through technological innovation and adaptation of existing
    technology) and commercialization of (A) new products that can be
    produced in rural areas, and (B) new processes that can be used in
    such production.
      ''(2) Grants under this subsection may be made on a competitive
    basis.  In making grants, the Secretary shall give preference to
    applicants that will establish centers for rural technology in
    areas that have (A) few industries and agribusinesses, (B) high
    levels of unemployment, (C) high rates of out-migration of people,
    business, and industries, and (D) low levels of per capita income.
      ''(3) If grants are to be made under this subsection, the
    Secretary shall issue regulations implementing this subsection that
    shall include provisions for the monitoring and evaluation of the
    rural technology development activities carried out by institutions
    that receive grants under this subsection.''
      Subsecs. (g), (h). Pub. L. 101-624, Sec. 2347, formerly Sec.
    2347(a), as renumbered by Pub. L. 104-127, Sec. 705(1), added
    subsecs. (g) and (h).
      Subsec. (i). Pub. L. 101-624, Sec. 2337, added subsec. (i).
      1987 - Subsec. (c). Pub. L. 100-203 inserted ''and private
    nonprofit corporations'' after ''to public bodies'' and substituted
    ''to finance and facilitate development of small and emerging'' for
    ''to facilitate development of''.
      1986 - Subsec. (a). Pub. L. 99-409, Sec. 2(1), inserted provision
    that no loan may be made, insured, or guaranteed under this
    subsection that exceeds $25,000,000 in principal amount.
      Subsec. (f). Pub. L. 99-409, Sec. 2(2), added subsec. (f).
      1980 - Subsec. (a). Pub. L. 96-438 authorized the Secretary to
    make and insure loans for the purpose of reducing the reliance on
    nonrenewable energy resources by encouraging the development and
    construction of solar energy systems, including the modification of
    existing systems, in rural areas and defined term ''solar energy'',
    for purposes of subsection (a) of this section, as meaning energy
    derived from sources, other than fossil fuels, and technologies
    included in the Federal Nonnuclear Energy Research and Development
    Act of 1974, as amended.
      Subsec. (e). Pub. L. 96-358 added subsec. (e).
      1978 - Subsec. (d)(1), (2). Pub. L. 95-334, Sec. 112(1), inserted
    exception for assistance less than $1,000,000, or where direct
    employment will not be increased by more than 50 employees.
      Subsec. (d)(3). Pub. L. 95-334, Sec. 112, inserted exception for
    assistance less than $1,000,000, or where direct employment will
    not be increased by more than 50 employees and substituted ''30''
    for ''60''.
      1977 - Subsec. (a). Pub. L. 95-113 inserted reference to the
    conservation, development, and utilization of water for aquaculture
    purposes and inserted definition of ''aquaculture''.
      1973 - Subsec. (d)(4) to (6). Pub. L. 91-524, Sec. 817, as added
    by Pub. L. 93-86, added pars. (4) to (6).
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 731 of Pub. L. 104-180 provided in part: ''That this
    section (amending this section) shall take effect upon enactment of
    this Act into law (Aug. 6, 1996).''
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by section 701(c) of Pub. L. 102-237 effective as if
    included in the provision of the Food, Agriculture, Conservation,
    and Trade Act of 1990, Pub. L. 101-624, to which the amendment
    relates, and amendment by section 701(h)(1)(C), (D) of Pub. L.
    102-237 to any provision specified therein effective as if included
    in Act that added provision so specified at the time such Act
    became law, see section 1101(b)(6), (c) of Pub. L. 102-237, set out
    as a note under section 1421 of this title.
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Section 2(2) of Pub. L. 99-409 provided that the amendment made
    by that section is effective Oct. 1, 1986.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-358 effective Oct. 1, 1980, see section 6
    of Pub. L. 96-358, set out as an Effective Date note under section
    3701 of this title.
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section
    1901 of Pub. L. 95-113, set out as a note under section 1307 of
    this title.
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      Powers, duties, and assets of agencies, offices, and other
    entities within Department of Agriculture relating to rural
    development functions under this section and under section 1323 of
    Pub. L. 99-198, set out as a note below, transferred to Rural
    Development Administration by section 2302(b) of Pub. L. 101-624.
 
-MISC5-
                            BUSINESS DEVELOPMENT
      Section 2336 of Pub. L. 101-624 provided that: ''The purposes of
    this chapter (chapter 2 (Sec. 2336, 2337) of subtitle D of title
    XXIII of Pub. L. 101-624, amending this section) are to -
        ''(1) provide funds to improve telecommunications service in
      rural areas; and
        ''(2) provide access to advanced telecommunications services
      and computer networks to improve job opportunities and the
      business environment in rural areas.''
        GUARANTEE BY SECRETARY OF AGRICULTURE OF LOANS TO NONPROFIT
            NATIONAL RURAL DEVELOPMENT AND FINANCE CORPORATIONS
      Pub. L. 99-198, title XIII, Sec. 1323, Dec. 23, 1985, 99 Stat.
    1534, as amended by Pub. L. 99-425, title IV, Sec. 407(c), Sept.
    30, 1986, 100 Stat. 971; Pub. L. 99-500, Sec. 101(a) (title VI,
    Sec. 641), Oct. 18, 1986, 100 Stat. 1783, 1783-35, and Pub. L.
    99-591, Sec. 101(a) (title VI, Sec. 641), Oct. 30, 1986, 100 Stat.
    3341, 3341-35; Pub. L. 100-202, Sec. 101(k) (title VI, Sec. 636),
    Dec. 22, 1987, 101 Stat. 1329-322, 1329-357, provided that:
      ''(a)(1) Prior to September 30, 1988, the Secretary of
    Agriculture (hereafter in this section referred to as the
    'Secretary') shall guarantee loans made by public agencies or
    private organizations (including loans made by financial
    institutions such as insurance companies) to nonprofit national
    rural development and finance corporations that establish similar
    and affiliated statewide rural development and finance programs for
    the purpose of providing loans, guarantees, and other financial
    assistance to profit or nonprofit local businesses to improve
    business, industry, and employment opportunities in a rural area
    (as determined by the Secretary).
      ''(2) To be eligible to obtain a loan guarantee under this
    subsection, a corporation must -
        ''(A) demonstrate to the Secretary the ability of the
      corporation to administer a national revolving rural development
      loan program;
        ''(B) be prepared to commit financial resources under the
      control of the corporation to the establishment of affiliated
      statewide rural development and finance programs; and
        ''(C) have secured commitments of significant financial support
      from public agencies and private organizations for such
      affiliated statewide programs.
      ''(3) A national rural development and finance corporation
    receiving a loan guarantee under this subsection shall base a
    determination to establish an affiliated statewide program in large
    part on the willingness of States and private organizations to
    sponsor and make funds available to such program.
      ''(4) Notwithstanding any other provision of law, for the fiscal
    year ending September 30, 1986, of the amounts available to
    guarantee loans in accordance with section 310B of the Consolidated
    Farm and Rural Development Act (7 U.S.C. 1932) from the Rural
    Development Insurance Fund, $20,000,000 shall be used by the
    Secretary to guarantee loans under the national rural development
    and finance program established under this subsection, to remain
    available until expended.
      ''(5) Notwithstanding any provision to the contrary of subsection
    (4) above, the $20,000,000 which was available pursuant to
    subsection (4) shall continue to be available and shall be used by
    the Secretary prior to September 30, 1988, to guarantee loans for
    the national rural development and finance program and shall remain
    available until expended.
      ''(b)(1) Prior to September 30, 1988, the Secretary shall make
    grants, from funds transferred under paragraph (2), to national
    rural development and finance corporations for the purpose of
    establishing a rural development program to provide financial and
    technical assistance to compliment the loan guarantees made or to
    be made to such corporations under subsection (a).
      ''(2) All funds in, appropriated to, or repaid to the Rural
    Development Loan Fund, including those on deposit and available
    upon date of enactment (Dec. 23, 1985), under sections 623 and 633
    (42 U.S.C. 9812, 9822) of the Community Economic Development Act of
    1981 (42 U.S.C. 9801 et seq.) shall be transferred to the Secretary
    provided that -
        ''(A) all funds on deposit and available on date of enactment
      shall be used for the purpose of making grants under paragraph
      (1) and shall remain available until expended;
        ''(B) notwithstanding any other provision of law, all loans to
      intermediary borrowers made prior to date of enactment, shall
      upon date of enactment, for the life of such loan, bear a rate of
      interest not to exceed that in effect upon the date of issuance
      of such loans; and
        ''(C) notwithstanding paragraph (1), all funds other than funds
      to which subparagraph (A) applies shall be used by the Secretary
      to make loans -
          ''(i) to the entities;
          ''(ii) for the purposes; and
          ''(iii) subject to the terms and conditions;
      specified in the first, second, and last sentences of section
      623(a) of the Community Economic Development Act of 1981 (42
      U.S.C. 9812(a)). For purposes of this subparagraph, any reference
      in such sentences to the Secretary shall be deemed to be a
      reference to the Secretary of Agriculture.''
      Pub. L. 99-500, Sec. 101(a) (title VI, Sec. 641), Oct. 18, 1986,
    100 Stat. 1783, 1783-35, and Pub. L. 99-591, Sec. 101(a) (title VI,
    Sec. 641), Oct. 30, 1986, 100 Stat. 3341, 3341-35, provided in
    part: ''That such grant funds (probably means grant funds under
    section 1323(b)(1) of Pub. L. 99-198, set out above) may be used by
    such corporation to provide technical assistance and financial
    assistance, including capitalizing revolving loan programs,
    pursuant to the Act.''
           LIMITS ON GRANTS FOR FISCAL YEARS 1982, 1983, AND 1984
      Pub. L. 97-35, title I, Sec. 120, Aug. 13, 1981, 95 Stat. 367,
    provided in part that, notwithstanding any other provision of law,
    there was authorized to be appropriated for grants pursuant to
    section 310B(c) of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1932) not to exceed: $5,007,000 for fiscal year 1982,
    $5,280,000 for fiscal year 1983, and $5,553,000 for fiscal year
    1984.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 917, 1927, 1929a, 1983,
    1983a, 1992, 2009d, 6613, 6942, 6944 of this title.
 
-CITE-
     7 USC Sec. 1933                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1933. Guaranteed rural housing loans; Hawaiian home lands
 
-STATUTE-
      (a) Rural Housing Loans which (1) are guaranteed by the Secretary
    under section 517(a)(2) (FOOTNOTE 1) of the Housing Act of 1949 (42
    U.S.C. 1487(a)(2)), (2) are made by other lenders approved by the
    Secretary to provide dwellings in rural areas for the applicants'
    own use, and (3) bear interest and other charges at rates not above
    the maximum rates prescribed by the Secretary of Housing and Urban
    Development for loans made by private lenders for similar purposes
    and guaranteed by the Secretary of Housing and Urban Development
    under the National Housing Act (12 U.S.C. 1701 et seq.) or
    superseding legislation shall not be subject to sections 501(c) and
    502(b)(3) of the Housing Act of 1949 (42 U.S.C. 1471(c) and
    1472(b)(3)).
       (FOOTNOTE 1) See References in Text note below.
      (b) For the purposes of title V of the Housing Act of 1949 (42
    U.S.C. 1471 et seq.) or this chapter, a guarantee of payment given
    under the color of law by the Department of Hawaiian Home Lands (or
    its successor in function) shall be found by the Secretary
    reasonably to assure repayment of any indebtedness so guaranteed.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 310C, as added Pub. L. 92-419,
    title I, Sec. 119, Aug. 30, 1972, 86 Stat. 664; amended Pub. L.
    101-624, title XVIII, Sec. 1804, Nov. 28, 1990, 104 Stat. 3819.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 517(a) of the Housing Act of 1949 (42 U.S.C. 1487(a)),
    referred to in subsec. (a), was amended by Pub. L. 98-181, title V,
    Sec. 514(a)(1), Nov. 30, 1983, 98 Stat. 1247, and, as so amended,
    does not contain a par. (2).
      The National Housing Act, referred to in subsec. (a), is act June
    27, 1934, ch. 847, 48 Stat. 1246, as amended, which is classified
    principally to chapter 13 (Sec. 1701 et seq.) of Title 12, Banks
    and Banking. For complete classification of this Act to the Code,
    see References in Text note set out under section 1701 of Title 12
    and Tables.
      Title V of the Housing Act of 1949, referred to in subsec. (b),
    is title V of act July 15, 1949, ch. 338, 63 Stat. 432, as amended,
    which is classified generally to subchapter III (Sec. 1471 et seq.)
    of chapter 8A of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see References in
    Text note set out under section 1441 of Title 42 and Tables.
      For definition of ''this chapter'', referred to in subsec. (b),
    see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1990 - Subsec. (b). Pub. L. 101-624 substituted ''or this
    chapter'' for '', as amended''.
 
-CITE-
     7 USC Sec. 1934                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1934. Low-income farm ownership loan program; eligibility;
        repayment requirements
 
-STATUTE-
      (a) The Secretary is authorized to make and insure loans for any
    of the purposes referred to in section 1923(a) of this title, or
    paragraphs (1) through (5) of section 1924(a) of this title, to
    farmers and ranchers in the United States who (1) are citizens of
    the United States, (2) meet the requirements of paragraphs (2)
    through (4) of section 1922 of this title, (3) are unable to obtain
    sufficient credit under section 1922 of this title to finance their
    actual needs, (4) are owners or operators of small or family farms
    (including new owners or operators), (5) are farmers or ranchers
    with a low income, and (6) demonstrate a need to maximize their
    income from farming or ranching operations.  The Secretary is also
    authorized to make such loans to any farm cooperative or private
    domestic corporation or partnership that is controlled by farmers
    and ranchers and engaged primarily and directly in farming or
    ranching in the United States if all of its members, stockholders,
    or partners, as applicable, are citizens of the United States and
    the entity and all such members, stockholders, or partners meet the
    requirements of paragraphs (2) through (6) of the preceding
    sentence.
      (b) Each loan made or insured under this section shall be
    repayable in such installments as the Secretary determines will
    provide for reduced payments during the initial repayment period of
    the loan and larger payments during the remainder of the repayment
    period of the loan.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 310D, as added Pub. L. 95-334,
    title I, Sec. 113, Aug. 4, 1978, 92 Stat. 424; amended Pub. L.
    101-624, title XVIII, Sec. 1802(b), Nov. 28, 1990, 104 Stat. 3818;
    Pub. L. 102-552, title V, Sec. 516(e)(1), Oct. 28, 1992, 106 Stat.
    4137; Pub. L. 104-127, title VI, Sec. 661(e), Apr. 4, 1996, 110
    Stat. 1107.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-127 substituted ''section 1923(a)
    of this title, or paragraphs (1) through (5) of section 1924(a) of
    this title'' for ''paragraphs (1) through (5) of section 1923(a) of
    this title, or subparagraphs (A) through (E) of section 1924(a)(1)
    of this title''.
      1992 - Subsec. (a). Pub. L. 102-552 substituted ''1924(a)(1)''
    for ''1924(d)(1)''.
      1990 - Subsec. (a). Pub. L. 101-624 substituted ''paragraphs (1)
    through (5) of section 1923(a) of this title, or subparagraphs (A)
    through (E) of section 1924(d)(1) of this title,'' for ''clauses
    (1) through (5) of section 1923(a) of this title'', substituted
    ''paragraphs'' for ''clauses'' before ''(2) through (4) of
    section'', made technical amendment to reference to section 1922 of
    this title which required no change in text, and substituted
    ''paragraphs'' for ''clauses'' before ''(2) through (6) of the''.
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 516(e)(2) of Pub. L. 102-552 provided that: ''The
    amendment made by paragraph (1) of this subsection (amending this
    section) shall take effect at the same time as the amendments made
    by section 501(a) of the Food, Agriculture, Conservation, and Trade
    Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1865)
    (amending section 1924 of this title) took effect.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1925, 1927, 1942, 1983 of
    this title.
 
-CITE-
     7 USC Sec. 1935                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1935. Down payment loan program
 
-STATUTE-
    (a) In general
      (1) Establishment
        Notwithstanding any other section of this subchapter, the
      Secretary shall establish, within the farm ownership loan program
      established under this subchapter, a program under which loans
      shall be made under this section to qualified beginning farmers
      and ranchers for down payments on farm ownership loans.
      (2) Administration
        The Secretary shall be the primary coordinator of credit
      supervision for the down payment loan program established under
      this section, in consultation with the commercial or cooperative
      lender and, if applicable, the contracting credit counseling
      service selected under section 2006b(c) of this title.
    (b) Loan terms
      (1) Principal
        Each loan made under this section shall be in an amount equal
      to 30 percent of the purchase price or appraisal value, whichever
      is lower, of the farm or ranch to be acquired, unless the
      borrower requests a lesser amount.
      (2) Interest rate
        The interest rate on any loan made by the Secretary under this
      section shall be 4 percent.
      (3) Duration
        Each loan under this section shall be made for a period of 10
      years or less, at the option of the borrower.
      (4) Repayment
        Each borrower of a loan under this section shall repay the loan
      to the Secretary in equal annual installments.
      (5) Nature of retained security interest
        The Secretary shall retain an interest in each farm or ranch
      acquired with a loan made under this section that shall -
          (A) be secured by the farm or ranch;
          (B) be junior only to such interests in the farm or ranch as
        may be conveyed at the time of acquisition to the person
        (including a lender) from whom the borrower obtained a loan
        used to acquire the farm or ranch; and
          (C) require the borrower to obtain the permission of the
        Secretary before the borrower may grant an additional security
        interest in the farm or ranch.
    (c) Limitations
      (1) Borrowers required to make minimum down payment
        The Secretary shall not make a loan under this section to any
      borrower with respect to a farm or ranch if the contribution of
      the borrower to the down payment on the farm or ranch will be
      less than 10 percent of the purchase price of the farm or ranch.
      (2) Maximum price of property to be acquired
        The Secretary shall not make a loan under this section with
      respect to a farm or ranch for which the purchase price or
      appraisal value, whichever is lower, exceeds $250,000.
      (3) Prohibited types of financing
        The Secretary shall not make a loan under this section with
      respect to a farm or ranch if the farm or ranch is to be acquired
      with other financing that contains any of the following
      conditions:
          (A) The financing is to be amortized over a period of less
        than 30 years.
          (B) A balloon payment will be due on the financing during the
        10-year period beginning on the date the loan is to be made by
        the Secretary.
    (d) Administration
      In carrying out this section, the Secretary shall, to the maximum
    extent practicable -
        (1) facilitate the transfer of farms and ranches from retiring
      farmers and ranchers to persons eligible for insured loans under
      this subchapter;
        (2) make efforts to widely publicize the availability of loans
      under this section among -
          (A) potentially eligible recipients of the loans;
          (B) retiring farmers and ranchers; and
          (C) applicants for farm ownership loans under this
        subchapter;
        (3) encourage retiring farmers and ranchers to assist in the
      sale of their farms and ranches to qualified beginning farmers
      and ranchers by providing seller financing; and
        (4) coordinate the loan program established by this section
      with State programs that provide farm ownership or operating
      loans for beginning farmers and ranchers.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 310E, as added Pub. L. 102-554,
    Sec. 7(a), Oct. 28, 1992, 106 Stat. 4144.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1925, 1929, 1991, 1994 of
    this title.
 
-CITE-
     7 USC Sec. 1936                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER I - REAL ESTATE LOANS
 
-HEAD-
    Sec. 1936. Repealed. Pub. L. 104-127, title VI, Sec. 616(b), Apr.
        4, 1996, 110 Stat. 1090
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 310F, as added Pub. L.
    102-554, Sec. 7(b), Oct. 28, 1992, 106 Stat. 4146, related to
    availability of farm ownership loans and loan guarantees for
    certain qualified beginning farmers and ranchers.
 
-CITE-
     7 USC SUBCHAPTER II - OPERATING LOANS                       01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
    .
 
-HEAD-
    SUBCHAPTER II - OPERATING LOANS
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in sections 1925, 1961, 1963,
    1964, 1981b, 1983, 1983a, 1989, 1991, 1994, 2000, 2003, 2006a,
    2008h of this title.
 
-CITE-
     7 USC Sec. 1941                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1941. Persons eligible for loans
 
-STATUTE-
    (a) Requirements
      The Secretary is authorized to make and insure loans under this
    subchapter to farmers and ranchers in the United States, and to
    farm cooperatives and private domestic corporations, partnerships,
    and joint operations that are controlled by farmers and ranchers
    and engaged primarily and directly in farming or ranching in the
    United States, subject to the conditions specified in this
    section.  To be eligible for such loans, applicants who are
    individuals, or, in the case of cooperatives, corporations,
    partnerships, and joint operations, individuals holding a majority
    interest in such entity, must (1) be citizens of the United States,
    (2) for direct loans only, have either training or farming
    experience that the Secretary determines is sufficient to assure
    reasonable prospects of success in the proposed farming operations,
    (3) be or will become operators of not larger than family farms (or
    in the case of cooperatives, corporations, partnerships, and joint
    operations in which a majority interest is held by individuals who
    are related by blood or marriage, as defined by the Secretary, such
    individuals must be or will become either owners or operators of
    not larger than a family farm and at least one such individual must
    be or will become an operator of not larger than a family farm or,
    in the case of holders of the entire interest who are related by
    blood or marriage and all of whom are or will become farm
    operators, the ownership interest of each such holder separately
    constitutes not larger than a family farm, even if their interests
    collectively constitute larger than a family farm, as defined by
    the Secretary), and (4) be unable to obtain sufficient credit
    elsewhere to finance their actual needs at reasonable rates and
    terms, taking into consideration prevailing private and cooperative
    rates and terms in the community in or near which the applicant
    resides for loans for similar purposes and periods of time.  In
    addition to the foregoing requirements of this subsection, in the
    case of corporations, partnerships, and joint operations, the
    family farm requirement of clause (3) of the preceding sentence
    shall apply as well to the farm or farms in which the entity has an
    operator interest and the requirement of clause (4) of the
    preceding sentence shall apply as well to the entity in the case of
    cooperatives, corporations, partnerships, and joint operations.
    (b) Rural youths in 4-H Clubs, Future Farmers of America, etc.
      (1) Loans may also be made under this subchapter without regard
    to the requirements of clauses (2) and (3) of subsection (a) of
    this section to youths who are rural residents to enable them to
    operate enterprises in connection with their participation in 4-H
    Clubs, Future Farmers of America, and similar organizations.
      (2) A person receiving a loan under this subsection who executes
    a promissory note therefor shall thereby incur full personal
    liability for the indebtedness evidenced by such note in accordance
    with its terms free of any disability of minority.
      (3) For loans under this subsection the Secretary may accept the
    personal liability of a cosigner of the promissory note in addition
    to the borrowers' personal liability.
      (4) Youth enterprises not farming or ranching. - The operation of
    an enterprise by a youth under this subsection shall not be
    considered the operation of a farm or ranch under this chapter.
    (c) Direct loans
      (1) In general
        Subject to paragraph (3), the Secretary may make a direct loan
      under this subchapter only to a farmer or rancher who -
          (A) is a qualified beginning farmer or rancher who has not
        operated a farm or ranch, or who has operated a farm or ranch
        for not more than 5 years;
          (B) has not received a previous direct operating loan made
        under this subchapter; or
          (C) has received a previous direct operating loan made under
        this subchapter during 6 or fewer years.
      (2) Youth loans
        In this subsection, the term ''direct operating loan'' shall
      not include a loan made to a youth under subsection (b) of this
      section.
      (3) Transition rule
        If, as of April 4, 1996, a farmer or rancher has received a
      direct operating loan under this subchapter during each of 4 or
      more previous years, the borrower shall be eligible to receive a
      direct operating loan under this subchapter during 3 additional
      years after April 4, 1996.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 311, Aug. 8, 1961, 75 Stat. 310;
    Pub. L. 92-419, title I, Sec. 120(a), Aug. 30, 1972, 86 Stat. 665;
    Pub. L. 95-334, title I, Sec. 114, Aug. 4, 1978, 92 Stat. 425; Pub.
    L. 97-98, title XVI, Sec. 1601(b), Dec. 22, 1981, 95 Stat. 1346;
    Pub. L. 99-198, title XIII, Sec. 1301(a), 1302(b), 1303, Dec. 23,
    1985, 99 Stat. 1518, 1519; Pub. L. 104-127, title VI, Sec. 611,
    661(f), Apr. 4, 1996, 110 Stat. 1087, 1107; Pub. L. 105-277, div.
    A, Sec. 101(a) (title VIII, Sec. 805(2)), Oct. 21, 1998, 112 Stat.
    2681, 2681-39.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsec.
    (b)(4), see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (a). Pub. L. 105-277 inserted ''for direct loans
    only,'' before ''have either'' in cl. (2).
      1996 - Subsec. (b)(1). Pub. L. 104-127, Sec. 661(f), struck out
    ''and for the purposes specified in section 1942 of this title''
    before period at end.
      Subsec. (b)(4). Pub. L. 104-127, Sec. 611(b), added par. (4).
      Subsec. (c). Pub. L. 104-127, Sec. 611(a), added subsec. (c) and
    struck out former subsec. (c) which read as follows: ''The
    Secretary may not restrict eligibility for loans made or insured
    under this subchapter for purposes set forth in section 1942 of
    this title solely to borrowers of loans that are outstanding on
    December 23, 1985.''
      1985 - Subsec. (a). Pub. L. 99-198, Sec. 1301(a), substituted -
        (1) '', partnerships, and joint operations'' for ''and
      partnerships'' wherever appearing after ''corporations'';
        (2) '', partnerships, and joint operations'' for '', and
      partnerships'' wherever appearing after ''corporations''; and
        (3) ''individuals'' for ''members, stockholders, or partners,
      as applicable,'' wherever appearing.
      Pub. L. 99-198, Sec. 1303, in cl. (3) parenthetical, inserted
    provision treating blood or marriage related owner-operators of the
    entire farm interest as separate interest holders of not larger
    than family farms though collective ownership constitutes a larger
    than a family farm.
      Subsec. (c). Pub. L. 99-198, Sec. 1302(b), added subsec. (c).
      1981 - Subsec. (a). Pub. L. 97-98 substituted ''corporations and
    partnerships, the family farm'' for ''cooperatives, corporations,
    and partnerships, the family farm'' and ''as well to the entity in
    the case of cooperatives, corporations, and partnerships'' for ''as
    well to the entity''.
      1978 - Pub. L. 95-334 substituted provisions setting forth
    eligibility criteria for loans to farmers and ranchers in the
    United States, and to farm cooperatives and private domestic
    corporations and partnerships controlled by farmers and ranchers
    and engaged primarily and directly in farming or ranching in the
    United States, for provisions setting forth eligibility criteria
    for loans to farmers and ranchers in the United States, Puerto
    Rico, and the Virgin Islands.
      1972 - Pub. L. 92-419 designated existing provisions as subsec.
    (a) and added subsec. (b).
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 611 of Pub. L. 104-127 effective 90 days
    after Apr. 4, 1996, and amendment by section 661(f) of Pub. L.
    104-127 effective Apr. 4, 1996, see section 663(a), (b) of Pub. L.
    104-127, set out as a note under section 1922 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section
    1801 of Pub. L. 97-98, set out as an Effective Date note under
    section 4301 of this title.
         AUTHORITY OF SECRETARY TO MAKE OR GUARANTEE CERTAIN LOANS
      Pub. L. 104-134, title II, Sec. 2002, Apr. 26, 1996, 110 Stat.
    1321-313, provided that: ''Notwithstanding any other provision of
    law, the Secretary of Agriculture is hereby authorized to make or
    guarantee an operating loan under Subtitle B (7 U.S.C. 1941 et
    seq.) or an emergency loan under Subtitle C (7 U.S.C. 1961 et seq.)
    of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922
    et. seq.), as in effect prior to April 4, 1996, to a loan applicant
    who was less than 90 days delinquent on April 4, 1996, if the loan
    applicant had submitted an application for the loan prior to April
    5, 1996.''
                         1989 FARM OPERATING LOANS
      Pub. L. 101-82, title III, Sec. 302, Aug. 14, 1989, 103 Stat.
    582, provided that:
      ''(a) Direct Credit. - To the maximum extent practicable, the
    Secretary of Agriculture shall ensure that direct operating loans
    made or insured under subtitle B of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1941 et seq.) for 1990 crop production
    are made available to farmers and ranchers suffering major losses
    due to excess moisture, freeze, storm, or related condition
    occurring in 1989 or drought or related condition occurring in 1988
    or 1989, as authorized under existing law and under regulations of
    the Secretary that implement the objective of enabling farmers and
    ranchers to stay in business.
      ''(b) Loan Guarantees. -
        ''(1) In general. - Notwithstanding any other provision of law,
      the Secretary shall make available in fiscal year 1990 guarantees
      to commercial or cooperative lenders for loans under subtitle B
      of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941
      et seq.), to refinance and reamortize 1989 operating loans, or
      1989 or 1990 installments due and payable on real estate debt,
      farm equipment or building (including storage facilities) debt,
      livestock loans, or other operating debt, of farmers and ranchers
      that otherwise cannot be repaid due to major losses incurred by
      such farmers or ranchers as a result of excess moisture, freeze,
      storm, or related condition occurring in 1989 or drought or
      related condition occurring in 1988 or 1989.
        ''(2) Reamortization. - Each fiscal year 1990 guaranteed loan
      for 1988 or 1989 natural disaster purposes, as described in
      paragraph (1), shall contain terms and conditions governing the
      reamortization of the debt of the farmer or rancher that will
      provide the farmer or rancher a reasonable opportunity to
      continue to receive new operating credit while repaying the
      guaranteed loan, as determined by the Secretary.
        ''(3) Eligibility. - Notwithstanding any other provision of
      law, any person eligible to receive payments under subtitle A of
      title I (7 U.S.C. 1421 note) shall be deemed eligible to have
      guaranteed, in accordance with this subsection, loans made to
      such person by a commercial or cooperative lender to refinance
      installment payments that are or become due and payable during
      1989 or 1990, as described in paragraph (1), except that, to be
      deemed eligible to have such loan guaranteed, the person must
      otherwise -
          ''(A) be current in the person's obligation to the commercial
        or cooperative lender that agrees to accept the guarantee in
        consideration of allowing the person to make the 1989 or 1990
        payment or installment over a period of time not to exceed 6
        years from the original due date of such payment or
        installment; and
          ''(B) meet the criteria for guaranteed loan borrowers under
        subtitle B of the Consolidated Farm and Rural Development Act
        established by the Secretary.
      ''(c) Use of Agricultural Credit Insurance Fund. - For purposes
    of providing guaranteed loans in accordance with subsection (b), in
    addition to funds otherwise available, the Secretary may use any
    funds available from the Agricultural Credit Insurance Fund during
    fiscal years (sic) 1989 or 1990 for emergency insured and
    guaranteed loans under subtitle C of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1961 et seq.) to meet the needs
    resulting from natural disasters, except that funds available from
    such Fund first shall be used to satisfy the level of assistance
    estimated by the Secretary to meet the needs of persons eligible
    for emergency disaster loans.''
      Similar provisions were contained in the following prior act:
      Pub. L. 100-387, title III, Sec. 312, Aug. 11, 1988, 102 Stat.
    948.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1922, 1994, 2006a of this
    title.
 
-CITE-
     7 USC Sec. 1942                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1942. Purposes of loans
 
-STATUTE-
    (a) In general
      A direct loan may be made under this subchapter only for -
        (1) paying the costs incident to reorganizing a farm or ranch
      for more profitable operation;
        (2) purchasing livestock, poultry, or farm or ranch equipment;
        (3) purchasing feed, seed, fertilizer, insecticide, or farm or
      ranch supplies, or to meet other essential farm or ranch
      operating expenses, including cash rent;
        (4) financing land or water development, use, or conservation;
        (5) paying loan closing costs;
        (6) assisting a farmer or rancher in changing the equipment,
      facilities, or methods of operation of a farm or ranch to comply
      with a standard promulgated under section 655 of title 29 or a
      standard adopted by a State under a plan approved under section
      667 of title 29, if the Secretary determines that without
      assistance under this paragraph the farmer or rancher is likely
      to suffer substantial economic injury in complying with the
      standard;
        (7) training a limited-resource borrower receiving a loan under
      section 1934 of this title in maintaining records of farming and
      ranching operations;
        (8) training a borrower under section 2006a of this title;
        (9) refinancing the indebtedness of a borrower, if the borrower
      -
          (A) has refinanced a loan under this subchapter not more than
        4 times previously; and
          (B)(i) is a direct loan borrower under this chapter at the
        time of the refinancing and has suffered a qualifying loss
        because of a natural disaster declared by the Secretary under
        this chapter or a major disaster or emergency designated by the
        President under the Robert T. Stafford Disaster Relief and
        Emergency Assistance Act (42 U.S.C. 5121 et seq.); or
          (ii) is refinancing a debt obtained from a creditor other
        than the Secretary; or
        (10) providing other farm, ranch, or home needs, including
      family subsistence.
    (b) Guaranteed loans
      A loan may be guaranteed under this subchapter only for -
        (1) paying the costs incident to reorganizing a farm or ranch
      for more profitable operation;
        (2) purchasing livestock, poultry, or farm or ranch equipment;
        (3) purchasing feed, seed, fertilizer, insecticide, or farm or
      ranch supplies, or to meet other essential farm or ranch
      operating expenses, including cash rent;
        (4) financing land or water development, use, or conservation;
        (5) refinancing indebtedness;
        (6) paying loan closing costs;
        (7) assisting a farmer or rancher in changing the equipment,
      facilities, or methods of operation of a farm or ranch to comply
      with a standard promulgated under section 655 of title 29 or a
      standard adopted by a State under a plan approved under section
      667 of title 29, if the Secretary determines that without
      assistance under this paragraph the farmer or rancher is likely
      to suffer substantial economic injury due to compliance with the
      standard;
        (8) training a borrower under section 2006a of this title; or
        (9) providing other farm, ranch, or home needs, including
      family subsistence.
    (c) Hazard insurance requirement
      (1) In general
        After the Secretary makes the determination required by
      paragraph (2), the Secretary may not make a loan to a farmer or
      rancher under this subchapter unless the farmer or rancher has,
      or agrees to obtain, hazard insurance on the property to be
      acquired with the loan.
      (2) Determination
        Not later than 180 days after April 4, 1996, the Secretary
      shall determine the appropriate level of insurance to be required
      by paragraph (1).
    (d) Private reserve
      (1) In general
        Notwithstanding any other provision of this chapter, the
      Secretary may reserve a portion of any loan made under this
      subchapter to be placed in an unsupervised bank account that may
      be used at the discretion of the borrower for the basic family
      needs of the borrower and the immediate family of the borrower.
      (2) Limit on size of the reserve
        The size of the reserve shall not exceed the least of -
          (A) 10 percent of the loan;
          (B) $5,000; or
          (C) the amount needed to provide for the basic family needs
        of the borrower and the borrower's immediate family for 3
        calendar months.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 312, Aug. 8, 1961, 75 Stat. 310;
    Pub. L. 87-703, title IV, Sec. 401(4), Sept. 27, 1962, 76 Stat.
    632; Pub. L. 90-488, Sec. 8, Aug. 15, 1968, 82 Stat. 771; Pub. L.
    92-419, title I, Sec. 120(b), 121, Aug. 30, 1972, 86 Stat. 665;
    Pub. L. 95-113, title XIV, Sec. 1448(b), Sept. 29, 1977, 91 Stat.
    1012; Pub. L. 95-334, title I, Sec. 115, Aug. 4, 1978, 92 Stat.
    425; Pub. L. 96-438, Sec. 1(3), Oct. 13, 1980, 94 Stat. 1871; Pub.
    L. 99-198, title XIII, Sec. 1306, 1307, Dec. 23, 1985, 99 Stat.
    1521; Pub. L. 101-624, title XVIII, Sec. 1818(b), Nov. 28, 1990,
    104 Stat. 3830; Pub. L. 102-237, title V, Sec. 501(b), Dec. 13,
    1991, 105 Stat. 1866; Pub. L. 102-552, title V, Sec. 516(f)(1)(A),
    (2), Oct. 28, 1992, 106 Stat. 4137, 4138; Pub. L. 104-127, title
    VI, Sec. 612(a), Apr. 4, 1996, 110 Stat. 1087.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs.
    (a)(9)(B)(i) and (d)(1), see note set out under section 1921 of
    this title.
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (a)(9)(B)(i), is Pub. L. 93-288, May
    22, 1974, 88 Stat. 143, as amended, which is classified principally
    to chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health
    and Welfare. For complete classification of this Act to the Code,
    see Short Title note set out under section 5121 of Title 42 and
    Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 amended section generally, substituting
    present provisions for provisions outlining purposes of loans made
    under this subchapter, authorizing loans to rural area residents to
    operate small business enterprises, authorizing loans for pollution
    abatement and control projects in rural areas and providing for
    limitations on such loans, and authorizing creation, from loan
    funds, of nonsupervised bank accounts to be used at discretion of
    borrower for necessary family living expenses.
      1992 - Subsec. (a). Pub. L. 102-552, Sec. 516(f)(2), repealed
    amendment by Pub. L. 102-237, Sec. 501(b). See 1991 Amendment note
    below.
      Pub. L. 102-552, Sec. 516(f)(1)(A), made technical correction to
    directory language of Pub. L. 101-624, Sec. 1818(b). See 1990
    Amendment note below.
      1991 - Subsec. (a). Pub. L. 102-237, Sec. 501(b), which directed
    the substitution of ''systems (for purposes of this subchapter, the
    term 'solar energy' means energy derived from sources (other than
    fossil fuels) and technologies included in the Federal Nonnuclear
    Energy Research and Development Act of 1974) (42 U.S.C. 5901 et
    seq.), (12) training in maintaining records of farming and ranching
    operations for limited resource borrowers receiving loans under
    section 1934 of this title, and (13) borrower training under
    section 2006a of this title.'' for '' 'systems.' and all that
    follows'', could not be executed because ''systems.'' does not
    appear in subsec. (a) was repealed by Pub. L. 102-552, Sec.
    516(f)(2). See Construction of 1991 Amendment note below.
      1990 - Subsec. (a). Pub. L. 101-624, Sec. 1818(b), as amended by
    Pub. L. 102-552, Sec. 516(f)(1)(A), added cl. (13).
      1985 - Subsec. (a). Pub. L. 99-198, Sec. 1306, added cl. (12).
      Subsec. (e). Pub. L. 99-198, Sec. 1307, added subsec. (e).
      1980 - Subsec. (a). Pub. L. 96-438 added cl. (11).
      1978 - Subsec. (a). Pub. L. 95-334, struck out ''individual''
    after ''title, to''.
      1977 - Subsec. (a). Pub. L. 95-113 inserted parenthetical
    provision extending the section to include farm equipment which
    utilizes solar energy and inserted definition of ''solar energy''.
      1972 - Subsec. (a). Pub. L. 92-419, Sec. 120(b), 121(1), (2),
    substituted ''section 1941(a) for ''section 1941'', designated
    existing provisions as subsec. (a), and added cl. (10).
      Subsecs. (b) to (d). Pub. L. 92-419, Sec. 121(3), added subsecs.
    (b) to (d).
      1968 - Pub. L. 90-488 struck out from cl. (4) the concluding
    phrase, ''including recreational uses and facilities'', added cls.
    (5) and (6), and redesignated former cls. (5) to (7) as (7) to (9),
    respectively.
      1962 - Pub. L. 87-703 authorized, in cl. (4), loans to be made
    for recreational uses and facilities.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 612(b) of Pub. L. 104-127 provided that: ''Section
    312(c)(1) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1942(c)(1)) shall not apply until the Secretary of
    Agriculture makes the determination required by section 312(c)(2)
    of the Act.'' (The Secretary's determination relating to hazard
    insurance under this provision was contained in interim rules
    published Mar. 3, 1997, and effective Mar. 24, 1997, see 62 F.R.
    9351.)
      Amendment by Pub. L. 104-127 effective 90 days after Apr. 4,
    1996, see section 663(b) of Pub. L. 104-127, set out as a note
    under section 1922 of this title.
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section (f)(1)(B) of Pub. L. 102-552 provided that: ''The
    amendment made by subparagraph (A) (amending this section) shall
    take effect as if included in the Food, Agriculture, Conservation,
    and Trade Act of 1990 (Pub. L. 101-624) at the time such Act became
    law.''
                      EFFECTIVE DATE OF 1977 AMENDMENT
      Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section
    1901 of Pub. L. 95-113, set out as a note under section 1307 of
    this title.
 
-TRANS-
                           TRANSFER OF FUNCTIONS
      Powers, duties, and assets of agencies, offices, and other
    entities within Department of Agriculture relating to rural
    development functions transferred to Rural Development
    Administration by section 2302(b) of Pub. L. 101-624.
 
-MISC5-
                       CONSTRUCTION OF 1991 AMENDMENT
      Section 516(f)(2) of Pub. L. 102-552 provided that: ''Subsection
    (b) of section 501 of the Food, Agriculture, Conservation, and
    Trade Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1866)
    (amending this section) is repealed.  The Consolidated Farm and
    Rural Development Act (7 U.S.C. 1921 et seq.) shall be applied and
    administered as if such subsection had never become law.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1991, 1992, 2008f of this
    title.
 
-CITE-
     7 USC Sec. 1943                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1943. Limitations on amount of operating loans
 
-STATUTE-
    (a) In general
      The Secretary shall make or insure no loan under this subchapter
    -
        (1) that would cause the total principal indebtedness
      outstanding at any one time for loans made under this subchapter
      to any one borrower to exceed, in the case of a loan other than a
      loan guaranteed by the Secretary, $200,000, or, in the case of a
      loan guaranteed by the Secretary, $700,000 (increased, beginning
      with fiscal year 2000, by the inflation percentage applicable to
      the fiscal year in which the loan is guaranteed and reduced by
      the unpaid indebtedness of the borrower on loans under the
      sections specified in section 1925 of this title that are
      guaranteed by the Secretary); or
        (2) for the purchasing or leasing of land other than for cash
      rent, or for carrying on any land leasing or land purchasing
      program.
    (b) Inflation percentage
      For purposes of this section, the inflation percentage applicable
    to a fiscal year is the percentage (if any) by which -
        (1) the average of the Prices Paid By Farmers Index (as
      compiled by the National Agricultural Statistics Service of the
      Department of Agriculture) for the 12-month period ending on
      August 31 of the immediately preceding fiscal year; exceeds
        (2) the average of such index (as so defined) for the 12-month
      period ending on August 31, 1996.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 313, Aug. 8, 1961, 75 Stat. 310;
    Pub. L. 90-488, Sec. 9, Aug. 15, 1968, 82 Stat. 771; Pub. L.
    92-419, title I, Sec. 122, Aug. 30, 1972, 86 Stat. 665; Pub. L.
    95-334, title I, Sec. 116, Aug. 4, 1978, 92 Stat. 426; Pub. L.
    98-258, title VI, Sec. 604(a), Apr. 10, 1984, 98 Stat. 139; Pub. L.
    105-277, div.  A, Sec. 101(a) (title VIII, Sec. 806(b)), Oct. 21,
    1998, 112 Stat. 2681, 2681-39.)
 
-MISC1-
                                 AMENDMENTS
      1998 - Pub. L. 105-277 inserted section catchline, designated
    existing provisions as subsec. (a), inserted heading, substituted
    ''this subchapter - '' for ''this subchapter'', in introductory
    provisions, realigned margin of par. (1) and substituted ''$700,000
    (increased, beginning with fiscal year 2000, by the inflation
    percentage applicable to the fiscal year in which the loan is
    guaranteed and reduced by the unpaid indebtedness of the borrower
    on loans under the sections specified in section 1925 of this title
    that are guaranteed by the Secretary); or'' for ''$400,000; or'',
    realigned margin of par. (2), and added subsec. (b).
      1984 - Pub. L. 98-258 substituted ''$200,000'' and ''$400,000''
    for ''$100,000'' and ''$200,000'', respectively.
      1978 - Pub. L. 95-334 substituted provisions setting forth
    criteria for Secretary to make or insure loans under this
    subchapter for provisions setting forth criteria for Secretary to
    make loans under this subchapter.
      1972 - Pub. L. 92-419 substituted ''$50,000'' for ''$35,000''.
      1968 - Pub. L. 90-488 struck out from item (1) the proviso which
    limited the amount to be used for loans which would cause the
    indebtedness of any borrower to exceed $15,000 to 25 per centum of
    the sums made available for loans.
 
-CITE-
     7 USC Sec. 1944                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1944. Soil conservation district loans; limitation; purchase
        of conservation equipment
 
-STATUTE-
      Loans aggregating not more than $500,000 in any one year may also
    be made to soil conservation districts which cannot obtain
    necessary credit elsewhere upon reasonable terms and conditions for
    the purchase of equipment customarily used for soil conservation
    purposes.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 314, Aug. 8, 1961, 75 Stat. 311.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1983 of this title.
 
-CITE-
     7 USC Sec. 1945                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1945. Repealed. Pub. L. 104-127, title VI, Sec. 613, Apr. 4,
        1996, 110 Stat. 1089
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 315, Aug. 8, 1961, 75
    Stat. 311, authorized Secretary to participate in certain loans
    made under this subchapter.
 
-CITE-
     7 USC Sec. 1946                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1946. Liability of borrower
 
-STATUTE-
    (a) Determination of interest rates
      (1) The Secretary shall make all loans under this subchapter upon
    the full personal liability of the borrower and upon such security
    as the Secretary may prescribe.  The interest rates on such loans,
    except for guaranteed loans and loans provided in paragraphs (2)
    and (3), (FOOTNOTE 1) shall be as determined by the Secretary, but
    not in excess of the current average market yield on outstanding
    marketable obligations of the United States with remaining periods
    to maturity comparable to the average maturities of such loans,
    plus an additional charge not to exceed 1 per centum as determined
    by the Secretary, which charge shall be deposited in the Rural
    Development Insurance Fund or the Agricultural Credit Insurance
    Fund, as appropriate, and adjusted to the nearest one-eighth of 1
    per centum.  The interest rate on any guaranteed loan made under
    this subchapter shall be such rate as may be agreed upon by the
    borrower and lender, but not in excess of a rate as may be
    determined by the Secretary.
       (FOOTNOTE 1) See References in Text note below.
      (2) The interest rate on any loan (other than a guaranteed loan)
    to a low income, limited resource borrower under this subchapter
    shall not be -
        (A) greater than the sum of -
          (i) an amount that does not exceed one-half of the current
        average market yield on outstanding marketable obligations of
        the United States with maturities of 5 years; and
          (ii) an amount not exceeding 1 percent per year, as the
        Secretary determines is appropriate; or
        (B) less than 5 percent per year.
    (b) Payment period; consolidation and rescheduling of loans
      Loans made under this subchapter shall be payable in not to
    exceed seven years.  The Secretary may consolidate or reschedule
    outstanding loans for payment over a period not to exceed seven
    years (or, in the case of loans for farm operating purposes,
    fifteen years) from the date of such consolidation or rescheduling,
    and the amount of unpaid principal and interest of the prior loans
    so consolidated or rescheduled shall not create a new charge
    against any loan levels authorized by law.  A new loan may be
    included in a consolidation.  Such new loan shall be charged
    against any loan level authorized by law.  Except as otherwise
    provided for farm loans under section 1981b of this title, the
    interest rate on such consolidated or rescheduled loans, other than
    guaranteed loans, may be changed by the Secretary to a rate not to
    exceed the rate being charged for loans made under this subchapter
    at the time of the consolidation or rescheduling.  The interest
    rate on any guaranteed loan under this subchapter that may be
    consolidated or rescheduled for payment shall be such rate as may
    be agreed upon by the borrower and the lender, but not in excess of
    a rate as may be determined by the Secretary.
    (c) Line-of-credit loans
      (1) In general
        A loan made or guaranteed by the Secretary under this
      subchapter may be in the form of a line-of-credit loan.
      (2) Term
        A line-of-credit loan under paragraph (1) shall terminate not
      later than 5 years after the date that the loan is made or
      guaranteed.
      (3) Eligibility
        For purposes of determining eligibility for a farm operating
      loan under this subchapter, each year during which a farmer or
      rancher takes an advance or draws on a line-of-credit loan the
      farmer or rancher shall be considered to have received an
      operating loan for 1 year.
      (4) Termination of delinquent loans
        If a borrower does not pay an installment on a line-of-credit
      loan on schedule, the borrower may not take an advance or draw on
      the line-of-credit, unless the Secretary determines that -
          (A) the borrower's failure to pay on schedule was due to
        unusual conditions that the borrower could not control; and
          (B) the borrower will reduce the line-of-credit balance to
        the scheduled level at the end of -
            (i) the production cycle; or
            (ii) the marketing of the borrower's agricultural products.
      (5) Agricultural commodities
        A line-of-credit loan may be used to finance the production or
      marketing of an agricultural commodity that -
          (A) is eligible for a price support program of the Department
        of Agriculture; or
          (B) was eligible for a price support program of the
        Department of Agriculture on the day before April 4, 1996.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 316, Aug. 8, 1961, 75 Stat. 311;
    Pub. L. 90-488, Sec. 10, Aug. 15, 1968, 82 Stat. 771; Pub. L.
    95-334, title I, Sec. 117, Aug. 4, 1978, 92 Stat. 426; Pub. L.
    97-35, title I, Sec. 160(b), Aug. 13, 1981, 95 Stat. 377; Pub. L.
    98-258, title VI, Sec. 604(b), Apr. 10, 1984, 98 Stat. 139; Pub. L.
    101-624, title XVIII, Sec. 1803(b), Nov. 28, 1990, 104 Stat. 3818;
    Pub. L. 104-127, title VI, Sec. 614, 661(g), Apr. 4, 1996, 110
    Stat. 1089, 1107.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Paragraph (3), referred to in subsec. (a)(1), was repealed by
    Pub. L. 104-127, title VI, Sec. 661(g), Apr. 4, 1996, 110 Stat.
    1107.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (a)(3). Pub. L. 104-127, Sec. 661(g), struck out
    par. (3) which read as follows: ''The interest rate on any loan
    (other than a guaranteed loan) made or insured under clause (5) of
    section 1942(a) of this title for activities that involve the use
    of prime farmland as defined in section 1927(a)(6)(C) of this title
    shall be the interest rate otherwise applicable under this section
    increased by 2 per centum per annum.''
      Subsec. (c). Pub. L. 104-127, Sec. 614, added subsec. (c).
      1990 - Subsec. (a)(2). Pub. L. 101-624 amended par. (2)
    generally.  Prior to amendment, par. (2) read as follows: ''The
    interest rate on any loan (other than a guaranteed loan) to a
    low-income, limited resource borrower under this subchapter shall
    be the interest rate otherwise applicable under this section
    reduced by 3 per centum per annum.''
      1984 - Subsec. (b). Pub. L. 98-258 inserted ''(or, in the case of
    loans for farm operating purposes, fifteen years)'' and substituted
    ''Except as otherwise provided for farm loans under section 1981b
    of this title, the interest rate'' for ''The interest rate''.
      1981 - Subsec. (a). Pub. L. 97-35 redesignated existing
    provisions as par. (1), inserted reference to loans guaranteed
    under pars. (2) and (3), and added pars. (2) and (3).
      1978 - Pub. L. 95-334 designated existing provisions as subsec.
    (a), inserted provisions relating to depositing of charges and
    provisions relating to interest rates on guaranteed loans, struck
    out provisions relating to payment and renewal of loans, and added
    subsec. (b).
      1968 - Pub. L. 90-488 substituted provisions for determination of
    interest rate by taking into consideration current average market
    yield on outstanding marketable obligations of the United States
    with remaining periods to maturity comparable to the average
    maturities of the loans, adjusted to the nearest one-eighth of 1
    per centum, plus not to exceed 1 per centum per annum as determined
    by the Secretary, for former prohibition of an interest rate
    exceeding 5 per centum per annum.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-35 applicable to loans made after Sept.
    30, 1981, see section 160(c) of Pub. L. 97-35, set out as a note
    under section 1927 of this title.
 
-CITE-
     7 USC Sec. 1947, 1948                                       01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1947, 1948. Repealed. Pub. L. 104-127, title VI, Sec. 615,
        616(a), Apr. 4, 1996, 110 Stat. 1090
 
-MISC1-
      Section 1947, Pub. L. 87-128, title III, Sec. 317, as added Pub.
    L. 92-419, title I, Sec. 123, Aug. 30, 1972, 86 Stat. 665, related
    to insured operating loans.
      Section 1948, Pub. L. 87-128, title III, Sec. 318, as added Pub.
    L. 102-554, Sec. 8, Oct. 28, 1992, 106 Stat. 4146, related to
    special assistance to certain qualified beginning farmers and
    ranchers.
 
-CITE-
     7 USC Sec. 1949                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER II - OPERATING LOANS
 
-HEAD-
    Sec. 1949. Graduation of borrowers with operating loans or
        guarantees to private commercial credit
 
-STATUTE-
    (a) Graduation plan
      The Secretary shall establish a plan, in coordination with
    activities under sections 2006a, 2006b, 2006c, and 2006d of this
    title, to encourage each borrower with an outstanding loan under
    this subchapter or with respect to whom there is an outstanding
    guarantee under this subchapter to graduate to private commercial
    or other sources of credit.
    (b) Limitation on period borrowers are eligible for guaranteed
        assistance
      (1) General rule
        Subject to paragraph (2), the Secretary shall not guarantee a
      loan under this subchapter for a borrower for any year after the
      15th year that a loan is made to, or a guarantee is provided with
      respect to, the borrower under this subchapter.
      (2) Transition rule
        If, as of October 28, 1992, a farmer or rancher has received a
      direct or guaranteed operating loan under this subchapter during
      each of 10 or more previous years, the borrower shall be eligible
      to receive a guaranteed operating loan under this subchapter
      during 5 additional years after October 28, 1992.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 319, as added Pub. L. 102-554,
    Sec. 9, Oct. 28, 1992, 106 Stat. 4150; amended Pub. L. 104-127,
    title VI, Sec. 617, Apr. 4, 1996, 110 Stat. 1090.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Subsec. (b). Pub. L. 104-127 added subsec. (b) and struck
    out former subsec. (b) which provided for limitation on period for
    which borrowers were eligible for assistance under this subchapter
    and contained transition rule.
 
-CITE-
     7 USC SUBCHAPTER III - EMERGENCY LOANS                      01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
    .
 
-HEAD-
    SUBCHAPTER III - EMERGENCY LOANS
 
-MISC1-
                       EMERGENCY AGRICULTURAL CREDIT
      Pub. L. 95-334, title II, Sec. 201-211, Aug. 4, 1978, 92 Stat.
    429-433, as amended by Pub. L. 96-220, Sec. 1, Mar. 30, 1980, 94
    Stat. 129; Pub. L. 97-98, title XVI, Sec. 1605, Dec. 22, 1981, 95
    Stat. 1346; Pub. L. 98-258, title VI, Sec. 603, Apr. 10, 1984, 98
    Stat. 139; Pub. L. 99-198, title XIII, Sec. 1310(b), Dec. 23, 1985,
    99 Stat. 1523, which authorized the Secretary of Agriculture to
    insure or guarantee loans to (1) bona fide farmers and ranchers who
    were primarily and directly engaged in agricultural production and
    who were citizens of the United States and (2) farm cooperatives
    and private domestic corporations and partnerships that were
    primarily and directly engaged in agricultural production and in
    which a majority interest was held by members, stockholders, or
    partners, as applicable, who themselves were citizens of the United
    States and were primarily and directly engaged in agricultural
    production, if the applicant for such loan: (A) had the experience
    or training and resources necessary to assure a reasonable prospect
    for successful operation with the assistance of such loan; (B)
    needed such credit in order to maintain a viable agricultural
    production operation; and (C) was not able to obtain sufficient
    credit elsewhere due to economic stresses, such as a general
    tightening of agricultural credit or an unfavorable relationship
    between production costs and prices received for agricultural
    commodities; and which provided requirements as to purposes of
    loans, loan limits, interest rates, repayment period, loan
    certifications and conditions, loan security, funding, maximum
    amount of outstanding loans, full faith and credit of the United
    States, issuance of certificates of beneficial ownership,
    assignment of contracts of guarantee, geographical availability,
    the conduct of a study and report on the program, and termination
    of authority to make new contracts of insurance or guarantee on
    Sept. 30, 1982, except with respect to the economic emergency loan
    program operated from Dec. 22, 1983, to Sept. 30, 1984, was
    repealed by Pub. L. 101-624, title XVIII, Sec. 1851, Nov. 28, 1990,
    104 Stat. 3837.
                         EMERGENCY LIVESTOCK CREDIT
      Pub. L. 93-357, July 25, 1974, 88 Stat. 391, as amended by Pub.
    L. 94-35, Sec. 1, June 16, 1975, 89 Stat. 213; Pub. L. 94-517, Oct.
    15, 1976, 90 Stat. 2446; Pub. L. 95-334, title III, Sec. 301, Aug.
    4, 1978, 92 Stat. 433; Pub. L. 96-470, title I, Sec. 102(d), Oct.
    19, 1980, 94 Stat. 2237, authorized the Secretary of Agriculture to
    provide financial assistance to bona fide farmers and ranchers,
    including bona fide farmers or ranchers owning livestock that were
    fed in custom feedyards, who were primarily and directly engaged in
    agricultural production and who had substantial operations in
    breeding, raising, fattening, or marketing livestock, and to
    corporations or partnerships when a majority interest in such
    corporations or partnerships was held by stockholders or partners
    who themselves were primarily and directly engaged in such
    agricultural production and required the Secretary to guarantee
    loans, including both principal and interest, made by any legally
    organized lending agency.  The provisions also provided
    requirements as to loan limits, fees or charges, interest rates,
    repayment period, loan certifications and conditions, loan
    security, maximum amount of outstanding loans, exclusion from
    budget totals, full faith and credit of the United States, issuance
    of certificates of beneficial ownership, assignment of contracts of
    guarantee, rules and regulations, and termination of authority to
    make new guarantees on Sept. 30, 1979.
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in sections 1508, 1981b, 1981e,
    1983a, 1994, 7333 of this title.
 
-CITE-
     7 USC Sec. 1961                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1961. Eligibility for loans
 
-STATUTE-
    (a) Persons eligible
      The Secretary shall make and insure loans under this subchapter
    only to the extent and in such amounts as provided in advance in
    appropriation Acts to (1) established farmers, ranchers, or persons
    engaged in aquaculture, who are citizens of the United States and
    who are owner-operators (in the case of loans for a purpose under
    subchapter I of this chapter) or operators (in the case of loans
    for a purpose under subchapter II of this chapter) of not larger
    than family farms, and (2) farm cooperatives, private domestic
    corporations, partnerships, or joint operations (A) that are
    engaged primarily in farming, ranching, or aquaculture, and (B) in
    which a majority interest is held by individuals who are citizens
    of the United States and who are owner-operators (in the case of
    loans for a purpose under subchapter I of this chapter) or
    operators (in the case of loans for a purpose under subchapter II
    of this chapter) of not larger than family farms (or in the case of
    such cooperatives, corporations, partnerships, or joint operations
    in which a majority interest is held by individuals who are related
    by blood or marriage, as defined by the Secretary, such individuals
    must be either owners or operators of not larger than a family farm
    and at least one such individual must be an operator of not larger
    than a family farm), where the Secretary finds that the applicants'
    farming, ranching, or aquaculture operations have been
    substantially affected by a natural disaster in the United States
    or by a major disaster or emergency designated by the President
    under the Disaster Relief and Emergency Assistance Act (42 U.S.C.
    5121 et seq.): Provided, That they have experience and resources
    necessary to assure a reasonable prospect for successful operation
    with the assistance of such loan and are not able to obtain
    sufficient credit elsewhere.  In addition to the foregoing
    requirements of this subsection, in the case of farm cooperatives,
    private domestic corporations, partnerships, and joint operations,
    the family farm requirement of the preceding sentence shall apply
    as well to all farms in which the entity has an ownership and
    operator interest (in the case of loans for a purpose under
    subchapter I of this chapter) or an operator interest (in the case
    of loans for a purpose under subchapter II of this chapter).  The
    Secretary shall accept applications from, and make or insure loans
    pursuant to the requirements of this subchapter to, applicants,
    otherwise eligible under this subchapter, that conduct farming,
    ranching, or aquaculture operations in any county contiguous to a
    county where the Secretary has found that farming, ranching, or
    aquaculture operations have been substantially affected by a
    natural disaster in the United States or by a major disaster or
    emergency designated by the President under the Disaster Relief and
    Emergency Assistance Act. The Secretary shall accept applications
    for assistance under this subchapter from persons affected by a
    natural disaster at any time during the eight-month period
    beginning (A) on the date on which the Secretary determines that
    farming, ranching, or aquaculture operations have been
    substantially affected by such natural disaster or (B) on the date
    the President makes the major disaster or emergency designation
    with respect to such natural disaster, as the case may be.
    (b) Hazard insurance requirement
      (1) In general
        After the Secretary makes the determination required by
      paragraph (2), the Secretary may not make a loan to a farmer or
      rancher under this subchapter to cover a property loss unless the
      farmer or rancher had hazard insurance that insured the property
      at the time of the loss.
      (2) Determination
        Not later than 180 days after April 4, 1996, the Secretary
      shall determine the appropriate level of insurance to be required
      under paragraph (1).
    (c) Family farm system
      The Secretary shall conduct the emergency loan program under this
    subchapter in a manner that will foster and encourage the family
    farm system of agriculture, consistent with the reaffirmation of
    policy and declaration of the intent of Congress contained in
    section 2266(a) of this title.
    (d) Definitions
      For the purposes of this subchapter -
        (1) ''aquaculture'' means the husbandry of aquatic organisms
      under a controlled or selected environment; and
        (2) ''able to obtain sufficient credit elsewhere'' means able
      to obtain sufficient credit elsewhere to finance the applicant's
      actual needs at reasonable rates and terms, taking into
      consideration prevailing private and cooperative rates and terms
      in the community in or near which the applicant resides for loans
      for similar purposes and periods of time.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 321, Aug. 8, 1961, 75 Stat. 311;
    Pub. L. 87-832, Oct. 15, 1962, 76 Stat. 958; Pub. L. 93-24, Sec. 2,
    3, 6, Apr. 20, 1973, 87 Stat. 24, 25; Pub. L. 93-237, Sec. 10(a),
    (d), Jan. 2, 1974, 87 Stat. 1025; Pub. L. 94-68, Sec. 2, 3, Aug. 5,
    1975, 89 Stat. 381; Pub. L. 95-334, title I, Sec. 118, Aug. 4,
    1978, 92 Stat. 426; Pub. L. 96-302, title I, Sec. 120(a), July 2,
    1980, 94 Stat. 841; Pub. L. 96-438, Sec. 3(a), (b)(1), Oct. 13,
    1980, 94 Stat. 1872; Pub. L. 97-35, title I, Sec. 161, Aug. 13,
    1981, 95 Stat. 378; Pub. L. 98-258, title VI, Sec. 602(a), Apr. 10,
    1984, 98 Stat. 138; Pub. L. 99-198, title XIII, Sec. 1308(a),
    (b)(1), Dec. 23, 1985, 99 Stat. 1522; Pub. L. 100-707, title I,
    Sec. 109(c)(1), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 104-127,
    title VI, Sec. 621(a), Apr. 4, 1996, 110 Stat. 1091.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Disaster Relief and Emergency Assistance Act, referred to in
    subsec. (a), is Pub. L. 93-288, May 22, 1974, 88 Stat. 143, as
    amended, known as The Robert T. Stafford Disaster Relief and
    Emergency Assistance Act, which is classified principally to
    chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    Short Title note set out under section 5121 of Title 42 and Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (b). Pub. L. 104-127 added subsec. (b) and struck
    out former subsec. (b) which read as follows: ''An applicant shall
    be ineligible for financial assistance under this subchapter for
    crop losses if crop insurance was available to the applicant for
    such crop losses under the Federal Crop Insurance Act (7 U.S.C.
    1501 et seq.).''
      1988 - Subsec. (a). Pub. L. 100-707 substituted ''and Emergency
    Assistance Act'' for ''Act of 1974'' in two places.
      1985 - Subsec. (a)(1). Pub. L. 99-198, Sec. 1308(a), inserted
    ''and who are owner-operators (in the case of loans for a purpose
    under subchapter I of this chapter) or operators (in the case of
    loans for a purpose under subchapter II of this chapter) of not
    larger than family farms'' after ''United States'' in cl. (1) of
    first sentence, extended applicability to joint operations, and
    substituted requirement that a majority interest be held by
    individuals who are citizens of the United States and who are
    owner-operators (in the case of loans for a purpose under
    subchapter I of this chapter) or operators (in the case of loans
    for a purpose under subchapter II of this chapter) of not larger
    than family farms (or in the case of such cooperatives,
    corporations, partnerships, or joint operations in which a majority
    interest is held by individuals who are related by blood or
    marriage, as defined by the Secretary, that such individuals must
    be either owners or operators of not larger than a family farm and
    at least one such individual must be an operator of not larger than
    a family farm) for requirement that a majority interest be held by
    members, stockholders or partners who are citizens of the United
    States, in cl. (2) of first sentence, and inserted provision
    extending the family farm requirement to all farms in which the
    entity has an ownership and operator interest (in the case of loans
    for a purpose under subchapter I of this chapter) or an operator
    interest (in the case of loans for a purpose under subchapter II of
    this chapter).
      Subsec. (b). Pub. L. 99-198, Sec. 1308(b)(1), amended subsec. (b)
    generally, substituting provision declaring a loan applicant
    ineligible for financial assistance for crop losses where crop
    insurance was available to the applicant for former provision which
    made applicants eligible for loans, though able to obtain credit
    elsewhere, subject to the other terms and conditions for loans
    under this subchapter and as prescribed under regulations by the
    Secretary.
      1984 - Subsec. (a). Pub. L. 98-258 inserted provisions directing
    the Secretary to accept applications from, and make or insure loans
    pursuant to the requirements of this subchapter to, applicants,
    otherwise eligible under this subchapter, that conduct farming,
    ranching, or aquaculture operations in any county contiguous to a
    county where the Secretary has found that farming, ranching, or
    aquaculture operations have been substantially affected by a
    natural disaster in the United States or by a major disaster or
    emergency designated by the President under the Disaster Relief Act
    of 1974, and further directing the Secretary to accept applications
    for assistance under this subchapter from persons affected by a
    natural disaster at any time during the eight-month period
    beginning (A) on the date on which the Secretary determines that
    farming, ranching, or aquaculture operations have been
    substantially affected by such natural disaster or (B) on the date
    the President makes the major disaster or emergency designation
    with respect to such natural disaster, as the case may be.
      1981 - Subsec. (a). Pub. L. 97-35 inserted provisions relating to
    requirement for advance appropriation of amounts.
      1980 - Subsec. (a). Pub. L. 96-348, Sec. 3(a), (b)(1), repealed
    section 120 of Pub. L. 96-302 (see par. below) and amended section
    generally, designating existing provisions as subsec. (a) and, as
    so designated, restoring provision to proviso requiring loan
    recipients to be unable to obtain sufficient credit elsewhere.
      Pub. L. 96-302, Sec. 120(a) (see par. above), struck out from
    proviso requirement that persons to be eligible for loans be unable
    to obtain sufficient credit elsewhere to finance their actual needs
    at reasonable rates and terms, taking into consideration prevailing
    private and cooperative rates and terms in the community in or near
    which they reside for loans for similar purposes and periods of
    time.
      Subsecs. (b) to (d). Pub. L. 96-438, Sec. 3(b)(1), added subsecs.
    (b) to (d).
      1978 - Pub. L. 95-334 struck out subsec. (a) which set forth
    provisions relating to designation of emergency areas and
    definition of term ''aquaculture'', and incorporated provisions of
    subsec. (b) as entire section and, as so incorporated, substituted
    provisions relating to criteria authorizing the Secretary to make
    and insure loans, for provisions relating to criteria authorizing
    the Secretary to make loans in designated areas.
      1975 - Subsec. (a). Pub. L. 94-68, Sec. 2, substituted provisions
    authorizing the Secretary to designate an emergency area if he
    finds that a natural disaster has occurred in that area which
    substantially affected farming, ranching, or aquaculture operations
    for provisions authorizing the Secretary to designate an emergency
    area if he finds that there exists in that area a general need for
    agricultural credit and that the need for such credit in that area
    is the result of a natural disaster, and inserted definition of
    ''aquaculture''.
      Subsec. (b). Pub. L. 94-68, Sec. 3, extended the authority of the
    Secretary to make loans to areas designated by the President as
    ''Emergency'' pursuant to Disaster Relief Act of 1970, substituted
    reference to persons engaged in aquaculture and aquaculture for
    reference to oyster planters and oyster planting respectively,
    struck out provision that such loans be made without regard to
    whether the required financial assistance is otherwise available
    from private, cooperative, or other responsible sources, inserted
    requirement that the loan applicant be unable to obtain credit
    elsewhere at reasonable rates and terms, and inserted sentence that
    the provisions of this subsection shall not apply to loan
    applications filed prior to July 9, 1975.
      1974 - Subsec. (a). Pub. L. 93-237, Sec. 10(d), struck out
    ''which cannot be met for temporary periods of time by private,
    cooperative, or other responsible sources (including loans the
    Secretary is authorized to make or insure under subchapters I and
    II of this chapter or any other Act of Congress), at reasonable
    rates and terms for loans for similar purposes and periods of
    time'' after ''a general need for agricultural credit''.
      Subsec. (b). Pub. L. 93-237, Sec. 10(a), struck out '', and are
    unable to obtain sufficient credit elsewhere to finance their
    actual needs at reasonable rates and terms, taking into
    consideration prevailing practice and cooperative rates and terms
    in the community in or near which the applicant resides for loans
    for similar purposes and periods of time'' after ''a reasonable
    prospect for successful operation with the assistance of such
    loan'' and inserted provision that the loans be made without regard
    to whether the required financial assistance is otherwise available
    from the private, cooperative, or other responsible sources.
      1973 - Subsec. (a). Pub. L. 93-24, Sec. 2, 6, substituted in
    parenthetical text ''authorized to make or insure under subchapters
    I and II of this chapter'' for ''authorized to make under
    subchapter II of this chapter or to make or insure under subchapter
    I of this chapter'' and introductory words ''shall designate'' for
    ''may designate''.
      Subsec. (b). Pub. L. 93-24, Sec. 3, substituted introductory text
    ''shall make loans in any such area designated by the Secretary in
    accordance with subsection (a) of this section and in any area
    designated as a major disaster by the President pursuant to the
    provisions of the Disaster Relief Act of 1970, as amended,'' for
    ''is authorized to make loans in any such area'' and '': Provided,
    That'' for ''provided'' before ''they have experience''.
      1962 - Subsec. (b). Pub. L. 87-832 authorized loans to
    established oyster planters and to private domestic corporations or
    partnerships engaged primarily in oyster planting.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Section 621(b) of Pub. L. 104-127 provided that: ''Section
    321(b)(1) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1961(b)(1)) shall not apply until the Secretary of
    Agriculture makes the determination required by section 321(b)(2)
    of the Act.'' (The Secretary's determination relating to hazard
    insurance under this provision was contained in interim rules
    published Mar. 3, 1997, and effective Mar. 24, 1997, see 62 F.R.
    9351.)
                      EFFECTIVE DATE OF 1985 AMENDMENT
      Section 1308(b)(2) of Pub. L. 99-198 provided that: ''The
    amendment made by paragraph (1) (amending this section) shall not
    apply to a person whose eligibility for an emergency loan is the
    result of damage to an annual crop planted or harvested before the
    end of 1986.''
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Section 602(c) of Pub. L. 98-258 provided that: ''the amendments
    made by this section (amending this section and section 1964 of
    this title) shall be applicable to disasters occurring after May
    30, 1983.''
                     EFFECTIVE DATE OF 1980 AMENDMENTS
      Section 3(d) of Pub. L. 96-438 provided that: ''The amendments to
    subtitle C of the Consolidated Farm and Rural Development Act made
    by subsection (b) of this section (amending this section and
    sections 1962 to 1964 and 1971 of this title) shall be effective
    with respect to loans approved by the Secretary of Agriculture
    under subtitle C (this subchapter) after the date of enactment of
    this Act (Oct. 13, 1980), except that, for borrowers with loans
    outstanding under subtitle C as of December 15, 1979 -
        ''(1) the limits on loans under section 324 of the Consolidated
      Farm and Rural Development Act (section 1964 of this title) made
      by subsection (b)(1) of this section (amending this section and
      sections 1962 to 1964 of this title), and
        ''(2) the reduction in the time limit on subsequent emergency
      loans under section 330 of the Consolidated Farm and Rural
      Development Act (section 1971 of this title) made by subsection
      (b)(2) of this section (amending section 1971 of this title)
    shall not apply to subsequent emergency loans under section 330 (as
    in effect on the date preceding the date of enactment of this Act)
    that are made to such borrowers for the disasters for which the
    borrowers obtained loans under subtitle C prior to December 16,
    1979.''
      Amendment by Pub. L. 96-302 effective Oct. 1, 1980, see section
    507 of Pub. L. 96-302, set out as a note under section 631 of Title
    15, Commerce and Trade.
                      EFFECTIVE DATE OF 1974 AMENDMENT
      Section 10(b) of Pub. L. 93-237 provided that: ''The provisions
    of subsection (a) of this section (amending this section) shall be
    given effect with respect to all loan applications and loans made
    in connection with a disaster occurring on or after April 20,
    1973.''
      Section 10(d) of Pub. L. 93-237 provided in part that: ''The
    provisions of this subsection (amending this section) shall be
    given effect with respect to all loan applications and loans made
    in connection with a disaster occurring on or after December 27,
    1972.''
                     INELIGIBILITY FOR EMERGENCY LOANS
      Pub. L. 101-82, title III, Sec. 301, Aug. 14, 1989, 103 Stat.
    581, provided that: ''Section 321(b) of the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1961(b)) shall not apply to a
    person who otherwise would be eligible for an emergency loan under
    subtitle C of such Act (7 U.S.C. 1961 et seq.), if such eligibility
    is the result of damage to an annual crop planted for harvest in
    1989.''
      Similar provisions were contained in the following prior act:
      Pub. L. 100-387, title III, Sec. 311, Aug. 11, 1988, 102 Stat.
    948.
    NINETY-DAY EXTENSION AFTER JANUARY 2, 1974, OF DEADLINE FOR SEEKING
     ASSISTANCE WITH REGARD TO DISASTERS OCCURRING ON OR AFTER DECEMBER
                                  27, 1972
      Section 10(c) of Pub. L. 93-237 provided that: ''With regard to
    all disasters occurring on or after December 27, 1972, the
    Secretary of Agriculture shall extend for ninety days after the
    date of enactment of this section (Jan. 2, 1974) the deadline for
    seeking assistance under section 321 of the Consolidated Farm and
    Rural Development Act (this section) as amended by this section
    (amending this section).''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1964, 1991, 2008f, 2008h
    of this title; title 15 section 636; title 42 section 5154a.
 
-CITE-
     7 USC Sec. 1962                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1962. Loan determination factors; written credit declinations
 
-STATUTE-
      (a) For the purpose of determining whether to make or insure any
    loan under this subchapter, the Secretary shall take into
    consideration the net worth of the applicant involved, including
    all the assets and liabilities of the applicant.
      (b) For the purpose of determining whether an applicant under
    this subchapter is not able to obtain sufficient credit elsewhere,
    the Secretary shall require at least one written indication of
    declination of credit, from a legally organized lending institution
    within reasonable proximity to the applicant, that specifies the
    reasons for the declination: Provided, That for loans in excess of
    $300,000, the Secretary shall require at least two such written
    declinations: Provided further, That for loans of $100,000 or less,
    the Secretary may waive the requirement of this subsection if the
    Secretary determines that it would impose an undue burden on the
    applicant.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 322, Aug. 8, 1961, 75 Stat. 311;
    Pub. L. 94-68, Sec. 4, Aug. 5, 1975, 89 Stat. 381; Pub. L. 96-438,
    Sec. 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L. 104-127, title
    VI, Sec. 622, Apr. 4, 1996, 110 Stat. 1091.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Subsec. (b). Pub. L. 104-127 substituted ''loans of
    $100,000 or less'' for ''loans of $300,000 or less''.
      1980 - Pub. L. 96-438 substituted provisions prescribing factors
    to be considered in determining whether to make or insure a loan
    and relating to the need for applicants unable to obtain sufficient
    credit elsewhere to provide written credit declinations for
    provisions relating to the purpose and extent of loans under this
    subchapter.
      1975 - Pub. L. 94-68 extended authority to finance crop or
    livestock changes deemed desirable as a result of changes in market
    demand, and to make emergency loans in excess of the actual loss
    sustained as a result of the natural disaster.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-127 effective 90 days after Apr. 4,
    1996, see section 663(b) of Pub. L. 104-127, set out as a note
    under section 1922 of this title.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-438 effective with respect to loans
    approved after Oct. 13, 1980, except for certain subsequent
    emergency loans, see section 3(d) of Pub. L. 96-438, set out as a
    note under section 1961 of this title.
 
-CITE-
     7 USC Sec. 1963                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1963. Purpose and extent of loans
 
-STATUTE-
      Loans may be made or insured under this subchapter for any
    purpose authorized for loans under subchapter I or II of this
    chapter and for crop or livestock changes that are necessitated by
    a natural disaster, major disaster, or emergency and that are
    deemed desirable by the applicant, subject to the limitations on
    the amounts of loans provided in section 1964(a) of this title.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 323, Aug. 8, 1961, 75 Stat. 311;
    Pub. L. 96-438, Sec. 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L.
    104-127, title VI, Sec. 623, Apr. 4, 1996, 110 Stat. 1091.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 inserted ''that are necessitated by a
    natural disaster, major disaster, or emergency and that are'' after
    ''livestock changes''.
      1980 - Pub. L. 96-438 substituted provisions relating to the
    purposes and extent of loans made or insured under this subchapter
    for provisions limiting loans to amounts certified by the county
    committee.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-127 effective 90 days after Apr. 4,
    1996, see section 663(b) of Pub. L. 104-127, set out as a note
    under section 1922 of this title.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-438 effective with respect to loans
    approved after Oct. 13, 1980, except for certain subsequent
    emergency loans, see section 3(d) of Pub. L. 96-438, set out as a
    note under section 1961 of this title.
 
-CITE-
     7 USC Sec. 1964                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1964. Terms of loans
 
-STATUTE-
    (a) Maximum amount of loan
      The Secretary may not make a loan under this subchapter to a
    borrower who has suffered a loss in an amount that -
        (1) exceeds the actual loss caused by a disaster; or
        (2) would cause the total indebtedness of the borrower under
      this subchapter to exceed $500,000.
    (b) Interest rates
      Loans under this subchapter shall be at rates of interest as
    follows:
        (1) For loans or portions of loans up to the amount of the
      applicant's actual loss caused by the disaster, as limited under
      subsection (a)(1) of this section, the interest shall be at rates
      prescribed by the Secretary, but not in excess of 8 percent per
      annum; and
        (2) For loans or portions of loans in excess of the amount of
      the applicant's actual loss caused by the disaster, as limited
      under subsection (a)(1) of this section, (A) the interest for
      insured loans shall be at rates prevailing in the private market
      for similar loans, as determined by the Secretary, and (B) the
      interest for guaranteed loans shall be at rates agreed on by the
      borrower and lender, but not in excess of such rates as may be
      determined by the Secretary.
    (c) Interest subsidies
      For guaranteed loans under this subchapter, the Secretary may pay
    interest subsidies to the lenders for those portions of the loans
    up to the amount of the actual loss caused by the disaster, as
    limited under subsection (a)(1) of this section.  Any such subsidy
    shall not exceed the difference between the interest rate being
    charged for loans up to the amount of the actual loss, as
    established under subsection (b)(1) of this section, and the
    maximum interest rate for guaranteed loans, as established under
    subsection (b)(2) of this section.
    (d) Repayment
      (1) In general
        All loans under this subchapter shall be repayable at such
      times as the Secretary may determine, taking into account the
      purposes of the loan and the nature and effect of the disaster,
      but not later than as provided for loans for similar purposes
      under subchapters I and II of this chapter, and upon the full
      personal liability of the borrower and upon the best security
      available, as the Secretary may prescribe: Provided, That the
      security is adequate to assure repayment of the loans, except
      that if such security is not available because of the disaster,
      the Secretary shall (1) accept as security such collateral as is
      available, a portion or all of which may have depreciated in
      value due to the disaster and which in the opinion of the
      Secretary, together with the Secretary's confidence in the
      repayment ability of the applicant, is adequate security for the
      loan, and (2) make such loan repayable at such times as the
      Secretary may determine, not later than as provided under
      subchapters I and II of this chapter, as justified by the needs
      of the applicant: Provided further, That for any disaster
      occurring after January 1, 1975, the Secretary, if the loan is
      for a purpose described in subchapter II of the chapter, may make
      the loan repayable at the end of a period of more than seven
      years, but not more than twenty years, if the Secretary
      determines that the need of the loan applicant justifies such a
      longer repayment period: Provided further, That for any direct or
      insured loan (other than a guaranteed loan) approved under
      section 1961(b) of this title, three years after the loan is made
      or insured, and every two years thereafter for the term of the
      loan, the Secretary shall review the loan; and if, based on such
      review, the Secretary determines that the borrower is able to
      obtain a loan from non-Federal sources at reasonable rates and
      terms for loans for similar purposes and periods of time, the
      borrower shall on request by the Secretary, apply for and accept
      such non-Federal loan in sufficient amount to repay the
      Secretary. If farm assets (including land, livestock, and
      equipment) are used as collateral to secure a loan made under
      this subchapter, the Secretary shall establish the value of the
      assets as of the day before the occurrence of the natural
      disaster, major disaster, or emergency that is the basis for a
      request for assistance under this subchapter or the Robert T.
      Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
      5121 et seq.).
      (2) No basis for denial of loan
        (A) In general
          Subject to subparagraph (B), the Secretary shall not deny a
        loan under this subchapter to a borrower by reason of the fact
        that the borrower lacks a particular amount of collateral for
        the loan if the Secretary is reasonably certain that the
        borrower will be able to repay the loan.
        (B) Refusal to pledge available collateral
          The Secretary may deny or cancel a loan under this subchapter
        if a borrower refuses to pledge available collateral on request
        by the Secretary.
    (e) Grant eligibility
      Any political subdivision of a State with a population of less
    than ten thousand inhabitants that, if such subdivision had a
    population of ten thousand or more inhabitants, would be eligible
    for a grant under the first title of the Community Emergency
    Drought Relief Act of 1977 shall be eligible for a grant under this
    chapter during any period in which the Community Emergency Drought
    Relief Act of 1977 is or has been in effect.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 324, Aug. 8, 1961, 75 Stat. 311;
    Pub. L. 93-24, Sec. 4, Apr. 20, 1973, 87 Stat. 25; Pub. L. 94-68,
    Sec. 5, Aug. 5, 1975, 89 Stat. 381; Pub. L. 95-89, title IV, Sec.
    406, Aug. 4, 1977, 91 Stat. 561; Pub. L. 95-334, title I, Sec. 119,
    Aug. 4, 1978, 92 Stat. 427; Pub. L. 96-302, title I, Sec. 120(b),
    July 2, 1980, 94 Stat. 841; Pub. L. 96-438, Sec. 3(a), (b)(1), Oct.
    13, 1980, 94 Stat. 1872, 1873; Pub. L. 97-35, title I, Sec. 162(a),
    Aug. 13, 1981, 95 Stat. 378; Pub. L. 98-258, title VI, Sec. 602(b),
    Apr. 10, 1984, 98 Stat. 138; Pub. L. 99-198, title XIII, Sec.
    1308(b)(3), (c), Dec. 23, 1985, 99 Stat. 1523; Pub. L. 100-707,
    title I, Sec. 109(c)(2), Nov. 23, 1988, 102 Stat. 4708; Pub. L.
    104-127, title VI, Sec. 624, 625, Apr. 4, 1996, 110 Stat. 1091;
    Pub. L. 105-277, div.  A, Sec. 101(a) (title VIII, Sec. 802), Oct.
    21, 1998, 112 Stat. 2681, 2681-38.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (d)
    and (e), see note set out under section 1921 of this title.
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (d), is Pub. L. 93-288, May 22, 1974,
    88 Stat. 143, as amended, which is classified principally to
    chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and
    Welfare. For complete classification of this Act to the Code, see
    Short Title note set out under section 5121 of Title 42 and Tables.
      The Community Emergency Drought Relief Act of 1977, referred to
    in subsec. (e), is Pub. L. 95-31, May 23, 1977, 91 Stat. 169. Title
    I of the Community Emergency Drought Relief Act of 1977 is set out
    as a note under section 5184 of Title 42. For complete
    classification of this Act to the Code, see Tables.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (d). Pub. L. 105-277 inserted heading, designated
    existing provisions as par. (1) and inserted heading, and added
    par. (2).
      1996 - Pub. L. 104-127, Sec. 624, inserted section catchline.
      Subsec. (a). Pub. L. 104-127, Sec. 624, added subsec. (a) and
    struck out former subsec. (a) which read as follows: ''No loan made
    or insured under this subchapter may exceed the amount of the
    actual loss caused by the disaster or $500,000, whichever is less,
    for each disaster.''
      Subsec. (d). Pub. L. 104-127, Sec. 625, in last sentence,
    substituted ''establish the value of the assets as of the day
    before the occurrence of the natural disaster, major disaster, or
    emergency that is the basis for a request for assistance under this
    subchapter or the Robert T. Stafford Disaster Relief and Emergency
    Assistance Act (42 U.S.C. 5121 et seq.).'' for ''value the assets
    based on the higher of (A) the value of the assets on the day
    before the date the governor of the State in which the farm is
    located requests assistance under this subchapter or the Disaster
    Relief and Emergency Assistance Act for any portion of such State
    affected by the disaster with respect to which the application for
    the loan is made, or (B) the value of the assets one year before
    such day.''
      1988 - Subsec. (d). Pub. L. 100-707 substituted ''and Emergency
    Assistance Act'' for ''Act of 1974''.
      1985 - Subsec. (a). Pub. L. 99-198, Sec. 1308(c), in amending
    subsec. (a) generally, struck out par. (1) designation, substituted
    ''No loan'' for ''Except as otherwise provided in paragraph (2) of
    this subsection, no loan'', and struck out par. (2) authorization
    of loans through Sept. 30, 1982 for applicants unable to obtain
    sufficient credit elsewhere, limited to an amount that would not
    cause the total unpaid principal indebtedness of the loan applicant
    to exceed: $1,500,000 through end of fiscal year 1980; $1,000,000
    during fiscal year 1981; and $500,000 during fiscal year 1982; and
    restricted loans in excess of amount of actual loss that were for
    more than $300,000 without a prior determination of the Secretary
    of applicant's inability to obtain loans to finance actual needs at
    reasonable rates and terms in the residential community of the
    applicant for loans for similar purposes and periods of time.
      Subsec. (b)(1). Pub. L. 99-198, Sec. 1308(b)(3), substituted
    provision for interest rates prescribed by the Secretary but ''not
    in excess of 8 percent per annum'' for former such provision but
    ''(A) if the applicant is not able to obtain sufficient credit
    elsewhere, not in excess of 8 per centum per annum, and (B) if the
    applicant is able to obtain sufficient credit elsewhere, not in
    excess of the rate prevailing in the private market for similar
    loans, as determined by the Secretary''.
      1984 - Subsec. (d). Pub. L. 98-258 inserted provision that, if
    farm assets (including land, livestock, and equipment) are used as
    collateral to secure a loan made under this subchapter, the
    Secretary shall value the assets based on the higher of (A) the
    value of the assets on the day before the date the governor of the
    State in which the farm is located requests assistance under this
    subchapter or the Disaster Relief Act of 1974 for any portion of
    such State affected by the disaster with respect to which the
    application for the loan is made, or (B) the value of the assets
    one year before such day.
      1981 - Subsec. (b)(1). Pub. L. 97-35 in cl. (A) increased amount
    from 5 to 8 per centum, and in cl. (B) substituted provisions
    relating to a rate not in excess of the rate prevailing in the
    private market for similar loans, for provisions relating to a rate
    not in excess of current average market yield on outstanding United
    States marketable obligations, plus additional charges and
    adjustments.
      1980 - Subsec. (a). Pub. L. 96-348, Sec. 3(a), (b)(1), repealed
    section 120 of Pub. L. 96-302 (see par. below) and amended subsec.
    (a) generally, substituting provisions relating to the limitation
    on loans made or insured under this subchapter and authorizing
    excess loan amounts for provisions relating to the interest rates,
    maturity and security of loans made or insured under this chapter.
      Pub. L. 96-302, Sec. 120(b) (see par. above), substituted
    interest rate provisions of first sentence for prior provision for
    loans ''(1) at a rate of interest not in excess of 5 per centum per
    annum on loans up to the amount of the actual loss caused by the
    disaster, and (2) for any loans or portions of loans in excess of
    that amount, the interest rate will be that prevailing in the
    private market for similar loans, as determined by the Secretary''
    and inserted proviso in second sentence for repayment of subsec.
    (a)(1)(B) loans.
      Subsec. (b). Pub. L. 96-438, Sec. 3(b)(1), substituted provisions
    relating to interest rates on loans made or insured under this
    subchapter for provisions relating to eligibility of political
    subdivisions of states for grants under this chapter.
      Subsecs. (c) to (e). Pub. L. 96-438, Sec. 3(b)(1), added subsecs.
    (c) to (e).
      1978 - Subsecs. (b), (c). Pub. L. 95-334 redesignated subsec. (c)
    as (b). Former subsec. (b), which related to reductions in the
    interest rate based on interest rate of the Small Business
    Administration, was struck out.
      1977 - Subsec. (a). Pub. L. 95-89 designated existing provisions
    as subsec. (a) and struck out last proviso prescribing for any loan
    made by the Small Business Administration in connection with a
    disaster occurring on or after Aug. 5, 1975, under section
    636(b)(1), (2), or (4) of title 15 a rate of interest determined in
    the first paragraph following section 636(b)(8) of title 15 for
    loans under paragraphs (3), (5), (6), (7), or (8) of section 636(b)
    of title 15, now covered in subsec. (b) of this section.
      Subsecs. (b), (c). Pub. L. 95-89 added subsecs. (b) and (c).
      1975 - Pub. L. 94-68 made the existing rate of 5 percent
    applicable to loans up to the amount of the actual loss caused by
    the disaster, inserted provisions that for loans or portions of
    loans in excess of that amount the interest rate will be that
    prevailing in the private market for similar loans, as determined
    by the Secretary, and inserted provisos relating to security,
    disasters occurring after Jan. 1, 1975, and loans made by Small
    Business Administration.
      1973 - Pub. L. 93-24 substituted ''5'' for ''3'' per centum.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 624 of Pub. L. 104-127 effective Apr. 4,
    1996, and amendment by section 625 of Pub. L. 104-127 effective 90
    days after Apr. 4, 1996, see section 663(a), (b) of Pub. L.
    104-127, set out as a note under section 1922 of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-258 applicable to disasters occurring
    after May 30, 1983, see section 602(c) of Pub. L. 98-258, set out
    as a note under section 1961 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 162(b) of Pub. L. 97-35 provided that: ''The amendments
    made by this section (amending this section) shall apply to loans
    made with respect to disasters occurring after September 30,
    1981''.
                     EFFECTIVE DATE OF 1980 AMENDMENTS
      Amendment by section 3(b)(1) of Pub. L. 96-438 effective with
    respect to loans approved after Oct. 13, 1980, except for certain
    subsequent emergency loans, see section 3(d) of Pub. L. 96-438, set
    out as a note under section 1961 of this title.
      Amendment by Pub. L. 96-302 effective Oct. 1, 1980, see section
    507 of Pub. L. 96-302, set out as a note under section 631 of Title
    15, Commerce and Trade.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 119 of Pub. L. 95-334 provided that the amendment made by
    that section is effective Oct. 1, 1978.
    SMALL BUSINESS DISASTER LOANS; INTEREST RATE; CANCELLATION OF LOANS
      Loans by Small Business Administration in connection with any
    disaster occurring on or after Apr. 20, 1973 made under section
    636(b)(1), (2), or (4) of Title 15, as subject to interest rate
    determined under this section and prohibition against cancellation
    of such loan under any provision of law, see section 9 of Pub. L.
    93-24, set out as a note under section 636 of Title 15, Commerce
    and Trade.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1963 of this title.
 
-CITE-
     7 USC Sec. 1965                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1965. Repealed. Pub. L. 95-334, title I, Sec. 120, Aug. 4,
        1978, 92 Stat. 427
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 325, Aug. 8, 1961, 75
    Stat. 311; Pub. L. 94-68, Sec. 6, Aug. 5, 1975, 89 Stat. 382,
    authorized delegation of authority to State Directors of Farmers
    Home Administration for making emergency loans.
 
-CITE-
     7 USC Sec. 1966                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1966. Emergency Credit Revolving Fund utilization
 
-STATUTE-
      The Secretary is authorized to utilize the revolving fund created
    by section 1148a (FOOTNOTE 1) of title 12 (hereinafter in this
    subchapter referred to as the ''Emergency Credit Revolving Fund'')
    for carrying out the purposes of this subchapter.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 326, Aug. 8, 1961, 75 Stat. 312.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 1148a of title 12, referred to in text, was repealed by
    Pub. L. 92-181, title V, Sec. 5.26(a), Dec. 10, 1971, 85 Stat. 624.
    See section 2252 of Title 12, Banks and Banking.
      The Emergency Credit Revolving Fund, referred to in text, was
    abolished and its assets and liabilities transferred to the
    Agricultural Credit Insurance Fund by section 1929 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1929 of this title.
 
-CITE-
     7 USC Sec. 1967                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1967. Addition to Emergency Credit Revolving Fund of sums from
        liquidation of loans; authorization of appropriations
 
-STATUTE-
      (a) All sums received by the Secretary from the liquidation of
    loans made under the provisions of this subchapter or under the Act
    of April 6, 1949, as amended, or the Act of August 31, 1954, and
    from the liquidation of any other assets acquired with money from
    the Emergency Credit Revolving Fund shall be added to and become a
    part of such fund.
      (b) There are authorized to be appropriated to the Emergency
    Credit Revolving Fund such additional sums as the Congress shall
    from time to time determine to be necessary.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 327, Aug. 8, 1961, 75 Stat. 312.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Act of April 6, 1949, as amended, referred to in subsec. (a), is
    act Apr. 6, 1949, ch. 49, 63 Stat. 43, as amended, which was
    classified to sections 1148a-1 to 1148a-3 of Title 12, Banks and
    Banking, was repealed by section 341(a) of Pub. L. 87-128, and is
    covered by this chapter.
      Act of August 31, 1954, referred to in subsec. (a), is act Aug.
    31, 1954, ch. 1145, 68 Stat. 999, which was classified as a note
    under section 1148a-1 of Title 12, was repealed by section 341(a)
    of Pub. L. 87-128, and is covered by this chapter.
 
-TRANS-
                ABOLITION OF EMERGENCY CREDIT REVOLVING FUND
      The Emergency Credit Revolving Fund, referred to in this section
    and in section 1966 of this title, was abolished and its assets and
    liabilities transferred to the Agricultural Credit Insurance Fund
    by section 1929 of this title.
 
-CITE-
     7 USC Sec. 1968                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1968. Repealed. Pub. L. 104-127, title VI, Sec. 626, Apr. 4,
        1996, 110 Stat. 1092
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 328, as added Pub. L.
    92-173, Nov. 24, 1971, 85 Stat. 491; amended Pub. L. 93-24, Sec. 5,
    Apr. 20, 1973, 87 Stat. 25; Pub. L. 95-334, title I, Sec. 109(b),
    Aug. 4, 1978, 92 Stat. 423, related to insurance of loans.
 
-CITE-
     7 USC Sec. 1969                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1969. Repealed. Pub. L. 93-24, Sec. 1, Apr. 20, 1973, 87 Stat.
        24
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 328, as added Pub. L.
    92-385, Sec. 5, Aug. 16, 1972, 86 Stat. 557, provided for emergency
    loans for major and natural disasters occurring between June 30,
    1971, and July 1, 1973, providing in: subsec. (a) for cancellation
    of existing loans and the considerations in making grants, loans,
    and refinancing of loans; subsec. (b) for loans for loss or damage
    to agricultural crops; subsec. (c) for amount of loans and interest
    rates; subsec. (d) for availability of benefits irrespective of
    age; subsec. (e) for availability of benefits irrespective of
    approval date; and subsec. (f) for report to Congress.
        LOANS TO ELIGIBLE APPLICANTS IN AREAS DETERMINED AS NATURAL
    DISASTER AREAS AFTER JANUARY 1, 1972, AND BEFORE DECEMBER 27, 1972;
                    TIME FOR ACCEPTANCE OF APPLICATIONS
      Section 8 of Pub. L. 93-24 provided that: ''Notwithstanding the
    repeal herein of section 5 of Public Law 92-385 (this section), and
    notwithstanding any other provision of law, the Secretary of
    Agriculture shall make loans in accordance with the provisions of
    section 5 of Public Law 92-385 (this section) to eligible
    applicants in natural disaster areas determined or designated by
    the Secretary of Agriculture where such determination or
    designation had been made after January 1, 1972 and prior to
    December 27, 1972. The authority to accept applications for such
    loans shall expire 18 days after the effective date of this Act
    (Apr. 20, 1973).''
       CONTINUATION OF SECRETARY'S AUTHORITY WITH RESPECT TO NATURAL
    DISASTERS OCCURRING AFTER DECEMBER 26, 1972, AND PRIOR TO APRIL 20,
                                    1973
      Pub. L. 93-237, Sec. 4, Jan. 2, 1974, 87 Stat. 1024, provided
    that: ''Notwithstanding the provisions of Public Law 93-24 (which
    repealed this section), the Secretary of Agriculture shall continue
    to exercise his authority with respect to natural disasters which
    occurred after December 26, 1972, but prior to April 20, 1973, in
    accordance with the provisions of section 5 of Public Law 92-385
    (this section) as such section was in effect prior to April 20,
    1973.''
 
-CITE-
     7 USC Sec. 1970                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1970. Eligibility for assistance based on production loss
 
-STATUTE-
      The Secretary shall make financial assistance under this
    subchapter available to any applicant seeking assistance based on
    production losses if the applicant shows that a single enterprise
    which constitutes a basic part of the applicant's farming,
    ranching, or aquaculture operation has sustained at least a 30 per
    centum loss of normal per acre or per animal production, or such
    lesser per centum of loss as the Secretary may determine, as a
    result of the disaster based upon the average monthly price in
    effect for the previous year and the applicant otherwise meets the
    conditions of eligibility prescribed under this subtitle.  Such
    loans shall be made available based upon 80 per centum, or such
    greater per centum as the Secretary may determine, of the total
    calculated actual production loss sustained by the applicant.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 329, as added Pub. L. 94-68, Sec.
    7, Aug. 5, 1975, 89 Stat. 382; amended Pub. L. 97-35, title I, Sec.
    163, Aug. 13, 1981, 95 Stat. 378.)
 
-MISC1-
                                 AMENDMENTS
      1981 - Pub. L. 97-35 increased specific per centum loss from 20
    to 30, and authorized a lesser per centum loss pursuant to
    determinations by the Secretary under applicable criteria.
 
-CITE-
     7 USC Sec. 1971                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER III - EMERGENCY LOANS
 
-HEAD-
    Sec. 1971. Repealed. Pub. L. 99-198, title XIII, Sec. 1308(d), Dec.
        23, 1985, 99 Stat. 1523
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 330, as added Pub. L.
    94-68, Sec. 8, Aug. 5, 1975, 89 Stat. 382; amended Pub. L. 96-438,
    Sec. 3(b)(2), Oct. 13, 1980, 94 Stat. 1875, authorized additional
    emergency loans.
 
-CITE-
     7 USC SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
    .
 
-HEAD-
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in title 25 section 492.
 
-CITE-
     7 USC Sec. 1981                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981. Farmers Home Administration
 
-STATUTE-
    (a) Appointment and compensation of Administrator; transfer of
        powers, duties, and assets pertaining to agricultural credit
      In accordance with section 2006a of this title, for purposes of
    this chapter, and for the administration of assets under the
    jurisdiction of the Secretary of Agriculture pursuant to the
    Farmers Home Administration Act of 1946, as amended, the
    Bankhead-Jones Farm Tenant Act, as amended, the Act of August 28,
    1937, as amended, the Act of April 6, 1949, as amended, the Act of
    August 31, 1954, as amended, and the power and duties of the
    Secretary under any other Act authorizing agricultural credit, the
    Secretary may assign and transfer such powers, duties, and assets
    to such officers or agencies of the Department of Agriculture as
    the Secretary considers appropriate.
    (b) Powers of Secretary of Agriculture
      The Secretary may -
        (1) administer his powers and duties through such national,
      area, State, or local offices and employees in the United States
      as he determines to be necessary and may authorize an office to
      serve the area composed of two or more States if he determines
      that the volume of business in the area is not sufficient to
      justify separate State offices, and until January 1, 1975, make
      contracts for services incident to making, insuring, collecting,
      and servicing loans and property as determined by the Secretary
      to be necessary for carrying out the purposes of this chapter;
      (and the Secretary shall prior to June 30, 1974, report to the
      Congress through the President on the experience in using such
      contracts, together with recommendations for such legislation as
      he may see fit);
        (2) accept and utilize voluntary and uncompensated services,
      and, with the consent of the agency concerned, utilize the
      officers, employees, equipment, and information of any agency of
      the Federal Government, or of any State, territory, or political
      subdivision;
        (3) within the limits of appropriations made therefor, make
      necessary expenditures for purchase or hire of passenger
      vehicles, and such other facilities and services as he may from
      time to time find necessary for the proper administration of this
      chapter;
        (4) compromise, adjust, reduce, or charge-off debts or claims
      (including debts and claims arising from loan guarantees), and
      adjust, modify, subordinate, or release the terms of security
      instruments, leases, contracts, and agreements entered into or
      administered by the Consolidated Farm Service Agency, Rural
      Utilities Service, Rural Housing Service, Rural
      Business-Cooperative Service, or a successor agency, or the Rural
      Development Administration, except for activities under the
      Housing Act of 1949 (42 U.S.C. 1441 et seq.).  In the case of a
      security instrument entered into under the Rural Electrification
      Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify
      the Attorney General of the intent of the Secretary to exercise
      the authority of the Secretary under this paragraph.  The
      Secretary may not require liquidation of property securing any
      farmer program loan or acceleration of any payment required under
      any farmer program loan as a prerequisite to initiating an action
      authorized under this subsection.  The Secretary may release
      borrowers or others obligated on a debt, except for debt incurred
      under the Housing Act of 1949, from personal liability with or
      without payment of any consideration at the time of the
      compromise, adjustment, reduction, or charge-off of any claim,
      except that no compromise, adjustment, reduction, or charge-off
      of any claim may be made or carried out -
          (A) with respect to farmer program loans, on terms more
        favorable than those recommended by the appropriate county
        committee utilized pursuant to section 1982 (FOOTNOTE 1) of
        this title; or
       (FOOTNOTE 1) See References in Text note below.
          (B) after the claim has been referred to the Attorney
        General, unless the Attorney General approves;
        (5) except for activities conducted under the Housing Act of
      1949 (42 U.S.C. 1441 et seq.), collect all claims and obligations
      administered by the Farmers Home Administration, or under any
      mortgage, lease, contract, or agreement entered into or
      administered by the Farmers Home Administration and, if in his
      judgment necessary and advisable, pursue the same to final
      collection in any court having jurisdiction;
        (6) release mortgage and other contract liens if it appears
      that they have no present or prospective value or that their
      enforcement likely would be ineffectual or uneconomical;
        (7) obtain fidelity bonds protecting the Government against
      fraud and dishonesty of officers and employees of the Farmers
      Home Administration in lieu of faithful performance of duties
      bonds under section 14 (FOOTNOTE 1) of title 6, and regulations
      issued pursuant thereto, but otherwise in accordance with the
      provisions thereof;
        (8) consent to (A) long-term leases of facilities financed
      under this subchapter notwithstanding the failure of the lessee
      to meet any of the requirements of this subchapter if such
      long-term leases are necessary to ensure the continuation of
      services for which financing was extended to the lessor, and (B)
      the transfer of property securing any loan or financed by any
      loan or grant made, insured, or held by the Secretary under this
      chapter, or the provisions of any other law administered by the
      Rural Development Administration under this chapter or by the
      Farmers Home Administration, upon such terms as he deems
      necessary to carry out the purpose of the loan or grant or to
      protect the financial interest of the Government, and shall
      document the consent of the Secretary for the transfer of the
      property of a borrower in the file of the borrower; and
        (9) notwithstanding that an area ceases, or has ceased, to be
      ''rural'', in a ''rural area'', or an eligible area, make loans
      and grants, and approve transfers and assumptions, under this
      chapter on the same basis as though the area still was rural in
      connection with property securing any loan made, insured, or held
      by the Secretary under this chapter or in connection with any
      property held by the Secretary under this chapter.
    (c) Delinquent claims and obligations
      The Secretary may use for the prosecution or defense of any claim
    or obligation described in subsection (b)(5) of this section the
    Attorney General, the General Counsel of the Department of
    Agriculture, or a private attorney who has entered into a contract
    with the Secretary.
    (d) Temporary authority to enter into contracts
      (1) Definitions
        In this subsection:
        (A) Eligible financial institution
          The term ''eligible financial institution'' means a financial
        institution with substantial experience in farm, ranch, or
        aquaculture lending that is regulated by the Comptroller of the
        Currency, the Farm Credit Administration, or a similar
        regulatory body.
        (B) Pilot project
          The term ''pilot project'' includes services related to
        borrower loan documentation, financial information, credit
        history, and appraisals of real estate and chattel.
      (2) Authority
        The Secretary may enter into a contract with an eligible
      financial institution for servicing a farmer program loan under
      this chapter, including 1 or more pilot projects.
      (3) Report
        Not later than September 30, 1997, and September 30 of each
      year thereafter, the Secretary shall report to Congress on -
          (A) the Secretary's experience in using contracts under
        paragraph (2); and
          (B) recommendations for legislation related to this
        subsection, if any.
      (4) Savings clause
        Nothing in this subsection shall limit the authority of the
      Secretary or an eligible financial institution to contract for
      any services under this Act or any other law.
      (5) Sunset provision
        This subsection shall be effective until September 30, 2002.
    (e) Private collection agency
      The Secretary may use a private collection agency to collect a
    claim or obligation described in subsection (b)(5) of this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331, Aug. 8, 1961, 75 Stat. 312;
    Pub. L. 90-488, Sec. 11, Aug. 15, 1968, 82 Stat. 771; Pub. L.
    92-419, title I, Sec. 124, Aug. 30, 1972, 86 Stat. 665; Pub. L.
    95-334, title I, Sec. 121, Aug. 4, 1978, 92 Stat. 427; Pub. L.
    97-98, title XVI, Sec. 1603, Dec. 22, 1981, 95 Stat. 1346; Pub. L.
    99-198, title XIII, Sec. 1309, Dec. 23, 1985, 99 Stat. 1523; Pub.
    L. 100-233, title VI, Sec. 615(c), Jan. 6, 1988, 101 Stat. 1682;
    Pub. L. 101-624, title XVIII, Sec. 1805, 1806, title XXIII, Sec.
    2303(a), 2388(d)(1), Nov. 28, 1990, 104 Stat. 3819, 3981, 4052;
    Pub. L. 102-237, title V, Sec. 501(c), title VII, Sec.
    701(h)(1)(E), Dec. 13, 1991, 105 Stat. 1866, 1880; Pub. L. 103-248,
    Sec. 2, May 11, 1994, 108 Stat. 619; Pub. L. 103-354, title II,
    Sec. 226(h), Oct. 13, 1994, 108 Stat. 3216; Pub. L. 104-127, title
    VI, Sec. 631, 632, title VII, Sec. 748, Apr. 4, 1996, 110 Stat.
    1092, 1128.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a),
    (b)(1), (3), (8), (9), and (d)(2), see note set out under section
    1921 of this title.
      The Farmers Home Administration Act of 1946, as amended, referred
    to in subsec. (a), is act Aug. 14, 1946, ch. 964, 60 Stat. 1062, as
    amended, which was classified to sections 1001 to 1005, 1005a to
    1005d, 1007, 1008, 1009, 1015 to 1029, 1030, and 1031 of this
    title, section 371 of Title 12, Banks and Banking, and section 82h
    of Title 31, Money and Finance, and in so far as it amended
    provisions of Title I, II, and IV of the Bankhead-Jones Farm Tenant
    Act, was repealed by section 341(a) of Pub. L. 87-128, and is
    covered by this chapter.
      The Bankhead-Jones Farm Tenant Act, as amended, referred to in
    subsec. (a), is act July 22, 1937, ch. 517, 50 Stat. 522, as
    amended.  Title III of act July 22, 1937, as amended, is classified
    to sections 1010 to 1012 and 1013a of this title.  Titles I, II,
    and IV of act July 22, 1937, as amended, were formerly classified
    to sections 1001 to 1005, 1005a to 1005d, 1006, 1006c to 1006e,
    1007, 1008, 1009, 1014 to 1025, 1026, and 1027 to 1029 of this
    title, respectively, were repealed by section 341(a) of Pub. L.
    87-128, and are covered by this chapter.
      Act of August 28, 1937, as amended, referred to in subsec. (a),
    is act Aug. 28, 1937, ch. 870, 50 Stat. 869, as amended, which was
    formerly classified to sections 590r to 590x-4 of Title 16,
    Conservation, was repealed by section 341(a) of Pub. L. 87-128, and
    is covered by this chapter.
      Act of April 6, 1949, as amended, referred to in subsec. (a), is
    act Apr. 6, 1949, ch. 49, 63 Stat. 43, as amended, which was
    formerly classified to sections 1148a-1 to 1148a-3 of Title 12,
    Banks and Banking, was repealed by section 341(a) of Pub. L.
    87-128, and is covered by this chapter.
      Act of August 31, 1954, as amended, referred to in subsec. (a),
    is act Aug. 31, 1954, ch. 1145, 68 Stat. 999, which was formerly
    classified as a note under section 1148a-1 of Title 12, was
    repealed by section 341(a) of Pub. L. 87-128, and is covered by
    this chapter.
      The Housing Act of 1949, as amended, referred to in subsec.
    (b)(4), (5), is act July 15, 1949, ch. 338, 63 Stat. 413, as
    amended, which is classified principally to chapter 8A (Sec. 1441
    et seq.) of Title 42, The Public Health and Welfare. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1441 of Title 42 and Tables.
      The Rural Electrification Act of 1936, referred to in subsec.
    (b)(4), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended,
    which is classified generally to chapter 31 (Sec. 901 et seq.) of
    this title.  For complete classification of this Act to the Code,
    see section 901 of this title and Tables.
      Section 1982 of this title, referred to in subsec. (b)(4)(A), was
    repealed by Pub. L. 103-354, title II, Sec. 227(b)(1), Oct. 13,
    1994, 108 Stat. 3218.
      Section 14 of title 6, referred to in subsec. (b)(7), was
    repealed by Pub. L. 92-310, title II, Sec. 203(1), June 6, 1972, 86
    Stat. 202. For provisions relating to surety bonds of Federal
    personnel, see section 9301 et seq. of Title 31, Money and Finance.
      This Act, referred to in subsec. (d)(4), refers to the
    Agricultural Act of 1961, Pub. L. 87-128, Aug. 8, 1961, 75 Stat.
    294, as amended.  For classification of this Act to the Code, see
    Short Title note set out under section 1911 of this title and
    Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (b)(4). Pub. L. 104-127, Sec. 748, inserted
    ''(including debts and claims arising from loan guarantees)'' after
    ''debts or claims'', substituted ''Consolidated Farm Service
    Agency, Rural Utilities Service, Rural Housing Service, Rural
    Business-Cooperative Service, or a successor agency, or'' for
    ''Farmers Home Administration or'', and inserted ''In the case of a
    security instrument entered into under the Rural Electrification
    Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the
    Attorney General of the intent of the Secretary to exercise the
    authority of the Secretary under this paragraph.'' after
    ''activities under the Housing Act of 1949 (42 U.S.C. 1441 et
    seq.).''
      Subsec. (d). Pub. L. 104-127, Sec. 631, added subsec. (d).
      Subsec. (e). Pub. L. 104-127, Sec. 632, added subsec. (e).
      1994 - Subsec. (a). Pub. L. 103-354 substituted ''assets to such
    officers or agencies of the Department of Agriculture as the
    Secretary considers appropriate.'' for ''assets to the Farmers Home
    Administration, to be headed by an Administrator, appointed by the
    President, by and with the advice and consent of the Senate,
    without regard to the civil service laws or chapter 51 and
    subchapter III of chapter 53 of title 5, who shall receive basic
    compensation as provided by law for that office, or may assign and
    transfer such powers, duties, and assets to the Rural Development
    Administration as provided by law for that office.''
      Subsec. (c). Pub. L. 103-248 added subsec. (c).
      1991 - Pub. L. 102-237, Sec. 501(c)(2)(B)(i), amended directory
    language of Pub. L. 101-624, Sec. 2388(d)(1). See 1990 Amendment
    note below.
      Subsec. (b)(1), (2). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
    (v), amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(vi). See 1990 Amendment note below.
      Subsec. (b)(3). Pub. L. 102-237, Sec. 701(h)(1)(E), substituted
    ''this chapter'' for ''this Act''.
      Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v), amended directory
    language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi). See 1990
    Amendment note below.
      Subsec. (b)(4). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
    amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(vi). See 1990 Amendment note below.
      Pub. L. 102-237, Sec. 501(c)(1), struck out ''this chapter''
    after ''activities under the Housing Act of 1949'' and substituted
    ''1949, from'' for ''1949 from''.
      Subsec. (b)(4)(A). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
    redesignated Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), as (v). See
    1990 Amendment note below.
      Subsec. (b)(4)(B). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
    redesignated Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), as (v). See
    1990 Amendment note below.
      Subsec. (b)(5). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
    amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(vi). See 1990 Amendment note below.
      Subsec. (b)(6). Pub. L. 102-237, Sec. 501(c)(2)(B)(ii), (iii),
    (v), amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(i), (vi). See 1990 Amendment note below.
      Pub. L. 102-237, Sec. 501(c)(2)(A), repealed Pub. L. 101-624,
    Sec. 1805(c)(1), (2). See 1990 Amendment note below.
      Subsec. (b)(7). Pub. L. 102-237, Sec. 501(c)(2)(B)(ii), (iii),
    (v), amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(i), (vi). See 1990 Amendment note below.
      Pub. L. 102-237, Sec. 501(c)(2)(A), repealed Pub. L. 101-624,
    Sec. 1805(c)(1), (3). See 1990 Amendment note below.
      Subsec. (b)(8). Pub. L. 102-237, Sec. 501(c)(2)(B)(ii)-(v),
    amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(i), (iv), (vi). See 1990 Amendment note below.
      Pub. L. 102-237, Sec. 501(c)(2)(A), repealed Pub. L. 101-624,
    Sec. 1805(c)(1), (4). See 1990 Amendment note below.
      Subsec. (b)(9). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
    amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(vi). See 1990 Amendment note below.
      Pars. (c) to (g). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
    amended directory language of Pub. L. 101-624, Sec.
    2388(d)(1)(A)(vi). See 1990 Amendment note below.
      Par. (h). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), repealed Pub.
    L. 101-624, Sec. 2388(d)(1)(A)(iv). See 1990 Amendment note below.
      Pub. L. 102-237, Sec. 501(c)(2)(A), amended Pub. L. 101-624, Sec.
    1805(b), and repealed Pub. L. 101-624, Sec. 1805(c)(5). See 1990
    Amendment note below.
      Pars. (i), (j). Pub. L. 102-237, Sec. 501(c)(2)(A), amended Pub.
    L. 101-624, Sec. 1805(b), and repealed Pub. L. 101-624, Sec.
    1805(c)(5). See 1990 Amendment note below.
      1990 - Pub. L. 101-624, Sec. 2388(d)(1), was amended in its
    directory language by Pub. L. 102-237, Sec. 501(c)(2)(B)(i),
    resulting in no change in text.
      Subsec. (a). Pub. L. 101-624, Sec. 2303(a)(1), 2388(d)(1)(B),
    designated first undesignated par. as subsec. (a) and substituted
    ''In accordance with section 2006a of this title, for purposes of
    this chapter, and'' for ''For the purposes of this chapter and'',
    and inserted before period at end '', or may assign and transfer
    such powers, duties, and assets to the Rural Development
    Administration as provided by law for that office''.
      Subsec. (b). Pub. L. 101-624, Sec. 2388(d)(1)(B), designated
    second undesignated par. beginning ''The Secretary may - '' as
    subsec. (b).
      Subsec. (b)(1) to (3). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi),
    formerly (vii), as redesignated and amended by Pub. L. 102-237,
    Sec. 501(c)(2)(B)(iii), (v), redesignated pars. (a) to (c) as (1)
    to (3), respectively, of subsec. (b).
      Subsec. (b)(4). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
    (vii), as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (v), redesignated par. (d) as (4) of subsec.
    (b).
      Pub. L. 101-624, Sec. 1805(a)(1)(A), (B), 2303(a)(2), inserted
    ''or the Rural Development Administration'' after ''Farmers Home
    Administration'' in first sentence, substituted '', except for
    activities under the Housing Act of 1949'' for ''under any of its
    programs, as circumstances may require, to carry out'' in first
    sentence, and substituted '', except for debt incurred under the
    Housing Act of 1949'' for ''incurred under this chapter'' in third
    sentence.
      Subsec. (b)(4)(A). Pub. L. 101-624, Sec. 2388(d)(1)(A)(v),
    formerly (vi), as redesignated by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), redesignated subpar. (1) as (A).
      Pub. L. 101-624, Sec. 1805(a)(1)(C), inserted ''with respect to
    farmer program loans,'' before ''on terms''.
      Subsec. (b)(4)(B). Pub. L. 101-624, Sec. 2388(d)(1)(A)(v),
    formerly (vi), as redesignated by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), redesignated subpar. (2) as (B).
      Subsec. (b)(5). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
    (vii), as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (v), redesignated par. (e) as (5) of subsec.
    (b).
      Pub. L. 101-624, Sec. 1805(a)(2), inserted ''except for
    activities conducted under the Housing Act of 1949,'' before
    ''collect'', struck out ''arising or'' after ''obligations'',
    substituted ''by the Farmers Home Administration'' for ''under this
    chapter'' before '', or under any'' and ''by the Farmers Home
    Administration'' for ''pursuant to this chapter'' before ''and, if
    in his''.
      Subsec. (b)(6). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
    (vii), as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (v), redesignated par. (f) as (6) of subsec.
    (b).
      Pub. L. 101-624, Sec. 2388(d)(1)(A)(ii), substituted ''release''
    for ''Release''.
      Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), as amended by Pub. L.
    102-237, Sec. 501(c)(2)(B)(ii), realigned margin.
      Pub. L. 101-624, Sec. 1805(c)(1), (2), which made amendments
    identical to those by Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), (ii),
    was repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
      Subsec. (b)(7). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
    (vii), as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (v), redesignated par. (g) as (7) of subsec.
    (b).
      Pub. L. 101-624, Sec. 2388(d)(1)(A)(iii), substituted ''obtain''
    for ''Obtain''.
      Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), as amended by Pub. L.
    102-237, Sec. 501(c)(2)(B)(ii), realigned margin.
      Pub. L. 101-624, Sec. 1805(c)(1), (3), which made amendments
    identical to those by Pub. L. 101-624, Sec. 2388(d)(1)(A)(i),
    (iii), was repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
      Subsec. (b)(8). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
    (vii), as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (v), redesignated par. (h) (par. (i) prior to
    redesignation by Pub. L. 101-624, Sec. 1805(b), as amended) as (8)
    of subsec. (b).
      Pub. L. 101-624, Sec. 2388(d)(1)(A)(iv)(II), formerly (v)(II), as
    redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (iv), redesignated former subpars. (1) and (2)
    as (A) and (B), respectively.
      Pub. L. 101-624, Sec. 2303(a)(3), inserted ''Rural Development
    Administration under this chapter or by the'' before ''Farmers Home
    Administration''.
      Pub. L. 101-624, Sec. 1806, inserted before semicolon at end '',
    and shall document the consent of the Secretary for the transfer of
    the property of a borrower in the file of the borrower''.
      Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), (iv)(I), formerly (v)(I),
    as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(ii)-(iv), realigned margin and substituted ''consent''
    for ''Consent''.
      Pub. L. 101-624, Sec. 1805(c)(1), (4), which made amendments
    identical to those by Pub. L. 101-624, Sec. 2388(d)(1)(A)(i),
    (iv)(I), was repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
      Subsec. (b)(9). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
    (vii), as redesignated and amended by Pub. L. 102-237, Sec.
    501(c)(2)(B)(iii), (v), redesignated par. (i) (par. (j) prior to
    redesignation by Pub. L. 101-624, Sec. 1805(b), as amended) as (9)
    of subsec. (b).
      Pars. (c) to (g). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi),
    formerly (vii), (B), as redesignated and amended by Pub. L.
    102-237, Sec. 501(c)(2)(B)(iii), (v), redesignated former pars. (c)
    to (g) as (3) to (7), respectively, of subsec. (b). See above.
      Par. (h). Pub. L. 101-624, Sec. 2388(d)(1)(A)(iv), which directed
    substitution of ''not'' for ''Not'' before ''require'', was
    repealed by Pub. L. 102-237, Sec. 501(c)(2)(B)(iii).
      Pub. L. 101-624, Sec. 1805(c)(5), which redesignated par. (i) as
    (h), was repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
      Pub. L. 101-624, Sec. 1805(b), as amended by Pub. L. 102-237,
    Sec. 501(c)(2)(A), redesignated par. (i) as (h) and struck out par.
    (h) which read as follows: ''Not require borrowers to pay interest
    accrued after December 31, 1972, on interest which is not more than
    90 days overdue on any loan held or insured by the Farmers Home
    Administration;''.
      Pars. (i), (j). Pub. L. 101-624, Sec. 1805(c)(5), which
    redesignated pars. (i) and (j) as (h) and (i), respectively, was
    repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
      Pub. L. 101-624, Sec. 1805(b), as amended by Pub. L. 102-237,
    Sec. 501(c)(2)(A), redesignated pars. (i) and (j) as (h) and (i),
    respectively.  Pars. (h) and (i) subsequently redesignated pars.
    (8) and (9) of subsec. (b). See above.
      1988 - Par. (d). Pub. L. 100-233 inserted ''or debts'' before
    ''claims'', and inserted ''The Secretary may not require
    liquidation of property securing any farmer program loan or
    acceleration of any payment required under any farmer program loan
    as a prerequisite to initiating an action authorized under this
    subsection.''
      1985 - Par. (d). Pub. L. 99-198, Sec. 1309, in amending par. (d)
    generally, substituted provisions authorizing the Secretary to
    compromise, adjust, reduce, or charge-off claims, and adjust,
    modify, subordinate, or release the terms of security instruments,
    leases, contracts, and agreements entered into or administered by
    the Farmers Home Administration to carry out this chapter for
    provisions which had authorized the Secretary to compromise,
    adjust, or reduce claims, and adjust and modify the terms of
    mortgages, leases, contracts and agreements entered into or
    administered by the Administration under any of its programs, but
    not in the event of claims of $25,000 or more without the approval
    of the Administrator, substituted provisions authorizing the
    Secretary to release borrowers or others obligated on a debt
    incurred under this chapter from personal liability with or without
    consideration at the time of the compromise, adjustment, reduction
    or charge-off of any claim for provisions authorizing the Secretary
    to release from personal liability, with or without payment of any
    consideration at the time of adjustment of the claims, borrowers
    who transferred the security property to approved applicants, to
    other than approved applicants, or for amounts less than the
    indebtedness secured thereby, struck out provisions that
    compromise, adjustment, or reduction of the claim shall be based on
    the value of the security and a determination of the debtor's
    reasonable ability to pay considering his other assets and income,
    and struck out provisions relating to any claim due and payable for
    five years or more and to partial releases and subordination of
    mortgages.
      1981 - Par. (i). Pub. L. 97-98 designated existing provisions
    following ''consent to'' as cl. (2) and added cl. (1).
      1978 - Pub. L. 95-334 in par. (a) struck out references to Puerto
    Rico and the Virgin Islands, in par. (d) substituted ''$25,000''
    for ''$15,000'', and added par. (j).
      1972 - Par. (a). Pub. L. 92-419, Sec. 124(1), authorized the
    Secretary of Agriculture, until Jan. 1, 1975, to make contracts for
    services incident to making, insuring, collecting, and servicing
    loans and property as determined by the Secretary to be necessary
    for carrying out the purposes of this chapter, and required the
    Secretary, prior to June 30, 1974, to report to Congress through
    the President on the experience in using such contracts, together
    with recommendations for such legislation as he may see fit.
      Pars. (d) to (i). Pub. L. 92-419, Sec. 124(2), substituted a
    semicolon for a period at end of lettered pars. (d), (e) and (f)
    and added pars. (g) to (i).
      1968 - Par. (f). Pub. L. 90-488 added par. (f).
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by section 501(c) of Pub. L. 102-237 effective as if
    included in the provision of the Food, Agriculture, Conservation,
    and Trade Act of 1990, Pub. L. 101-624, to which the amendment
    relates, and amendment by section 701(h)(1)(E) of Pub. L. 102-237
    to any provision specified therein effective as if included in act
    that added provision so specified at the time such act became law,
    see section 1101(b)(3), (c) of Pub. L. 102-237, set out as a note
    under section 1421 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section
    1801 of Pub. L. 97-98, set out as an Effective Date note under
    section 4301 of this title.
       CONTINUATION OF SMALL FARMER TRAINING AND TECHNICAL ASSISTANCE
                                  PROGRAM
      Section 1328 of Pub. L. 99-198 provided that: ''The Secretary of
    Agriculture shall, during the period beginning on the date of
    enactment of this Act (Dec. 23, 1985) and ending on September 30,
    1988, maintain at substantially current levels the small farmer
    training and technical assistance program in the office of the
    Administrator of the Farmers Home Administration.''
    REAMORTIZATION OF DISTRESSED FARMERS HOME ADMINISTRATION LOANS FROM
       REVENUES FROM SOFTWOOD TIMBER CROP PLANTINGS ON MARGINAL LAND
      Pub. L. 98-258, title VI, Sec. 608, Apr. 10, 1984, 98 Stat. 140,
    as amended by Pub. L. 99-198, title XII, Sec. 1254, Dec. 23, 1985,
    99 Stat. 1517, provided that:
      ''(a)(1) Notwithstanding any other provision of law, the
    Secretary of Agriculture (hereinafter in this section referred to
    as the 'Secretary') may implement a program, pursuant to the
    recommendations contained in the study mandated by section 608 of
    the Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1421
    (1981) note), under which a distressed loan (as determined by the
    Secretary) made or insured under the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1921 et seq.), or a portion thereof, may
    be reamortized with the use of future revenue produced from the
    planting of softwood timber crops on marginal land (as determined
    by the Secretary) that -
        ''(A) was previously used to produce an agricultural commodity
      or as pasture; and
        ''(B) secures a loan made or insured under such Act.
      ''(2) Accrued interest on a loan reamortized under this section
    may be capitalized and interest charged on such interest.
      ''(3) All or a portion of the payments on such reamortized loan
    may be deferred until such softwood timber crop produces revenue or
    for a term of 45 years, whichever comes first.
      ''(4) Repayment of such reamortized loan shall be made not later
    than 50 years after the date of reamortization.
      ''(b) The interest rate on such reamortized loans shall be
    determined by the Secretary, but not in excess of the current
    average yield on outstanding marketable obligations of the United
    States with periods to maturity comparable to the average
    maturities of such loans, plus not to exceed 1 percent, as
    determined by the Secretary and adjusted to the nearest one-eighth
    of 1 percent.
      ''(c) To be eligible for such program -
        ''(1) the borrower of such reamortized loan must place not less
      than 50 acres of such land in softwood timber production;
        ''(2) such land (including timber) may not have any lien
      against such land other than a lien for -
          ''(A) a loan made or insured under the Consolidated Farm and
        Rural Development Act (7 U.S.C. 1921 et seq.) to secure such
        reamortized loan; or
          ''(B) a loan made under this section, at the time of
        reamortization or thereafter, that is subject to a lien on such
        land (including timber) in favor of the Secretary; and
        ''(3) the total amount of loans secured by such land (including
      timber) may not exceed $1,000 per acre.
      ''(d)(1) To assist such borrowers to place such land in softwood
    timber production, the Secretary may make loans to such borrowers
    for such purpose in an aggregate amount not to exceed the actual
    cost of tree planting for land placed in the program.
      ''(2) Any such loan shall be secured by the land (including
    timber) on which the trees are planted.
      ''(3) Such loans shall be made on the same terms and conditions
    as are provided in this section for reamortized loans.
      ''(e) The Secretary shall issue such rules as are necessary to
    carry out this section, including rules prescribing terms and
    conditions for -
        ''(1) reamortizing and making loans under this section;
        ''(2) entering into security instruments and agreements under
      this section; and
        ''(3) management and harvesting practices of the timber crop.
      ''(f) There are authorized to be appropriated such sums as are
    necessary to carry out this section.
      ''(g) No more than 50,000 acres may be placed in such program.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1991, 2005 of this title.
 
-CITE-
     7 USC Sec. 1981a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981a. Loan moratorium and policy on foreclosures
 
-STATUTE-
      In addition to any other authority that the Secretary may have to
    defer principal and interest and forego foreclosure, the Secretary
    may permit, at the request of the borrower, the deferral of
    principal and interest on any outstanding loan made, insured, or
    held by the Secretary under this chapter, or under the provisions
    of any other law administered by the Farmers Home Administration or
    by the Rural Development Administration, and may forego foreclosure
    of any such loan, for such period as the Secretary deems necessary
    upon a showing by the borrower that due to circumstances beyond the
    borrower's control, the borrower is temporarily unable to continue
    making payments of such principal and interest when due without
    unduly impairing the standard of living of the borrower.  The
    Secretary may permit interest that accrues during the deferral
    period on any loan deferred under this section to bear no interest
    during or after such period: Provided, That if the security
    instrument securing such loan is foreclosed such interest as is
    included in the purchase price at such foreclosure shall become
    part of the principal and draw interest from the date of
    foreclosure at the rate prescribed by law.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331A, as added Pub. L. 95-334,
    title I, Sec. 122, Aug. 4, 1978, 92 Stat. 427; amended Pub. L.
    101-624, title XXIII, Sec. 2303(b), Nov. 28, 1990, 104 Stat. 3981.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1990 - Pub. L. 101-624 inserted ''or by the Rural Development
    Administration'' after ''Farmers Home Administration''.
                              PRIOR PROVISIONS
      Provisions similar to those in this section were contained in the
    following appropriation acts:
      Pub. L. 102-341, title III, Aug. 14, 1992, 106 Stat. 897.
      Pub. L. 102-142, title III, Oct. 28, 1991, 105 Stat. 902.
      Pub. L. 101-506, title II, Nov. 5, 1990, 104 Stat. 1333.
      Pub. L. 101-161, title II, Nov. 21, 1989, 103 Stat. 969.
      Pub. L. 100-460, title II, Oct. 1, 1988, 102 Stat. 2246.
      Pub. L. 100-202, Sec. 101(k) (title II), Dec. 22, 1987, 101 Stat.
    1329-322, 1329-340.
      Pub. L. 99-500, Sec. 101(a) (title II), Oct. 18, 1986, 100 Stat.
    1783, 1783-16, and Pub. L. 99-591, Sec. 101(a) (title II), Oct. 30,
    1986, 100 Stat. 3341, 3341-16.
      Pub. L. 99-190, Sec. 101(a) (H.R. 3037, title II), Dec. 19, 1985,
    99 Stat. 1185.
      Pub. L. 98-473, title I, Sec. 101(a) (H.R. 5743, title II), Oct.
    12, 1984, 98 Stat. 1837.
      Pub. L. 98-151, Sec. 101(d) (H.R. 3223, title II), Nov. 14, 1983,
    97 Stat. 972.
      Pub. L. 97-370, title II, Dec. 18, 1982, 96 Stat. 1800.
                FORBEARANCE AND RESTRUCTURING FOR FARM LOANS
      Pub. L. 100-387, title III, Sec. 313(a), Aug. 11, 1988, 102 Stat.
    949, provided that: ''It is the sense of Congress that the
    Secretary of Agriculture should, with respect to farmers and
    ranchers who suffer major losses due to drought, hail, excessive
    moisture, or related condition in 1988 -
        ''(1) exercise forbearance in the collection of interest and
      principal on direct farmer program loans under the Consolidated
      Farm and Rural Development Act (7 U.S.C. 1921 et seq.)
      outstanding for such farmers and ranchers;
        ''(2) expedite the use of credit restructuring and other credit
      relief mechanisms authorized under the Agricultural Credit Act of
      1987 (Pub. L. 100-233, Jan. 6, 1988, 101 Stat. 1568, see Tables
      for classification) and similar provisions of law for such
      farmers and ranchers; and
        ''(3) encourage commercial lenders participating in guaranteed
      farmer lending programs under the Consolidated Farm and Rural
      Development Act to exercise forbearance before declaring loans to
      such farmers and ranchers under such programs in default.''
 
-CITE-
     7 USC Sec. 1981b                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981b. Farm loan interest rates
 
-STATUTE-
      Any loan for farm ownership purposes under subchapter I of this
    chapter, farm operating purposes under subchapter II of this
    chapter, or disaster emergency purposes under subchapter III of
    this chapter, other than a guaranteed loan, that is deferred,
    consolidated, rescheduled, or reamortized under this chapter shall,
    notwithstanding any other provision of this chapter, bear interest
    on the balance of the original loan and for the term of the
    original loan at a rate that is the lower of (1) the rate of
    interest on the original loan or (2) the rate being charged by the
    Secretary for loans, other than guaranteed loans, of the same type
    at the time of the deferral, consolidation, rescheduling, or
    reamortization.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331B, as added Pub. L. 98-258,
    title VI, Sec. 605, Apr. 10, 1984, 98 Stat. 139.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                        ADJUSTMENT OF INTEREST RATES
      Pub. L. 100-71, title I, July 11, 1987, 101 Stat. 428, provided
    that: ''The Secretary may adjust interest rates on existing
    nonsubsidized loans if he determines such interest rates are
    excessive in relation to prevailing commercial rates for comparable
    loans: Provided, That such rate adjustments shall constitute a
    change in the loan agreement and not a new loan.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1946 of this title.
 
-CITE-
     7 USC Sec. 1981c                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981c. Oil and gas royalty payments on loans
 
-STATUTE-
      (a) The Secretary shall permit a borrower of a loan made or
    insured under this chapter to make a prospective payment on such
    loan with proceeds from -
        (1) the leasing of oil, gas, or other mineral rights to real
      property used to secure such loan; or
        (2) the sale of oil, gas, or other minerals removed from real
      property used to secure such loan, if the value of the rights to
      such oil, gas, or other minerals has not been used to secure such
      loan.
      (b) Subsection (a) of this section shall not apply to a borrower
    of a loan made or insured under this chapter with respect to which
    a liquidation or foreclosure proceeding is pending on December 23,
    1985.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331C, as added Pub. L. 99-198,
    title XIII, Sec. 1310(a), Dec. 23, 1985, 99 Stat. 1523.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-CITE-
     7 USC Sec. 1981d                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981d. Notice of loan service programs
 
-STATUTE-
    (a) Requirement
      The Secretary shall provide notice by certified mail to each
    borrower who is at least 90 days past due on the payment of
    principal or interest on a loan made or insured under this chapter.
    (b) Contents
      The notice required under subsection (a) of this section shall -
        (1) include a summary of all primary loan service programs,
      preservation loan service programs, debt settlement programs, and
      appeal procedures, including the eligibility criteria, and terms
      and conditions of such programs and procedures;
        (2) include a summary of the manner in which the borrower may
      apply, and be considered, for all such programs, except that the
      Secretary shall not require the borrower to select among such
      programs or waive any right in order to be considered for any
      program carried out by the Secretary;
        (3) advise the borrower regarding all filing requirements and
      any deadlines that must be met for requesting loan servicing;
        (4) provide any relevant forms, including applicable response
      forms;
        (5) advise the borrower that a copy of regulations is available
      on request; and
        (6) be designed to be readable and understandable by the
      borrower.
    (c) Contained in regulations
      All notices required by this section shall be contained in the
    regulations implementing this chapter.
    (d) Timing
      The notice described in subsection (b) of this section shall be
    provided -
        (1) at the time an application is made for participation in a
      loan service program;
        (2) on written request of the borrower; and
        (3) before the earliest of -
          (A) initiating any liquidation;
          (B) requesting the conveyance of security property;
          (C) accelerating the loan;
          (D) repossessing property;
          (E) foreclosing on property; or
          (F) taking any other collection action.
    (e) Consideration of borrowers for loan service programs
      The Secretary shall consider a farmer program borrower for all
    loan service programs if, within 60 days after receipt of the
    notice required in this section or, in extraordinary circumstances
    as determined by the applicable State director, after the 60-day
    period, the borrower requests such consideration in writing.  In
    considering a borrower for loan service programs, the Secretary
    shall place the highest priority on the preservation of the
    borrower's farming operations.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331D, as added Pub. L. 100-233,
    title VI, Sec. 605, Jan. 6, 1988, 101 Stat. 1666; amended Pub. L.
    101-624, title XVIII, Sec. 1807, Nov. 28, 1990, 104 Stat. 3819;
    Pub. L. 102-554, Sec. 10, Oct. 28, 1992, 106 Stat. 4151; Pub. L.
    104-127, title VI, Sec. 633, Apr. 4, 1996, 110 Stat. 1092.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a)
    and (c), see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-127 substituted ''90 days past
    due on'' for ''180 days delinquent in''.
      1992 - Subsec. (e). Pub. L. 102-554, which directed the insertion
    of ''or, in extraordinary circumstances as determined by the
    applicable State director, after the 60-day period'' after ''not
    later than 60 days after receipt of the notice required in this
    section'', was executed by making the insertion after ''within 60
    days after receipt of the notice required in this section'' to
    reflect the probable intent of Congress.
      1990 - Subsec. (b)(1). Pub. L. 101-624, Sec. 1807(1), inserted
    ''debt settlement programs,'' after ''preservation loan service
    programs''.
      Subsec. (e). Pub. L. 101-624, Sec. 1807(2), substituted ''60
    days'' for ''45 days''.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-127 effective 90 days after Apr. 4,
    1996, see section 663(b) of Pub. L. 104-127, set out as a note
    under section 1922 of this title.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by section 1807(1) of Pub. L. 101-624 effective 120
    days after Nov. 28, 1990, see section 1861(b) of Pub. L. 101-624,
    set out as a note under section 2001 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1991, 2008g of this
    title.
 
-CITE-
     7 USC Sec. 1981e                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981e. Planting and production history guidelines
 
-STATUTE-
    (a) In general
      The Secretary shall ensure that appropriate procedures, including
    to the extent practicable onsite inspections, or use of county or
    State yield averages, are used in calculating future yields for an
    applicant for a loan, when an accurate projection cannot be made
    because the applicant's past production history has been affected
    by natural disasters declared under the Robert T. Stafford Disaster
    Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
    (b) Calculation of yields
      (1) In general
        For purposes of averaging past yields of the farm of a borrower
      or applicant over a period of crop years to calculate future
      yields for the farm under this chapter (except for loans under
      subchapter III of this chapter), the Secretary shall permit the
      borrower or applicant to exclude the crop year with the lowest
      actual or county average yield for the farm from the calculation,
      if the borrower or applicant was affected by a disaster during at
      least 2 of the crop years during the period.
      (2) Affected by a disaster
        For purposes of paragraph (1), a borrower or applicant was
      affected by a disaster if the Secretary finds that the borrower
      or applicant's farming operations have been substantially
      affected by a natural disaster in the United States or by a major
      disaster or emergency designated by the President under the
      Robert T. Stafford Disaster Relief and Emergency Assistance Act
      (42 U.S.C. 5121 et seq.), including a borrower or applicant who
      has a qualifying loss but is not located in a designated or
      declared disaster area.
      (3) Application of subsection
        Paragraph (1) shall apply to all actions taken by the Secretary
      to carry out this chapter (except for loans under subchapter III
      of this chapter) that involve the yields of a farm of a borrower
      or applicant, including making loans and loan guarantees,
      servicing loans, and making credit sales.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331E, as added Pub. L. 100-233,
    title VI, Sec. 606, Jan. 6, 1988, 101 Stat. 1667; amended Pub. L.
    102-237, title V, Sec. 501(d)(1), Dec. 13, 1991, 105 Stat. 1866;
    Pub. L. 102-552, title V, Sec. 516(g)(1), Oct. 28, 1992, 106 Stat.
    4138.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsecs. (a) and (b)(2), is Pub. L. 93-288, May
    22, 1974, 88 Stat. 143, as amended, which is classified principally
    to chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health
    and Welfare. For complete classification of this Act to the Code,
    see Short Title note set out under section 5121 of Title 42 and
    Tables.
      For definition of ''this chapter'', referred to in subsec.
    (b)(1), (3), see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1992 - Subsec. (a). Pub. L. 102-552, Sec. 516(g)(1)(A),
    substituted ''Robert T. Stafford Disaster Relief and Emergency
    Assistance Act (42 U.S.C. 5121 et seq.)'' for ''Disaster Relief Act
    of 1974''.
      Subsec. (b)(2). Pub. L. 102-552, Sec. 516(g)(1)(B), inserted
    ''Robert T. Stafford'' before ''Disaster Relief''.
      1991 - Pub. L. 102-237 designated existing provisions as subsec.
    (a), inserted heading, and added subsec. (b).
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 516(g)(2) of Pub. L. 102-552 provided that: ''The
    amendments made by paragraph (1) of this subsection (amending this
    section) shall take effect immediately after section 501(d) of the
    Food, Agriculture, Conservation, and Trade Act Amendments of 1991
    (Public Law 102-237; 105 Stat. 1866) (amending this section and
    enacting provisions set out below) took effect.''
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Section 501(d)(3) of Pub. L. 102-237 provided that:
      ''(A) In general. - Except as provided in subparagraph (B), the
    amendment made by paragraph (1) (amending this section) shall
    become effective on the date of publication of the interim
    regulations issued pursuant to paragraph (2)(A) (set out below).
      ''(B) Exception. - The amendment made by paragraph (1) shall
    apply to each primary loan servicing application submitted on or
    after the date of enactment of this Act (Dec. 13, 1991).''
                                REGULATIONS
      Section 501(d)(2) of Pub. L. 102-237 provided that:
      ''(A) Interim regulations. - Notwithstanding section 553 of title
    5, United States Code, as soon as practicable after the date of
    enactment of this Act (Dec. 13, 1991) and without a requirement for
    prior public notice and comment, the Secretary of Agriculture shall
    issue interim regulations that provide for the implementation of
    the amendment made by paragraph (1) (amending this section)
    beginning in crop year 1992.
      ''(B) Final regulations. - The Secretary of Agriculture shall
    provide for public notice and comment before the issuance of final
    regulations to implement the amendment made by paragraph (1).''
 
-CITE-
     7 USC Sec. 1981f                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1981f. Underwriting forms and standards
 
-STATUTE-
      In the administration of this chapter, the Secretary shall, to
    the extent practicable, use underwriting forms, standards,
    practices, and terminology similar to the forms, standards,
    practices, and terminology used by lenders in the private sector.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 331F, as added Pub. L. 101-624,
    title XVIII, Sec. 1808(a), Nov. 28, 1990, 104 Stat. 3820.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                REGULATIONS
      Section 1808(b) of Pub. L. 101-624 provided that: ''The Secretary
    of Agriculture shall not issue final regulations providing for the
    use of ratios and standards for determining the degree of potential
    loan risk under section 331F of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1981f) (as added by subsection (a) of
    this section), prior to the submission of the study and report on
    the effects of the regulations required by section 621 of the
    Agricultural Credit Act of 1987 (7 U.S.C. 1989 note).''
 
-CITE-
     7 USC Sec. 1982                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1982. Repealed. Pub. L. 103-354, title II, Sec. 227(b)(1),
        Oct. 13, 1994, 108 Stat. 3218
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 332, Aug. 8, 1961, 75
    Stat. 314; Pub. L. 99-198, title XIII, Sec. 1311, Dec. 23, 1985, 99
    Stat. 1524; Pub. L. 100-233, title VI, Sec. 607, Jan. 6, 1988, 101
    Stat. 1667; Pub. L. 101-624, title XVIII, Sec. 1809, Nov. 28, 1990,
    104 Stat. 3820; Pub. L. 102-554, Sec. 11, Oct. 28, 1992, 106 Stat.
    4151, related to county committees.
 
-CITE-
     7 USC Sec. 1983                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1983. Special conditions and limitations on loans
 
-STATUTE-
      In connection with loans made or insured under this chapter, the
    Secretary shall require -
        (1) the applicant (A) to certify in writing, and the Secretary
      shall determine, that he is unable to obtain sufficient credit
      elsewhere to finance his actual needs at reasonable rates and
      terms, taking into consideration prevailing private and
      cooperative rates and terms in the community in or near which the
      applicant resides for loans for similar purposes and periods of
      time, and (B) to furnish an appropriate written financial
      statement;
        (2) except with respect to a loan under section 1926, 1932, or
      1944 of this title, the county or area committee established
      under section 590h(b)(5)(B) of title 16 to certify in writing -
          (A) that an annual review of the credit history and business
        operation of the borrower has been conducted; and
          (B) that a review of the continued eligibility of the
        borrower for the loan has been conducted;
        (3) except for guaranteed loans, an agreement by the borrower
      that if at any time it shall appear to the Secretary that the
      borrower may be able to obtain a loan from a production credit
      association, a Federal land bank, or other responsible
      cooperative or private credit source (or, in the case of a
      borrower under section 1934 of this title, the borrower may be
      able to obtain a loan under section 1922 of this title), at
      reasonable rates and terms for loans for similar purposes and
      periods of time, the borrower will, upon request by the
      Secretary, apply for and accept such loan in sufficient amount to
      repay the Secretary or the insured lender, or both, and to pay
      for any stock necessary to be purchased in a cooperative lending
      agency in connection with such loan;
        (4) such provision for supervision of the borrower's operations
      as the Secretary shall deem necessary to achieve the objectives
      of the loan and protect the interests of the United States; and
        (5) the application of a person who is a veteran of any war, as
      defined in section 101(12) of title 38, for a loan under
      subchapter I or II of this chapter to be given preference over a
      similar application from a person who is not a veteran of any
      war, if the applications are on file in a county or area office
      at the same time.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 333, Aug. 8, 1961, 75 Stat. 314;
    Pub. L. 90-488, Sec. 12, Aug. 15, 1968, 82 Stat. 771; Pub. L.
    91-620, Sec. 3, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92-419, title
    I, Sec. 118(b), 125, 126, Aug. 30, 1972, 86 Stat. 664, 666; Pub. L.
    95-334, title I, Sec. 123, Aug. 4, 1978, 92 Stat. 428; Pub. L.
    96-438, Sec. 3(c), Oct. 13, 1980, 94 Stat. 1875; Pub. L. 97-98,
    title XVI, Sec. 1604, Dec. 22, 1981, 95 Stat. 1346; Pub. L.
    101-624, title XVIII, Sec. 1810, title XXIII, Sec. 2388(e), Nov.
    28, 1990, 104 Stat. 3820, 4053; Pub. L. 102-237, title V, Sec.
    501(e), Dec. 13, 1991, 105 Stat. 1867; Pub. L. 102-554, Sec. 12,
    Oct. 28, 1992, 106 Stat. 4151; Pub. L. 103-354, title II, Sec.
    227(b)(2), Oct. 13, 1994, 108 Stat. 3218; Pub. L. 104-127, title
    VI, Sec. 634, 635(a), 636, Apr. 4, 1996, 110 Stat. 1093.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in introductory
    provisions, see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Par. (1)(B). Pub. L. 104-127, Sec. 634, substituted ''an
    appropriate written financial statement'' for ''a written statement
    showing the applicant's net worth''.
      Pars. (2) to (4). Pub. L. 104-127, Sec. 635(a), added par. (2)
    and redesignated former pars. (2) and (3) as (3) and (4),
    respectively.  Former par. (4) redesignated (5).
      Par. (5). Pub. L. 104-127, Sec. 636, added par. (5) and struck
    out former par. (5) which read as follows: ''the applications of
    veterans for loans under subchapter I or II of this chapter to be
    given preference over similar applications of nonveterans on file
    in any county or area office at the same time.  Veterans as used
    herein shall mean persons who served in the Armed Forces of the
    United States during any war between the United States and any
    other nation, during the Korean conflict or the Vietnam era and who
    were discharged or released therefrom under conditions other than
    dishonorable.''
      Pub. L. 104-127, Sec. 635(a)(1), redesignated par. (4) as (5).
      1994 - Pars. (2) to (5). Pub. L. 103-354 redesignated pars. (3)
    to (5) as (2) to (4), respectively, and struck out former par. (2)
    relating to certification by county committee of applicant's
    eligibility for loan.
      1992 - Par. (2)(A)(iii). Pub. L. 102-554 substituted ''5 years''
    for ''2 years''.
      1991 - Par. (2)(A). Pub. L. 102-237 redesignated cls. (1) to (3)
    as (i) to (iii), respectively.
      1990 - Pub. L. 101-624, Sec. 2388(e), redesignated pars. (a) to
    (e) as (1) to (5), respectively, and in par. (1) redesignated
    subpars. (1) and (2) as (A) and (B), respectively; in par. (2)
    redesignated subpars. (1) and (2) as (A) and (B), respectively, and
    in subpar. (A) redesignated cls. (A) to (C) as (1) to (3),
    respectively; in par. (3) made technical amendments to references
    to sections 1934 and 1922 of this title involving original act and
    requiring no change in text; and in par. (5) made technical
    amendments to reference to subchapter I or II of this chapter
    involving original act and requiring no change in text.
      Pub. L. 101-624, Sec. 1810, amended par. (b) generally.  Prior to
    amendment, par. (b) read as follows: ''except for loans under
    sections 1926, 1932, 1944 and 1961(a)(2) of this title, the county
    committee to certify in writing that the applicant meets the
    eligibility requirements for the loan, and has the character,
    industry, and ability to carry out the proposed operations, and
    will, in the opinion of the committee, honestly endeavor to carry
    out his undertakings and obligations; and for loans under section
    1961(a)(2) of this title, the Secretary shall require the
    recommendation of the county committee as to the making or insuring
    of the loan: Provided, That the Secretary may provide a procedure
    for appeal and review of any determination relating to a
    certification or recommendation required to be made by the county
    committee, and for reversal or modification thereof should the
    facts warrant such action;''.
      1981 - Par. (a). Pub. L. 97-98 designated existing provisions
    after ''the applicant'' as cl. (1), and added cl. (2).
      1980 - Par. (b). Pub. L. 96-438 substituted ''section
    1961(a)(2)'' for ''section 1961(b)(2)'' in two places.
      1978 - Par. (b). Pub. L. 95-334, Sec. 123(1), inserted proviso
    relating to appeal and review procedure for any determination
    regarding a certification, etc.
      Par. (c). Pub. L. 95-334, Sec. 123(2), (3), inserted provisions
    excepting guaranteed loans and provisions relating to borrowers
    under section 1934 of this title obtaining loans under section 1922
    of this title.
      1972 - Par. (a). Pub. L. 92-419, Sec. 125, inserted '', and the
    Secretary shall determine,'' after ''in writing''.
      Par. (b). Pub. L. 92-419, Sec. 118(b), 126, inserted reference to
    section 1932 of this title and substituted ''section 1961(b)(2) of
    this title'' for ''said sections'', respectively.
      1970 - Pub. L. 91-620 included persons who served during the
    Vietnam era within the definition of ''Veterans'' in par. (e).
      1968 - Par. (b). Pub. L. 90-488 struck out ''farming'' from
    phrase ''proposed farming operations''.
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by Pub. L. 102-237 effective as if included in the
    provision of the Food, Agriculture, Conservation, and Trade Act of
    1990, Pub. L. 101-624, to which the amendment relates, see section
    1101(b)(3) of Pub. L. 102-237, set out as a note under section 1421
    of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section
    1801 of Pub. L. 97-98, set out as an Effective Date note under
    section 4301 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1932 of this title.
 
-CITE-
     7 USC Sec. 1983a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1983a. Prompt approval of loans and loan guarantees
 
-STATUTE-
    (a) Applications; time for action by Secretary; notice; statement
        of reasons
      (1) The Secretary shall approve or disapprove an application for
    a loan or loan guarantee made under this chapter, and notify the
    applicant of such action, not later than 60 days after the
    Secretary has received a complete application for such loan or loan
    guarantee.
      (2)(A) If an application for a loan or loan guarantee under this
    chapter (other than under subchapter II of this chapter) is
    incomplete, the Secretary shall inform the applicant of the reasons
    such application is incomplete not later than 20 days after the
    Secretary has received such application.
      (B)(i) Not later than 10 calendar days after the Secretary
    receives an application for an operating loan or loan guarantee
    under subchapter II of this chapter, the Secretary shall notify the
    applicant of any information required before a decision may be made
    on the application.  On receipt of an application, the Secretary
    shall request from other parties such information as may be needed
    in connection with the application.
      (ii) Not later than 15 calendar days after the date an agency of
    the Department of Agriculture receives a request for information
    made pursuant to clause (i), the agency shall provide the Secretary
    with the requested information.
      (iii) If, not later than 20 calendar days after the date a
    request is made pursuant to clause (i) with respect to an
    application, the Secretary has not received the information
    requested, the Secretary shall notify the applicant and the
    district office of the Farmers Home Administration, in writing, of
    the outstanding information.
      (iv) A county office shall notify the district office of the
    Farmers Home Administration of each application for an operating
    loan or loan guarantee under subchapter II of this chapter that is
    pending more than 45 days after receipt, and the reasons the
    application is pending.
      (v) A district office that receives a notice provided under
    clause (iv) with respect to an application shall immediately take
    steps to ensure that final action is taken on the application not
    later than 15 days after the date of the receipt of the notice.
      (vi) The district office shall report to the State office of the
    Farmers Home Administration on each application for an operating
    loan or loan guarantee under subchapter II of this chapter that is
    pending more than 45 days after receipt by the county committee,
    and the reasons the application is pending.
      (vii) Each month, the Secretary shall notify the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate, on a
    State-by-State basis, as to each application for an operating loan
    or loan guarantee under subchapter II of this chapter on which
    final action had not been taken within 60 calendar days after
    receipt by the Secretary, and the reasons final action had not been
    taken.
      (3) If an application for a loan or loan guarantee under this
    chapter is disapproved by the Secretary, the Secretary shall state
    the reasons for the disapproval in the notice required under
    paragraph (1).
      (4)(A) Notwithstanding paragraph (1), each application for a loan
    or loan guarantee under section 1932(a) of this title, or for a
    loan under section 1926(a) of this title, that is to be disapproved
    by the Secretary solely because the Secretary lacks the necessary
    amount of funds to make the loan or guarantee shall not be
    disapproved but shall be placed in pending status.
      (B) The Secretary shall retain the pending application and
    reconsider the application beginning on the date that sufficient
    funds become available.
      (C) Not later than 60 days after funds become available regarding
    each pending application, the Secretary shall notify the applicant
    of the approval or disapproval of funding for the application.
    (b) Loan proceeds; time for receipt
      (1) Except as provided in paragraph (2), if an application for an
    insured loan under this chapter is approved by the Secretary, the
    Secretary shall provide the loan proceeds to the applicant not
    later than 15 days (or such longer period as the applicant may
    approve) after the application for the loan is approved by the
    Secretary.
      (2) If the Secretary is unable to provide the loan proceeds to
    the applicant within such 15-day period because sufficient funds
    are not available to the Secretary for such purpose, the Secretary
    shall provide the loan proceeds to the applicant as soon as
    practicable (but in no event later than 15 days unless the
    applicant agrees to a longer period) after sufficient funds for
    such purpose become available to the Secretary.
    (c) Reconsideration of applications; time for action by Secretary
      If an application for a loan or loan guarantee under this chapter
    is disapproved by the Secretary, but such action is subsequently
    reversed or revised as the result of an appeal within the
    Department of Agriculture or to the courts of the United States and
    the application is returned to the Secretary for further
    consideration, the Secretary shall act on the application and
    provide the applicant with notice of the action within 15 days
    after return of the application to the Secretary.
    (d) Approved lender designation applications; time for decision by
        Secretary
      In carrying out the approved lender program established by
    exhibit A to subpart B of part 1980 of title 7, Code of Federal
    Regulations, the Secretary shall ensure that each request of a
    lending institution for designation as an approved lender under
    such program is reviewed, and a decision made on the application,
    not later than 15 days after the Secretary has received a complete
    application for such designation.
    (e) Processing loan applications; personnel and other resources
        made available; use of authorities of law
      (1) As soon as practicable after December 23, 1985, the Secretary
    shall take such steps as are necessary to make personnel, including
    the payment of overtime for such personnel, and other resources of
    the Department of Agriculture available to the Farmers Home
    Administration as are sufficient to enable the Farmers Home
    Administration to expeditiously process loan applications that are
    submitted by farmers and ranchers.
      (2) In carrying out paragraph (1), the Secretary may use any
    authority of law provided to the Secretary, including -
        (A) the Agricultural Credit Insurance Fund established under
      section 1929 of this title; and
        (B) the employment procedures used in connection with the
      emergency loan program established under subchapter III of this
      chapter.
    (f) Graduation of seasoned direct loan borrowers to loan guarantee
        program
      (1) As used in this subsection:
        (A) The term ''approved lender'' means a lender approved prior
      to October 28, 1992, by the Secretary under the approved lender
      program established by exhibit A to subpart B of part 1980 of
      title 7, Code of Federal Regulations (as in effect on January 1,
      1991), or a lender certified under section 1989 (FOOTNOTE 1) of
      this title.
       (FOOTNOTE 1) See References in Text note below.
        (B) The term ''seasoned direct loan borrower'' means a borrower
      receiving a direct loan under this chapter who has been
      classified as ''commercial'' or ''standard'' under subpart W of
      part 2006 of the Instruction Manual (as in effect on January 1,
      1991).
      (2) The Secretary, or a contracting third party, shall annually
    review under section 2006b of this title the loans of each seasoned
    loan borrower.  If, based on the review, it is determined that a
    borrower would be able to obtain a loan, guaranteed by the
    Secretary, from a commercial or cooperative lender at reasonable
    rates and terms for loans for similar purposes and periods of time,
    the Secretary shall assist the borrower in applying for the
    commercial or cooperative loan.
      (3) In accordance with section 2006d of this title, the Secretary
    shall prepare a prospectus on each seasoned direct loan borrower
    determined eligible to obtain a guaranteed loan.  The prospectus
    shall contain a description of the amounts of loan guarantee and
    interest assistance that the Secretary will provide to the seasoned
    direct loan borrower to enable the seasoned direct loan borrower to
    carry out a financially viable farming plan if a guaranteed loan is
    made.
      (4) Verification. -
        (A) In general. - The Secretary shall provide a prospectus of a
      seasoned direct loan borrower to each approved lender whose
      lending area includes the location of the seasoned direct loan
      borrower.
        (B) Notification. - The Secretary shall notify each borrower of
      a loan that a prospectus has been provided to a lender under
      subparagraph (A).
        (C) Credit extended. - If the Secretary receives an offer from
      an approved lender to extend credit to the seasoned direct loan
      borrower under terms and conditions contained in the prospectus,
      the seasoned direct loan borrower shall not be eligible for an
      insured loan from the Secretary under subchapter I or II of this
      chapter, except as otherwise provided in this subsection.
      (5) If the Secretary is unable to provide loan guarantees and, if
    necessary, interest assistance to the seasoned direct loan borrower
    under this subsection in amounts sufficient to enable the seasoned
    direct loan borrower to borrow from commercial sources the amount
    required to carry out a financially viable farming plan, or if the
    Secretary does not receive an offer from an approved lender to
    extend credit to a seasoned direct loan borrower under the terms
    and conditions contained in the prospectus, the Secretary shall
    make an insured loan to the seasoned direct loan borrower under
    subchapter I or II of this chapter, whichever is applicable.
      (6) To the extent necessary for the borrower to obtain a loan,
    guaranteed by the Secretary, from a commercial or cooperative
    lender, the Secretary shall provide interest rate reductions as
    provided for under section 1999 of this title.
    (g) Simplified application for guaranteed loans of $50,000 or less
      (1) The Secretary shall provide to lenders a short, simplified
    application form for guarantees under this chapter of loans the
    principal amount of which is $50,000 or less.
      (2) In developing the application, the Secretary shall -
        (A) consult with commercial and cooperative lenders; and
        (B) ensure that -
          (i) the form can be completed manually or electronically, at
        the option of the lender;
          (ii) the form minimizes the documentation required to
        accompany the form;
          (iii) the cost of completing and processing the form is
        minimal; and
          (iv) the form can be completed and processed in an
        expeditious manner.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 333A, as added Pub. L. 99-198,
    title XIII, Sec. 1312(a), Dec. 23, 1985, 99 Stat. 1524; amended
    Pub. L. 101-624, title XVIII, Sec. 1811, title XXIII, Sec. 2388(f),
    Nov. 28, 1990, 104 Stat. 3821, 4053; Pub. L. 102-554, Sec. 13-15,
    Oct. 28, 1992, 106 Stat. 4152, 4153; Pub. L. 104-127, title VI,
    Sec. 637, Apr. 4, 1996, 110 Stat. 1093.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a),
    (b)(1), (c), (f)(1)(B), and (g)(1), see note set out under section
    1921 of this title.
      Section 1989 of this title, referred to in subsec. (f)(1)(A), was
    in the original ''section 114'', and was translated as meaning
    section 339 of Pub. L. 87-128, which is classified to section 1989
    of this title, to reflect the probable intent of Congress, because
    Pub. L. 87-128 does not contain a section 114 and section 1989
    provides for a lender certification program.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (f)(4). Pub. L. 104-127, Sec. 637(1), inserted
    heading.
      Subsec. (f)(4)(A). Pub. L. 104-127, Sec. 637(1), designated first
    sentence of par. (4) as subpar. (A), inserted heading, and directed
    the substitution of ''The Secretary shall provide a prospectus of a
    seasoned'' for ''With'' and all that follows through ''seasoned'',
    which was executed by making the substitution for all that follows
    through ''seasoned'' the first place appearing resulting in making
    the substitution for ''With the approval of the borrower, the
    Secretary shall provide the prospectus of the seasoned'', to
    reflect the probable intent of Congress.
      Subsec. (f)(4)(B), (C). Pub. L. 104-127, Sec. 637(2), added
    subpar. (B), designated second sentence of par. (4) as subpar. (C),
    and inserted heading.
      1992 - Subsec. (a)(2). Pub. L. 102-554, Sec. 13, designated
    existing provisions as subpar. (A), inserted ''(other than under
    subchapter II of this chapter)'' after ''under this chapter'', and
    added subpar. (B).
      Subsec. (f). Pub. L. 102-554, Sec. 14, added subsec. (f).
      Subsec. (g). Pub. L. 102-554, Sec. 15, added subsec. (g).
      1990 - Subsec. (a)(4). Pub. L. 101-624, Sec. 1811, added par.
    (4).
      Subsec. (c). Pub. L. 101-624, Sec. 2388(f), substituted ''If''
    for ''In''.
                               EFFECTIVE DATE
      Section 1312(b) of Pub. L. 99-198 provided that: ''The amendment
    made by subsection (a) (enacting this section) shall be effective
    with respect to applications for loans or loan guarantees under the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.)
    received by the Secretary of Agriculture after the date of
    enactment of this Act (Dec. 23, 1985).''
 
-CITE-
     7 USC Sec. 1983b                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1983b. Repealed. Pub. L. 103-354, title II, Sec. 281(c), Oct.
        13, 1994, 108 Stat. 3233
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 333B, as added Pub. L.
    99-198, title XIII, Sec. 1313(a), Dec. 23, 1985, 99 Stat. 1525;
    amended Pub. L. 100-233, title VI, Sec. 608, Jan. 6, 1988, 101
    Stat. 1667; Pub. L. 101-624, title XVIII, Sec. 1812, Nov. 28, 1990,
    104 Stat. 3821, related to appeals from adverse decisions under
    Consolidated Farm and Rural Development Act. See section 6991 et
    seq. of this title.
 
-CITE-
     7 USC Sec. 1983c                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1983c. Provision of information to borrowers
 
-STATUTE-
    (a) In general
      On request of a farm borrower of a farmer program loan, the
    Secretary shall make available to the borrower the following:
        (1) One copy of each document signed by the borrower.
        (2) One copy of each appraisal performed with respect to the
      loan.
        (3) All documents that the Secretary otherwise is required to
      provide to the borrower under any law or rule of law in effect on
      the date of such request.
    (b) Construction of section
      Subsection (a) of this section shall not be construed to
    supersede any duty imposed on the Secretary by any law or rule of
    law in effect immediately before January 6, 1988, unless such duty
    is in direct conflict with any duty imposed by subsection (a) of
    this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 333C, as added Pub. L. 100-233,
    title VI, Sec. 609, Jan. 6, 1988, 101 Stat. 1668.)
 
-CITE-
     7 USC Sec. 1984                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1984. Taxation
 
-STATUTE-
      All property subject to a lien held by the United States or the
    title to which is acquired or held by the Secretary under this
    chapter other than property used for administrative purposes shall
    be subject to taxation by State, territory, district, and local
    political subdivisions in the same manner and to the same extent as
    other property is taxed: Provided, however, That no tax shall be
    imposed or collected on or with respect to any instrument if the
    tax is based on -
        (1) the value of any notes or mortgages or other lien
      instruments held by or transferred to the Secretary;
        (2) any notes or lien instruments administered under this
      chapter which are made, assigned, or held by a person otherwise
      liable for such tax; or
        (3) the value of any property conveyed or transferred to the
      Secretary,
    whether as a tax on the instrument, the privilege of conveying or
    transferring or the recordation thereof; nor shall the failure to
    pay or collect any such tax be a ground for refusal to record or
    file such instruments, or for failure to impart notice, or prevent
    the enforcement of its provisions in any State or Federal court.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 334, Aug. 8, 1961, 75 Stat. 315.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 25 section 492.
 
-CITE-
     7 USC Sec. 1985                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1985. Security servicing
 
-STATUTE-
    (a) Preservation and protection of security, lien, or priority of
        lien securing loan
      The Secretary is authorized and empowered to make advances,
    without regard to any loan or total indebtedness limitation, to
    preserve and protect the security for or the lien or priority of
    the lien securing any loan or other indebtedness owing to, insured
    by, or acquired by the Secretary under this chapter or under any
    other programs administered by the Farmers Home Administration or
    the Rural Development Administration; to bid for and purchase at
    any execution, foreclosure, or other sale or otherwise to acquire
    property upon which the United States has a lien by reason of a
    judgment or execution arising from, or which is pledged, mortgaged,
    conveyed, attached, or levied upon to secure the payment of, any
    such indebtedness whether or not such property is subject to other
    liens, to accept title to any property so purchased or acquired;
    and to sell, manage, or otherwise dispose of such property as
    hereinafter provided.
    (b) Operation or lease of realty
      Except as provided in subsections (c) and (e) of this section,
    real property administered under the provisions of this chapter may
    be operated or leased by the Secretary for such period or periods
    as the Secretary may deem necessary to protect the Government's
    investment therein.
    (c) Sale of property
      (1) In general
        Subject to this subsection and subsection (e)(1)(A) of this
      section, the Secretary shall offer to sell real property that is
      acquired by the Secretary under this chapter using the following
      order and method of sale:
        (A) Advertisement
          Not later than 15 days after acquiring real property, the
        Secretary shall publicly advertise the property for sale.
        (B) Beginning farmer or rancher
          (i) In general
            Not later than 75 days after acquiring real property, the
          Secretary shall offer to sell the property to a qualified
          beginning farmer or rancher at current market value based on
          a current appraisal.
          (ii) Random selection
            If more than 1 qualified beginning farmer or rancher offers
          to purchase the property, the Secretary shall select between
          the qualified applicants on a random basis.
          (iii) Appeal of random selection
            A random selection or denial by the Secretary of a
          beginning farmer or rancher for farm inventory property under
          this subparagraph shall be final and not administratively
          appealable.
        (C) Public sale
          If no acceptable offer is received from a qualified beginning
        farmer or rancher under subparagraph (B) not later than 75 days
        after acquiring the real property, the Secretary shall, not
        later than 30 days after the 75-day period, sell the property
        after public notice at a public sale, and, if no acceptable bid
        is received, by negotiated sale, at the best price obtainable.
      (2) Transitional rules
        (A) Previous lease
          In the case of real property acquired prior to April 4, 1996,
        that the Secretary leased prior to April 4, 1996, not later
        than 60 days after the lease expires, the Secretary shall offer
        to sell the property in accordance with paragraph (1).
        (B) Previously in inventory
          In the case of real property acquired prior to April 4, 1996,
        that the Secretary has not leased, not later than 60 days after
        April 4, 1996, the Secretary shall offer to sell the property
        in accordance with paragraph (1).
      (3) Interest
        (A) In general
          Subject to subparagraph (B), any conveyance of real property
        under this subsection shall include all of the interest of the
        United States in the property, including mineral rights.
        (B) Conservation
          The Secretary may for conservation purposes grant or sell an
        easement, restriction, development right, or similar legal
        right to real property to a State, a political subdivision of a
        State, or a private nonprofit organization separately from the
        underlying fee or other rights to the property owned by the
        United States.
      (4) Other law
        The Federal Property and Administrative Services Act of 1949
      (40 U.S.C. 471 et seq.) shall not apply to any exercise of
      authority under this chapter.
      (5) Lease of property
        (A) In general
          Subject to subparagraph (B), the Secretary may not lease any
        real property acquired under this chapter.
        (B) Exception
          (i) Beginning farmer or rancher
            The Secretary may lease or contract to sell to a beginning
          farmer or rancher a farm or ranch acquired by the Secretary
          under this chapter if the beginning farmer or rancher
          qualifies for a credit sale or direct farm ownership loan
          under subchapter I of this chapter but credit sale authority
          for loans or direct farm ownership loan funds, respectively,
          are not available.
          (ii) Term
            The term of a lease or contract to sell to a beginning
          farmer or rancher under clause (i) shall be until the earlier
          of -
              (I) the date that is 18 months after the date of the
            lease or sale; or
              (II) the date that direct farm ownership loan funds or
            credit sale authority for loans becomes available to the
            beginning farmer or rancher.
          (iii) Income-producing capability
            In determining the rental rate on real property leased
          under this subparagraph, the Secretary shall consider the
          income-producing capability of the property during the term
          that the property is leased.
      (6) Expedited determination
        (A) In general
          On the request of an applicant, not later than 30 days after
        denial of the applicant's application, the appropriate State
        director shall provide an expedited review and determination of
        whether the applicant is a beginning farmer or rancher for the
        purpose of acquiring farm inventory property.
        (B) Appeal
          The determination of a State Director under subparagraph (A)
        shall be final and not administratively appealable.
        (C) Effects of determinations
          (i) In general
            The Secretary shall maintain statistical data on the number
          and results of determinations made under subparagraph (A) and
          the effect of the determinations on -
              (I) selling farm inventory property to beginning farmers
            and ranchers; and
              (II) disposing of real property in inventory.
          (ii) Notification
            The Secretary shall notify the Committee on Agriculture of
          the House of Representatives and the Committee on
          Agriculture, Nutrition, and Forestry of the Senate if the
          Secretary determines that the review process under
          subparagraph (A) is adversely affecting the selling of farm
          inventory property to beginning farmers or ranchers or the
          disposing of real property in inventory.
    (d) Easements; condemnations
      With respect to any real property administered under this
    chapter, the Secretary is authorized to grant or sell easements or
    rights-of-way for roads, utilities, and other appurtenances not
    inconsistent with the public interest.  With respect to any
    rights-of-way over land on which the United States has a lien
    administered under this chapter, the Secretary may release said
    lien upon payment to the United States of adequate consideration,
    and the interest of the United States arising under any such lien
    may be acquired for highway purposes by any State or political
    subdivision thereof in condemnation proceedings under State law by
    service by certified mail upon the United States attorney for the
    district, the State Director of the Farmers Home Administration for
    the State in which the farm is located, and the Attorney General of
    the United States: Provided, however, That the United States shall
    not be required to appear, answer, or respond to any notice or writ
    sooner than ninety days from the time such notice or writ is
    returnable or purports to be effective, and the taking or vesting
    of title to the interest of the United States shall not become
    final under any proceeding, order, or decree until adequate
    compensation and damages have been finally determined and paid to
    the United States or into the registry of the court.
    (e) Real property located within Indian reservation; conservation
        practices; adverse effects prohibition
      (1)(A)(i) Except as provided in subparagraph (D), if -
        (I) the Secretary acquires property under this chapter that is
      located within an Indian reservation; and
        (II) the borrower-owner is the Indian tribe that has
      jurisdiction over the reservation in which the real property is
      located or the borrower-owner is a member of such Indian tribe;
    the Secretary shall dispose of or administer the property only as
    provided for in this subparagraph.
      (ii) For purposes of this subparagraph, the term ''Indian
    reservation'' means all land located within the limits of any
    Indian reservation under the jurisdiction of the United States,
    notwithstanding the issuance of any patent, and, including
    rights-of-way running through the reservation; trust or restricted
    land located within the boundaries of a former reservation of a
    federally recognized Indian tribe in the State of Oklahoma; or all
    Indian allotments the Indian titles to which have not been
    extinguished if such allotments are subject to the jurisdiction of
    a federally recognized Indian tribe.
      (iii) Not later than 90 days after acquiring the property, the
    Secretary shall afford an opportunity to purchase or lease the real
    property in accordance with the order of priority established under
    clause (iv) by the Indian tribe having jurisdiction over the Indian
    reservation within which the real property is located or, if no
    order of priority is established by such Indian tribe under clause
    (iv), in the following order:
        (I) to an Indian member of the Indian tribe that has
      jurisdiction over the reservation within which the real property
      is located;
        (II) to an Indian corporate entity;
        (III) to such Indian tribe.
      (iv) The governing body of any Indian tribe having jurisdiction
    over an Indian reservation may revise the order of priority
    provided in clause (iii) under which lands located within such
    reservation shall be offered for purchase or lease by the Secretary
    under clause (iii) and may restrict the eligibility for such
    purchase or lease to -
        (I) persons who are members of such Indian tribe,
        (II) Indian corporate entities that are authorized by such
      Indian tribe to lease or purchase lands within the boundaries of
      such reservation, or
        (III) such Indian tribe itself.
      (v) If real property described in clause (i) is not purchased or
    leased under clause (iii) and the Indian tribe having jurisdiction
    over the reservation within which the real property is located is
    unable to purchase or lease the real property, the Secretary shall
    transfer the real property to the Secretary of the Interior who
    shall administer the real property as if the real property were
    held in trust by the United States for the benefit of such Indian
    tribe.  From the rental income derived from the lease of the
    transferred real property, and all other income generated from the
    transferred real property, the Secretary of the Interior shall pay
    those State, county, municipal, or other local taxes to which the
    transferred real property was subject at the time of acquisition by
    the Secretary, until the earlier of -
        (I) the expiration of the 4-year period beginning on the date
      on which the real property is so transferred, or
        (II) such time as the lands are transferred into trust pursuant
      to clause (viii).
      (vi) At any time any real property is transferred to the
    Secretary of the Interior under clause (v), the Secretary of
    Agriculture shall be deemed to have no further responsibility under
    this Act for collection of any amounts with regard to the farm
    program loan which had been secured by such real property, nor with
    regard to any lien arising out of such loan transaction, nor for
    repayments of any amount with regard to such loan transactions or
    liens to the Treasury of the United States, and the Secretary of
    the Interior shall be deemed to have succeeded to all right, title
    and interest of the Secretary of Agriculture in such real estate
    arising from the farm program loan transaction, including the
    obligation to remit to the Treasury of the United States, in
    repayment of the original loan, those amounts provided in clause
    (vii).
      (vii) After the payment of any taxes which are required to be
    paid under clause (v), all remaining rental income derived from the
    lease of the real property transferred to the Secretary of the
    Interior under clause (v), and all other income generated from the
    real property transferred to the Secretary of the Interior under
    clause (v), shall be deposited as miscellaneous receipts in the
    Treasury of the United States until the amount deposited is equal
    to the lesser of -
        (I) the amount of the outstanding lien of the United States
      against such real property, as of the date the real property was
      acquired by the Secretary;
        (II) the fair market value of the real property, as of the date
      of the transfer to the Secretary of the Interior; or
        (III) the capitalized value of the real property, as of the
      date of the transfer to the Secretary of the Interior.
      (viii) When the total amount that is required to be deposited
    under clause (vii) with respect to any real property has been
    deposited into the Treasury of the United States, title to the real
    property shall be held in trust by the United States for the
    benefit of the Indian tribe having jurisdiction over the Indian
    reservation within which the real property is located.
      (ix) Notwithstanding any other clause of this subparagraph, the
    Indian tribe having jurisdiction over the Indian reservation within
    which the real property described in clause (i) is located may, at
    any time after the real property has been transferred to the
    Secretary of the Interior under clause (v), offer to pay the
    remaining amount on the lien, or the fair market value of the real
    property, whichever is less.  Upon payment of such amount, title to
    such real property shall be held by the United States in trust for
    the tribe and such trust or restricted lands that have been
    acquired by the Secretary under foreclosure or voluntary transfer
    under a loan made or insured under this chapter and transferred to
    an Indian person, entity, or tribe under the provisions of this
    subparagraph shall be deemed to have never lost trust or restricted
    status.
      (x) This subparagraph shall apply to all lands in the land
    inventory established under this chapter (as of November 28, 1990)
    that were (immediately prior to November 28, 1990) owned by an
    Indian borrower-owner described in clause (i) and that are situated
    within an Indian reservation (as defined in clause (ii)),
    regardless of the date of foreclosure or acquisition by the
    Secretary. The Secretary shall afford an opportunity to a tribal
    member, an Indian corporate entity, or the tribe to purchase or
    lease the real property as provided in clause (iii). If the right
    is not exercised or no expression of intent to exercise such right
    is received within 180 days after November 28, 1990, the Secretary
    shall transfer the real property to the Secretary of the Interior
    as provided in clause (v).
      (B) The rights provided in this subsection shall be in addition
    to any such right of first refusal under the law of the State in
    which the property is located.
      (C) As used in this paragraph, the term ''borrower-owner'' means
    -
        (i) a borrower from whom the Secretary acquired real farm or
      ranch property (including the principal residence of the
      borrower) used to secure any loan made to the borrower under this
      chapter; or
        (ii) in any case in which an owner of property pledged the
      property to secure the loan and the owner is different than the
      borrower, the owner.
      (D)(i) If -
        (I) the real property described in subparagraph (A)(i) is
      located within an Indian reservation;
        (II) the borrower-owner is an Indian tribe that has
      jurisdiction over the reservation in which the real property is
      located or the borrower-owner is a member of an Indian tribe;
        (III) the borrower-owner has obtained a loan made, insured, or
      guaranteed under this chapter; and
        (IV) the borrower-owner and the Secretary have exhausted all of
      the procedures provided for in this chapter to permit a
      borrower-owner to retain title to the real property, such that it
      is necessary for the borrower-owner to relinquish title,
    the Secretary shall dispose of or administer the property only as
    provided in subparagraph (A), as modified by this subparagraph.
      (ii) The Secretary shall provide the borrower-owner of real
    property that is described in clause (i) with written notice of -
        (I) the right of the borrower-owner to voluntarily convey the
      real property to the Secretary; and
        (II) the fact that real property so conveyed will be placed in
      the inventory of the Secretary.
      (iii) The Secretary shall provide the borrower-owner of the real
    property with written notice of the rights and protections provided
    under this chapter to the borrower-owner, and the Indian tribe that
    has jurisdiction over the reservation in which the real property is
    located, from foreclosure or liquidation of the real property,
    including written notice of -
        (I) the provisions of subparagraph (A), this subparagraph, and
      subsection (g)(6) (FOOTNOTE 1) of this section;
       (FOOTNOTE 1) See References in Text note below.
        (II) if the borrower-owner does not voluntarily convey the real
      property to the Secretary, that -
          (aa) the Secretary may foreclose on the property;
          (bb) in the event of foreclosure, the property will be
        offered for sale;
          (cc) the Secretary must offer a bid for the property that is
        equal to the fair market value of the property or the
        outstanding principal and interest of the loan, whichever is
        higher;
          (dd) the property may be purchased by another party; and
          (ee) if the property is purchased by another party, the
        property will not be placed in the inventory of the Secretary
        and the borrower-owner will forfeit the rights and protections
        provided under this chapter; and
        (III) the opportunity of the borrower-owner to consult with the
      Indian tribe that has jurisdiction over the reservation in which
      the real property is located or counsel to determine if State or
      tribal law provides rights and protections that are more
      beneficial than those provided the borrower-owner under this
      chapter.
      (iv)(I) Except as provided in subclause (II), the Secretary shall
    accept the voluntary conveyance of real property described in
    clause (i).
      (II) If a hazardous substance (as defined in section 9601(14) of
    title 42) is located on the property and the Secretary takes
    remedial action to protect human health or the environment if the
    property is taken into inventory, the Secretary shall accept the
    voluntary conveyance of the property only if the Secretary
    determines that it is in the best interests of the Federal
    Government.
      (v) Foreclosure procedures. -
        (I) Notice to borrower. - If an Indian borrower-owner does not
      voluntarily convey to the Secretary real property described in
      clause (i), not less than 30 days before a foreclosure sale of
      the property, the Secretary shall provide the Indian
      borrower-owner with the option of -
          (aa) requiring the Secretary to assign the loan and security
        instruments to the Secretary of the Interior, if the Secretary
        of the Interior agrees to an assignment releasing the Secretary
        of Agriculture from all further responsibility for collection
        of any amounts with regard to the loan secured by the real
        property; or
          (bb) requiring the Secretary to assign the loan and security
        instruments to the tribe having jurisdiction over the
        reservation in which the real property is located, if the tribe
        agrees to the assignment.
        (II) Notice to tribe. - If an Indian borrower-owner does not
      voluntarily convey to the Secretary real property described in
      clause (i), not less than 30 days before a foreclosure sale of
      the property, the Secretary shall provide written notice to the
      Indian tribe that has jurisdiction over the reservation in which
      the real property is located of -
          (aa) the sale;
          (bb) the fair market value of the property; and
          (cc) the requirements of this subparagraph.
        (III) Assumed loans. - If an Indian tribe assumes a loan under
      subclause (I) -
          (aa) the Secretary shall not foreclose the loan because of
        any default that occurred prior to the date of the assumption;
          (bb) the loan shall be for the lesser of the outstanding
        principal and interest of the loan or the fair market value of
        the property; and
          (cc) the loan shall be treated as though the loan was made
        under sections 488 to 494 of title 25.
      (vi)(I) Except as provided in subclause (II), at a foreclosure
    sale of real property described in clause (i), the Secretary shall
    offer a bid for the property that is equal to the higher of -
        (aa) the fair market value of the property; or
        (bb) the outstanding principal and interest of the loan.
      (II) If a hazardous substance (as defined in section 9601(14) of
    title 42) is located on the property and the Secretary takes
    remedial action to protect human health or the environment if the
    property is taken into inventory, subclause (I) shall apply only if
    the Secretary determines that it is in the best interests of the
    Federal Government.
      (2) The Secretary shall not offer for sale or sell any such
    farmland if the placing of such farmland on the market will have a
    detrimental effect on the value of farmland in the area.
      (3)(A) The Secretary may sell farmland administered under this
    chapter through an installment sale or similar device that contains
    such terms as the Secretary considers necessary to protect the
    investment of the Federal Government in such land.
      (B) The Secretary may subsequently sell any contract entered into
    to carry out subparagraph (A).
      (4) In the case of farmland administered under this chapter that
    is highly erodible land (as defined in section 3801 of title 16),
    the Secretary may require the use of specified conservation
    practices on such land as a condition of the sale or lease of such
    land.
      (5) Notwithstanding any other provisions of law, compliance by
    the Secretary with this subsection shall not cause any acreage
    allotment, marketing quota, or acreage base assigned to such
    property to lapse, terminate, be reduced, or otherwise be adversely
    affected.
      (6) In the event of any conflict between any provision of this
    subsection and any provision of the law of any State providing a
    right of first refusal to the owner of farmland or the operator of
    a farm before the sale or lease of land to any other person, such
    provision of State law shall prevail.
    (f) Normal security income
      (1) As used in this subsection, the term ''normal income
    security'' means all security not considered basic security,
    including crops, livestock, poultry products, Agricultural
    Stabilization and Conservation Service payments and Commodity
    Credit Corporation payments, and other property covered by Farmers
    Home Administration liens that is sold in conjunction with the
    operation of a farm or other business, but shall not include any
    equipment (including fixtures in States that have adopted the
    Uniform Commercial Code), or foundation herd or flock, that is the
    basis of the farming or other operation, and is the basic security
    for a Farmers Home Administration farmer program loan.
      (2) The Secretary shall release from the normal income security
    provided for such loan an amount sufficient to pay for the
    essential household and farm operating expenses of the borrower,
    until such time as the Secretary accelerates such loan.
      (3) A borrower whose account was accelerated on or after November
    1, 1985, and on or before May 7, 1987, but not thereafter
    foreclosed on or liquidated, shall be entitled to the release of
    security income for a period of 12 months, to pay the essential
    household and farm operating expenses of such borrower in an amount
    not to exceed $18,000 over 12 months, if such borrower -
        (A) as of October 30, 1987, continued to be actively engaged in
      the farming operations for which the Secretary had made the
      farmer program loan; and
        (B) as of the deadline for responding to the notice provided
      for under paragraph (5), requests restructuring of such loans
      pursuant to section 2001 of this title.
      (4) The county committee in the county in which borrower's land
    is located shall determine whether the borrower has complied with
    the requirements of paragraph (3)(A).
      (5)(A) Within 45 days after January 6, 1988, the Secretary shall
    provide to the borrowers described in paragraph (3) notice by
    certified mail of the right of such borrowers to apply for the
    benefits under such paragraph.
      (B) Releases under such paragraph shall be made to qualified
    borrowers who have responded to the notice within 30 days after
    receipt.
      (C) Within 12 months after a borrower has requested restructuring
    under section 2001 of this title, the Secretary shall make a final
    determination on the request.  Notwithstanding the 12-month
    limitation provided for in paragraph (3), releases shall continue
    to be made to the borrower until a denial or dismissal of the
    application of the borrower for restructuring under section 2001 of
    this title is made.  The amount of essential household and farm
    operating expenses which may be released to any borrower eligible
    for such releases after 12 months may exceed $18,000, by an amount
    proportionate to the period of time beyond 12 months before a final
    determination is made by the Secretary.
      (6) If a borrower is required to plan for or to report on how
    proceeds from the sale of collateral property will be used, the
    Secretary shall -
        (A) notify the borrower of such requirement; and
        (B) notify the borrower of the right to the release of funds
      under this section and the means by which a request for the funds
      may be made.
      (7) The Secretary shall issue regulations consistent with this
    section that -
        (A) ensure the release of funds to each borrower; and
        (B) establish guidelines for releases under paragraph (3),
      including a list of expenditures for which funds will normally be
      released.
    (g) Easements on inventoried property
      (1) In general
        Subject to paragraph (2), in the disposal of real property
      under this section, the Secretary shall establish perpetual
      wetland conservation easements to protect and restore wetlands or
      converted wetlands that exist on inventoried property.
      (2) Limitation
        The Secretary shall not establish a wetland conservation
      easement on an inventoried property that -
          (A) was cropland on the date the property entered the
        inventory of the Secretary; or
          (B) was used for farming at any time during the period
        beginning on the date 5 years before the property entered the
        inventory of the Secretary and ending on the date the property
        entered the inventory of the Secretary.
      (3) Notification
        The Secretary shall provide prior written notification to a
      borrower considering preservation loan servicing that a wetlands
      conservation easement may be placed on land for which the
      borrower is negotiating a lease option.
      (4) Appraised value
        The appraised value of the farm shall reflect the value of the
      land due to the placement of wetland conservation easements.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 335, Aug. 8, 1961, 75 Stat. 315;
    Pub. L. 92-419, title I, Sec. 127, Aug. 30, 1972, 86 Stat. 666;
    Pub. L. 99-198, title XIII, Sec. 1314(a), 1315, 1318(b)(1), Dec.
    23, 1985, 99 Stat. 1526, 1528, 1531; Pub. L. 100-233, title VI,
    Sec. 610, 611, Jan. 6, 1988, 101 Stat. 1669, 1673; Pub. L. 101-624,
    title XVIII, Sec. 1813(a)-(h)(1), 1816(e), title XXIII, Sec.
    2303(c), 2388(g), Nov. 28, 1990, 104 Stat. 3821-3823, 3827, 3981,
    4053; Pub. L. 102-237, title V, Sec. 501(f), Dec. 13, 1991, 105
    Stat. 1867; Pub. L. 102-552, title V, Sec. 516(h)(1), Oct. 28,
    1992, 106 Stat. 4138; Pub. L. 102-554, Sec. 16, 17, Oct. 28, 1992,
    106 Stat. 4154; Pub. L. 104-127, title VI, Sec. 638, 639, Apr. 4,
    1996, 110 Stat. 1093, 1097.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
      The Federal Property and Administrative Services Act of 1949,
    referred to in subsec. (c)(4), is act June 30, 1949, ch. 288, 63
    Stat. 377, as amended.  Provisions of that Act relating to
    management and disposal of property are classified to chapter 10
    (Sec. 471 et seq.) of Title 40, Public Buildings, Property, and
    Works. For complete classification of this Act to the Code, see
    Short Title note set out under section 471 of Title 40 and Tables.
      This Act, referred to in subsec. (e)(1)(A)(vi), refers to the
    Agricultural Act of 1961, Pub. L. 87-128, Aug. 8, 1961, 75 Stat.
    294, as amended.  For classification of this Act to the Code, see
    Short Title note set out under section 1911 of this title and
    Tables. However, the reference was probably intended to be ''this
    title'' meaning the Consolidated Farm and Rural Development Act,
    title III of Pub. L. 87-128, as amended, which is classified
    principally to this chapter.  For classification of this title to
    the Code, see Short Title note set out under section 1921 of this
    title and Tables.
      Subsection (g)(6) of this section, referred to in subsec.
    (e)(1)(D)(iii)(I), was redesignated subsection (g)(3) of this
    section by Pub. L. 104-127, title VI, Sec. 639(4), Apr. 4, 1996,
    110 Stat. 1097.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (b). Pub. L. 104-127, Sec. 638(1), substituted
    ''subsections (c) and (e)'' for ''subsection (e)''.
      Subsec. (c). Pub. L. 104-127, Sec. 638(2), added subsec. (c) and
    struck out former subsec. (c) which authorized Secretary to
    determine whether real property administered under this chapter was
    suitable for disposition to persons eligible for assistance under
    provisions of any law administered by Farmers Home Administration
    or Rural Development Administration.
      Subsec. (e)(1)(A). Pub. L. 104-127, Sec. 638(3)(A)(i)-(iii),
    redesignated subpar. (D) as (A), in cl. (i), substituted ''(D)''
    for ''(G)'' in introductory provisions, added subcl. (I) and struck
    out former subcl. (I) which read as follows: ''the real property
    described in subparagraph (A)(i) is located within an Indian
    reservation,'', in subcl. (II), substituted a semicolon for '',
    and'' at end, and struck out subcl. (III) which read as follows:
    ''the period in which the right to purchase or lease such real
    property provided in clauses (i) and (ii) of subparagraph (A) has
    expired,'', in cl. (iii), substituted ''Not later than 90 days
    after acquiring the property, the Secretary shall'' for ''The
    Secretary shall, within 90 days after the expiration of the period
    for which the right to purchase or lease real property described in
    clause (i) is provided in clauses (i) and (ii) of subparagraph
    (A),'', and struck out former subpar. (A) which authorized the
    Secretary, during 180-day period beginning on date of acquisition,
    or during applicable period under State law, to allow
    borrower-owner to purchase or lease property, if such
    borrower-owner had acted in good faith with the Secretary.
      Subsec. (e)(1)(B). Pub. L. 104-127, Sec. 638(3)(A)(i), (ii),
    redesignated subpar. (E) as (B) and struck out former subpar. (B)
    which read as follows: ''Any purchase or lease under subparagraph
    (A) shall be on such terms and conditions as are established in
    regulations promulgated by the Secretary.''
      Subsec. (e)(1)(C). Pub. L. 104-127, Sec. 638(3)(A)(i), (ii),
    redesignated subpar. (F) as (C) and struck out former subpar. (C)
    which authorized Secretary to give preference in sale or lease,
    with option to purchase, of property that had been foreclosed,
    purchased, redeemed, or otherwise acquired by the Secretary to
    persons in specified order.
      Subsec. (e)(1)(D). Pub. L. 104-127, Sec. 638(3)(A)(ii), (iv),
    redesignated subpar. (G) as (D), in cl. (i), substituted ''(A)''
    for ''(D)'' in concluding provisions, in cl. (iii)(I), substituted
    ''subparagraph (A)'' for ''subparagraphs (C)(i), (C)(ii), and
    (D)'', and added cl. (v) and struck out former cl. (v) which read
    as follows: ''If a borrower-owner does not voluntarily convey to
    the Secretary real property described in clause (i), at least 30
    days before a foreclosure sale of the property, the Secretary shall
    provide written notice to the Indian tribe that has jurisdiction
    over the reservation in which the real property is located of -
        ''(I) the sale;
        ''(II) the fair market value of the property; and
        ''(III) the requirements of this subparagraph.''
    Former subpar. (D) redesignated (A).
      Subsec. (e)(1)(E) to (G). Pub. L. 104-127, Sec. 638(3)(A)(ii),
    redesignated subpars. (E) to (G) as (B) to (D), respectively.
      Subsec. (e)(3). Pub. L. 104-127, Sec. 638(3)(B), (C), (E),
    redesignated par. (4) as (3), struck out ''(i)'' before ''The
    Secretary may sell'', redesignated cl. (ii) of subpar. (A) as
    subpar. (B) and substituted ''subparagraph (A)'' for ''clause
    (i)'', struck out former subpar. (B) which read as follows: ''If
    two or more qualified operators of not larger than family-size
    farms desire to purchase, or lease with an option to purchase, such
    land, the appropriate county committee shall randomly select the
    operator who may purchase such land, on such basis as the Secretary
    may prescribe by regulation, in accordance with subsection
    (c)(2)(B)(iii) of this section.'', and struck out former par. (3)
    which directed the Secretary to issue regulations providing for
    leasing of real property, or leasing such property with option to
    purchase, on fair and equitable basis.
      Subsec. (e)(4). Pub. L. 104-127, Sec. 638(3)(E), redesignated
    par. (7) as (4). Former par. (4) redesignated (3).
      Subsec. (e)(5). Pub. L. 104-127, Sec. 638(3)(D), (E),
    redesignated par. (8) as (5) and struck out former par. (5) which
    read as follows:
      ''(5)(A) If the Secretary determines that farmland administered
    under this chapter is not suitable for sale or lease to persons
    eligible for a loan made or insured under subchapter I of this
    chapter because such farmland is in a tract or tracts that the
    Secretary determines to be larger than that necessary for such
    eligible persons, the Secretary shall, to the greatest extent
    practicable, subdivide such land into tracts suitable for sale
    under subsection (c) of this section.  Such land shall be
    subdivided into parcels of land the shape and size of which are
    suitable for farming, the value of which shall not exceed the
    individual loan limits as prescribed under section 1925 of this
    title.
      ''(B) The Secretary shall dispose of such subdivided farmland in
    accordance with this subsection.''
      Subsec. (e)(6). Pub. L. 104-127, Sec. 638(3)(D), (E),
    redesignated par. (10) as (6) and struck out former par. (6) which
    read as follows: ''If suitable farmland is available for
    disposition under this subsection, the Secretary shall -
        ''(A) publish an announcement of the availability of such
      farmland in at least one newspaper that is widely circulated in
      the county in which the farmland is located;
        ''(B) post an announcement of the availability of such farmland
      in a prominent place in the local office of the Farmers Home
      Administration that serves the county in which the farmland is
      located; and
        ''(C) provide written notice reasonably calculated to inform
      the immediate previous owner or immediate previous family-size
      farm operator of such farmland, of the availability of such
      farmland.''
      Subsec. (e)(7), (8). Pub. L. 104-127, Sec. 638(3)(E),
    redesignated pars. (7) and (8) as (4) and (5), respectively.
      Subsec. (e)(9). Pub. L. 104-127, Sec. 638(3)(D), struck out par.
    (9) which read as follows: ''Denials of applications for or
    disputes over terms and conditions of a lease or purchase agreement
    under this section are appealable under section 1983b of this
    title.''
      Subsec. (e)(10). Pub. L. 104-127, Sec. 638(3)(E), redesignated
    par. (10) as (6).
      Subsec. (g). Pub. L. 104-127, Sec. 639(1)(A), inserted heading.
      Subsec. (g)(1). Pub. L. 104-127, Sec. 639(1), inserted heading,
    substituted ''Subject to paragraph (2)'' for ''Subject to
    paragraphs (2) through (5)'', and struck out '', as determined by
    the Secretary in accordance with title XII of the Food Security Act
    of 1985 (16 U.S.C. 3801 et seq.)'' after ''inventoried property''.
      Subsec. (g)(2). Pub. L. 104-127, Sec. 639(2), added par. (2) and
    struck out former par. (2) which read as follows: ''In establishing
    the wetland conservation easements on land that is considered to be
    cropland as of November 28, 1990, the Secretary shall avoid, to the
    extent practicable, an adverse impact on the productivity of the
    croplands, as provided in this subsection.''
      Subsec. (g)(3). Pub. L. 104-127, Sec. 639(3), (4), redesignated
    par. (6) as (3), inserted heading, and struck out former par. (3)
    which read as follows: ''In order to avoid the adverse impact, the
    Secretary shall -
        ''(A) not establish the wetland conservation easements with
      respect to wetlands that were converted prior to December 23,
      1985, and that have been in cropland use, as determined by the
      Secretary, in excess of 10 percent of the existing cropland
      available for production of agricultural commodities on the
      particular parcel of inventoried property;
        ''(B) not establish the wetland conservation easements with
      respect to wetlands that have been frequently planted to
      agricultural commodities and wetlands described in subparagraph
      (A), in excess of 20 percent of the existing cropland available
      for production of agricultural commodities on the particular
      parcel of inventoried property;
        ''(C) ensure that the buffer area adjacent to the wetland is
      generally not more than 100 feet in average width; and
        ''(D) ensure that access to other portions of the property for
      farming and other uses is provided.''
      Subsec. (g)(4). Pub. L. 104-127, Sec. 639(3), (5), redesignated
    par. (7) as (4), inserted heading, and struck out former par. (4)
    which read as follows: ''The wetland conservation easements shall
    be placed on wetlands that have a history of haying and grazing, as
    determined by the Secretary, except that in no case shall the
    quantity of the wetland subject to the easements exceed 50 percent
    of the existing forage lands on the parcel of inventoried
    property.  All haying and grazing practices on the wetlands
    (including the timing and intensity of haying and grazing) shall
    conform to forage management standards designed to protect
    wetlands.''
      Subsec. (g)(5). Pub. L. 104-127, Sec. 639(3), struck out par. (5)
    which read as follows: ''If, despite the limitations contained in
    paragraph (3), wetland conservation easements established under
    paragraph (1) would prevent a particular parcel of inventoried
    property that is to be sold or leased to a borrower described in
    clause (i), (ii), or (iii) of subsection (e)(1)(C) of this section,
    or to a borrower who is a beginning farmer or rancher, from being a
    marketable agricultural production unit that is comparable to the
    parcel as acquired, the Secretary may -
        ''(A) establish wetland conservation easements on wetland that
      was converted prior to December 23, 1985, in a quantity that is
      less than 10 percent of the existing croplands available for
      production of agricultural commodities on the particular parcel;
      and
        ''(B) if the reduction provided in subparagraph (A) is not
      applicable, or is not sufficient to ensure that the particular
      parcel would be a marketable agricultural production unit, amend
      the wetland conservation easements established on the wetlands
      that have been frequently planted to agricultural commodities to
      permit the production of agricultural commodities (consistent
      with title XII of the Food Security Act of 1985) on the wetlands,
      to the extent necessary to maintain the parcel as a marketable
      agricultural production unit.''
      Subsec. (g)(6), (7). Pub. L. 104-127, Sec. 639(4), (5),
    redesignated pars. (6) and (7) as (3) and (4), respectively.
      Subsec. (g)(8). Pub. L. 104-127, Sec. 639(3), struck out par. (8)
    which read as follows: ''Notwithstanding the limitations described
    under paragraphs (3) and (4), the limitations may be voluntarily,
    knowingly waived by any person with respect to real property
    described in paragraph (3) or (4).''
      1992 - Subsec. (c)(1). Pub. L. 102-554, Sec. 16, in fourth
    sentence, inserted ''(A)'' after ''shall be'' and ''or (B) leased
    to persons eligible for assistance under the provisions of any law
    administered by the Farmers Home Administration or the Rural
    Development Administration under an annual lease or a lease with an
    option to purchase, with a preference for sale'' before period at
    end.
      Subsec. (e)(1)(A)(i). Pub. L. 102-552, which, in amending
    directory language of Pub. L. 102-237, Sec. 501(f)(1), directed the
    substitution of ''the borrower-owner (as defined in subparagraph
    (F))'' for ''borrower-owner (as defined in subparagraph (F))'', was
    executed by making the substitution in text which did not contain a
    closing parenthesis after ''(F)'', to reflect the probable intent
    of Congress. See 1991 Amendment note below.
      Subsec. (e)(1)(D)(i). Pub. L. 102-554, Sec. 17(1), substituted
    ''Except as provided in subparagraph (G), if'' for ''If''.
      Subsec. (e)(1)(G). Pub. L. 102-554, Sec. 17(2), added subpar.
    (G).
      1991 - Subsec. (e)(1)(A)(i). Pub. L. 102-237, Sec. 501(f)(1), as
    amended by Pub. L. 102-552, substituted ''the borrower-owner (as
    defined in subparagraph (F))'' for ''the borrower from whom the
    Secretary acquired real farm or ranch property (including the
    principal residence of the borrower) used to secure any loan made
    to the borrower under this chapter (hereinafter referred to in this
    paragraph as the 'borrower-owner')''. See 1992 Amendment note
    above.
      Subsec. (e)(1)(F). Pub. L. 102-237, Sec. 501(f)(2), added subpar.
    (F).
      1990 - Subsec. (a). Pub. L. 101-624, Sec. 1813(a), 2303(c)(1),
    inserted ''or the Rural Development Administration'' after
    ''Farmers Home Administration'' and substituted ''12 months from
    the date first published under paragraph (2)(D)'' for ''three years
    from the date of acquisition''.
      Subsec. (c)(1). Pub. L. 101-624, Sec. 2303(c)(2), inserted ''or
    the Rural Development Administration'' after ''Farmers Home
    Administration''.
      Subsec. (c)(2)(A), (B). Pub. L. 101-624, Sec. 1813(e)(1), added
    subpar. (A) and subpar. (B) introductory provisions, redesignated
    former subpars. (A) through (D) as cls. (i) through (iv),
    respectively, of subpar. (B), and struck out former introductory
    provisions which read as follows: ''Notwithstanding any other
    provision of law, the Secretary shall sell suitable farmland
    administered under this subchapter to operators (as of the time
    immediately after such contract for sale or lease is entered into)
    of not larger than family sized farms, as determined by the county
    committee.  In selling such land, the county committee shall - ''.
      Subsec. (c)(2)(B)(ii). Pub. L. 101-624, Sec. 1813(g)(1), amended
    cl. (ii) generally.  Prior to amendment, cl. (ii) read as follows:
    ''offer suitable land at a price not greater than that which
    reflects the appraised market value of such land;''.
      Subsec. (c)(2)(B)(iii). Pub. L. 101-624, Sec. 1813(b)(1),
    inserted before semicolon '', except that if the committee
    determines that two or more applicants meet the loan eligibility
    criteria, the committee shall select between the qualified
    applicants on a random basis''.
      Subsec. (c)(2)(B)(iv). Pub. L. 101-624, Sec. 2388(g), substituted
    ''cause'' for ''caused''.
      Subsec. (e)(1)(A)(i). Pub. L. 101-624, Sec. 1813(c), substituted
    ''real farm or ranch property (including the principal residence of
    the borrower)'' for ''real property''.
      Pub. L. 101-624, Sec. 1816(e)(1), inserted before period at end
    '', if such borrower-owner has acted in good faith with the
    Secretary, as defined in regulations issued by the Secretary, in
    connection with such loan''.
      Subsec. (e)(1)(A)(iv). Pub. L. 101-624, Sec. 1813(d), added cl.
    (iv).
      Subsec. (e)(1)(C)(i). Pub. L. 101-624, Sec. 1816(e)(2), inserted
    before period at end '', if such borrower-owner has acted in good
    faith with the Secretary, as defined in regulations issued by the
    Secretary, in connection with the loan of such borrower-owner for
    which such property served as security''.
      Subsec. (e)(1)(C)(iv), (v). Pub. L. 101-624, Sec. 1813(e)(2),
    added cl. (iv) and redesignated former cl. (iv) as (v).
      Subsec. (e)(1)(D)(x). Pub. L. 101-624, Sec. 1813(f), added cl.
    (x).
      Subsec. (e)(4)(B). Pub. L. 101-624, Sec. 1813(g)(2), redesignated
    subpar. (C) as (B) and struck out former subpar. (B) which read as
    follows: ''The Secretary shall offer such land for sale to
    operators of not larger than family-size farms at a price that
    reflects the average annual income that may be reasonably
    anticipated to be generated from farming such land.''
      Subsec. (e)(4)(C). Pub. L. 101-624, Sec. 1813(g)(2), redesignated
    former subpar. (C) as (B).
      Pub. L. 101-624, Sec. 1813(b)(2), substituted ''shall randomly''
    for ''shall, by majority vote,'' and inserted '', in accordance
    with subsection (c)(2)(B)(iii) of this section''.
      Subsec. (g). Pub. L. 101-624, Sec. 1813(h)(1), added subsec. (g).
      1988 - Subsec. (c). Pub. L. 100-233, Sec. 610(a), designated
    existing provisions as par. (1), inserted provisions requiring the
    County Committee to classify or reclassify real property that is
    farmland, as being suitable for farming operation for such
    disposition unless property cannot be used to meet any of the
    purposes of section 1923 of this title, and added par. (2).
      Subsec. (e)(1). Pub. L. 100-233, Sec. 610(b)(1), added par. (1)
    and struck out former par. (1) which read as follows: ''The
    Secretary shall to the extent practicable sell or lease farmland
    administered under this chapter in the following order of priority:
        ''(A) Sale of such farmland to operators (as of the time
      immediately before such sale) of not larger than family-size
      farms.
        ''(B) Lease of such farmland to operators (as of the time
      immediately before such lease is entered into) of not larger than
      family-size farms.''
      Subsec. (e)(3). Pub. L. 100-233, Sec. 610(b)(2), redesignated
    subpars. (B) to (D) as (A) to (C), respectively, in subpar. (B)
    substituted ''Secretary shall determine if the lessee'' for
    ''Secretary shall give special consideration to a previous owner or
    operator of such land if such owner or operator'', added subpar.
    (D), and struck out former subpar. (A) which read as follows: ''The
    Secretary shall consider granting, and may grant, to an operator of
    not larger than a family-size farm, in conjunction with paragraph
    (3), a lease with an option to purchase farmland administered under
    this chapter.''
      Subsec. (e)(5)(A). Pub. L. 100-233, Sec. 610(b)(3), amended
    subpar. (A) generally.  Prior to amendment, subpar. (A) read as
    follows: ''If the Secretary determines that farmland administered
    under this chapter is not suitable for sale or lease to an operator
    of not larger than a family-size farm because such farmland is in a
    tract or tracts that the Secretary determines to be larger than
    that necessary for family-size farms, the Secretary shall subdivide
    such land into tracts suitable for such operator.''
      Subsec. (e)(6)(C). Pub. L. 100-233, Sec. 610(b)(4), added subpar.
    (C).
      Subsec. (e)(9), (10). Pub. L. 100-233, Sec. 610(b)(5), added
    pars. (9) and (10).
      Subsec. (f). Pub. L. 100-233, Sec. 611, amended subsec. (f)
    generally.  Prior to amendment, subsec. (f) read as follows:
      ''(1) As used in this subsection, the term 'normal income
    security' has the same meaning given such term in section
    1962.17(b) of title 7, Code of Federal Regulations (as of January
    1, 1985).
      ''(2) Until such time as the Secretary accelerates a loan made or
    insured under this chapter, the Secretary shall release from the
    normal income security provided for such loan an amount sufficient
    to pay the essential household and farm operating expenses of the
    borrower, as determined by the Secretary.''
      1985 - Subsec. (b). Pub. L. 99-198, Sec. 1314(a)(1), substituted
    ''Except as provided in subsection (e) of this section, real
    property'' for ''Real property''.
      Subsec. (c). Pub. L. 99-198, Sec. 1314(a)(2), substituted
    ''Except as provided in subsection (e) of this section, the
    Secretary'' for ''The Secretary'' and inserted sentence at end
    providing that notwithstanding the preceding sentence, the
    Secretary may for conservation purposes grant or sell an easement,
    restriction, development rights, or the equivalent thereof, to a
    unit of local or State government or a private nonprofit
    organization separately from the underlying fee or sum of all other
    rights possessed by the United States.
      Pub. L. 99-198, Sec. 1318(b)(1), which directed insertion of '',
    other than easements acquired under section 1997 of this title'' at
    end of last sentence, was executed to fifth sentence of subsec.
    (c), and not to sixth and last sentence as added by section
    1314(a)(2)(B) of Pub. L. 99-198, to reflect the probable intent of
    Congress.
      Subsec. (e). Pub. L. 99-198, Sec. 1314(a)(3), added subsec. (e).
      Subsec. (f). Pub. L. 99-198, Sec. 1315, added subsec. (f).
      1972 - Subsec. (c). Pub. L. 92-419 substituted ''the provisions
    of any law administered by the Farmers Home Administration'' for
    ''subchapter I of this chapter'' in first sentence and ''such
    provisions'' for ''the provisions of subchapter I of this chapter''
    in second sentence, struck out from fourth sentence initial minimum
    20 per centum downpayment requirement and provision for payment of
    remainder in not more than five annual installments, and provided
    in such fourth sentence for interest rates and terms not more
    favorable than legally permissible for eligible borrowers.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 638 of Pub. L. 104-127 effective Apr. 4,
    1996, but not applicable with respect to complete application to
    acquire inventory property submitted prior to Apr. 4, 1996, and
    amendment by section 639 of Pub. L. 104-127 effective Apr. 4, 1996,
    see section 663(a), (c) of Pub. L. 104-127, set out as a note under
    section 1922 of this title.
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 516(h)(2) of Pub. L. 102-552 provided that: ''The
    amendments made by paragraph (1) of this subsection (amending
    section 501(f) of Pub. L. 102-237, see 1992 Amendment note above)
    shall take effect immediately after section 501(f) of the Food,
    Agriculture, Conservation, and Trade Act of 1990 (probably should
    be Food, Agriculture, Conservation, and Trade Act Amendments of
    1991 (Pub. L. 102-237)) took effect.''
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by section 1816 of Pub. L. 101-624 applicable to new
    applications submitted under section 2001 of this title on or after
    Nov. 28, 1990, see section 1861 of Pub. L. 101-624, set out as a
    note under section 2001 of this title.
                      EFFECTIVE DATE OF 1985 AMENDMENT
      Section 1314(b) of Pub. L. 99-198 provided that: ''The Secretary
    of Agriculture shall implement the amendments made by this section
    (amending this section) not later than 90 days after the date of
    enactment of this Act (Dec. 23, 1985).''
     COMPLETION OF SALES OF FARMERS HOME ADMINISTRATION INVENTORY FARMS
      Pub. L. 102-142, title VII, Sec. 740, Oct. 28, 1991, 105 Stat.
    915, provided that: ''Hereafter, the Secretary shall complete the
    sales of Farmers Home Administration inventory farms, in accordance
    with the law and regulations in effect before November 28, 1990, in
    situations in which a County Committee, acting pursuant to section
    335 of the Consolidated Farm and Rural Development Act (7 U.S.C.
    1985), had made its initial selection of a buyer before November
    28, 1990. Such sales shall be completed as soon as the selection
    decision is administratively final and all terms and conditions
    have been agreed to.  In carrying out sales of inventory property,
    priority shall be given to the former owner and members of the
    immediate family.''
         FARM OWNERSHIP OUTREACH PROGRAM TO SOCIALLY DISADVANTAGED
                                INDIVIDUALS
      Section 623 of Pub. L. 100-233, as amended by Pub. L. 101-624,
    title XVIII, Sec. 1852, Nov. 28, 1990, 104 Stat. 3837, provided
    that:
      ''(a) In General. - The Secretary of Agriculture, in coordination
    with the limited resource farmers' initiative in the office of the
    Director of the Office of Advocacy and Enterprise, shall establish
    a farm ownership outreach program for persons who are members of
    any group with respect to which an individual may be identified as
    a socially disadvantaged individual under section 8(a)(5) of the
    Small Business Act (15 U.S.C. 637(a)(5)) to encourage the
    acquisition of inventory farmland of the Farmers Home
    Administration by -
        ''(1) informing persons eligible for assistance under any other
      provision of this Act (see Short Title of 1988 Amendment note set
      out under section 2001 of Title 12, Banks and Banking) of -
          ''(A) the possiblity (sic) of acquiring such inventory
        farmland; and
          ''(B) various farm ownership loan programs; and
        ''(2) providing technical assistance to such persons in the
      acquisition of such inventory farmland.
      ''(b) Authorization of Appropriations. - There are authorized to
    be appropriated to carry out this section $2,500,000 for each of
    the fiscal years 1991 through 1995.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1471, 1929a, 1991, 2002
    of this title.
 
-CITE-
     7 USC Sec. 1986                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1986. Conflicts of interests
 
-STATUTE-
    (a) Acceptance of fees, commissions, gifts, or other considerations
        prohibited
      No officer, attorney, or other employee of the Secretary shall,
    directly or indirectly, be the beneficiary of or receive any fee,
    commission, gift, or other consideration for or in connection with
    any transaction or business under this chapter other than such
    salary, fee, or other compensation as he may receive as such
    officer, attorney, or employee.
    (b) Acquisition of interest in land by certain officers or
        employees of Department of Agriculture prohibited; 3-year
        period
      Except as otherwise provided in this subsection, no officer or
    employee of the Department of Agriculture who acts on or reviews an
    application made by any person under this chapter for a loan to
    purchase land may acquire, directly or indirectly, any interest in
    such land for a period of three years after the date on which such
    action is taken or such review is made.  This prohibition shall not
    apply to a former member of a county committee provided for in
    section 1982 (FOOTNOTE 1) of this title upon a determination by the
    Secretary, prior to the acquisition of such interest, that such
    former member acted in good faith when acting on or reviewing such
    application.
       (FOOTNOTE 1) See References in Text note below.
    (c) Certifications on loans to family members prohibited
      No member of a county committee shall knowingly make or join in
    making any certification with respect to a loan to purchase any
    land in which he or any person related to him within the second
    degree of consanguinity or affinity has or may acquire any interest
    or with respect to any applicant related to him within the second
    degree of consanguinity or affinity.
    (d) Penalties
      Any persons violating any provision of this section shall, upon
    conviction thereof, be punished by a fine of not more than $2,000
    or imprisonment for not more than two years, or both.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 336, Aug. 8, 1961, 75 Stat. 316;
    Pub. L. 98-258, title VI, Sec. 606, Apr. 10, 1984, 98 Stat. 140.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a)
    and (b), see note set out under section 1921 of this title.
      Section 1982 of this title, referred to in subsec. (b), was
    repealed by Pub. L. 103-354, title II, Sec. 227(b)(1), Oct. 13,
    1994, 108 Stat. 3218.
 
-MISC2-
                                 AMENDMENTS
      1984 - Pub. L. 98-258 designated first, second, and third
    sentences of existing provisions as subsecs. (a), (c), and (d),
    respectively, and added subsec. (b).
 
-CITE-
     7 USC Sec. 1987                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1987. Debt adjustment and credit counseling; ''summary
        period'' defined; loan summary statements
 
-STATUTE-
      (a) The Secretary may provide voluntary debt adjustment
    assistance between farmers and their creditors and may cooperate
    with State, territorial, and local agencies and committees engaged
    in such debt adjustment, and may give credit counseling.
      (b)(1) As used in this subsection, the term ''summary period''
    means -
        (A) the period beginning on December 23, 1985, and ending on
      the date on which the first loan summary statement is issued
      after December 23, 1985; or
        (B) the period beginning on the date of issuance of the
      preceding loan summary statement and ending on the date of
      issuance of the current loan summary statement.
      (2) On the request of a borrower of a loan made or insured (but
    not guaranteed) under this chapter, the Secretary shall issue to
    such borrower a loan summary statement that reflects the account
    activity during the summary period for each loan made or insured
    under this chapter to such borrower, including -
        (A) the outstanding amount of principal due on each such loan
      at the beginning of the summary period;
        (B) the interest rate charged on each such loan;
        (C) the amount of payments made on and their application to
      each such loan during the summary period and an explanation of
      the basis for the application of such payments;
        (D) the amount of principal and interest due on each such loan
      at the end of the summary period;
        (E) the total amount of unpaid principal and interest on all
      such loans at the end of the summary period;
        (F) any delinquency in the repayment of any such loan;
        (G) a schedule of the amount and date of payments due on each
      such loan; and
        (H) the procedure the borrower may use to obtain more
      information concerning the status of such loans.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 337, Aug. 8, 1961, 75 Stat. 316;
    Pub. L. 99-198, title XIII, Sec. 1316, Dec. 23, 1985, 99 Stat.
    1528.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsec.
    (b)(2), see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1985 - Pub. L. 99-198 designated existing provisions as subsec.
    (a) and added subsec. (b).
 
-CITE-
     7 USC Sec. 1988                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1988. Appropriations
 
-STATUTE-
    (a) Authorization
      There is authorized to be appropriated to the Secretary such sums
    as the Congress may from time to time determine to be necessary to
    enable the Secretary to carry out the purposes of this chapter and
    for the administration of assets transferred to the Farmers Home
    Administration or the Rural Development Administration.
    (b) Sale by lender and any holder of guaranteed portion of loan
        pursuant to regulations governing such sales; limitations;
        issuance of pool certificates representing ownership of
        guaranteed portion of guaranteed loan; terms and conditions,
        etc.; reporting requirements
      (1)(A) The guaranteed portion of any loan made under this chapter
    may be sold by the lender, and by any subsequent holder, in
    accordance with regulations governing such sales as the Secretary
    shall establish, subject to the following limitations:
        (i) All fees due the Secretary with respect to a guaranteed
      loan are to be paid in full before any sale.
        (ii) The loan is to have been fully disbursed to the borrower
      before the sale.
      (B) After a loan is sold in the secondary market, the lender
    shall remain obligated under its guarantee agreement with the
    Secretary, and shall continue to service the loan in accordance
    with the terms and conditions of such agreement.
      (C) The Secretary shall develop such procedures as are necessary
    for the facilitation, administration, and promotion of secondary
    market operations, and for determining the increase of farmers'
    access to capital at reasonable rates and terms as a result of
    secondary market operations.
      (D) This subsection shall not be interpreted to impede or
    extinguish the right of the borrower or the successor in interest
    to such borrower to prepay (in whole or in part) any loan made
    under this chapter, or to impede or extinguish the rights of any
    party under any provision of this chapter.
      (2)(A) The Secretary may, directly or through a market maker
    approved by the Secretary, issue pool certificates representing
    ownership of part or all of the guaranteed portion of any loan
    guaranteed by the Secretary under this chapter.  Such certificates
    shall be based on and backed by a pool established or approved by
    the Secretary and composed solely of the entire guaranteed portion
    of such loans.
      (B) The Secretary may, on such terms and conditions as the
    Secretary deems appropriate, guarantee the timely payment of the
    principal and interest on pool certificates issued on behalf of the
    Secretary by approved market makers for purposes of this
    subsection.  Such guarantee shall be limited to the extent of
    principal and interest on the guaranteed portions of loans that
    compose the pool.  If a loan in such pool is prepaid, either
    voluntarily or by reason of default, the guarantee of timely
    payment of principal and interest on the pool certificates shall be
    reduced in proportion to the amount of principal and interest such
    prepaid loan represents in the pool.  Interest on prepaid or
    defaulted loans shall accrue and be guaranteed by the Secretary
    only through the date of payment on the guarantee.  During the term
    of the pool certificate, the certificate may be called for
    redemption due to prepayment or default of all loans constituting
    the pool.
      (C) The full faith and credit of the United States is pledged to
    the payment of all amounts that may be required to be paid under
    any guarantee of such pool certificates issued by approved market
    makers under this subsection.  The Secretary may expend amounts in
    the Agricultural Credit Insurance Fund to make payments on such
    guarantees.
      (D) The Secretary shall not collect any fee for any guarantee
    under this subsection.  The preceding sentence shall not preclude
    the Secretary from collecting a fee for the functions described in
    paragraph (3).
      (E) Within 30 days after a borrower of a guaranteed loan is in
    default of any principal or interest payment due for 60 days or
    more, the Secretary shall -
        (i) purchase the pool certificates representing ownership of
      the guaranteed portion of the loan; and
        (ii) pay the registered holder of the certificates an amount
      equal to the guaranteed portion of the loan represented by the
      certificate.
      (F)(i) If the Secretary pays a claim under a guarantee issued
    under this subsection, the claim shall be subrogated fully to the
    rights satisfied by such payment, as may be provided by the
    Secretary.
      (ii) No State or local law, and no Federal law, shall preclude or
    limit the exercise by the Secretary of the Secretary's ownership
    rights in the portions of loans constituting the pool against which
    the certificates are issued.
      (3) On the adoption of final rules and regulations, the Secretary
    shall do the following:
        (A) Provide for the central collection of registration
      information from all participating market makers for all loans
      and pool certificates sold under paragraphs (1) and (2). Such
      information shall include, with respect to each original sale and
      any subsequent sale, identification of the interest rate paid by
      the borrower to the lender, the lender's servicing fee, whether
      interest on the loan is at a fixed or variable rate,
      identification of each purchaser of a pool certificate, the
      interest rate paid on the certificate, and such other information
      as the Secretary deems appropriate.
        (B) Before any sale, require the seller to disclose to each
      prospective purchaser of the portion of a loan guaranteed under
      this chapter and to each prospective purchaser of a pool
      certificate issued under paragraph (2), information on the terms,
      conditions, and yield of such instrument.  As used in this
      subparagraph, if the instrument being sold is a loan, the term
      ''seller'' does not include (i) the person who made the loan or
      (ii) any person who sells three or fewer guaranteed loans per
      year.
        (C) Provide for adequate custody of any pooled guaranteed
      loans.
        (D) Take such actions as are necessary, in restructuring pools
      of the guaranteed portion of loans, to minimize the estimated
      costs of paying claims under guarantees issued under this
      subsection.
        (E) Require each market maker -
          (i) to service all pools formed, and participations sold, by
        the market maker; and
          (ii) to provide the Secretary with information relating to
        the collection and disbursement of all periodic payments,
        prepayments, and default funds from lenders, to or from the
        reserve fund that the Secretary shall establish to enable the
        timely payment guarantee to be self-funding, and from all
        beneficial holders.
        (F) Regulate market makers in pool certificates sold under this
      subsection.
      (4) The Secretary may contract for goods and services to be used
    for the purposes of this subsection without regard to the
    provisions of titles 5, 40, and 41, and any regulations issued
    thereunder.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 338, Aug. 8, 1961, 75 Stat. 316;
    Pub. L. 89-429, Sec. 5, May 24, 1966, 80 Stat. 167; Pub. L.
    100-233, title VII, Sec. 711(a), Jan. 6, 1988, 101 Stat. 1707; Pub.
    L. 100-399, title VI, Sec. 605, Aug. 17, 1988, 102 Stat. 1006; Pub.
    L. 101-624, title XXIII, Sec. 2303(d), Nov. 28, 1990, 104 Stat.
    3981; Pub. L. 104-127, title VII, Sec. 749(a), Apr. 4, 1996, 110
    Stat. 1129; Pub. L. 105-362, title I, Sec. 101(a), Nov. 10, 1998,
    112 Stat. 3281.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (b)(4), (5). Pub. L. 105-362 redesignated par. (5)
    as (4) and struck out former par. (4) which provided that not later
    than March 31 of each year, Secretary was to transmit to Congress a
    report on secondary market operations under subsec. (b) during
    preceding calendar year, and described contents of reports.
      1996 - Subsecs. (b) to (f). Pub. L. 104-127 redesignated subsec.
    (f) as (b) and struck out former subsecs. (b) to (e) which provided
    for: in subsec. (b), form and denomination of notes to obtain funds
    for making direct loans under this chapter as well as maturities,
    terms and conditions, interest rate, purchase by Treasury, and
    public debt transaction; in subsec. (c), establishment of Farmers
    Home Administration direct loan account as well as deposits into
    account, liabilities, obligations, expenditures, and net
    expenditure basis of budgeting; in subsec. (d), sale of notes and
    mortgages; and in subsec. (e), distribution of real estate loans
    among States.
      1990 - Subsec. (a). Pub. L. 101-624 inserted ''or the Rural
    Development Administration'' after ''Farmers Home Administration''.
      1988 - Subsec. (f)(5). Pub. L. 100-399 added par. (5).
      Subsec. (f). Pub. L. 100-233 added subsec. (f).
      1966 - Subsec. (c). Pub. L. 89-429 inserted references to section
    8 of the Watershed Protection and Flood Prevention Act, as amended,
    and section 32(e) of the Bankhead-Jones Farm Tenant Act, as
    amended.
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-399 effective as if enacted immediately
    after enactment of Pub. L. 100-233, which was approved Jan. 6,
    1988, see section 1001(a) of Pub. L. 100-399, set out as a note
    under section 2002 of Title 12, Banks and Banking.
                                REGULATIONS
      Section 711(b) of Pub. L. 100-233 provided that: ''Within 180
    days after the date of the enactment of this Act (Jan. 6, 1988),
    the Secretary shall develop and promulgate final regulations to
    implement this section and the amendment made by this section
    (amending this section and enacting provisions set out below).''
      POOL CERTIFICATES NOT TO BE ISSUED UNTIL FINAL REGULATIONS TAKE
                                   EFFECT
      Section 711(c) of Pub. L. 100-233 provided that: ''The Secretary
    of Agriculture shall not implement paragraph (2) of section 338(f)
    (now 338(b)) of the Consolidated Farm and Rural Development Act (7
    U.S.C. 1988(f) (now 1988(b))), as added by subsection (a), until
    the final regulations governing the administration of such
    paragraph take effect.''
                              LOANS TO INDIANS
      Authority of the Secretary of Agriculture to make loans to Indian
    tribes and tribal corporations to acquire land within reservations,
    see sections 488 to 492 of Title 25, Indians.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1929, 1991 of this title;
    title 25 section 488.
 
-CITE-
     7 USC Sec. 1989                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1989. Rules and regulations
 
-STATUTE-
    (a) In general
      The Secretary is authorized to make such rules and regulations,
    prescribe the terms and conditions for making or insuring loans,
    security instruments and agreements, except as otherwise specified
    herein, and make such delegations of authority as he deems
    necessary to carry out this chapter.
    (b) Debt service margin requirements
      Notwithstanding subsection (a) of this section, in providing
    farmer program loan guarantees under this chapter, the Secretary
    shall consider the income of the borrower adequate if the income is
    equal to or greater than the income necessary -
        (1) to make principal and interest payments on all debt
      obligations of the borrower, in a timely manner;
        (2) to cover the necessary living expenses of the family of the
      borrower; and
        (3) to pay all other obligations and expenses of the borrower
      not financed through debt obligations referred to in paragraph
      (1), including expenses of replacing capital items (determined
      after taking into account depreciation of the items).
    (c) Certified Lenders Program
      (1) In general
        The Secretary shall establish a program under which the
      Secretary shall guarantee loans for any purpose specified in
      subchapter II of this chapter that are made by lending
      institutions certified by the Secretary.
      (2) Certification requirements
        The Secretary shall certify a lending institution that meets
      such criteria as the Secretary may prescribe in regulations,
      including the ability of the institution to properly make,
      service, and liquidate the loans of the institution.
      (3) Condition of certification
        As a condition of the certification, the Secretary shall
      require the institution to undertake to service the loans
      guaranteed by the Secretary under this subsection, using
      standards that are not less stringent than generally accepted
      banking standards concerning loan servicing employed by prudent
      commercial or cooperative lenders.  The Secretary shall, at least
      annually, monitor the performance of each certified lender to
      ensure that the conditions of the certification are being met.
      (4) Effect of certification
        Notwithstanding any other provision of law:
          (A) The Secretary shall guarantee 80 percent of a loan made
        under this subsection by a certified lending institution as
        described in paragraph (1), subject to county committee
        certification that the borrower of the loan meets the
        eligibility requirements and such other criteria as may be
        applicable to loans guaranteed by the Secretary under other
        provisions of this chapter.
          (B) With respect to loans to be guaranteed by the Secretary
        under this subsection, the Secretary shall permit certified
        lending institutions to make appropriate certifications (as
        provided by regulations issued by the Secretary) -
            (i) relating to issues such as creditworthiness, repayment
          ability, adequacy of collateral, and feasibility of farm
          operation; and
            (ii) that the borrower is in compliance with all
          requirements of law, including regulations issued by the
          Secretary.
          (C) The Secretary shall approve or disapprove a guarantee not
        later than 14 calendar days after the date that the lending
        institution applied to the Secretary for the guarantee.  If the
        Secretary rejects the loan application within the 14-day
        period, the Secretary shall state, in writing, all of the
        reasons the application was rejected.
      (5) Relationship to other requirements
        Neither this subsection nor subsection (d) of this section
      shall affect the responsibility of the Secretary to certify
      eligibility, review financial information, and otherwise assess
      an application.
    (d) Preferred Certified Lenders Program
      (1) In general
        Commencing not later than two years after October 28, 1992, the
      Secretary shall establish a Preferred Certified Lenders Program
      for lenders who establish their -
          (A) knowledge of, and experience under, the program
        established under subsection (c) of this section;
          (B) knowledge of the regulations concerning the guaranteed
        loan program; and
          (C) proficiency related to the certified lender program
        requirements.
      The Secretary shall certify any lending institution as a
      Preferred Certified Lender that meets such criteria as the
      Secretary may prescribe by regulation.
      (2) Revocation of designation
        The designation of a lender as a Preferred Certified Lender
      shall be revoked at any time that the Secretary determines that
      such lender is not adhering to the rules and regulations
      applicable to the program or if the loss experiences of a
      Preferred Certified Lender are excessive as compared to other
      Preferred Certified Lenders, except that such suspension or
      revocation shall not affect any outstanding guarantee.
      (3) Condition of certification
        As a condition of such preferred certification, the Secretary
      shall require the institution to undertake to service the loans
      guaranteed by the Secretary under this subsection using generally
      accepted banking standards concerning loan servicing employed by
      prudent commercial or cooperative lenders.  The Secretary shall,
      at least annually, monitor the performance of each preferred
      certified lender to ensure that the conditions of such
      certification are being met.
      (4) Effect of preferred lender certification
        Notwithstanding any other provision of law, the Secretary shall
      -
          (A) guarantee 80 percent of an approved loan made by a
        certified lending institution as described in this subsection,
        subject to county committee certification that the borrower
        meets the eligibility requirements or such other criteria as
        may be applicable to loans guaranteed by the Secretary under
        other provisions of this chapter;
          (B) permit certified lending institutions to make all
        decisions, with respect to loans to be guaranteed by the
        Secretary under this subsection relating to credit worthiness,
        the closing, monitoring, collection and liquidation of loans,
        and to accept appropriate certifications, as provided by
        regulations issued by the Secretary, that the borrower is in
        compliance with all requirements of law or regulations
        promulgated by the Secretary; and
          (C) be deemed to have guaranteed 80 percent of a loan made by
        a preferred certified lending institution as described in
        paragraph (1), if the Secretary fails to approve or reject the
        application of such institution within 14 calendar days after
        the date that the lending institution presented the application
        to the Secretary. If the Secretary rejects the application
        within the 14-day period, the Secretary shall state, in
        writing, the reasons the application was rejected.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 339, Aug. 8, 1961, 75 Stat. 318;
    Pub. L. 102-554, Sec. 18, Oct. 28, 1992, 106 Stat. 4155.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1992 - Pub. L. 102-554, inserted section catchline, designated
    existing provisions as subsec. (a), inserted heading, and added
    subsecs. (b) to (d).
                                REGULATIONS
      Section 23 of Pub. L. 102-554 provided that:
      ''(a) Interim Regulations. - Not later than 180 days after the
    date of enactment of this Act (Oct. 28, 1992), the Secretary of
    Agriculture shall issue such interim regulations as are necessary
    to implement this Act (see Short Title of 1992 Amendment note set
    out under section 1921 of this title) and the amendments made by
    this Act.
      ''(b) Final Regulations. - Not later than October 1, 1993, the
    Secretary of Agriculture shall issue such final regulations as are
    necessary to implement this Act and the amendments made by this
    Act.''
      Pub. L. 100-233, title VI, Sec. 624, Jan. 6, 1988, 101 Stat.
    1685, provided that: ''Within 150 days after the date of the
    enactment of this title (Jan. 6, 1988), and after considering
    public comment obtained under section 553 of title 5, United States
    Code, the Secretary shall issue final regulations to carry out the
    amendments made by this title (enacting sections 1981d, 1981e,
    1983c, and 2001 to 2005 of this title, amending sections 1927,
    1927a, 1981, 1982, 1983b, 1985, 1991, 1997, 1999, and 2000 of this
    title, and amending provisions set out as a note under section 1999
    of this title).''
       STUDY AND REPORT TO CONGRESS BEFORE ISSUANCE OF CERTAIN FINAL
                                REGULATIONS
      Pub. L. 100-233, title VI, Sec. 621, Jan. 6, 1988, 101 Stat.
    1684, provided that: ''Not later than 60 days before the Secretary
    of Agriculture issues final regulations providing for the use of
    ratios and standards as part of loan applications or
    preapplications, for determining the degree of potential loan risk
    on loans insured or guaranteed under the Consolidated Farm and
    Rural Development Act (7 U.S.C. 1921 et seq.), the Secretary shall
    complete a study and report to the Committee on Agriculture,
    Nutrition, and Forestry of the Senate and the Committee on
    Agriculture of the House of Representatives on the effects of such
    regulations on a representative sample of persons who, as of the
    date of the enactment of this Act (Jan. 6, 1988), are borrowers or
    potential borrowers of such loans, and shall demonstrate in such
    study that the implementation of such final regulations will not
    result in a portfolio of borrowers that is inconsistent with the
    purposes of the Consolidated Farm and Rural Development Act.''
       AVAILABILITY OF FUNDS FOR CONTINUING ASSISTANCE TO DELINQUENT
                   BORROWERS; PROHIBITION ON USE OF FUNDS
      Pub. L. 100-71, title I, July 11, 1987, 101 Stat. 429, provided
    in part that:
      ''Hereafter, funds appropriated or available to the Farmers Home
    Administration under this or any other Act to make or to service
    farm loans shall be available for continuing assistance to
    delinquent borrowers on the basis of the policies contained in
    Farmers Home Administration Announcement Number 1113-1960, dated
    November 30, 1984.
      ''Hereafter, none of the funds appropriated or made available by
    this or any other Act, or otherwise made available to the Secretary
    of Agriculture or the Farmers Home Administration, may be used to
    implement section 1944.16(c)(1) of title 7, Code of Federal
    Regulations, as published in 52 Federal Register 11983 (April 14,
    1987) or any other regulation that would have the same effect as
    such regulation.''
      COORDINATED FINANCIAL STATEMENTS; USE OF SUBMISSION REQUIREMENT
                                 PROHIBITED
      Pub. L. 99-198, title XIII, Sec. 1325, Dec. 23, 1985, 99 Stat.
    1540, provided that: ''The Secretary of Agriculture shall not use
    or require the submission of the coordinated financial statement
    referred to in the proposed regulations of the Farmers Home
    Administration published in the Federal Register of November 8,
    1983 (48 F.R. 51312-51317) in connection with an application
    submitted on or after the date of the enactment of this Act (Dec.
    23, 1985) for any loan under any program of the Department of
    Agriculture carried out by the Farmers Home Administration.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1983a of this title.
 
-CITE-
     7 USC Sec. 1990                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1990. Transfer of lands to Secretary
 
-STATUTE-
      The President may at any time in his discretion transfer to the
    Secretary any right, interest, or title held by the United States
    in any lands acquired in the program of national defense and no
    longer needed therefor, which the President shall find suitable for
    the purposes of this chapter, and the Secretary shall dispose of
    such lands in the manner and subject to the terms and conditions of
    the chapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 340, Aug. 8, 1961, 75 Stat. 318.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-TRANS-
                          DELEGATION OF FUNCTIONS
      Authority of President under this section in his discretion to
    transfer to Secretary of Agriculture any right, interest or title
    held by United States in any lands acquired in program of national
    defense and no longer needed for that program, and to determine
    suitability of lands to be transferred, for purposes referred to in
    this section, delegated to Administrator of General Services,
    provided, that exercise by Administrator of authority delegated to
    him herein shall require concurrence of Secretary of Defense as to
    absence of further need of lands for national defense program, see
    section 1(15) of Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747,
    set out as a note under section 301 of Title 3, The President.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 25 section 492.
 
-CITE-
     7 USC Sec. 1991                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1991. Definitions
 
-STATUTE-
      (a) As used in this chapter:
        (1) The term ''farmer'' includes a person who is engaged in, or
      who, with assistance afforded under this chapter, intends to
      engage in, fish farming.
        (2) The term ''farming'' shall be deemed to include fish
      farming.
        (3) The term ''owner-operator'' shall include in the State of
      Hawaii the lessee-operator of real property in any case in which
      the Secretary determines that such real property cannot be
      acquired in fee simple by such lessee-operator, that adequate
      security is provided for the loan with respect to such real
      property for which such lessee-operator applies under this
      chapter, and that there is a reasonable probability of
      accomplishing the objectives and repayment of such loan.
        (4) The word ''insure'' as used in this chapter includes
      guarantee, which means to guarantee the payment of a loan
      originated, held, and serviced by a private financial agency or
      other lender approved by the Secretary.
        (5) The term ''contract of insurance'' includes a contract of
      guarantee.
        (6) The terms ''United States'' and ''State'' shall include
      each of the several States, the Commonwealth of Puerto Rico, the
      Virgin Islands of the United States, Guam, American Samoa, the
      Commonwealth of the Northern Mariana Islands, and, to the extent
      the Secretary determines it to be feasible and appropriate, the
      Trust Territory of the Pacific Islands.
        (7) The term ''joint operation'' means a joint farming
      operation in which two or more farmers work together sharing
      equally or unequally land, labor, equipment, expenses, and
      income.
        (8) The term ''beginning farmer or rancher'' means such term as
      defined by the Secretary.
        (9) The term ''direct loan'' means a loan made or insured from
      funds in the account created by section 1929 of this title.
        (10) The term ''farmer program loan'' means a farm ownership
      loan (FO) under section 1923 of this title, operating loan (OL)
      under section 1942 of this title, soil and water loan (SW) under
      section 1924 of this title, emergency loan (EM) under section
      1961 of this title, economic emergency loan (EE) under section
      202 of the Emergency Agricultural Credit Adjustment Act (title II
      of Public Law 95-334), economic opportunity loan (EO) under the
      Economic Opportunity Act of 1961 (42 U.S.C. 2942), softwood
      timber loan (ST) under section 1254 of the Food Security Act of
      1985, or rural housing loan for farm service buildings (RHF)
      under section 1472 of title 42.
        (11) The term ''qualified beginning farmer or rancher'' means
      an applicant, regardless of whether the applicant is
      participating in a program under section 1935 of this title -
          (A) who is eligible for assistance under this chapter;
          (B) who has not operated a farm or ranch, or who has operated
        a farm or ranch for not more than 10 years;
          (C) in the case of a cooperative, corporation, partnership,
        or joint operation, who has members, stockholders, partners, or
        joint operators who are all related to one another by blood or
        marriage;
          (D)(i) in the case of an owner and operator of a farm or
        ranch, who -
            (I) in the case of a loan made to an individual,
          individually or with the immediate family of the applicant -
              (aa) materially and substantially participates in the
            operation of the farm or ranch; and
              (bb) provides substantial day-to-day labor and management
            of the farm or ranch, consistent with the practices in the
            State or county in which the farm or ranch is located; or
            (II)(aa) in the case of a loan made to a cooperative,
          corporation, partnership, or joint operation, has members,
          stockholders, partners, or joint operators, materially and
          substantially participate in the operation of the farm or
          ranch; and
            (bb) in the case of a loan made to a corporation, has
          stockholders, all of whom are qualified beginning farmers or
          ranchers; and
          (ii) in the case of an applicant seeking to own and operate a
        farm or ranch, who -
            (I) in the case of a loan made to an individual,
          individually or with the immediate family of the applicant,
          will -
              (aa) materially and substantially participate in the
            operation of the farm or ranch; and
              (bb) provide substantial day-to-day labor and management
            of the farm or ranch, consistent with the practices in the
            State or county in which the farm or ranch is located; or
            (II)(aa) in the case of a loan made to a cooperative,
          corporation, partnership, or joint operation, will have
          members, stockholders, partners, or joint operators,
          materially and substantially participate in the operation of
          the farm or ranch; and
            (bb) in the case of a loan made to a corporation, has
          stockholders, all of whom are qualified beginning farmers or
          ranchers;
          (E) who agrees to participate in such loan assessment,
        borrower training, and financial management programs as the
        Secretary may require;
          (F) who does not own land or who, directly or through
        interests in family farm corporations, owns land, the aggregate
        acreage of which does not exceed 25 percent of the median
        acreage of the farms or ranches, as the case may be, in the
        county in which the farm or ranch operations of the applicant
        are located, as reported in the most recent census of
        agriculture, except that this subparagraph shall not apply to a
        loan made or guaranteed under subchapter II of this chapter;
        and
          (G) who demonstrates that the available resources of the
        applicant and spouse (if any) of the applicant are not
        sufficient to enable the applicant to continue farming or
        ranching on a viable scale.
        (12) Debt forgiveness. -
          (A) In general. - Except as provided in subparagraph (B), the
        term ''debt forgiveness'' means reducing or terminating a
        farmer program loan made or guaranteed under this chapter, in a
        manner that results in a loss to the Secretary, through -
            (i) writing down or writing off a loan under section 2001
          of this title;
            (ii) compromising, adjusting, reducing, or charging-off a
          debt or claim under section 1981 of this title;
            (iii) paying a loss on a guaranteed loan under section 2005
          of this title; or
            (iv) discharging a debt as a result of bankruptcy.
          (B) Loan restructuring. - The term ''debt forgiveness'' does
        not include consolidation, rescheduling, reamortization, or
        deferral.
      (b) As used in sections 1927(e), 1981d, 1985(e) and (f), 1988(b),
    2000(b) and (c), 2001, and 2005 of this title:
        (1) The term ''borrower'' means any farm borrower who has
      outstanding obligations to the Secretary under any farmer program
      loan, without regard to whether the loan has been accelerated,
      but does not include any farm borrower all of whose loans and
      accounts have been foreclosed on or liquidated, voluntarily or
      otherwise.
        (2) The term ''loan service program'' means, with respect to a
      farmer program borrower, a primary loan service program or a
      preservation loan service program.
        (3) The term ''primary loan service program'' means -
          (A) loan consolidation, rescheduling, or reamortization;
          (B) interest rate reduction, including the use of the limited
        resource program;
          (C) loan restructuring, including deferral, set aside, or
        writing down of the principal or accumulated interest charges,
        or both, of the loan; or
          (D) any combination of actions described in subparagraphs
        (A), (B), and (C).
        (4) Preservation loan service program. - The term
      ''preservation loan service program'' means homestead retention
      as authorized under section 2000 of this title.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 343, as added Pub. L. 87-703,
    title IV, Sec. 401(5), Sept. 27, 1962, 76 Stat. 632; amended Pub.
    L. 89-586, Sept. 19, 1966, 80 Stat. 809; Pub. L. 92-419, title I,
    Sec. 128(a), Aug. 30, 1972, 86 Stat. 666; Pub. L. 95-334, title I,
    Sec. 124, Aug. 4, 1978, 92 Stat. 428; Pub. L. 96-438, Sec. 2(2),
    Oct. 13, 1980, 94 Stat. 1872; Pub. L. 99-198, title XIII, Sec.
    1301(b), Dec. 23, 1985, 99 Stat. 1519; Pub. L. 100-233, title VI,
    Sec. 602, Jan. 6, 1988, 101 Stat. 1665; Pub. L. 101-624, title
    XVIII, Sec. 1814, title XXIII, Sec. 2388(h), Nov. 28, 1990, 104
    Stat. 3824, 4053; Pub. L. 102-237, title VII, Sec. 702(h)(1), Dec.
    13, 1991, 105 Stat. 1880; Pub. L. 102-554, Sec. 19, Oct. 28, 1992,
    106 Stat. 4158; Pub. L. 104-127, title VI, Sec. 640, 661(h), title
    VII, Sec. 749(b)(2), Apr. 4, 1996, 110 Stat. 1098, 1107, 1129; Pub.
    L. 105-113, Sec. 3(c), Nov. 21, 1997, 111 Stat. 2275.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsec. (a),
    see note set out under section 1921 of this title.
      Section 202 of the Emergency Agricultural Credit Adjustment Act,
    referred to in subsec. (a)(10), is section 202 of Pub. L. 95-334,
    title II, Aug. 4, 1978, 92 Stat. 429, as amended, which was set out
    in a note preceding section 1961 of this title prior to repeal by
    Pub. L. 101-624, title XVIII, Sec. 1851, Nov. 28, 1990, 104 Stat.
    3837.
      The Economic Opportunity Act of 1961, referred to in subsec.
    (a)(10), probably means the Economic Opportunity Act of 1964, Pub.
    L. 88-452, Aug. 20, 1964, 78 Stat. 508, as amended, which was
    classified generally to chapter 34 (Sec. 2701 et seq.) of Title 42,
    The Public Health and Welfare, prior to repeal, except for titles
    VIII and X, by Pub. L. 97-35, title VI, Sec. 683(a), Aug. 13, 1981,
    95 Stat. 519. Titles VIII and X of the Act are classified generally
    to subchapters VIII (Sec. 2991 et seq.) and X (Sec. 2996 et seq.)
    of chapter 34 of Title 42. For complete classification of this Act
    to the Code, see Tables.
      Section 1254 of the Food Security Act of 1985, referred to in
    subsec. (a)(10), is section 1254 of Pub. L. 99-198, title XII, Dec.
    23, 1985, 99 Stat. 1517, which amended Pub. L. 98-258, Sec. 608,
    set out as a note under section 1981 of this title.
 
-MISC2-
                                 AMENDMENTS
      1997 - Subsec. (a)(11)(F). Pub. L. 105-113 struck out ''taken
    under section 142 of title 13'' after ''census of agriculture''.
      1996 - Subsec. (a)(10). Pub. L. 104-127, Sec. 661(h)(1), struck
    out ''recreation loan (RL) under section 1924 of this title,''
    before ''emergency loan (EM)''.
      Subsec. (a)(11). Pub. L. 104-127, Sec. 640(1)(A), in introductory
    provisions, substituted ''applicant, regardless of whether the
    applicant is participating in a program under section 1935 of this
    title'' for ''applicant''.
      Subsec. (a)(11)(F). Pub. L. 104-127, Sec. 640(1)(B), substituted
    ''25 percent'' for ''15 percent'' and inserted before semicolon at
    end '', except that this subparagraph shall not apply to a loan
    made or guaranteed under subchapter II of this chapter''.
      Subsec. (a)(12). Pub. L. 104-127, Sec. 640(2), added par. (12).
      Subsec. (b). Pub. L. 104-127, Sec. 661(h)(2)(A), 749(b)(2), in
    introductory provisions, substituted ''1988(b), 2000(b) and (c)''
    for ''1988(f), 1999(h), 2000(b) and (c)''.
      Subsec. (b)(4). Pub. L. 104-127, Sec. 661(h)(2)(B), added par.
    (4) and struck out former par. (4) which read as follows: ''The
    term 'preservation loan service program' means -
        ''(A) homestead retention as authorized under section 2000 of
      this title; and
        ''(B) a leaseback or buyback of farmland authorized under
      section 1985 of this title.''
      1992 - Subsec. (a). Pub. L. 102-554 substituted ''this chapter:''
    and par. (1) for ''this chapter (1) the term 'farmers' shall be
    deemed to include persons who are engaged in, or who, with
    assistance afforded under this chapter, intend to engage in, fish
    farming,'', in pars. (2) to (8), realigned margins and substituted
    ''The'' for ''the'' first place appearing in each par. and a period
    for a comma at end of each par., in par. (9), realigned margin and
    substituted ''The'' for ''the'' first place appearing and a period
    for '', and'' at end, in par. (10), realigned margin and
    substituted ''The'' for ''the'' first place appearing, and added
    par. (11).
      1991 - Subsec. (a)(1), (3). Pub. L. 102-237, Sec. 702(h)(1)(A),
    (B), made technical amendment to directory language of Pub. L.
    101-624, Sec. 2388(h)(1), (2). See 1990 Amendment note below.
      Subsec. (a)(5). Pub. L. 102-237, Sec. 702(h)(1)(C), repealed Pub.
    L. 101-624, Sec. 2388(h)(3). See 1990 Amendment note below.
      1990 - Subsec. (a)(1), (3). Pub. L. 101-624, Sec. 2388(h)(1),
    (2), as amended by Pub. L. 102-237, Sec. 702(h)(1)(A), (B), struck
    out ''and'' after ''fish farming,'' in par. (1), and ''and'' after
    ''such loan,'' in par. (3).
      Subsec. (a)(5). Pub. L. 101-624, Sec. 2388(h)(3), which directed
    substitution of '' 'contract of insurance' '' for ''contract of
    insurance'', was repealed by Pub. L. 102-237, Sec. 702(h)(1)(C).
    See Construction of 1990 Amendment note below.
      Subsec. (a)(8) to (10). Pub. L. 101-624, Sec. 1814, added pars.
    (8) to (10).
      1988 - Pub. L. 100-233 designated existing provisions as subsec.
    (a) and added subsec. (b).
      1985 - Pub. L. 99-198 added cl. (7).
      1980 - Pub. L. 96-438 added cl. (3). For termination of former
    cl. (3) as added by Pub. L. 89-586, see Effective and Termination
    Date of 1966 Amendment note below.
      1978 - Pub. L. 95-334 added cl. (6).
      1972 - Pub. L. 92-419 added cls. (4) and (5).
      1966 - Pub. L. 89-586 struck out ''and'' before ''(2)'' and
    inserted cl. (3) defining ''owner-operator''. See Effective and
    Termination Date of 1966 Amendment note below.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Section 3(d) of Pub. L. 104-113 provided that: ''This section
    (amending this section and repealing section 142 of Title 13,
    Census) and the amendments made by this section shall take effect
    October 1, 1998.''
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 640(1) of Pub. L. 104-127 effective 90 days
    after Apr. 4, 1996, and amendment by sections 640(2) and 661(h) of
    Pub. L. 104-127 effective Apr. 4, 1996, see section 663(a), (b) of
    Pub. L. 104-127, set out as a note under section 1922 of this
    title.
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by Pub. L. 102-237 effective as if included in the
    provision of the Food, Agriculture, Conservation, and Trade Act of
    1990, Pub. L. 101-624, to which the amendment relates, see section
    1101(b)(7) of Pub. L. 102-237, set out as a note under section 1421
    of this title.
              EFFECTIVE AND TERMINATION DATE OF 1966 AMENDMENT
      Pub. L. 89-586, as amended by Pub. L. 90-426, July 26, 1968, 82
    Stat. 445, provided in part that the amendment made by Pub. L.
    89-586 is effective only for the period of time commencing with
    Sept. 19, 1966, and ending on June 30, 1970.
                       CONSTRUCTION OF 1990 AMENDMENT
      Section 702(h)(2) of Pub. L. 102-237, as amended by Pub. L.
    102-552, title V, Sec. 516(k), Oct. 28, 1992, 106 Stat. 4139,
    provided that: ''The Consolidated Farm and Rural Development Act
    (see Short Title note set out under section 1921 of this title)
    shall be applied and administered as if the amendment made by
    section 2388(h)(3) of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (Pub. L. 101-624, amending this section) had
    never been enacted.''
 
-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 25 section 492.
 
-CITE-
     7 USC Sec. 1992                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1992. Loan limitations
 
-STATUTE-
      No loan (other than one to a public body or nonprofit association
    (including Indian tribes on Federal and State reservations or other
    federally recognized Indian tribal groups) for community facilities
    or one of a type authorized by section 1926(a)(1) of this title
    prior to its amendment by the Rural Development Act of 1972) shall
    be made by the Secretary either for sale as an insured loan or
    otherwise under sections 1926(a)(1), 1932, or 1942(c) of this title
    unless the Secretary shall have determined that no other lender is
    willing to make such loan and assume 10 per centum of any loss
    sustained thereon.  No contract guaranteeing any such loan by such
    other lender shall require the Secretary to guarantee more than 90
    per centum of the principal and interest on such loan.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 344, as added Pub. L. 92-419,
    title I, Sec. 129, Aug. 30, 1972, 86 Stat. 666; amended Pub. L.
    94-35, Sec. 2, June 16, 1975, 89 Stat. 214; Pub. L. 104-127, title
    VI, Sec. 661(i), Apr. 4, 1996, 110 Stat. 1107.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For statutory changes to section 1926(a)(1) of this title by the
    Rural Development Act of 1972, referred to in text, see 1972
    Amendment note for section 104 of Pub. L. 92-419, set out under
    section 1926 of this title.  For complete classification of Rural
    Development Act of 1972 to the Code, see Short Title of 1972
    Amendment note set out under section 1921 of this title and Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 substituted ''1926(a)(1), 1932, or 1942(c)
    of this title'' for ''1924(b), 1926(a)(1), 1932, 1942(b), or
    1942(c) of this title''.
      1975 - Pub. L. 94-35 substituted ''guaranteed more than 90 per
    centum of the principal and interest on such loan'' for
    ''participate in more than 90 per centum of any loss sustained
    thereon''.
 
-CITE-
     7 USC Sec. 1993                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1993. Repealed. Pub. L. 104-127, title VII, Sec. 750, Apr. 4,
        1996, 110 Stat. 1129
 
-MISC1-
      Section, Pub. L. 87-128, title III, Sec. 345, as added Pub. L.
    94-68, Sec. 9, Aug. 5, 1975, 89 Stat. 382; amended Pub. L. 103-437,
    Sec. 4(a)(7), Nov. 2, 1994, 108 Stat. 4582, related to testimony by
    Secretary of Agriculture before congressional committees.
 
-CITE-
     7 USC Sec. 1994                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1994. Maximum amounts for loans authorized; long-term cost
        projections
 
-STATUTE-
    (a) Maximum aggregate principal amounts for loans authorized
      Effective October 1, 1979, the aggregate principal amount of
    loans under the programs authorized under each subchapter of this
    chapter during each three-year period thereafter shall not exceed
    such amounts as may be authorized by law after August 4, 1978.
    There shall be two amounts so established for each of such programs
    and for any maximum levels provided in appropriation Acts for the
    programs authorized under this chapter, one against which direct
    and insured loans shall be charged and the other against which
    guaranteed loans shall be charged,. (FOOTNOTE 1)
       (FOOTNOTE 1) So in original.
    (b) Authorization for loans
      (1) In general
        The Secretary may make or guarantee loans under subchapters I
      and II of this chapter from the Agricultural Credit Insurance
      Fund provided for in section 1929 of this title in not more than
      the following amounts:
        (A) Fiscal year 1996
          For fiscal year 1996, $3,085,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,500,000,000 shall be for guaranteed loans, of which
          -
              (I) $600,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $1,900,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
        (B) Fiscal year 1997
          For fiscal year 1997, $3,165,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,580,000,000 shall be for guaranteed loans, of which
          -
              (I) $630,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $1,950,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
        (C) Fiscal year 1998
          For fiscal year 1998, $3,245,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,660,000,000 shall be for guaranteed loans, of which
          -
              (I) $660,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $2,000,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
        (D) Fiscal year 1999
          For fiscal year 1999, $3,325,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,740,000,000 shall be for guaranteed loans, of which
          -
              (I) $690,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $2,050,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
        (E) Fiscal year 2000
          For fiscal year 2000, $3,435,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,850,000,000 shall be for guaranteed loans, of which
          -
              (I) $750,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $2,100,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
        (F) Fiscal year 2001
          For fiscal year 2001, $3,435,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,850,000,000 shall be for guaranteed loans, of which
          -
              (I) $750,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $2,100,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
        (G) Fiscal year 2002
          For fiscal year 2002, $3,435,000,000, of which -
            (i) $585,000,000 shall be for direct loans, of which -
              (I) $85,000,000 shall be for farm ownership loans under
            subchapter I of this chapter; and
              (II) $500,000,000 shall be for operating loans under
            subchapter II of this chapter; and
            (ii) $2,850,000,000 shall be for guaranteed loans, of which
          -
              (I) $750,000,000 shall be for guarantees of farm
            ownership loans under subchapter I of this chapter; and
              (II) $2,100,000,000 shall be for guarantees of operating
            loans under subchapter II of this chapter.
      (2) Beginning farmers and ranchers
        (A) Direct loans
          (i) Farm ownership loans
            (I) In general
              Of the amounts made available under paragraph (1) for
            direct farm ownership loans, the Secretary shall reserve 70
            percent for qualified beginning farmers and ranchers.
            (II) Down payment loans
              Of the amounts reserved for a fiscal year under subclause
            (I), the Secretary shall reserve 60 percent for the down
            payment loan program under section 1935 of this title until
            April 1 of the fiscal year.
          (ii) Operating loans
            Of the amounts made available under paragraph (1) for
          direct operating loans, the Secretary shall reserve for
          qualified beginning farmers and ranchers -
              (I) for each of fiscal years 1996 through 1998, 25
            percent;
              (II) for fiscal year 1999, 30 percent; and
              (III) for each of fiscal years 2000 through 2002, 35
            percent.
          (iii) Funds reserved until September 1
            Except as provided in clause (i)(II), funds reserved for
          qualified beginning farmers or ranchers under this
          subparagraph for a fiscal year shall be reserved only until
          September 1 of the fiscal year.
        (B) Guaranteed loans
          (i) Farm ownership loans
            Of the amounts made available under paragraph (1) for
          guarantees of farm ownership loans, the Secretary shall
          reserve 25 percent for qualified beginning farmers and
          ranchers.
          (ii) Operating loans
            Of the amounts made available under paragraph (1) for
          guarantees of operating loans, the Secretary shall reserve 40
          percent for qualified beginning farmers and ranchers.
          (iii) Funds reserved until April 1
            Funds reserved for qualified beginning farmers or ranchers
          under this subparagraph for a fiscal year shall be reserved
          only until April 1 of the fiscal year.
        (C) Reserved funds for all qualified beginning farmers and
            ranchers
          If a qualified beginning farmer or rancher meets the
        eligibility criteria for receiving a direct or guaranteed loan
        under section 1922, 1935, or 1941 of this title, the Secretary
        shall make or guarantee the loan if sufficient funds reserved
        under this paragraph are available to make or guarantee the
        loan.
      (3) Transfer for down payment loans
        (A) In general
          Notwithstanding subsection (a) of this section, subject to
        subparagraph (B) -
            (i) beginning on August 1 of each fiscal year, the
          Secretary shall use available unsubsidized guaranteed farm
          operating loan funds to provide direct farm ownership loans
          approved by the Secretary to qualified beginning farmers and
          ranchers under the down payment loan program established
          under section 1935 of this title, if sufficient direct farm
          ownership loan funds are not otherwise available; and
            (ii) beginning on September 1 of each fiscal year, the
          Secretary shall use available unsubsidized guaranteed farm
          operating loan funds to provide direct farm ownership loans
          approved by the Secretary to qualified beginning farmers and
          ranchers, if sufficient direct farm ownership loan funds are
          not otherwise available.
        (B) Limitation
          The Secretary shall limit the transfer of funds under
        subparagraph (A) so that all guaranteed farm operating loans
        that have been approved, or will be approved, by the Secretary
        during the fiscal year will be made to the extent of available
        amounts.
      (4) Transfer for credit sales of farm inventory property
        (A) In general
          Notwithstanding subsection (a) of this section, subject to
        subparagraphs (B) and (C), beginning on September 1 of each
        fiscal year, the Secretary may use available funds made
        available under subchapter III of this chapter for the fiscal
        year to fund the credit sale of farm real estate in the
        inventory of the Secretary.
        (B) Supplemental appropriations
          The transfer authority provided under subparagraph (A) shall
        not apply to any funds made available to the Secretary for any
        fiscal year under an Act making supplemental appropriations.
        (C) Limitation
          The Secretary shall limit the transfer of funds under
        subparagraph (A) so that all emergency disaster loans that have
        been approved, or will be approved, by the Secretary during the
        fiscal year will be made to the extent of available amounts.
    (c) Development of long-term cost projections for loan program
        authorizations
      The Secretary shall develop long-term cost projections for loan
    program authorizations required under subsection (a) of this
    section.  Each such projection shall include analyses of (1) the
    long-term costs of the lending levels that the Secretary requests
    to be authorized under subsection (a) of this section and (2) the
    long-term costs for increases in lending levels beyond those
    requested to be authorized, based on increments of $10,000,000 or
    such other levels as the Secretary deems appropriate.  Long-term
    cost projections for the three-year period beginning with fiscal
    year 1983 and each three-year period thereafter shall be submitted
    to the House Committee on Agriculture, the House Committee on
    Appropriations, the Senate Committee on Agriculture, Nutrition, and
    Forestry, and the Senate Committee on Appropriations at the time
    the requests for authorizations for those periods are submitted to
    Congress. Not later than fifteen days after October 13, 1980, the
    Secretary shall submit to such committees long-term cost
    projections covering authorized lending levels for the loan
    programs for fiscal years 1981 and 1982.
    (d) Low-income, limited-resource borrowers
      (1) Notwithstanding any other provision of law, not less than 25
    per centum of the loans for farm ownership purposes under
    subchapter I of this chapter, and not less than 25 per centum of
    the loans for farm operating purposes under subchapter II of this
    chapter, authorized to be insured, or made to be sold and insured,
    from the Agricultural Credit Insurance Fund during each fiscal year
    shall be for low-income, limited-resource borrowers.
      (2) The Secretary shall provide notification to farm borrowers
    under this chapter, as soon as practicable after April 10, 1984,
    and in the normal course of loan making and loan servicing
    operations, of the provisions of this chapter relating to
    low-income, limited-resource borrowers and the procedures by which
    persons may apply for loans under the low-income, limited-resource
    borrower program.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 346, as added Pub. L. 95-334,
    title I, Sec. 125, Aug. 4, 1978, 92 Stat. 428; amended Pub. L.
    96-438, Sec. 4, Oct. 13, 1980, 94 Stat. 1876; Pub. L. 97-35, title
    I, Sec. 164, Aug. 13, 1981, 95 Stat. 379; Pub. L. 98-258, title VI,
    Sec. 607, Apr. 10, 1984, 98 Stat. 140; Pub. L. 99-198, title XIII,
    Sec. 1317, Dec. 23, 1985, 99 Stat. 1529; Pub. L. 101-508, title I,
    Sec. 1202(a), Nov. 5, 1990, 104 Stat. 1388-9; Pub. L. 101-624,
    title XXIII, Sec. 2388(i), Nov. 28, 1990, 104 Stat. 4053; Pub. L.
    102-237, title VII, Sec. 701(h)(1)(F), 702(i), Dec. 13, 1991, 105
    Stat. 1880, 1881; Pub. L. 102-554, Sec. 20, Oct. 28, 1992, 106
    Stat. 4159; Pub. L. 104-127, title VI, Sec. 641, Apr. 4, 1996, 110
    Stat. 1098.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a)
    and (d)(2), see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-127, Sec. 641(1), in second
    sentence, struck out ''with or without authority for the Secretary
    to transfer amounts between such categories within a given program
    for more effective administration'' before period at end.
      Subsec. (b). Pub. L. 104-127, Sec. 641(2), added subsec. (b) and
    struck out former subsec. (b), which set forth maximum amounts for
    direct and guaranteed loans under the Agricultural Credit Insurance
    Fund for fiscal years 1991 to 1995.
      1992 - Subsec. (b)(2). Pub. L. 102-554, Sec. 20(b), inserted
    sentence at end.
      Subsec. (b)(3)(D) to (G). Pub. L. 102-554, Sec. 20(c), (d), added
    subpars. (D) to (G).
      Subsec. (b)(5), (6). Pub. L. 102-554, Sec. 20(a), (e), added
    pars. (5) and (6).
      1991 - Subsec. (b). Pub. L. 102-237, Sec. 702(i), repealed Pub.
    L. 101-624, Sec. 2388(i). See 1990 Amendment note below.
      Subsec. (b)(3)(C). Pub. L. 102-237, Sec. 701(h)(1)(F),
    substituted ''this chapter'' for ''this Act'' in two places.
      1990 - Subsec. (b). Pub. L. 101-624, Sec. 2388(i), which amended
    subsec. (b), in par. (1)(B), by striking ''subparagraph (C)'' and
    inserting ''paragraph (3)''; in par. (1)(C), by striking
    ''subparagraph (A)'' and inserting ''paragraph (1)''; by
    redesignating pars. (1)(A), (B), (C), (D)(i), and (E) as (1), (2),
    (3), (4), and (5), respectively; in par. (2), by redesignating cls.
    (i), (ii), and (iii) as subpars. (A), (B), and (C), respectively;
    in subpars. (A) to (C) of par. (2), by redesignating subcls. (I)
    and (II) as cls. (i) and (ii), respectively; and in par. (5), by
    redesignating cls. (i), (ii), and (iii) as subpars. (A), (B), and
    (C), respectively, was repealed by Pub. L. 102-237, Sec. 702(i).
    See Construction of 1990 Amendment note below.
      Pub. L. 101-508, Sec. 1202(a), amended subsec. (b) generally,
    substituting present provisions for provisions relating to maximum
    amounts for loans under the Agricultural Credit Insurance Fund and
    the Rural Development Insurance Fund for fiscal years 1986 through
    1988.
      1985 - Subsec. (b). Pub. L. 99-198, Sec. 1317(a), amended subsec.
    (b) generally, substituting provisions setting maximum amounts for
    loans under the Agricultural Credit Insurance Fund and the Rural
    Development Insurance Fund for each of fiscal years ending
    September 30, 1986, through September 30, 1988, for provisions
    setting such amounts for each of fiscal years 1980, 1981, and 1982.
      Subsecs. (d), (e). Pub. L. 99-198, Sec. 1317, struck out subsec.
    (d) which authorized special amounts for fiscal year 1982,
    redesignated subsec. (e) as (d), and in par. (1) substituted ''25
    per centum'' for ''20 per centum'' wherever appearing and ''each
    fiscal year'' for ''fiscal year 1984''.
      1984 - Subsec. (e). Pub. L. 98-258 added subsec. (e).
      1981 - Subsec. (d). Pub. L. 97-35 added subsec. (d).
      1980 - Pub. L. 96-438 designated existing provisions as subsec.
    (a) and added subsecs. (b) and (c).
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by section 701(h)(1)(F) of Pub. L. 102-237 to any
    provision specified therein effective as if included in act that
    added provision so specified at the time such act became law, and
    amendment by section 702(i) of Pub. L. 102-237 effective as if
    included in the provision of the Food, Agriculture, Conservation,
    and Trade Act of 1990, Pub. L. 101-624, to which the amendment
    relates, see section 1101(b)(7), (c) of Pub. L. 102-237, set out as
    a note under section 1421 of this title.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by Pub. L. 101-508 effective Nov. 29, 1990, see section
    1301 of Pub. L. 101-508, set out as a note under section 511r of
    this title.
                       CONSTRUCTION OF 1990 AMENDMENT
      Section 702(i) of Pub. L. 102-237 provided that: ''Subsection (i)
    of section 2388 of the Food, Agriculture, Conservation, and Trade
    Act of 1990 (104 Stat. 4053) (Pub. L. 101-624, amending this
    section) is hereby repealed and the Consolidated Farm and Rural
    Development Act (see Short Title note set out under section 1921 of
    this title) shall be applied and administered as if the amendments
    made by such subsection had never been enacted.''
 
-CITE-
     7 USC Sec. 1995                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1995. Participation and financial and technical assistance by
        other Federal departments, etc., to program participants
 
-STATUTE-
      Notwithstanding any other provision of law, other departments,
    agencies, and executive establishments of the Federal Government
    may participate and provide financial and technical assistance
    jointly with the Secretary to any applicant to whom assistance is
    being provided under any program administered by the Farmers Home
    Administration. Participation by any other department, agency, or
    executive establishment shall be only to the extent authorized for,
    and subject to the authorities of, such other department, agency,
    or executive establishment, except that any limitation on joint
    participation is superseded by this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 347, as added Pub. L. 95-334,
    title I, Sec. 125, Aug. 4, 1978, 92 Stat. 429.)
 
-CITE-
     7 USC Sec. 1996                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1996. Loans to resident aliens
 
-STATUTE-
      Notwithstanding the provisions of this chapter limiting the
    making and insuring of loans to citizens of the United States, the
    Secretary may make and insure loans under this chapter to aliens
    lawfully admitted to the United States for permanent residence
    under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.):
    Provided, That no loans may be made or insured under this chapter
    to such aliens until the Secretary issues regulations establishing
    the terms and conditions under which such aliens may receive loans:
    Provided further, That the Secretary shall submit the regulations
    to the Committee on Agriculture of the House of Representatives and
    the Committee on Agriculture, Nutrition, and Forestry of the Senate
    at least thirty days prior to the date the regulations are
    published in the Federal Register.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 348, as added Pub. L. 96-438, Sec.
    2(3), Oct. 13, 1980, 94 Stat. 1872.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
      The Immigration and Nationality Act, referred to in text, is act
    June 27, 1952, ch. 477, 66 Stat. 163, as amended, which is
    classified principally to chapter 12 (Sec. 1101 et seq.) of Title
    8, Aliens and Nationality. For complete classification of this Act
    to the Code, see Short Title note set out under section 1101 of
    Title 8 and Tables.
 
-CITE-
     7 USC Sec. 1997                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1997. Conservation easements
 
-STATUTE-
    (a) Definitions
      For purposes of this section:
        (1) The term ''governmental entity'' means any agency of the
      United States, a State, or a unit of local government of a State.
        (2) The terms ''highly erodible land'' and ''wetland'' have the
      meanings, respectively, that such terms are given in section 3801
      of title 16.
        (3) The term ''wildlife'' means fish or wildlife as defined in
      section 3371(a) of title 16.
        (4) The term ''recreational purposes'' includes hunting.
    (b) Contracts on loan security properties
      Subject to subsection (c) of this section, the Secretary may
    enter into a contract related to real property for conservation,
    recreation, or wildlife purposes.
    (c) Limitations
      The Secretary may enter into a contract under subsection (b) of
    this section if -
        (1) such property is wetland, upland, or highly erodible land;
        (2) such property is determined by the Secretary to be suitable
      for the purposes involved; and
        (3)(A) such property secures any loan made under any law
      administered by the Secretary and held by the Secretary; and
        (B) such contract better enables a qualified borrower to repay
      the loan in a timely manner, as determined by the Secretary.
    (d) Terms and conditions
      The terms and conditions specified in each such contract shall -
        (1) specify the purposes for which such real property may be
      used;
        (2) identify the conservation measures to be taken, and the
      recreational and wildlife uses to be allowed, with respect to
      such real property; and
        (3) require such owner to permit the Secretary, and any person
      or governmental entity designated by the Secretary, to have
      access to such real property for the purpose of monitoring
      compliance with such contract.
    (e) Purchase; limitation upon cancellation or prepayment
      (1) Subject to paragraph (2), the Secretary may reduce or forgive
    the outstanding debt of a borrower -
        (A) in the case of a borrower to whom the Secretary has made
      one or more outstanding loans under laws administered by the
      Secretary, by canceling that part of the aggregate amount of such
      outstanding loans that bears the same ratio to such aggregate
      amount as the number of acres of the real property of the
      borrower that are subject to the contract bears to the aggregate
      number of acres securing such loans; or
        (B) in any other case, by treating as prepaid that part of the
      principal amount of a new loan to the borrower issued and held by
      the Secretary under a law administered by the Secretary that
      bears the same ratio to such principal amount as the number of
      acres of the real property of the borrower that are subject to
      the contract bears to the aggregate number of acres securing the
      new loan.
      (2) The amount so canceled or treated as prepaid pursuant to
    paragraph (1) shall not exceed -
        (A) in the case of a delinquent loan, the value of the land on
      which the contract is entered into or the difference between the
      amount of the outstanding loan secured by the land and the value
      of the land, whichever is greater; or
        (B) in the case of a nondelinquent loan, 33 percent of the
      amount of the loan secured by the land.
    (f) Consultations with Director of Fish and Wildlife Service
      If the Secretary elects to use the authority provided by this
    section, the Secretary shall consult with the Director of the Fish
    and Wildlife Service for purposes of -
        (1) selecting real property in which the Secretary may enter
      into contracts under this section;
        (2) formulating the terms and conditions of such contracts; and
        (3) enforcing such contracts.
    (g) Enforcement
      The Secretary, and any person or governmental entity designated
    by the Secretary, may enforce a contract entered into by the
    Secretary under this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 349, as added Pub. L. 99-198,
    title XIII, Sec. 1318(a), Dec. 23, 1985, 99 Stat. 1530; amended
    Pub. L. 100-233, title VI, Sec. 612, Jan. 6, 1988, 101 Stat. 1674;
    Pub. L. 101-624, title XVIII, Sec. 1815, title XXIII, Sec. 2388(j),
    Nov. 28, 1990, 104 Stat. 3825, 4053; Pub. L. 104-127, title VI,
    Sec. 642, Apr. 4, 1996, 110 Stat. 1102.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Subsec. (b). Pub. L. 104-127, Sec. 642(1), added subsec.
    (b) and struck out former subsec. (b) which read as follows:
    ''Subject to subsection (c) of this section, the Secretary may
    acquire and retain an easement in real property, for a term of not
    less than 50 years, for conservation, recreational, and wildlife
    purposes.''
      Subsec. (c). Pub. L. 104-127, Sec. 642(2)(A), inserted heading
    and substituted ''The Secretary may enter into a contract under
    subsection (b) of this section if'' for ''Such easement may be
    acquired or retained for real property if''.
      Subsec. (c)(2). Pub. L. 104-127, Sec. 642(2)(B), inserted ''and''
    at end.
      Subsec. (c)(3). Pub. L. 104-127, Sec. 642(2)(C), struck out
    ''(i)'' after ''(3)(A)'', substituted ''administered by the
    Secretary'' for ''administered by the Farmers Home
    Administration'', redesignated cl. (ii) of subpar. (A) as subpar.
    (B), substituted ''such contract'' for ''such easement'' and a
    period for ''; or'' at end, and struck out former subpar. (B) which
    read as follows: ''such property is administered under this chapter
    by the Secretary; and''.
      Subsec. (c)(4). Pub. L. 104-127, Sec. 642(2)(D), struck out par.
    (4) which read as follows: ''such property was (except in the case
    of wetland and other wildlife habitat) row cropped each year of the
    3-year period ending on December 23, 1985.''
      Subsec. (d). Pub. L. 104-127, Sec. 642(3), substituted
    ''contract'' for ''easement'' in introductory provisions and par.
    (3).
      Subsec. (e). Pub. L. 104-127, Sec. 642(4), in par. (1),
    substituted ''reduce or forgive the outstanding debt of a
    borrower'' for ''purchase any such easement from the borrower'' in
    introductory provisions, in subpars. (A) and (B), substituted
    ''administered by the Secretary'' for ''administered by the Farmers
    Home Administration'' and ''contract bears'' for ''easement
    bears'', and in par. (2)(A), substituted ''contract is entered
    into'' for ''easement is acquired''.
      Subsec. (f). Pub. L. 104-127, Sec. 642(5), in par. (1),
    substituted ''enter into contracts'' for ''acquire easements'' and
    in pars. (2) and (3), substituted ''contracts'' for ''easements''.
      Subsec. (g). Pub. L. 104-127, Sec. 642(6), substituted ''a
    contract entered into'' for ''an easement acquired''.
      1990 - Subsec. (a)(4), (5). Pub. L. 101-624, Sec. 2388(j),
    redesignated par. (5) as (4).
      Subsec. (c). Pub. L. 101-624, Sec. 1815(1)(A)-(D), (F), (G), in
    introductory provision, struck out ''such property'' after ''real
    property if'', and inserted ''such property'' after par. (1), (2),
    (3)(A)(i), (3)(B), and (4) designations.
      Subsec. (c)(3)(A)(ii). Pub. L. 101-624, Sec. 1815(1)(E), amended
    cl. (ii) generally.  Prior to amendment, cl. (ii) read as follows:
    ''the borrower of such loan is unable, as determined by the
    Secretary, to repay such loan in a timely manner; or''.
      Subsec. (e). Pub. L. 101-624, Sec. 1815(2), amended subsec. (e)
    generally.  Prior to amendment, subsec. (e) read as follows: ''Any
    such easement acquired by the Secretary shall be purchased from the
    borrower involved by canceling that part of the aggregate amount of
    such outstanding loans of the borrower held by the Secretary under
    laws administered by the Farmers Home Administration that bears the
    same ratio to the aggregate amount of the outstanding loans of such
    borrower held by the Secretary under all such laws as the number of
    acres of the real property of such borrower that are subject to
    such easement bears to the aggregate number of acres securing such
    loans.  In no case shall the amount so cancelled exceed the value
    of the land on which the easement is acquired or the difference
    between the amount of the outstanding loan secured by the land and
    the current value of the land, whichever is greater.''
      Subsec. (h). Pub. L. 101-624, Sec. 1815(9), struck out subsec.
    (h) which read as follows: ''This section shall not apply with
    respect to the cancellation of any part of any loan that was made
    after December 25, 1985.''
      1988 - Subsec. (c)(4). Pub. L. 100-233, Sec. 612(1), inserted
    ''and other wildlife habitat'' after ''wetland''.
      Subsec. (e). Pub. L. 100-233, Sec. 612(2), inserted ''or the
    difference between the amount of the outstanding loan secured by
    the land and the current value of the land, whichever is greater''
    at end of second sentence.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-127 effective 90 days after Apr. 4,
    1996, see section 663(b) of Pub. L. 104-127, set out as a note
    under section 1922 of this title.
 
-CITE-
     7 USC Sec. 1998                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1998. Guaranteed farm loan programs
 
-STATUTE-
      Notwithstanding any other provision of this chapter, the
    Secretary shall ensure that farm loan guarantee programs carried
    out under this chapter are designed so as to be responsive to
    borrower and lender needs and to include provisions under
    reasonable terms and conditions for advances, before completion of
    the liquidation process, of guarantee proceeds on loans in default.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 350, as added Pub. L. 99-198,
    title XIII, Sec. 1319, Dec. 23, 1985, 99 Stat. 1531.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-CITE-
     7 USC Sec. 1999                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 1999. Interest rate reduction program
 
-STATUTE-
    (a) Establishment of program
      (1) In general
        The Secretary shall establish and carry out in accordance with
      this section an interest rate reduction program for loans
      guaranteed under this chapter.
      (2) Termination of authority
        The authority provided by this subsection shall terminate on
      September 30, 2002.
    (b) Contracts with lenders
      Under such program, the Secretary shall enter into a contract
    with, and make payments to, a legally organized institution to
    reduce during the term of such contract the interest rate paid by a
    borrower on a guaranteed loan made by such institution if -
        (1) the borrower -
          (A) is unable to obtain sufficient credit elsewhere to
        finance the actual needs of the borrower at reasonable rates
        and terms, taking into consideration private and cooperative
        rates and terms for a loan for a similar purpose and period of
        time in the community in or near which the borrower resides;
          (B) is otherwise unable to make payments on such loan in a
        timely manner; and
          (C) has a total estimated cash income during the 24-month
        period beginning on the date such contract is entered into
        (including all farm and nonfarm income) that will equal or
        exceed the total estimated cash expenses to be incurred by the
        borrower during such period (including all farm and nonfarm
        expenses); and
        (2) the lender reduces during the term of such contract the
      annual rate of interest payable on such loan by a minimum
      percentage specified in such contract.
    (c) Payments to lenders
      In return for a contract entered into by a lender under
    subsection (b) of this section for the reduction of the interest
    rate paid on a loan, the Secretary shall make payments to the
    lender in an amount equal to not more than 100 percent of the cost
    of reducing the annual rate of interest payable on such loan,
    except that such payments may not exceed the cost of reducing such
    rate by more than 4 percent.
    (d) Duration of contracts
      The term of a contract entered into under this section to reduce
    the interest rate on a guaranteed loan may not exceed the
    outstanding term of such loan.
    (e) Agricultural Credit Insurance Fund use limitation
      (1) Notwithstanding any other provision of this chapter, the
    Agricultural Credit Insurance Fund established under section 1929
    of this title may be used by the Secretary to carry out this
    section.
      (2) The total amount of funds used by the Secretary to carry out
    this section may not exceed $490,000,000.
    (f) List of lender participants in guaranteed loan program
      The Secretary shall make available to farmers, on request, a list
    of lenders in the area that participate in guaranteed farm loan
    programs and other lenders in the area that express a desire to
    participate in such programs and that request inclusion in the
    list.
    (g) Foreclosure action provision in farm loan guarantees
      Notwithstanding any other provision of law, each contract of
    guarantee on a farm loan entered into under this chapter after
    January 6, 1988, shall contain a condition that the lender of the
    guaranteed loan may not initiate foreclosure action on the loan
    until 60 days after a determination is made with respect to the
    eligibility of the borrower thereof to participate in the program
    under this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 351, as added Pub. L. 99-198,
    title XIII, Sec. 1320, Dec. 23, 1985, 99 Stat. 1532; amended Pub.
    L. 100-233, title VI, Sec. 613(b), (c), Jan. 6, 1988, 101 Stat.
    1674; Pub. L. 101-508, title I, Sec. 1202(b)(1), (c), Nov. 5, 1990,
    104 Stat. 1388-10, 1388-11; Pub. L. 104-105, title II, Sec. 220,
    Feb. 10, 1996, 110 Stat. 184; Pub. L. 104-127, title VI, Sec.
    643(a), Apr. 4, 1996, 110 Stat. 1102.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs.
    (a)(1), (e)(1), and (g), see note set out under section 1921 of
    this title.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (a). Pub. L. 104-105 inserted heading, designated
    existing provisions as par. (1) and inserted heading, and added
    par. (2).
      Subsec. (f). Pub. L. 104-127, Sec. 643(a)(1), substituted ''The
    Secretary'' for ''Each Farmers Home Administration county
    supervisor'' and ''list of lenders'' for ''list of approved
    lenders'' and struck out ''the Farmers Home Administration'' before
    ''guaranteed farm loan programs''.
      Subsec. (h). Pub. L. 104-127, Sec. 643(a)(2), struck out subsec.
    (h) which established a demonstration project during 4-year period
    beginning Jan. 6, 1988, for purchase of Farm Credit System land.
      1990 - Subsec. (c). Pub. L. 101-508, Sec. 1202(b)(1)(A),
    substituted ''100 percent'' for ''50 percent'' and ''4 percent''
    for ''2 percent''.
      Subsec. (d). Pub. L. 101-508, Sec. 1202(b)(1)(B), struck out '',
    or 3 years, whichever is less'' after ''term of such loan''.
      Subsec. (h)(1). Pub. L. 101-508, Sec. 1202(c), substituted
    ''4-year'' for ''3-year''.
      1988 - Subsec. (b)(1)(C). Pub. L. 100-233, Sec. 613(b)(1),
    substituted ''24-month'' for ''12-month''.
      Subsecs. (f), (g). Pub. L. 100-233, Sec. 613(b)(2), added
    subsecs. (f) and (g).
      Subsec. (h). Pub. L. 100-233, Sec. 613(c), added subsec. (h).
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by Pub. L. 101-508 effective Nov. 29, 1990, see section
    1301 of Pub. L. 101-508, set out as a note under section 511r of
    this title.
                      EFFECTIVE AND TERMINATION DATES
      That part of section 1320 of Pub. L. 99-198, as amended by Pub.
    L. 100-233, title VI, Sec. 613(a), Jan. 6, 1988, 101 Stat. 1674;
    Pub. L. 101-508, title I, Sec. 1202(b)(2), Nov. 5, 1990, 104 Stat.
    1388-11, which provided that this section was effective only for
    the period beginning Dec. 23, 1985, and ending Sept. 30, 1995, was
    repealed by Pub. L. 104-127, title VI, Sec. 643(b), Apr. 4, 1996,
    110 Stat. 1103.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1983a of this title.
 
-CITE-
     7 USC Sec. 2000                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2000. Homestead protection
 
-STATUTE-
    (a) Definitions
      As used in this section:
        (1) The term ''Administrator'' means the Administrator of the
      Small Business Administration.
        (2) The term ''borrower-owner'' means -
          (A) a borrower of a loan made or insured by the Secretary or
        the Administrator who meets the eligibility requirements of
        subsection (c)(1) of this section; or
          (B) in any case in which an owner of homestead property
        pledged the property to secure the loan and the owner is
        different than the borrower, the owner.
        (3) The term ''farm program loan'' means any loan made by the
      Administrator under the Small Business Act (15 U.S.C. 631 et
      seq.) for any of the purposes authorized for loans under
      subchapters (FOOTNOTE 1) I or II of this chapter.
       (FOOTNOTE 1) So in original.  Probably should be ''subchapter''.
        (4) The term ''homestead property'' means the principal
      residence and adjoining property possessed and occupied by a
      borrower-owner specified in paragraph (2) of this subsection,
      including a reasonable number of farm outbuildings located on the
      adjoining land that are useful to the occupants of the homestead,
      and no more than 10 acres of adjoining land that is used to
      maintain the family of the individual.
        (5) The term ''Secretary'' means the Secretary of Agriculture.
    (b) Occupancy of homestead upon foreclosure, bankruptcy, or
        liquidation; appraisal; period of occupancy
      (1) The Secretary or the Administrator shall, on application by a
    borrower-owner who meets the eligibility requirements of subsection
    (c)(1) of this section, permit the borrower-owner to retain
    possession and occupancy of homestead property under the terms set
    forth, and until the action described in this section has been
    completed, if -
        (A) the Secretary forecloses, holds in inventory on January 6,
      1988, or takes into inventory, property securing a loan made or
      insured under this chapter;
        (B) the Administrator forecloses, holds in inventory on January
      6, 1988, or takes into inventory, property securing a farm
      program loan made under the Small Business Act (15 U.S.C. 631 et
      seq.); or
        (C) the borrower-owner of a loan made or insured by the
      Secretary or the Administrator files a petition in bankruptcy
      that results in the conveyance of the homestead property to the
      Secretary or the Administrator, or agrees to voluntarily
      liquidate or convey such property in whole or in part.
      (2) The value of the homestead property shall be determined
    insofar as possible by an independent appraisal made within six
    months from the date of the borrower-owner's application to retain
    possession and occupancy of the homestead property.
      (3) The period of occupancy of homestead property under this
    subsection may not exceed five years, but in no case shall the
    Secretary or the Administrator grant a period of occupancy less
    than three years, subject to compliance with the requirements of
    subsection (c) of this section.
    (c) Terms and conditions
      (1) To be eligible to occupy homestead property, a borrower-owner
    of a loan made or insured by the Secretary or the Administrator
    shall -
        (A) apply for such occupancy not later than 30 days after the
      property is acquired by the Secretary or Administrator, or for
      property in inventory on January 6, 1988, the borrower-owner
      shall apply for occupancy not later than 30 days after January 6,
      1988;
        (B) have received from farming or ranching operations gross
      farm income reasonably commensurate with -
          (i) the size and location of the farming unit of the
        borrower-owner; and
          (ii) local agricultural conditions (including natural and
        economic conditions), in at least 2 calendar years during the
        6-year period preceding the calendar year in which the
        application is made;
        (C) have received from farming or ranching operations at least
      60 percent of the gross annual income of the borrower-owner and
      any spouse of the borrower-owner in at least 2 calendar years
      during any 6-year period described in subparagraph (B);
        (D) have continuously occupied the homestead property during
      the 6-year period described in subparagraph (B), except that such
      requirement may be waived if a borrower-owner has, due to
      circumstances beyond the control of the borrower-owner, had to
      leave the homestead property for a period of time not to exceed
      12 months during the 6-year period;
        (E) during the period of the occupancy of the homestead
      property, pay a reasonable sum as rent for such property to the
      Secretary or the Administrator in an amount substantially
      equivalent to rents charged for similar residential properties in
      the area in which the homestead property is located;
        (F) during the period of the occupancy of the homestead
      property, maintain the property in good condition; and
        (G) meet such other reasonable and necessary terms and
      conditions as the Secretary may require consistent with this
      section.
      (2) For purposes of subparagraphs (B) and (C) of paragraph (1),
    the term ''farming or ranching operations'' shall include rent paid
    by lessees of agricultural land during any period in which the
    borrower-owner, due to circumstances beyond the control of the
    borrower-owner, is unable to actively farm such land.
      (3) For the purposes of paragraph (1)(E), the failure of the
    borrower-owner to make timely rental payments shall constitute
    cause for the termination of all rights of such borrower-owner to
    possession and occupancy of the homestead property under this
    section.  In effecting any such termination, the Secretary shall
    afford the borrower-owner or lessee the notice and hearing
    procedural rights described in section 1983b (FOOTNOTE 2) of this
    title and shall comply with all applicable State and local laws
    governing eviction from residential property.
       (FOOTNOTE 2) See References in Text note below.
      (4)(A) The period of occupancy allowed the prior owner of
    homestead property under this section shall be the period requested
    in writing by the prior owner, except that such period shall not
    exceed 5 years.
      (B) At any time during the period of occupancy, the
    borrower-owner shall have a right of first refusal to reacquire the
    homestead property on such terms and conditions as the Secretary
    shall determine, except that the Secretary may not demand a payment
    for the homestead property that is in excess of the current market
    value of the homestead property as established by an independent
    appraisal.  The independent appraisal shall be conducted by an
    appraiser selected by the borrower-owner from a list of three
    appraisers approved by the county supervisor.
      (5) No rights of a borrower-owner under this section, and no
    agreement entered into between the borrower-owner and the Secretary
    for occupancy of the homestead property, shall be transferable or
    assignable by the borrower-owner or by operation of any law, except
    that in the case of death or incompetency of such borrower-owner,
    such rights and agreements shall be transferable to the spouse of
    the borrower-owner if the spouse agrees to comply with the terms
    and conditions thereof.
      (6) Not later than the date of acquisition of the property
    securing a loan made under this chapter (or, in the case of real
    property in inventory on April 4, 1996, not later than 5 days after
    April 4, 1996), the Secretary shall notify the borrower-owner from
    whom the property was acquired of the availability of homestead
    protection rights under this section.
    (d) First right of refusal of reacquisition
      At the end of the period of occupancy described in subsection (c)
    of this section, the Secretary or the Administrator shall grant to
    the borrower-owner a first right of refusal to reacquire the
    homestead property on such terms and conditions (which may include
    payment of principal in installments) as the Secretary or the
    Administrator shall determine.  Such terms and conditions shall not
    be less favorable than those intended to be offered to any other
    buyer.
    (e) Value as measure of reacquisition payment of principal
      At the time any reacquisition agreement is entered into, the
    Secretary or the Administrator may not demand a total payment of
    principal that is in excess of the value of the homestead property
    as established under subsection (b)(2) of this section.
    (f) Contract authority
      The Secretary may enter into contracts authorized by this section
    before the Secretary acquires title to the homestead property.
    (g) Conflict between Federal and State law
      In the event of any conflict between this section and any
    provision of the law of any State relating to the right of a
    borrower-owner to designate for separate sale or redeem part or all
    of the real property securing a loan foreclosed on by the lender
    thereof, such provision of State law shall prevail.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 352, as added Pub. L. 99-198,
    title XIII, Sec. 1321, Dec. 23, 1985, 99 Stat. 1532; amended Pub.
    L. 100-233, title VI, Sec. 614, Jan. 6, 1988, 101 Stat. 1675; Pub.
    L. 102-237, title V, Sec. 501(g), title VII, Sec. 701(h)(2), Dec.
    13, 1991, 105 Stat. 1867, 1880; Pub. L. 102-552, title V, Sec.
    516(i), (j)(1), Oct. 28, 1992, 106 Stat. 4138; Pub. L. 104-127,
    title VI, Sec. 644, Apr. 4, 1996, 110 Stat. 1103.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Small Business Act, referred to in subsecs. (a)(3) and
    (b)(1)(B), is Pub. L. 85-536, July 18, 1958, 72 Stat. 384, as
    amended, which is classified generally to chapter 14A (Sec. 631 et
    seq.) of Title 15, Commerce and Trade. For complete classification
    of this Act to the Code, see Short Title note set out under section
    631 of Title 15 and Tables.
      For definition of ''this chapter'', referred to in subsecs.
    (b)(1)(A) and (c)(6), see note set out under section 1921 of this
    title.
      Section 1983b of this title, referred to in subsec. (c)(3), was
    repealed by Pub. L. 103-354, title II, Sec. 281(c), Oct. 13, 1994,
    108 Stat. 3233.
 
-MISC2-
                                 AMENDMENTS
      1996 - Subsec. (c)(1)(A). Pub. L. 104-127, Sec. 644(1),
    substituted ''30'' for ''90'' in two places.
      Subsec. (c)(6). Pub. L. 104-127, Sec. 644(2), substituted ''Not
    later than the date of acquisition of the property securing a loan
    made under this chapter (or, in the case of real property in
    inventory on April 4, 1996, not later than 5 days after April 4,
    1996),'' for ''Within 30 days of the acquisition of the homestead
    property securing a loan made or insured under this chapter,'' and
    struck out at end ''For property in inventory on January 6, 1988,
    the Secretary shall make a good faith effort to notify the
    borrower-owner of the availability of homestead protection rights
    under this section within 60 days after January 6, 1988.''
      1992 - Subsec. (a)(4), (5). Pub. L. 102-552, Sec. 516(i),
    redesignated par. (4), defining ''Secretary'', as (5).
      Subsec. (b)(2). Pub. L. 102-552, Sec. 516(j)(1), substituted
    ''borrower-owner's'' for ''borrower's''.
      1991 - Subsec. (a)(2) to (4). Pub. L. 102-237, Sec. 501(g), added
    par. (2), redesignated former pars. (2) and (3) as (3) and (4),
    respectively, and substituted ''borrower-owner'' for ''borrower''
    in redesignated par. (4).
      Subsec. (b)(1). Pub. L. 102-237, Sec. 501(g)(2), substituted
    ''borrower-owner'' for ''borrower'' wherever appearing.
      Subsec. (b)(3). Pub. L. 102-237, Sec. 701(h)(2), struck out
    ''be'' after ''shall''.
      Subsecs. (c), (d), (g). Pub. L. 102-237, Sec. 501(g)(2),
    substituted ''borrower-owner'' for ''borrower'' wherever appearing.
      1988 - Subsec. (a)(3). Pub. L. 100-233, Sec. 614(1), inserted '',
    including a reasonable number of farm outbuildings located on the
    adjoining land that are useful to the occupants of the homestead,
    and no more than 10 acres of adjoining land that is used to
    maintain the family of the individual''.
      Subsec. (b)(1). Pub. L. 100-233, Sec. 614(2), added par. (1) and
    struck out former par. (1) which read as follows: ''If the
    Secretary forecloses a loan made or insured under this chapter, the
    Administrator forecloses a farm program loan made under the Small
    Business Act (15 U.S.C. 631 et seq.), or a borrower of a loan made
    or insured by either agency declares bankruptcy or goes into
    voluntary liquidation to avoid foreclosure or bankruptcy, the
    Secretary or Administrator may upon application by the borrower,
    permit the borrower to retain possession and occupancy of any
    principal residence of the borrower, and a reasonable amount of
    adjoining land for the purpose of family maintenance.''
      Subsec. (c). Pub. L. 100-233, Sec. 614(3), completely revised and
    restated subsec. (c), substituting pars. (1) to (6) for former
    pars. (1) to (8).
      Subsec. (d). Pub. L. 100-233, Sec. 614(3), inserted at end ''Such
    terms and conditions shall not be less favorable than those
    intended to be offered to any other buyer.''
      Subsecs. (f), (g). Pub. L. 100-233, Sec. 614(4), added subsecs.
    (f) and (g).
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-127 effective Apr. 4, 1996, but not
    applicable with respect to complete application to acquire
    inventory property submitted prior to Apr. 4, 1996, see section
    663(a), (c) of Pub. L. 104-127, set out as a note under section
    1922 of this title.
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 516(j)(2) of Pub. L. 102-552 provided that: ''The
    amendment made by paragraph (1) of this subsection (amending this
    section) shall take effect at the same time as the amendments made
    by section 501(f) of the Food, Agriculture, Conservation, and Trade
    Act Amendments of 1991 (Public Law 102-237; 105 Stat. 1867)
    (amending section 1985 of this title) took effect.''
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by section 701(h)(2) of Pub. L. 102-237 to any
    provision specified therein effective as if included in act that
    added provision so specified at the time such act became law, see
    section 1101(c) of Pub. L. 102-237, set out as a note under section
    1421 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1991 of this title.
 
-CITE-
     7 USC Sec. 2001                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2001. Debt restructuring and loan servicing
 
-STATUTE-
    (a) In general
      The Secretary shall modify delinquent farmer program loans made
    or insured under this chapter, or purchased from the lender or the
    Federal Deposit Insurance Corporation under section 1929b of this
    title, to the maximum extent possible -
        (1) to avoid losses to the Secretary on such loans, with
      priority consideration being placed on writing-down the loan
      principal and interest (subject to subsections (d) and (e) of
      this section), and debt set-aside (subject to subsection (e) of
      this section), whenever these procedures would facilitate keeping
      the borrower on the farm or ranch, or otherwise through the use
      of primary loan service programs as provided in this section; and
        (2) to ensure that borrowers are able to continue farming or
      ranching operations.
    (b) Eligibility
      To be eligible to obtain assistance under subsection (a) of this
    section -
        (1) the delinquency must be due to circumstances beyond the
      control of the borrower, as defined in regulations issued by the
      Secretary, except that the regulations shall require that, if the
      value of the assets calculated under subsection (c)(2)(A)(ii) of
      this section that may be realized through liquidation or other
      methods would produce enough income to make the delinquent loan
      current, the borrower shall not be eligible for assistance under
      subsection (a) of this section;
        (2) the borrower must have acted in good faith with the
      Secretary in connection with the loan as defined in regulations
      issued by the Secretary;
        (3) the borrower must present a preliminary plan to the
      Secretary that contains reasonable assumptions that demonstrate
      that the borrower will be able to -
          (A) meet the necessary family living and farm operating
        expenses; and
          (B) service all debts, including those of the loans
        restructured; and
        (4) the loan, if restructured, must result in a net recovery to
      the Federal Government, during the term of the loan as
      restructured, that would be more than or equal to the net
      recovery to the Federal Government from an involuntary
      liquidation or foreclosure on the property securing the loan.
    (c) Restructuring determinations
      (1) Determination of net recovery
        In determining the net recovery from the involuntary
      liquidation of a loan under this section, the Secretary shall
      calculate -
          (A) the recovery value of the collateral securing the loan,
        in accordance with paragraph (2); and
          (B) the value of the restructured loan, in accordance with
        paragraph (3).
      (2) Recovery value
        For the purpose of paragraph (1), the recovery value of the
      collateral securing the loan shall be based on -
          (A)(i) the amount of the current appraised value of the
        interests of the borrower in the property securing the loan;
        plus
          (ii) the value of the interests of the borrower in all other
        assets that are -
            (I) not essential for necessary family living expenses;
            (II) not essential to the operation of the farm; and
            (III) not exempt from judgment creditors or in a bankruptcy
          action under Federal or State law; less
          (B) the estimated administrative, legal, and other expenses
        associated with the liquidation and disposition of the loan and
        collateral, including -
            (i) the payment of prior liens;
            (ii) taxes and assessments, depreciation, management costs,
          the yearly percentage decrease or increase in the value of
          the property, and lost interest income, each calculated for
          the average holding period for the type of property involved;
            (iii) resale expenses, such as repairs, commissions, and
          advertising; and
            (iv) other administrative and attorney's costs; plus
          (C) the value, as determined by the Secretary, of any
        property not included in subparagraph (A)(i) if the property is
        specified in any security agreement with respect to such loan
        and the Secretary determines that the value of such property
        should be included for purposes of this section.
      (3) Value of the restructured loan
        (A) In general
          For the purpose of paragraph (1), the value of the
        restructured loan shall be based on the present value of
        payments that the borrower would make to the Federal Government
        if the terms of such loan were modified under any combination
        of primary loan service programs to ensure that the borrower is
        able to meet such obligations and continue farming operations.
        (B) Present value
          For the purpose of calculating the present value referred to
        in subparagraph (A), the Secretary shall use a discount rate of
        not more than the current rate on 90-day Treasury bills.
        (C) Cash flow margin
          For the purpose of assessing under subparagraph (A) the
        ability of a borrower to meet debt obligations and continue
        farming operations, the Secretary shall assume that the
        borrower needs up to 100 percent of the amount indicated for
        payment of farm operating expenses, debt service obligations,
        and family living expenses.
      (4) Notification
        Within 90 days after receipt of a written request for
      restructuring from the borrower, the Secretary shall -
          (A) make the calculations specified in paragraphs (2) and
        (3);
          (B) notify the borrower in writing of the results of such
        calculations; and
          (C) provide documentation for the calculations.
      (5) Restructuring of loans
        If the value of the restructured loan is greater than or equal
      to the recovery value, the Secretary shall, within 45 days after
      notifying the borrower of such calculations, offer to restructure
      the loan obligations of the borrower under this chapter through
      primary loan service programs that would enable the borrower to
      meet the obligations (as modified) under the loan and to continue
      the farming operations of the borrower.  If the borrower accepts
      such offer, within 45 days after receipt of notice of acceptance,
      the Secretary shall restructure the loan accordingly.
      (6) Termination of loan obligations
        The obligations of a borrower to the Secretary under a loan
      shall terminate if -
          (A) the borrower satisfies the requirements of paragraphs (1)
        and (2) of subsection (b) of this section;
          (B) the value of the restructured loan is less than the
        recovery value; and
          (C) not later than 90 days after receipt of the notification
        described in paragraph (4)(B), the borrower pays (or obtains
        third-party financing to pay) the Secretary an amount equal to
        the current market value.
      (7) Negotiation of appraisal
        (A) In general
          In making a determination concerning restructuring under this
        subsection, the Secretary, at the request of the borrower,
        shall enter into negotiations concerning appraisals required
        under this subsection with the borrower.
        (B) Independent appraisal
          If the borrower, based on a separate current appraisal,
        objects to the decision of the Secretary regarding an
        appraisal, the borrower and the Secretary shall mutually agree,
        to the extent practicable, on an independent appraiser who
        shall conduct another appraisal of the borrower's property.
        The average of the two appraisals that are closest in value
        shall become the final appraisal under this paragraph.  The
        borrower and the Secretary shall each pay one-half of the cost
        of the independent appraisal.
    (d) Principal and interest write-down
      (1) In general
        (A) Priority consideration
          In selecting the restructuring alternatives to be used in the
        case of a borrower who has requested restructuring under this
        section, the Secretary shall give priority consideration to the
        use of principal and interest write-down, except that this
        procedure shall not be given first priority in the case of a
        borrower unless other creditors of such borrower (other than
        those creditors who are fully collateralized) representing a
        substantial portion of the total debt of the borrower held by
        such creditors, agree to participate in the development of the
        restructuring plan or agree to participate in a State mediation
        program.
        (B) Failure of creditors to agree
          Failure of creditors to agree to participate in the
        restructuring plan or mediation program shall not preclude the
        use of principal and interest write-down by the Secretary if
        the Secretary determines that this restructuring alternative
        results in the least cost to the Secretary.
      (2) Participation of creditors
        Before eliminating the option to use debt write-down in the
      case of a borrower, the Secretary shall make a reasonable effort
      to contact the creditors of such borrower, either directly or
      through the borrower, and encourage such creditors to participate
      with the Secretary in the development of a restructuring plan for
      the borrower.
    (e) Shared appreciation arrangements
      (1) In general
        As a condition of restructuring a loan in accordance with this
      section, the borrower of the loan may be required to enter into a
      shared appreciation arrangement that requires the repayment of
      amounts written off or set aside.
      (2) Terms
        Shared appreciation agreements shall have a term not to exceed
      10 years, and shall provide for recapture based on the difference
      between the appraised values of the real security property at the
      time of restructuring and at the time of recapture.
      (3) Percentage of recapture
        The amount of the appreciation to be recaptured by the
      Secretary shall be 75 percent of the appreciation in the value of
      such real security property if the recapture occurs within 4
      years of the restructuring, and 50 percent if the recapture
      occurs during the remainder of the term of the agreement.
      (4) Time of recapture
        Recapture shall take place at the end of the term of the
      agreement, or sooner -
          (A) on the conveyance of the real security property;
          (B) on the repayment of the loans; or
          (C) if the borrower ceases farming operations.
      (5) Transfer of title
        Transfer of title to the spouse of a borrower on the death of
      such borrower shall not be treated as a conveyance for the
      purpose of paragraph (4).
      (6) Notice of recapture
        Beginning with fiscal year 2000 not later than 12 months before
      the end of the term of a shared appreciation arrangement, the
      Secretary shall notify the borrower involved of the provisions of
      the arrangement.
    (f) Determination to restructure
      If the appeal process results in a determination that a loan is
    eligible for restructuring, the Secretary shall restructure the
    loan in the manner consistent with this section, taking into
    consideration the restructuring recommendations, if any, of the
    appeals officer.
    (g) Prerequisites to foreclosure or liquidation
      No foreclosure or other similar actions shall be taken to
    liquidate any loan determined to be ineligible for restructuring by
    the Secretary under this section -
        (1) until the borrower has been given the opportunity to appeal
      such decision; and
        (2) if the borrower appeals, the appeals process has been
      completed, and a determination has been made that the loan is
      ineligible for restructuring.
    (h) Time limits for restructuring
      Once an appeal has been filed under section 1983b (FOOTNOTE 1) of
    this title, a decision shall be made at each level in the appeals
    process within 45 days after the receipt of the appeal or request
    for further review.
       (FOOTNOTE 1) See References in Text note below.
    (i) Notice of ineligibility for restructuring
      (1) In general
        A notice of ineligibility for restructuring shall be sent to
      the borrower by registered or certified mail within 15 days after
      such determination.
      (2) Contents
        The notice required under paragraph (1) shall contain -
          (A) the determination and the reasons for the determination;
          (B) the computations used to make the determination,
        including the calculation of the recovery value of the
        collateral securing the loan; and
          (C) a statement of the right of the borrower to appeal the
        decision to the appeals division, and to appear before a
        hearing officer.
    (j) Independent appraisals
      An appeal filed with the appeals division under section 1983b of
    this title may include a request by the borrower for an independent
    appraisal of any property securing the loan.  On such request, the
    appeals division shall present the borrower with a list of three
    appraisers approved by the county supervisor, from which the
    borrower shall select an appraiser to conduct the appraisal, the
    cost of which shall be borne by the borrower.  The results of such
    appraisal shall be considered in any final determination concerning
    the loan.  A copy of any appraisal made under this paragraph shall
    be provided to the borrower.
    (k) Partial liquidations
      If partial liquidations are performed (with the prior consent of
    the Secretary) as part of loan servicing by a guaranteed lender
    under this chapter, the Secretary shall not require full
    liquidation of a delinquent loan in order for the lender to be
    eligible to receive payment on losses.
    (l) Disposition of normal income security
      For purposes of subsection (b)(2) of this section, if a borrower
    -
        (1) disposed of normal income security prior to October 14,
      1988, without the consent of the Secretary; and
        (2) demonstrates that -
          (A) the proceeds were utilized to pay essential household and
        farm operating expenses; and
          (B) the borrower would have been entitled to a release of
        income proceeds by the Secretary if the regulations in effect
        on November 28, 1990, had been in effect at the time of the
        disposition,
    the Secretary shall not consider the borrower to have acted without
    good faith to the extent of the disposition.
    (m) Only 1 write-down or net recovery buy-out per borrower for loan
        made after January 6, 1988
      (1) In general
        The Secretary may provide for any one borrower not more than 1
      write-down or net recovery buy-out under this section with
      respect to all loans made to the borrower after January 6, 1988.
      (2) Special rule
        For purposes of paragraph (1), the Secretary shall treat any
      loan made on or before January 6, 1988, with respect to which a
      restructuring, write-down, or net recovery buy-out is provided
      under this section after such date, as a loan made after such
      date.
    (n) Liquidation of assets
      The Secretary may not use the authority provided by this section
    to reduce or terminate any portion of the debt of the borrower that
    the borrower could pay through the liquidation of assets (or
    through the payment of the loan value of the assets, if the loan
    value is greater than the liquidation value) described in
    subsection (c)(2)(A)(ii) of this section.
    (o) Lifetime limitation on debt forgiveness per borrower
      The Secretary may provide not more than $300,000 in principal and
    interest forgiveness under this section per borrower.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 353, as added Pub. L. 100-233,
    title VI, Sec. 615(a), Jan. 6, 1988, 101 Stat. 1678; amended Pub.
    L. 101-624, title XVIII, Sec. 1816(a)-(d), (f)-(h), Nov. 28, 1990,
    104 Stat. 3826-3828; Pub. L. 102-237, title V, Sec. 501(h), Dec.
    13, 1991, 105 Stat. 1868; Pub. L. 104-127, title VI, Sec. 645,
    661(j), Apr. 4, 1996, 110 Stat. 1103, 1107; Pub. L. 105-277, div.
    A, Sec. 101(a) (title VIII, Sec. 807, 808), Oct. 21, 1998, 112
    Stat. 2681, 2681-40.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a),
    (c)(5), and (k), see note set out under section 1921 of this title.
      Section 1983b of this title, referred to in subsec. (h), was
    repealed by Pub. L. 103-354, title II, Sec. 281(c), Oct. 13, 1994,
    108 Stat. 3233.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (c)(3)(C). Pub. L. 105-277, Sec. 101(a) (title
    VIII, Sec. 808), substituted ''100 percent'' for ''110 percent''.
      Subsec. (e)(6). Pub. L. 105-277, Sec. 101(a) (title VIII, Sec.
    807), added par. (6).
      1996 - Subsec. (c)(3)(C). Pub. L. 104-127, Sec. 645(1)(A), added
    subpar. (C) and struck out heading and text of former subpar. (C).
    Text read as follows:
      ''(i) Assumption. - For the purpose of assessing under
    subparagraph (A) the ability of a borrower to meet debt obligations
    and continue farming operations, the Secretary shall assume that
    the borrower needs up to 105 percent of the amount indicated for
    payment of debt obligations.
      ''(ii) Available income. - If an amount up to 105 percent of the
    debt payments of the borrower has been earmarked for such payments,
    the Secretary shall consider the income of the borrower to be
    adequate to meet the debt obligations of the borrower.''
      Subsec. (c)(6). Pub. L. 104-127, Sec. 645(1)(B), added par. (6)
    and struck out former par. (6), which specified required conditions
    for termination of loan obligations, limited applicability of good
    faith requirement, authorized recapture by requiring borrower to
    enter into agreement before terminating loan obligations, and
    provided for limitation on recapture amount and treatment of
    intrafamily transfers.
      Subsec. (k). Pub. L. 104-127, Sec. 645(2), (3), redesignated
    subsec. (l) as (k) and struck out heading and text of former
    subsec. (k). Text read as follows: ''The creditworthiness of, or
    the adequacy of collateral offered by, any borrower whose loan
    obligations are restructured under this section shall be determined
    without regard to such restructuring.''
      Subsec. (l). Pub. L. 104-127, Sec. 661(j), struck out ''and
    subparagraphs (A)(i) and (C)(i) of section 1985(e)(1) of this
    title,'' before ''if a borrower'' in introductory provisions.
      Pub. L. 104-127, Sec. 645(3), redesignated subsec. (m) as (l).
      Subsecs. (m) to (p). Pub. L. 104-127, Sec. 645(3), redesignated
    subsecs. (m) to (p) as (l) to (o), respectively.
      1991 - Subsec. (c)(6)(A)(ii). Pub. L. 102-237, Sec. 501(h)(1),
    substituted ''November 28, 1990'' for ''the date of enactment of
    this paragraph''.
      Subsec. (m). Pub. L. 102-237, Sec. 501(h)(2), substituted
    ''section 1985(e)(1)'' for ''section 1985(e)(1)(A)''.
      1990 - Subsec. (b)(1). Pub. L. 101-624, Sec. 1816(a), inserted
    before semicolon at end '', except that the regulations shall
    require that, if the value of the assets calculated under
    subsection (c)(2)(A)(ii) of this section that may be realized
    through liquidation or other methods would produce enough income to
    make the delinquent loan current, the borrower shall not be
    eligible for assistance under subsection (a) of this section''.
      Subsec. (c)(2)(A). Pub. L. 101-624, Sec. 1816(b)(1), amended
    subpar. (A) generally.  Prior to amendment, subpar. (A) read as
    follows: ''the amount of the current appraised value of the
    property securing the loan; less''.
      Subsec. (c)(2)(B)(iv). Pub. L. 101-624, Sec. 1816(b)(2)(A),
    substituted ''costs; plus'' for ''costs.''
      Subsec. (c)(2)(C). Pub. L. 101-624, Sec. 1816(b)(2)(B), added
    subpar. (C).
      Subsec. (c)(3)(C). Pub. L. 101-624, Sec. 1816(c), added subpar.
    (C).
      Subsec. (c)(4). Pub. L. 101-624, Sec. 1816(d), substituted ''90''
    for ''60'' in introductory provisions.
      Subsec. (c)(6). Pub. L. 101-624, Sec. 1816(f), amended par. (6)
    generally.  Prior to amendment, par. (6) read as follows: ''If the
    value of the restructured loan is less than the recovery value and
    if, within 45 days after receipt of the notification described in
    paragraph (4)(B), the borrower pays (or obtains third-party
    financing to pay) the Secretary an amount equal to the recovery
    value, the obligations of the borrower to the Secretary under the
    loan shall terminate, except that the Secretary may require, as a
    condition of such termination of loan obligations, that the
    borrower enter into an agreement with the Secretary if the borrower
    sells or otherwise conveys the real property used to secure such
    loan within 2 years after the date of such agreement.  Any such
    agreement shall provide for the recapture of part or all of the
    difference between the recovery value of the loan and the fair
    market value (on the date of such agreement) of the property
    securing the loan if the borrower realizes a gain on the sale or
    conveyance over the amount of the recovery value of the loan.  In
    no event shall any such agreement provide for recapture of an
    amount that exceeds the difference between such recovery value and
    the fair market value of the property securing the loan on the date
    of such agreement.''
      Subsec. (c)(7). Pub. L. 101-624, Sec. 1816(g), added par. (7).
      Subsecs. (l) to (p). Pub. L. 101-624, Sec. 1816(h), added
    subsecs. (l) to (p).
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by section 645(1) of Pub. L. 104-127 effective 90 days
    after Apr. 4, 1996, and amendment by sections 645(2), (3) and
    661(j) of Pub. L. 104-127 effective Apr. 4, 1996, see section
    663(a), (b) of Pub. L. 104-127, set out as a note under section
    1922 of this title.
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by Pub. L. 102-237 effective as if included in the
    provision of the Food, Agriculture, Conservation, and Trade Act of
    1990, Pub. L. 101-624, to which the amendment relates, see section
    1101(b)(3) of Pub. L. 102-237, set out as a note under section 1421
    of this title.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Section 1861 of title XVIII of Pub. L. 101-624 provided that:
      ''(a) In General. - Except as otherwise provided in this title,
    this title and the amendments made by this title (enacting sections
    1981f and 2006a to 2006e of this title, section 2076a of Title 12,
    Banks and Banking, and section 494 of Title 25, Indians, amending
    this section, sections 1924, 1927, 1933, 1934, 1942, 1946, 1981,
    1981d, 1982, 1983, 1983a, 1983b, 1985, 1991, 1997, 2003, and 5106
    of this title, section 3132 of Title 5, Government Organization and
    Employees, sections 2019, 2075, 2077, 2218, 2252, 2254, 2277a-5,
    2277a-9, 2277a-10, 2277a-14, 2278a-6, 2279aa, and 2279aa-11 of
    Title 12, and section 492 of Title 25, enacting provisions set out
    as notes under section 1981f of this title and section 2001 of
    Title 12, amending provisions set out as a note under section 1985
    of this title, and repealing provisions set out as a note preceding
    section 1961 of this title) shall become effective on the date of
    enactment of this Act (Nov. 28, 1990).
      ''(b) Notice of Debt Settlement Programs. - The amendment made by
    section 1807(1) of this Act (amending section 1981d(b)(1) of this
    title) shall become effective 120 days after the date of enactment
    of this Act (Nov. 28, 1990).
      ''(c) Debt Restructuring and Loan Servicing. -
        ''(1) In general. - Except as provided in section
      353(c)(6)(A)(ii) of the Consolidated Farm and Rural Development
      Act (7 U.S.C. 2001(c)(6)(A)(iii)) (as added by section 1816(f) of
      this Act) and in paragraph (3) of this subsection, section 1816
      of this Act and the amendments made by such section 1816
      (amending this section and section 1985 of this title) shall
      apply to new applications submitted under section 353 of the
      Consolidated Farm and Rural Development Act (7 U.S.C. 2001) on or
      after the date of enactment of this Act (Nov. 28, 1990).
        ''(2) Definition of new application. - As used in paragraph
      (1), the term 'new application' means an application submitted by
      a borrower to initiate a debt restructuring consideration and not
      an application reconsidered after an appeal or revision of the
      original application.
        ''(3) Liquidation of assets. - Section 353(o) of the
      Consolidated Farm and Rural Development Act (7 U.S.C. 2001(o))
      (as added by section 1816(h) of this Act) shall not apply until
      the Secretary of Agriculture has issued final regulations to
      carry out such section 353(o).
      ''(d) Restoration of First Lien on Stock. - The amendment made by
    section 1833 of this Act (enacting section 2076a of Title 12 and
    amending section 2077 of Title 12) shall be effective as of January
    7, 1988.
      ''(e) Regulations. - As soon as practicable after the date of
    enactment of this Act (Nov. 28, 1990) -
        ''(1) the Secretary of Agriculture shall issue such regulations
      as are necessary to carry out subtitles A and C of this Act
      (probably means subtitles A (Sec. 1801-1824) and C (Sec.
      1851-1854) of title XVIII of Pub. L. 101-624, enacting sections
      1981f and 2006a to 2006e of this title and section 494 of Title
      25, amending this section, sections 1924, 1927, 1933, 1934, 1942,
      1946, 1981, 1981d, 1982, 1983, 1983a, 1983b, 1985, 1991, 1997,
      2003, and 5106 of this title and section 492 of Title 25,
      enacting provisions set out as a note under section 1981f of this
      title, amending provisions set out as a note under section 1985
      of this title, and repealing provisions set out as a note
      preceding section 1961 of this title) and the amendments made by
      such subtitles; and
        ''(2) the Farm Credit Administration shall issue such
      regulations as are necessary to carry out subtitle B of this Act
      (probably means subtitle B (Sec. 1831-1843) of title XVIII of
      Pub. L. 101-624, enacting section 2076a of Title 12, amending
      section 3132 of Title 5 and sections 2019, 2075, 2077, 2218,
      2252, 2254, 2277a-5, 2277a-9, 2277a-10, 2277a-14, 2278a-6,
      2279aa, and 2279aa-11 of Title 12, and enacting provisions set
      out as a note under section 2001 of Title 12) and the amendments
      made by such subtitle.''
        SUSPENSION OF COLLECTION ACTIVITIES DURING TRANSITION PERIOD
      Section 615(d) of Pub. L. 100-233 provided that: ''The Secretary
    of Agriculture shall not initiate any acceleration, foreclosure, or
    liquidation in connection with any delinquent farmer program loan
    before the date the Secretary has issued final regulations to carry
    out the amendments made by this section (enacting section 2001 of
    this title and amending sections 1927a and 1981 of this title).
    The preceding sentence shall not prohibit the Secretary from taking
    any action with respect to waste, fraud, or abuse by the
    borrower.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1985, 1991, 2001a, 2005,
    2008h of this title.
 
-CITE-
     7 USC Sec. 2001a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2001a. Debt restructuring and loan servicing for community
        facility loans
 
-STATUTE-
      The Secretary shall establish and implement a program that is
    similar to the program established under section 2001 of this
    title, except that the debt restructuring and loan servicing
    procedures shall apply to delinquent community facility program
    loans (rather than delinquent farmer program loans) made by the
    Farmers Home Administration to a hospital or health care facility
    under section 1926(a) of this title.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 353A, as added Pub. L. 101-624,
    title XXIII, Sec. 2384(a), Nov. 28, 1990, 104 Stat. 4050.)
 
-MISC1-
                                REGULATIONS
      Section 2384(b) of Pub. L. 101-624 provided that: ''Not later
    than 120 days after the date of enactment of this Act (Nov. 28,
    1990), the Secretary shall promulgate regulations, modeled after
    those promulgated under such section 353 (7 U.S.C. 2001), that
    implement the program established under section 353A of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 2001a).''
 
-CITE-
     7 USC Sec. 2002                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2002. Transfer of inventory lands
 
-STATUTE-
    (a) In general
      Subject to subsection (b) of this section, the Secretary may
    transfer to any Federal or State agency, for conservation purposes
    any real property, or interest therein, administered by the
    Secretary under this Act -
        (1) with respect to which the rights of all prior owners and
      operators have expired;
        (2) that is eligible to be disposed of in accordance with
      section 1985 of this title; and
        (3) that -
          (A) has marginal value for agricultural production;
          (B) is environmentally sensitive; or
          (C) has special management importance.
    (b) Conditions
      The Secretary may not transfer any property or interest in
    property under subsection (a) of this section unless -
        (1) at least 2 public notices are given of the transfer;
        (2) if requested, at least 1 public meeting is held prior to
      the transfer; and
        (3) the Governor and at least 1 elected county official of the
      State and county where the property is located are consulted
      prior to the transfer.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 354, as added Pub. L. 100-233,
    title VI, Sec. 616, Jan. 6, 1988, 101 Stat. 1682; amended Pub. L.
    104-127, title VI, Sec. 646, Apr. 4, 1996, 110 Stat. 1103.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      This Act, referred to in subsec. (a), refers to the Agricultural
    Act of 1961, Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 294, as
    amended.  For classification of this Act to the Code, see Short
    Title note set out under section 1911 of this title and Tables.
    However, the reference was probably intended to be ''this title''
    meaning the Consolidated Farm and Rural Development Act, title III
    of Pub. L. 87-128, as amended, which is classified principally to
    this chapter.  For classification of this title to the Code, see
    Short Title note set out under section 1921 of this title and
    Tables.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 designated existing provisions as subsec.
    (a), inserted heading, substituted ''Subject to subsection (b) of
    this section, the Secretary'' for ''The Secretary, without
    reimbursement,'' in introductory provisions, added par. (2) and
    struck out former par. (2) which read as follows: ''that is
    determined by the Secretary to be suitable or surplus; and'', and
    added subsec. (b).
 
-CITE-
     7 USC Sec. 2003                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2003. Target participation rates
 
-STATUTE-
    (a) Establishment
      (1) In general
        The Secretary shall establish annual target participation
      rates, on a county wide basis, that shall ensure that members of
      socially disadvantaged groups will receive loans made or insured
      under subchapter I of this chapter and will have the opportunity
      to purchase or lease inventory farmland.
      (2) Group population
        Except as provided in paragraph (3), in establishing such
      target rates the Secretary shall take into consideration the
      portion of the population of the county made up of such groups,
      and the availability of inventory farmland in such county.
      (3) Gender
        With respect to gender, target participation rates shall take
      into consideration the number of current and potential socially
      disadvantaged farmers and ranchers in a State in proportion to
      the total number of farmers and ranchers in the State.
    (b) Reservation and allocation
      (1) Reservation
        The Secretary shall, to the greatest extent practicable,
      reserve sufficient loan funds made available under subchapter I
      of this chapter, for use by members of socially disadvantaged
      groups identified under target participation rates established
      under subsection (a) of this section.
      (2) Allocation
        The Secretary shall allocate such loans on the basis of the
      proportion of members of socially disadvantaged groups in a
      county and the availability of inventory farmland, with the
      greatest amount of loan funds being distributed in the county
      with the greatest proportion of socially disadvantaged group
      members and the greatest amount of available inventory farmland.
      (3) Indian reservations
        In distributing loan funds in counties within the boundaries of
      an Indian reservation, the Secretary shall allocate the funds on
      a reservation-wide basis.
    (c) Operating loans
      (1) Establishment
        The Secretary shall establish annual target participation
      rates, that shall ensure that socially disadvantaged farmers or
      ranchers will receive loans made or insured under subchapter II
      of this chapter.  In establishing such target rates, the
      Secretary shall consider the number of socially disadvantaged
      farmers and ranchers in a State in proportion to the total number
      of farmers and ranchers in that State.
      (2) Reservation and allocation
        The Secretary shall, to the greatest extent practicable,
      reserve and allocate the proportion of each State's loan funds
      made available under subchapter II of this chapter that is equal
      to that State's target participation rate for use by the socially
      disadvantaged farmers or ranchers in that State. The Secretary
      shall, to the extent practicable, distribute the total so derived
      on a county by county basis according to the number of socially
      disadvantaged farmers or ranchers in the county.  Any funds
      reserved and allocated for purposes of this paragraph, but not
      used shall be reallocated within such State.
    (d) Report
      The Secretary shall prepare and submit, to the Committee on
    Agriculture of the House of Representatives and the Committee on
    Agriculture, Nutrition, and Forestry of the Senate, a report that
    describes the annual target participation rates and the success in
    meeting such rates.
    (e) Definitions
      (1) Socially disadvantaged group
        As used in this section, the term ''socially disadvantaged
      group'' means a group whose members have been subjected to
      racial, ethnic, or gender prejudice because of their identity as
      members of a group without regard to their individual qualities.
      (2) Socially disadvantaged farmer or rancher
        As used in this section, the term ''socially disadvantaged
      farmer or rancher'' means a farmer or rancher who is a member of
      a socially disadvantaged group.
    (f) Implementation consistent with Supreme Court holding
      Not later than 180 days after April 4, 1996, the Secretary shall
    ensure that the implementation of this section is consistent with
    the holding of the Supreme Court in Adarand Constructors, Inc. v.
    Federico Pena, Secretary of Transportation, 115 S. Ct. 2097 (1995).
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 355, as added Pub. L. 100-233,
    title VI, Sec. 617, Jan. 6, 1988, 101 Stat. 1682; amended Pub. L.
    101-624, title XVIII, Sec. 1817, title XXV, Sec. 2501(f), Nov. 28,
    1990, 104 Stat. 3829, 4065; Pub. L. 102-554, Sec. 21(a), (b), Oct.
    28, 1992, 106 Stat. 4161; Pub. L. 104-127, title VI, Sec. 647, Apr.
    4, 1996, 110 Stat. 1104.)
 
-MISC1-
                                 AMENDMENTS
      1996 - Subsec. (f). Pub. L. 104-127 added subsec. (f).
      1992 - Subsec. (a)(2). Pub. L. 102-554, Sec. 21(a)(1),
    substituted ''Except as provided in paragraph (3), in
    establishing'' for ''In establishing''.
      Subsec. (a)(3). Pub. L. 102-554, Sec. 21(a)(2), added par. (3).
      Subsec. (e)(1). Pub. L. 102-554, Sec. 21(b), substituted '',
    ethnic, or gener'' for ''or ethnic''.
      1990 - Subsec. (b)(3). Pub. L. 101-624, Sec. 1817, added par.
    (3).
      Subsecs. (c), (d). Pub. L. 101-624, Sec. 2501(f)(1)-(3), added
    subsec. (c), redesignated former subsec. (c) as (d), and struck out
    former subsec. (d) which read as follows: ''As used in this
    section, the term 'socially disadvantaged group' means a group
    whose members have been subjected to racial or ethnic prejudice
    because of their identity as members of a group without regard to
    their individual qualities.''
      Subsec. (e). Pub. L. 101-624, Sec. 2501(f)(4), added subsec. (e).
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 2279 of this title; title
    16 section 590h.
 
-CITE-
     7 USC Sec. 2004                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2004. Expedited clearing of title to inventory property
 
-STATUTE-
      The Farmers Home Administration may employ local attorneys, on a
    case-by-case basis, to process all legal procedures necessary to
    clear the title to foreclosed properties in the inventory of the
    Farmers Home Administration. Such attorneys shall be compensated at
    not more than their usual and customary charges for such work.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 356, as added Pub. L. 100-233,
    title VI, Sec. 618, Jan. 6, 1988, 101 Stat. 1683.)
 
-CITE-
     7 USC Sec. 2005                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2005. Payment of losses on guaranteed loans
 
-STATUTE-
    (a) Payments to lenders
      (1) Requirement
        Within 3 months after a court of competent jurisdiction
      confirms a plan of reorganization under chapter 12 of title 11,
      for any borrower to whom a lender has made a loan guaranteed
      under this chapter, the Secretary shall pay the lender an amount
      estimated by the Secretary to be equal to the loss incurred by
      the lender for purposes of the guarantee.
      (2) Payment toward loan guarantee
        Any amount paid to a lender under this subsection with respect
      to a loan guaranteed under this chapter shall be treated as
      payment towards satisfaction of the loan guarantee.
    (b) Administration
      (1) Loss by lender
        If the lender of a guaranteed farmer program loan takes any
      action described in section 1981(b)(4) of this title with respect
      to the loan and the Secretary approves such action, then, for
      purposes of the guarantee, the lender shall be treated as having
      sustained a loss equal to the amount by which -
          (A) the outstanding balance of the loan immediately before
        such action, exceeds
          (B) the outstanding balance of the loan immediately after
        such action.
      (2) Net present value of loan
        The Secretary shall approve the taking of an action described
      in section 1981(b)(4) of this title by the lender of a guaranteed
      farmer program loan with respect to the loan if such action
      reduces the net present value of the loan to an amount equal to
      not less than the greater of -
          (A) the greatest net present value of a loan the borrower
        could reasonably be expected to repay; and
          (B) the greatest amount that the lender of the loan could
        reasonably expect to recover from the borrower through
        bankruptcy, or liquidation of the property securing the loan,
        less all reasonable and necessary costs and expenses that the
        lender of the loan could reasonably expect to incur to preserve
        or dispose of such property (including all associated legal and
        property management costs) in the course of such a bankruptcy
        or liquidation.
      (3) Construction of subsection
        This subsection shall not be construed to limit the authority
      of the Secretary to enter into a shared appreciation arrangement
      with a borrower, or the terms and conditions which shall be
      required of a borrower, under section 2001(e) of this title.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 357, as added Pub. L. 100-233,
    title VI, Sec. 619, Jan. 6, 1988, 101 Stat. 1683; amended Pub. L.
    101-624, title XXIII, Sec. 2388(d)(2), Nov. 28, 1990, 104 Stat.
    4053.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsec. (a),
    see note set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1990 - Subsec. (b)(1), (2). Pub. L. 101-624 substituted
    ''1981(b)(4)'' for ''1981(d)''.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1991 of this title.
 
-CITE-
     7 USC Sec. 2006                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006. Waiver of mediation rights by borrowers
 
-STATUTE-
      The Secretary may not make, insure, or guarantee any farmer
    program loan to a farm borrower on the condition that the borrower
    waive any right under the mediation program of any State.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 358, as added Pub. L. 100-233,
    title V, Sec. 512, Jan. 6, 1988, 101 Stat. 1664; amended Pub. L.
    103-354, title II, Sec. 282(f)(3), Oct. 13, 1994, 108 Stat. 3235.)
 
-MISC1-
                                 AMENDMENTS
      1994 - Pub. L. 103-354 struck out ''agricultural loan'' before
    ''mediation program''.
 
-CITE-
     7 USC Sec. 2006a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006a. Borrower training
 
-STATUTE-
    (a) In general
      The Secretary shall enter into contracts to provide educational
    training to all borrowers of farmer program direct loans made under
    this chapter in financial and farm management concepts associated
    with commercial farming.
    (b) Contract
      (1) In general
        The Secretary may contract with State or private providers of
      farm management and credit counseling services (including a
      community college, the extension service of a State, a State
      department of agriculture, or a nonprofit organization) to carry
      out this section.
      (2) Consultation
        The Secretary may consult with the chief executive officer of a
      State concerning the identity of the contracting organization and
      the process for contracting.
    (c) Eligibility for loans
      (1) In general
        Subject to paragraph (2), to be eligible to obtain a direct
      loan under this chapter, a borrower must obtain management
      assistance under this section, appropriate to the management
      ability of the borrower (as determined by the appropriate county
      committee established pursuant to section 1982 (FOOTNOTE 1) of
      this title, during the determination of eligibility for the
      loan).
       (FOOTNOTE 1) See References in Text note below.
      (2) Loan conditions
        The need of a borrower who satisfies the criteria set out in
      section 1922(a)(2) or 1941(a)(2) of this title for management
      assistance under this section shall not be cause for denial of
      eligibility of the borrower for a direct loan under this chapter.
    (d) Guidelines and curriculum
      The Secretary shall issue regulations establishing guidelines and
    curriculum for the borrower training program established under this
    section.
    (e) Payment
      A borrower shall pay for training received under this section,
    and may use funds from operating loans made under subchapter II of
    this chapter to pay for the training.
    (f) Waivers
      The Secretary may waive the requirements of this section for an
    individual borrower on a determination by the county committee that
    the borrower demonstrates adequate knowledge in areas described in
    this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 359, as added Pub. L. 101-624,
    title XVIII, Sec. 1818(a), Nov. 28, 1990, 104 Stat. 3829; amended
    Pub. L. 105-277, div.  A, Sec. 101(a) (title VIII, Sec. 805(3)),
    Oct. 21, 1998, 112 Stat. 2681, 2681-39.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a)
    and (c), see note set out under section 1921 of this title.
      Section 1982 of this title, referred to in subsec. (c)(1), was
    repealed by Pub. L. 103-354, title II, Sec. 227(b)(1), Oct. 13,
    1994, 108 Stat. 3218.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (a). Pub. L. 105-277, Sec. 101(a) (title VIII,
    Sec. 805(3)(A)), struck out ''and guaranteed'' after ''direct''.
      Subsec. (c). Pub. L. 105-277, Sec. 101(a) (title VIII, Sec.
    805(3)(B)), struck out ''or guaranteed'' after ''direct'' in pars.
    (1) and (2).
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1942, 1949, 1981, 2006b
    of this title.
 
-CITE-
     7 USC Sec. 2006b                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006b. Loan assessments
 
-STATUTE-
    (a) In general
      After an applicant is determined eligible for assistance under
    this chapter by the appropriate county committee established
    pursuant to section 1982 (FOOTNOTE 1) of this title, the Secretary
    shall evaluate, in accordance with regulations issued by the
    Secretary, the farming plan and financial situation of each
    qualified farmer or rancher applicant.
       (FOOTNOTE 1) See References in Text note below.
    (b) Determinations
      In evaluating the farming plan and financial situation of an
    applicant under this section, the Secretary shall determine -
        (1) the amount that the applicant will need to borrow to carry
      out the proposed farming plan;
        (2) the rate of interest that the applicant would need to be
      able to cover expenses and build an adequate equity base;
        (3) the goals of the proposed farming plan of the applicant;
        (4) the financial viability of the plan and any changes that
      are necessary to make the plan viable; and
        (5) whether assistance is necessary under this chapter and, if
      so, the amount of the assistance.
    (c) Contract
      The Secretary may contract with a third party (including those
    entities eligible to provide borrower training under section
    2006a(b) of this title) to conduct loan assessments under this
    section.
    (d) Review of loans
      (1) In general
        Loan assessments conducted under this section shall include
      biannual review of direct loans, and periodic review (as
      determined necessary by the Secretary) of guaranteed loans, made
      under this chapter to assess the progress of a borrower in
      meeting the goals for the farm or ranch operation.
      (2) Contracts
        The Secretary may contract with an entity that is eligible to
      provide borrower training under section 2006a(b) of this title to
      conduct loan reviews under paragraph (1).
      (3) Problem assessments
        If a borrower is delinquent in payments on a direct or
      guaranteed loan made under this chapter, the Secretary or the
      contracting entity shall determine the cause of, and action
      necessary to correct, the delinquency.
    (e) Guidelines
      The Secretary shall issue regulations providing guidelines for
    loan assessments conducted under this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 360, as added Pub. L. 101-624,
    title XVIII, Sec. 1819, Nov. 28, 1990, 104 Stat. 3830.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in subsecs. (a),
    (b)(5), and (d)(1), (3), see note set out under section 1921 of
    this title.
      Section 1982 of this title, referred to in subsec. (a), was
    repealed by Pub. L. 103-354, title II, Sec. 227(b)(1), Oct. 13,
    1994, 108 Stat. 3218.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1935, 1949, 1983a of this
    title.
 
-CITE-
     7 USC Sec. 2006c                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006c. Supervised credit
 
-STATUTE-
      The Secretary shall provide adequate training to employees of the
    Farmers Home Administration on credit analysis and financial and
    farm management to -
        (1) better acquaint the employees with what constitutes
      adequate financial data on which to base a direct or guaranteed
      loan approval decision; and
        (2) ensure proper supervision of farmer program loans.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 361, as added Pub. L. 101-624,
    title XVIII, Sec. 1820, Nov. 28, 1990, 104 Stat. 3830.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1949 of this title.
 
-CITE-
     7 USC Sec. 2006d                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006d. Market placement
 
-STATUTE-
      The Secretary shall establish a market placement program for
    qualified beginning farmers and ranchers and other borrowers of
    farmer program loans that the Secretary believes have a reasonable
    chance of qualifying for commercial credit with a guarantee
    provided under this chapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 362, as added Pub. L. 101-624,
    title XVIII, Sec. 1821, Nov. 28, 1990, 104 Stat. 3831.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 1949, 1983a of this
    title.
 
-CITE-
     7 USC Sec. 2006e                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006e. Prohibition on use of loans for certain purposes
 
-STATUTE-
      The Secretary shall not approve any loan under this chapter to
    drain, dredge, fill, level, or otherwise manipulate a wetland (as
    defined in section 3801(a)(16) (FOOTNOTE 1) of title 16), or to
    engage in any activity that results in impairing or reducing the
    flow, circulation, or reach of water, except in the case of
    activity related to the maintenance of previously converted
    wetlands, or in the case of such activity that is already commenced
    before November 28, 1990. This section shall not apply to a loan
    made or guaranteed under this chapter for a utility line.
       (FOOTNOTE 1) See References in Text note below.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 363, as added Pub. L. 101-624,
    title XVIII, Sec. 1824, Nov. 28, 1990, 104 Stat. 3831; amended Pub.
    L. 102-237, title V, Sec. 501(i), Dec. 13, 1991, 105 Stat. 1868;
    Pub. L. 104-127, title VII, Sec. 751, Apr. 4, 1996, 110 Stat.
    1129.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
      Section 3801(a) of title 16, referred to in text, was
    subsequently amended, and section 3801(a)(16) no longer defines the
    term ''wetland''. However, such term is defined elsewhere in that
    section.
 
-MISC2-
                                 AMENDMENTS
      1996 - Pub. L. 104-127 inserted at end ''This section shall not
    apply to a loan made or guaranteed under this chapter for a utility
    line.''
      1991 - Pub. L. 102-237 inserted a closing parenthesis after
    ''3801(a)(16) of title 16'' and substituted ''before November 28,
    1990'' for ''prior to the date of enactment of this section''.
                      EFFECTIVE DATE OF 1991 AMENDMENT
      Amendment by Pub. L. 102-237 effective as if included in the
    provision of the Food, Agriculture, Conservation, and Trade Act of
    1990, Pub. L. 101-624, to which the amendment relates, see section
    1101(b)(3) of Pub. L. 102-237, set out as a note under section 1421
    of this title.
 
-CITE-
     7 USC Sec. 2006f                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2006f. Rural development certified lenders program
 
-STATUTE-
    (a) Certified lenders program
      (1) In general
        The Secretary may establish a program under which the Secretary
      may guarantee a loan for any rural development program that is
      made by a lender certified by the Secretary.
      (2) Certification requirements
        The Secretary may certify a lender if the lender meets such
      criteria as the Secretary may prescribe in regulations, including
      the ability of the lender to properly make, service, and
      liquidate the guaranteed loans of the lender.
      (3) Condition of certification
        As a condition of certification, the Secretary may require the
      lender to undertake to service the guaranteed loan using
      standards that are not less stringent than generally accepted
      banking standards concerning loan servicing that are used by
      prudent commercial or cooperative lenders.
      (4) Guarantee
        Notwithstanding any other provision of law, the Secretary may
      guarantee not more than 80 percent of a loan made by a certified
      lender described in paragraph (1), if the borrower of the loan
      meets the eligibility requirements and such other criteria for
      the loan guarantee that are established by the Secretary.
      (5) Certifications
        With respect to loans to be guaranteed, the Secretary may
      permit a certified lender to make appropriate certifications (as
      provided in regulations issued by the Secretary) -
          (A) relating to issues such as creditworthiness, repayment
        ability, adequacy of collateral, and feasibility of the
        operation; and
          (B) that the borrower is in compliance with all requirements
        of law, including regulations issued by the Secretary.
      (6) Relationship to other requirements
        This subsection shall not affect the responsibility of the
      Secretary to determine eligibility, review financial information,
      and otherwise assess an application.
    (b) Preferred certified lenders program
      (1) In general
        The Secretary may establish a preferred certified lenders
      program for lenders who establish their -
          (A) knowledge of, and experience under, the program
        established under subsection (a) of this section;
          (B) knowledge of the regulations concerning the particular
        guaranteed loan program; and
          (C) proficiency related to the certified lender program
        requirements.
      (2) Additional lending institutions
        The Secretary may certify any lending institution as a
      preferred certified lender if the institution meets such
      additional criteria as the Secretary may prescribe by regulation.
      (3) Revocation of designation
        The designation of a lender as a preferred certified lender
      shall be revoked if the Secretary determines that the lender is
      not adhering to the rules and regulations applicable to the
      program or if the loss experiences of the preferred certified
      lender are greater than other preferred certified lenders, except
      that the suspension or revocation shall not affect any
      outstanding guarantee.
      (4) Condition of certification
        As a condition of the preferred certification, the Secretary
      shall require the lender to undertake to service the loan
      guaranteed by the Secretary under this subsection using generally
      accepted banking standards concerning loan servicing employed by
      prudent commercial or cooperative lenders.  The Secretary shall,
      at least annually, monitor the performance of each preferred
      certified lender to ensure that the conditions of the
      certification are being met.
      (5) Effect of preferred lender certification
        Notwithstanding any other provision of law, the Secretary may -
          (A) guarantee not more than 80 percent of any approved loan
        made by a preferred certified lender as described in this
        subsection, if the borrower meets the eligibility requirements
        and such other criteria as may be applicable to loans
        guaranteed by the Secretary; and
          (B) permit preferred certified lenders to make all decisions,
        with respect to loans to be guaranteed by the Secretary under
        this subsection relating to creditworthiness, the closing,
        monitoring, collection, and liquidation of loans, and to accept
        appropriate certifications, as provided in regulations issued
        by the Secretary, that the borrower is in compliance with all
        requirements of law and regulations issued by the Secretary.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 364, as added Pub. L. 104-127,
    title VII, Sec. 752, Apr. 4, 1996, 110 Stat. 1129.)
 
-MISC1-
                              PRIOR PROVISIONS
      A prior section 2006f, Pub. L. 87-128, title III, Sec. 364, as
    added Pub. L. 101-624, title XXIII, Sec. 2302(a)(1), Nov. 28, 1990,
    104 Stat. 3979; amended Pub. L. 102-237, title VII, Sec. 701(d),
    Dec. 13, 1991, 105 Stat. 1879; Pub. L. 103-129, Sec. 4, Nov. 1,
    1993, 107 Stat. 1366, established Rural Development Administration
    in Department of Agriculture and provided for the performance of
    specified functions, prior to repeal by Pub. L. 103-354, title II,
    Sec. 231(f)(3), Oct. 13, 1994, 108 Stat. 3219. See section 6911 et
    seq. of this title.
 
-CITE-
     7 USC Sec. 2007 to 2008c                                    01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2007 to 2008c. Repealed. Pub. L. 104-127, title VII, Sec. 701,
        753(a), 754-756, Apr. 4, 1996, 110 Stat. 1108, 1131
 
-MISC1-
      Section 2007, Pub. L. 101-624, title XXIII, Sec. 2310, Nov. 28,
    1990, 104 Stat. 3982, related to general provisions for programs
    under former sections 2007a to 2007e and 2008 to 2008c of this
    title, including applications, selection of States, duration of
    projects, and effective dates.
      Section 2007a, Pub. L. 101-624, title XXIII, Sec. 2311, Nov. 28,
    1990, 104 Stat. 3982; Pub. L. 102-237, title VII, Sec. 702(b), Dec.
    13, 1991, 105 Stat. 1880, defined terms for purposes of former
    sections 2007a to 2007e of this title.
      Section 2007b, Pub. L. 101-624, title XXIII, Sec. 2312, Nov. 28,
    1990, 104 Stat. 3984, related to establishment and powers of Rural
    Partnerships Investment Board.
      Section 2007c, Pub. L. 101-624, title XXIII, Sec. 2313, Nov. 28,
    1990, 104 Stat. 3986; Pub. L. 102-237, title VII, Sec. 702(c), Dec.
    13, 1991, 105 Stat. 1880, established Rural Business Investment
    Fund.
      Section 2007d, Pub. L. 101-624, title XXIII, Sec. 2314, Nov. 28,
    1990, 104 Stat. 3991; Pub. L. 102-237, title VII, Sec. 702(d), Dec.
    13, 1991, 105 Stat. 1880, related to establishment of local
    revolving funds.
      Section 2007e, Pub. L. 101-624, title XXIII, Sec. 2315, Nov. 28,
    1990, 104 Stat. 3994; Pub. L. 102-237, title VII, Sec. 702(e), Dec.
    13, 1991, 105 Stat. 1880, related to compliance with and
    enforcement of former sections 2007a to 2007e of this title and
    regulations promulgated thereunder.
      Section 2008, Pub. L. 87-128, title III, Sec. 365, as added Pub.
    L. 101-624, title XXIII, Sec. 2316(a), Nov. 28, 1990, 104 Stat.
    4000; amended Pub. L. 102-237, title VII, Sec. 701(e), Dec. 13,
    1991, 105 Stat. 1879, related to system for delivery of certain
    rural development programs.
      Section 2008a, Pub. L. 87-128, title III, Sec. 366, as added Pub.
    L. 101-624, title XXIII, Sec. 2316(a), Nov. 28, 1990, 104 Stat.
    4004; amended Pub. L. 102-237, title VII, Sec. 701(f), Dec. 13,
    1991, 105 Stat. 1879, related to State rural economic development
    review panel.
      Section 2008b, Pub. L. 87-128, title III, Sec. 367, as added Pub.
    L. 101-624, title XXIII, Sec. 2317, Nov. 28, 1990, 104 Stat. 4008;
    amended Pub. L. 102-237, title VII, Sec. 701(g), Dec. 13, 1991, 105
    Stat. 1879, related to limited transfer authority of loan amounts.
      Section 2008c, Pub. L. 87-128, title III, Sec. 368, as added Pub.
    L. 101-624, title XXIII, Sec. 2317, Nov. 28, 1990, 104 Stat. 4009,
    related to allocation and transfer of loan guarantee authority.
 
-CITE-
     7 USC Sec. 2008d                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008d. Recordkeeping of loans by borrower's gender
 
-STATUTE-
      The Secretary shall classify, by gender, records of applicants
    for loans and loan guarantees under this chapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 369, as added Pub. L. 102-554,
    Sec. 21(c), Oct. 28, 1992, 106 Stat. 4161.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 6943 of this title.
 
-CITE-
     7 USC Sec. 2008e                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008e. Prohibition under rural development programs
 
-STATUTE-
    (a) Prohibition
      Assistance under any rural development program administered by
    the Rural Development Administration, the Farmers Home
    Administration, the Rural Electrification Administration, or any
    other agency of the Department of Agriculture shall not be
    conditioned on any requirement that the recipient of such
    assistance accept or receive electric service from any particular
    utility, supplier, or cooperative.
    (b) Ensuring compliance
      The Secretary shall establish, by regulation, adequate safeguards
    to ensure that assistance under such rural development programs is
    not subject to such a condition.  Such safeguards shall include
    periodic certifications and audits, and appropriate measures and
    sanctions against any person violating, or attempting to violate,
    the prohibition in subsection (a) of this section.
    (c) Regulations
      Not later than 6 months after November 1, 1993, the Secretary
    shall issue interim final regulations to ensure compliance with
    subsection (a) of this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 370, as added Pub. L. 103-129,
    Sec. 5, Nov. 1, 1993, 107 Stat. 1366.)
 
-CITE-
     7 USC Sec. 2008f                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008f. Crop insurance requirement
 
-STATUTE-
    (a) In general
      As a condition of obtaining any benefit (including a direct loan,
    loan guarantee, or payment) described in subsection (b) of this
    section, a borrower must obtain at least catastrophic risk
    protection insurance coverage under section 1508 of this title for
    the crop and crop year for which the benefit is sought, if the
    coverage is offered by the Corporation.
    (b) Applicable benefits
      Subsection (a) of this section shall apply to -
        (1) a farm ownership loan (FO) under section 1923 of this
      title;
        (2) an operating loan (OL) under section 1942 of this title;
      and
        (3) an emergency loan (EM) under section 1961 of this title.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 371, as added Pub. L. 103-354,
    title I, Sec. 119(b), Oct. 13, 1994, 108 Stat. 3208.)
 
-MISC1-
                               EFFECTIVE DATE
      Section effective Oct. 13, 1994, and applicable to provision of
    crop insurance under Federal Crop Insurance Act (7 U.S.C. 1501 et
    seq.) beginning with 1995 crop year, with such Act, as in effect on
    the day before Oct. 13, 1994, to continue to apply with respect to
    1994 crop year, see section 120 of Pub. L. 103-354, set out as an
    Effective Date of 1994 Amendment note under section 1502 of this
    title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 1508 of this title.
 
-CITE-
     7 USC Sec. 2008g                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008g. Payment of interest as condition of loan servicing for
        borrowers
 
-STATUTE-
      The Secretary may not reschedule or reamortize a loan for a
    borrower under this chapter who has not requested consideration
    under section 1981d(e) of this title unless the borrower pays a
    portion, as determined by the Secretary, of the interest due on the
    loan.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 372, as added Pub. L. 104-127,
    title VI, Sec. 648(a), Apr. 4, 1996, 110 Stat. 1104.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                               EFFECTIVE DATE
      Section effective 90 days after Apr. 4, 1996, see section 663(b)
    of Pub. L. 104-127, set out as an Effective Date of 1996 Amendment
    note under section 1922 of this title.
 
-CITE-
     7 USC Sec. 2008h                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008h. Loan and loan servicing limitations
 
-STATUTE-
    (a) Delinquent borrowers prohibited from obtaining direct operating
        loans
      The Secretary may not make a direct operating loan under
    subchapter II of this chapter to a borrower who is delinquent on
    any loan made or guaranteed under this chapter.
    (b) Prohibition of loans for borrowers that have received debt
        forgiveness
      (1) Prohibitions
        Except as provided in paragraph (2) -
          (A) the Secretary may not make a loan under this chapter to a
        borrower that has received debt forgiveness on a loan made or
        guaranteed under this chapter; and
          (B) the Secretary may not guarantee a loan under this chapter
        to a borrower that has received -
            (i) debt forgiveness after April 4, 1996, on a loan made or
          guaranteed under this chapter; or
            (ii) received debt forgiveness on more than 3 occasions on
          or before April 4, 1996.
      (2) Exceptions
        (A) In general
          The Secretary may make a direct or guaranteed farm operating
        loan for paying annual farm or ranch operating expenses of a
        borrower who -
            (i) was restructured with a write-down under section 2001
          of this title; or
            (ii) is current on payments under a confirmed
          reorganization plan under chapters (FOOTNOTE 1) 11, 12, or 13
          of title 11.
       (FOOTNOTE 1) So in original.  Probably should be ''chapter''.
        (B) Emergency loans
          The Secretary may make an emergency loan under section 1961
        of this title to a borrower that -
            (i) on or before April 4, 1996, received not more than 1
          debt forgiveness on a loan made or guaranteed under this
          chapter; and
            (ii) after April 4, 1996, has not received debt forgiveness
          on a loan made or guaranteed under this chapter.
    (c) No more than 1 debt forgiveness for borrower on direct loan
      The Secretary may not provide to a borrower debt forgiveness on a
    direct loan made under this chapter if the borrower has received
    debt forgiveness on another direct loan made under this chapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 373, as added Pub. L. 104-127,
    title VI, Sec. 648(b), Apr. 4, 1996, 110 Stat. 1104; amended Pub.
    L. 105-277, div.  A, Sec. 101(a) (title VIII, Sec. 801), Oct. 21,
    1998, 112 Stat. 2681, 2681-37.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                                 AMENDMENTS
      1998 - Subsec. (b). Pub. L. 105-277 added subsec. (b) and struck
    out heading and text of former subsec. (b). Text read as follows:
      ''(1) In general. - Except as provided in paragraph (2), the
    Secretary may not make or guarantee a loan under this chapter to a
    borrower who received debt forgiveness on a loan made or guaranteed
    under this chapter.
      ''(2) Exception. - The Secretary may make a direct or guaranteed
    farm operating loan for paying annual farm or ranch operating
    expenses of a borrower who was restructured with a write-down under
    section 2001 of this title.''
 
-CITE-
     7 USC Sec. 2008i                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008i. Short form certification of farm program borrower
        compliance
 
-STATUTE-
      The Secretary shall develop and utilize a consolidated short form
    for farm program borrowers to use in certifying compliance with any
    applicable provision of law (including a regulation) that serves as
    an eligibility prerequisite for a loan made under this chapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 374, as added Pub. L. 104-127,
    title VI, Sec. 649, Apr. 4, 1996, 110 Stat. 1105.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      For definition of ''this chapter'', referred to in text, see note
    set out under section 1921 of this title.
 
-MISC2-
                               EFFECTIVE DATE
      Section effective 90 days after Apr. 4, 1996, see section 663(b)
    of Pub. L. 104-127, set out as an Effective Date of 1996 Amendment
    note under section 1922 of this title.
 
-CITE-
     7 USC Sec. 2008j                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS
 
-HEAD-
    Sec. 2008j. National Sheep Industry Improvement Center
 
-STATUTE-
    (a) Definitions
      In this section:
      (1) Board
        The term ''Board'' means the Board of Directors established
      under subsection (f) of this section.
      (2) Center
        The term ''Center'' means the National Sheep Industry
      Improvement Center established under subsection (b) of this
      section.
      (3) Eligible entity
        The term ''eligible entity'' means an entity that promotes the
      betterment of the United States sheep or goat industries and that
      is -
          (A) a public, private, or cooperative organization;
          (B) an association, including a corporation not operated for
        profit;
          (C) a federally recognized Indian Tribe; or
          (D) a public or quasi-public agency.
      (4) Fund
        The term ''Fund'' means the National Sheep Industry Improvement
      Center Revolving Fund established under subsection (e) of this
      section.
    (b) Establishment of Center
      The Secretary shall establish a National Sheep Industry
    Improvement Center.
    (c) Purposes
      The purposes of the Center shall be to -
        (1) promote strategic development activities and collaborative
      efforts by private and State entities to maximize the impact of
      Federal assistance to strengthen and enhance production and
      marketing of sheep or goat products in the United States;
        (2) optimize the use of available human capital and resources
      within the sheep or goat industries;
        (3) provide assistance to meet the needs of the sheep or goat
      industry for infrastructure development, business development,
      production, resource development, and market and environmental
      research;
        (4) advance activities that empower and build the capacity of
      the United States sheep or goat industry to design unique
      responses to the special needs of the sheep or goat industries on
      both a regional and national basis; and
        (5) adopt flexible and innovative approaches to solving the
      long-term needs of the United States sheep or goat industry.
    (d) Strategic plan
      (1) In general
        The Center shall submit to the Secretary an annual strategic
      plan for the delivery of financial assistance provided by the
      Center.
      (2) Requirements
        A strategic plan shall identify -
          (A) goals, methods, and a benchmark for measuring the success
        of carrying out the plan and how the plan relates to the
        national and regional goals of the Center;
          (B) the amount and sources of Federal and non-Federal funds
        that are available for carrying out the plan;
          (C) funding priorities;
          (D) selection criteria for funding; and
          (E) a method of distributing funding.
    (e) Revolving Fund
      (1) Establishment
        There is established in the Treasury the National Sheep
      Industry Improvement Center Revolving Fund. The Fund shall be
      available to the Center, without fiscal year limitation, to carry
      out the authorized programs and activities of the Center under
      this section.
      (2) Contents of Fund
        There shall be deposited in the Fund -
          (A) such amounts as may be appropriated, transferred, or
        otherwise made available to support programs and activities of
        the Center;
          (B) payments received from any source for products, services,
        or property furnished in connection with the activities of the
        Center;
          (C) fees and royalties collected by the Center from licensing
        or other arrangements relating to commercialization of products
        developed through projects funded, in whole or part, by grants,
        contracts, or cooperative agreements executed by the Center;
          (D) proceeds from the sale of assets, loans, and equity
        interests made in furtherance of the purposes of the Center;
          (E) donations or contributions accepted by the Center to
        support authorized programs and activities; and
          (F) any other funds acquired by the Center.
      (3) Use of Fund
        (A) In general
          The Center may use amounts in the Fund to make grants and
        loans to eligible entities in accordance with a strategic plan
        submitted under subsection (d) of this section.
        (B) Continued existence
          The Center shall manage the Fund in a manner that ensures
        that sufficient amounts are available in the Fund to carry out
        subsection (c) of this section.
        (C) Diverse area
          The Center shall, to the maximum extent practicable, use the
        Fund to serve broad geographic areas and regions of diverse
        production.
        (D) Variety of loans and grants
          The Center shall, to the maximum extent practicable, use the
        Fund to provide a variety of grants and intermediate- and
        long-term loans.
        (E) Administration
          The Center may not use more than 3 percent of the amounts in
        the Fund for a fiscal year for the administration of the
        Center.
        (F) Influencing legislation
          None of the amounts in the Fund may be used to influence
        legislation.
        (G) Accounting
          To be eligible to receive amounts from the Fund, an entity
        must agree to account for the amounts using generally accepted
        accounting principles.
        (H) Uses of Fund
          The Center may use amounts in the Fund to -
            (i) participate with Federal and State agencies in
          financing activities that are in accordance with a strategic
          plan submitted under subsection (d) of this section,
          including participation with several States in a regional
          effort;
            (ii) participate with other public and private funding
          sources in financing activities that are in accordance with
          the strategic plan, including participation in a regional
          effort;
            (iii) provide security for, or make principal or interest
          payments on, revenue or general obligation bonds issued by a
          State, if the proceeds from the sale of the bonds are
          deposited in the Fund;
            (iv) accrue interest;
            (v) guarantee or purchase insurance for local obligations
          to improve credit market access or reduce interest rates for
          a project that is in accordance with the strategic plan; or
            (vi) sell assets, loans, and equity interests acquired in
          connection with the financing of projects funded by the
          Center.
      (4) Loans
        (A) Rate
          A loan from the Fund may be made at an interest rate that is
        below the market rate or may be interest free.
        (B) Term
          The term of a loan may not exceed the shorter of -
            (i) the useful life of the activity financed; or
            (ii) 40 years.
        (C) Source of repayment
          The Center may not make a loan from the Fund unless the
        recipient establishes an assured source of repayment.
        (D) Proceeds
          All payments of principal and interest on a loan made from
        the Fund shall be deposited into the Fund.
      (5) Maintenance of effort
        The Center shall use the Fund only to supplement and not to
      supplant Federal, State, and private funds expended for rural
      development.
      (6) Funding
        (A) Deposit of funds
          All Federal and non-Federal amounts received by the Center to
        carry out this section shall be deposited in the Fund.
        (B) Mandatory funds
          Out of any moneys in the Treasury not otherwise appropriated,
        the Secretary of the Treasury shall provide to the Center not
        to exceed $20,000,000 to carry out this section.
        (C) Additional funds
          In addition to any funds provided under subparagraph (B),
        there is authorized to be appropriated $30,000,000 to carry out
        this section.
        (D) Privatization
          No additional Federal funds shall be used to carry out this
        section beginning on the earlier of -
            (i) the date that is 10 years after April 4, 1996; or
            (ii) the day after a total of $50,000,000 has been made
          available under subparagraphs (B) and (C) to carry out this
          section.
    (f) Board of Directors
      (1) In general
        The management of the Center shall be vested in a Board of
      Directors.
      (2) Powers
        The Board shall -
          (A) be responsible for the general supervision of the Center;
          (B) review any grant, loan, contract, or cooperative
        agreement to be made or entered into by the Center and any
        financial assistance provided to the Center;
          (C) make the final decision, by majority vote, on whether and
        how to provide assistance to an applicant; and
          (D) develop and establish a budget plan and a long-term
        operating plan to carry out the goals of the Center.
      (3) Composition
        The Board shall be composed of -
          (A) 7 voting members, of whom -
            (i) 4 members shall be active producers of sheep or goats
          in the United States;
            (ii) 2 members shall have expertise in finance and
          management; and
            (iii) 1 member shall have expertise in lamb, wool, goat, or
          goat product marketing; and
          (B) 2 nonvoting members, of whom -
            (i) 1 member shall be the Under Secretary of Agriculture
          for Rural Development; and
            (ii) 1 member shall be the Under Secretary of Agriculture
          for Research, Education, and Economics.
      (4) Nomination
        (A) Nominating body
          The Secretary shall appoint the voting members of the Board
        from nominations submitted by organizations described in
        subparagraph (B).
        (B) National organizations
          A national organization is described in this subparagraph if
        the organization -
            (i) consists primarily of active sheep or goat producers in
          the United States; and
            (ii) has as the primary interest of the organization the
          production of sheep or goats in the United States.
      (5) Term of office
        (A) In general
          Subject to subparagraph (B), the term of office of a voting
        member of the Board shall be 3 years.
        (B) Staggered initial terms
          The initial voting members of the Board (other than the
        chairperson of the initially established Board) shall serve for
        staggered terms of 1, 2, and 3 years, as determined by the
        Secretary.
        (C) Reelection
          A voting member may be reelected for not more than 1
        additional term.
      (6) Vacancy
        (A) In general
          A vacancy on the Board shall be filled in the same manner as
        the original Board.
        (B) Reelection
          A member elected to fill a vacancy for an unexpired term may
        be reelected for 1 full term.
      (7) Chairperson
        (A) In general
          The Board shall select a chairperson from among the voting
        members of the Board.
        (B) Term
          The term of office of the chairperson shall be 2 years.
      (8) Annual meeting
        (A) In general
          The Board shall meet not less than once each fiscal year at
        the call of the chairperson or at the request of the executive
        director appointed under subsection (g)(1) of this section.
        (B) Location
          The location of a meeting of the Board shall be established
        by the Board.
      (9) Voting
        (A) Quorum
          A quorum of the Board shall consist of a majority of the
        voting members.
        (B) Majority vote
          A decision of the Board shall be made by a majority of the
        voting members of the Board.
      (10) Conflicts of interest
        (A) In general
          Except as provided in subparagraph (D), a member of the Board
        shall not vote on any matter respecting any application,
        contract, claim, or other particular matter pending before the
        Board in which, to the knowledge of the member, an interest is
        held by -
            (i) the member;
            (ii) any spouse of the member;
            (iii) any child of the member;
            (iv) any partner of the member;
            (v) any organization in which the member is serving as an
          officer, director, trustee, partner, or employee; or
            (vi) any person with whom the member is negotiating or has
          any arrangement concerning prospective employment or with
          whom the member has a financial interest.
        (B) Removal
          Any action by a member of the Board that violates
        subparagraph (A) shall be cause for removal from the Board.
        (C) Validity of action
          An action by a member of the Board that violates subparagraph
        (A) shall not impair or otherwise affect the validity of any
        otherwise lawful action by the Board.
        (D) Disclosure
          (i) In general
            If a member of the Board makes a full disclosure of an
          interest and, prior to any participation by the member, the
          Board determines, by majority vote, that the interest is too
          remote or too inconsequential to affect the integrity of any
          participation by the member, the member may participate in
          the matter relating to the interest, except as provided in
          subparagraph (E)(iii).
          (ii) Vote
            A member that discloses an interest under clause (i) shall
          not vote on a determination of whether the member may
          participate in the matter relating to the interest.
        (E) Remands
          (i) In general
            The Secretary may vacate and remand to the Board for
          reconsideration any decision made pursuant to subsection
          (e)(3)(H) of this section if the Secretary determines that
          there has been a violation of this paragraph or any conflict
          of interest provision of the bylaws of the Board with respect
          to the decision.
          (ii) Reasons
            In the case of any violation and remand of a funding
          decision to the Board under clause (i), the Secretary shall
          inform the Board of the reasons for the remand.
          (iii) Conflicted members not to vote on remanded decisions
            If a decision with respect to a matter is remanded to the
          Board by reason of a conflict of interest faced by a Board
          member, the member may not participate in any subsequent
          decision with respect to the matter.
      (11) Compensation
        (A) In general
          A member of the Board shall not receive any compensation by
        reason of service on the Board.
        (B) Expenses
          A member of the Board shall be reimbursed for travel,
        subsistence, and other necessary expenses incurred by the
        member in the performance of a duty of the member.
      (12) Bylaws
        The Board shall adopt, and may from time to time amend, any
      bylaw that is necessary for the proper management and functioning
      of the Center.
      (13) Public hearings
        Not later than 1 year after April 4, 1996, the Board shall hold
      public hearings on policy objectives of the program established
      under this section.
      (14) Organizational system
        The Board shall provide a system of organization to fix
      responsibility and promote efficiency in carrying out the
      functions of the Board.
      (15) Use of Department of Agriculture
        The Board may, with the consent of the Secretary, utilize the
      facilities of and the services of employees of the Department of
      Agriculture, without cost to the Center.
    (g) Officers and employees
      (1) Executive director
        (A) In general
          The Board shall appoint an executive director to be the chief
        executive officer of the Center.
        (B) Tenure
          The executive director shall serve at the pleasure of the
        Board.
        (C) Compensation
          Compensation for the executive director shall be established
        by the Board.
      (2) Other officers and employees
        The Board may select and appoint officers, attorneys,
      employees, and agents who shall be vested with such powers and
      duties as the Board may determine.
      (3) Delegation
        The Board may, by resolution, delegate to the chairperson, the
      executive director, or any other officer or employee any
      function, power, or duty of the Board other than voting on a
      grant, loan, contract, agreement, budget, or annual strategic
      plan.
    (h) Consultation
      To carry out this section, the Board may consult with -
        (1) State departments of agriculture;
        (2) Federal departments and agencies;
        (3) nonprofit development corporations;
        (4) colleges and universities;
        (5) banking and other credit-related agencies;
        (6) agriculture and agribusiness organizations; and
        (7) regional planning and development organizations.
    (i) Oversight
      (1) In general
        The Secretary shall review and monitor compliance by the Board
      and the Center with this section.
      (2) Sanctions
        If, following notice and opportunity for a hearing, the
      Secretary finds that the Board or the Center is not in compliance
      with this section, the Secretary may -
          (A) cease making deposits to the Fund;
          (B) suspend the authority of the Center to withdraw funds
        from the Fund; or
          (C) impose other appropriate sanctions, including recoupment
        of money improperly expended for purposes prohibited or not
        authorized by this Act and disqualification from receipt of
        financial assistance under this section.
      (3) Rescission of sanctions
        The Secretary shall rescind sanctions imposed under paragraph
      (2) on a finding by the Secretary that there is no longer any
      failure by the Board or the Center to comply with this section or
      that the noncompliance will be promptly corrected.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 375, as added Pub. L. 104-127,
    title VII, Sec. 759, Apr. 4, 1996, 110 Stat. 1132.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      This Act, referred to in subsec. (i)(2)(C), refers to the
    Agricultural Act of 1961, Pub. L. 87-128, Aug. 8, 1961, 75 Stat.
    294, as amended.  For classification of this Act to the Code, see
    Short Title note set out under section 1911 of this title and
    Tables. However, the reference was probably intended to be ''this
    title'' meaning the Consolidated Farm and Rural Development Act,
    title III of Pub. L. 87-128, as amended, which is classified
    principally to this chapter.  For classification of this title to
    the Code, see Short Title note set out under section 1921 of this
    title and Tables.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 917 of this title.
 
-CITE-
     7 USC SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM    01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
    .
 
-HEAD-
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in section 917 of this title.
 
-CITE-
     7 USC Sec. 2009                                             01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009. Definitions
 
-STATUTE-
      In this subchapter:
      (1) Rural and rural area
        The terms ''rural'' and ''rural area'' mean, subject to section
      1926(a)(7) of this title, a city, town, or unincorporated area
      that has a population of 50,000 inhabitants or less, other than
      an urbanized area immediately adjacent to a city, town, or
      unincorporated area that has a population in excess of 50,000
      inhabitants.
      (2) State
        The term ''State'' means each of the 50 States, the District of
      Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin
      Islands of the United States, American Samoa, the Commonwealth of
      the Northern Mariana Islands, the Trust Territory of the Pacific
      Islands, and the Federated States of Micronesia.
      (3) State director
        The term ''State director'' means, with respect to a State, the
      Director of the Rural Economic and Community Development State
      Office.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381A, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1139.)
 
-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.
 
-CITE-
     7 USC Sec. 2009a                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009a. Establishment
 
-STATUTE-
      The Secretary shall establish a rural community advancement
    program to provide grants, loans, loan guarantees, and other
    assistance to meet the rural development needs of local communities
    in States and federally recognized Indian tribes.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381B, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1139.)
 
-CITE-
     7 USC Sec. 2009b                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009b. National objectives
 
-STATUTE-
      The national objectives of the program established under this
    subchapter shall be to -
        (1) promote strategic development activities and collaborative
      efforts by State and local communities, and federally recognized
      Indian tribes, to maximize the impact of Federal assistance;
        (2) optimize the use of resources;
        (3) provide assistance in a manner that reflects the complexity
      of rural needs, including the needs for business development,
      health care, education, infrastructure, cultural resources, the
      environment, and housing;
        (4) advance activities that empower, and build the capacity of,
      State and local communities to design unique responses to the
      special needs of the State and local communities, and federally
      recognized Indian tribes, for rural development assistance; and
        (5) adopt flexible and innovative approaches to solving rural
      development problems.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381C, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1139.)
 
-CITE-
     7 USC Sec. 2009c                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009c. Strategic plans
 
-STATUTE-
    (a) In general
      The Secretary shall direct each of the Directors of Rural
    Economic and Community Development State Offices to prepare a
    strategic plan -
        (1) for each State for the delivery of assistance under this
      subchapter in the State; and
        (2) for each federally recognized Indian tribe for the delivery
      of assistance under this subchapter to the Indian tribe.
    (b) Assistance
      (1) In general
        Financial assistance for rural development provided under this
      subchapter for a State or a federally recognized Indian tribe
      shall be used only for orderly community development that is
      consistent with the strategic plan of the State or Indian tribe.
      (2) Rural area
        Assistance under this subchapter may only be provided in a
      rural area.
      (3) Small communities
        In carrying out this subchapter in a State, the Secretary shall
      give priority to communities with the smallest populations and
      lowest per capita income.
    (c) Review
      The Secretary shall review the strategic plan of each State and
    federally recognized Indian tribe not later than 60 days after
    receiving the plan, and at least once every 5 years thereafter.
    (d) Contents
      A strategic plan of a State or federally recognized Indian tribe
    under this section shall be a plan that -
        (1) coordinates economic, human, and community development
      plans and related activities proposed for an affected area;
        (2) provides that the State or federally recognized Indian
      tribe, as appropriate, and an affected community (including local
      institutions and organizations that have contributed to the
      planning process) shall act as full partners in the process of
      developing and implementing the plan;
        (3) identifies goals, methods, and benchmarks for measuring the
      success of carrying out the plan and how the plan relates to
      local or regional ecosystems;
        (4) in the case of a State, provides for the involvement, in
      the preparation of the plan, of State, local, private, and public
      persons, State rural development councils, federally recognized
      Indian tribes in the State, and community-based organizations;
        (5) identifies the amount and source of Federal and non-Federal
      resources that are available for carrying out the plan; and
        (6) includes such other information as may be required by the
      Secretary.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381D, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1140.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 950aaa-2, 2009f, 2009l of
    this title.
 
-CITE-
     7 USC Sec. 2009d                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009d. Rural Development Trust Fund
 
-STATUTE-
    (a) Establishment
      There is established in the Treasury of the United States a trust
    fund which shall be known as the Rural Development Trust Fund (in
    this subchapter referred to as the ''Trust Fund'').
    (b) Accounts
      There are established in the Trust Fund the following accounts:
        (1) The rural community facilities account.
        (2) The rural utilities account.
        (3) The rural business and cooperative development account.
        (4) The national reserve account.
        (5) The federally recognized Indian tribe account.
    (c) Deposits into accounts
      Notwithstanding any other provision of law, each fiscal year -
        (1) all amounts made available to carry out the authorities
      described in subsection (d)(1) of this section for the fiscal
      year shall be deposited into the rural community facilities
      account of the Trust Fund;
        (2) all amounts made available to carry out the authorities
      described in subsection (d)(2) of this section for the fiscal
      year shall be deposited into the rural utilities account of the
      Trust Fund; and
        (3) all amounts made available to carry out the authorities
      described in subsection (d)(3) of this section for the fiscal
      year shall be deposited into the rural business and cooperative
      development account of the Trust Fund.
    (d) Function categories
      The function categories described in this subsection are the
    following:
      (1) Rural community facilities
        The rural community development category consists of all
      amounts made available for -
          (A) community facility direct and guaranteed loans under
        section 1926(a)(1) of this title; or
          (B) community facility grants under section 1926(a)(19) of
        this title.
      (2) Rural utilities
        The rural utilities category consists of all amounts made
      available for -
          (A) water or waste disposal grants or direct or guaranteed
        loans under paragraph (1) or (2) of section 1926(a) of this
        title;
          (B) rural water or wastewater technical assistance and
        training grants under section 1926(a)(14) of this title;
          (C) emergency community water assistance grants under section
        1926a of this title; or
          (D) solid waste management grants under section 1932(b) of
        this title.
      (3) Rural business and cooperative development
        The rural business and cooperative development category
      consists of all amounts made available for -
          (A) rural business opportunity grants under section
        1926(a)(11)(A) of this title;
          (B) business and industry direct and guaranteed loans under
        section 1932(a)(1) of this title; or
          (C) rural business enterprise grants or rural educational
        network grants under section 1932(c) of this title.
    (e) National reserve account
      (1) Transfers into account
        (A) Initial transfer
          Each fiscal year, the Secretary shall transfer to the
        national reserve account of the Trust Fund from each account
        specified in subsection (c) of this section not more than the
        applicable percentage of the amount deposited in each such
        account for the fiscal year under subsection (c) of this
        section.
        (B) Repooling of unobligated funds allocated among the States
          Not earlier than July 15 of each fiscal year, the Secretary
        shall transfer to the national reserve account from each
        account specified in subsection (c) of this section any amount
        in the account that is allocated for any State, and has not
        been obligated by the State director or obligated for specific
        approved projects in the State.
      (2) Use
        The Secretary may use amounts in the national reserve account
      of the Trust Fund, pursuant to any authority described in
      subsection (d) of this section -
          (A) in the case of a fiscal year other than fiscal year 2001
        or 2002 -
            (i) to meet situations of exceptional need;
            (ii) to meet emergency situations; or
            (iii) to provide funds to entities whose applications for
          funds provided under this subchapter have been approved and
          who have not received funds sufficient to meet the needs of
          the projects described in the applications; or
          (B) in the case of fiscal years 2001 and 2002 -
            (i) to meet situations of exceptional need; or
            (ii) to meet emergency situations.
      (3) ''Applicable percentage'' defined
        In paragraph (1), the term ''applicable percentage'' means,
      with respect to a fiscal year -
          (A) 15 percent for fiscal year 1997;
          (B) 12.5 percent for fiscal year 1998;
          (C) 10 percent for fiscal year 1999;
          (D) 7.5 percent for fiscal year 2000;
          (E) 5 percent for fiscal year 2001; and
          (F) 5 percent for fiscal year 2002.
    (f) Federally recognized Indian tribe account
      (1) Transfers into account
        Each fiscal year, the Secretary shall transfer to the federally
      recognized Indian tribe account of the Trust Fund 3 percent of
      the amount deposited into the Trust Fund for the fiscal year
      under subsection (d) of this section.
      (2) Use of funds
        The Secretary shall make available to federally recognized
      Indian tribes the amounts in the federally recognized Indian
      tribe account for use pursuant to any authority described in
      subsection (d) of this section.
    (g) Allocation among States
      The Secretary shall allocate the amounts in each account
    specified in subsection (c) of this section among the States in a
    fair, reasonable, and appropriate manner that takes into
    consideration rural population, levels of income, unemployment, and
    other relevant factors, as determined by the Secretary.
    (h) Availability of funds allocated for States
      The Secretary shall make available to each State the total amount
    allocated for the State under subsection (g) of this section that
    remains after applying section 2009f of this title.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381E, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1140; amended Pub. L.
    105-86, title III, Nov. 18, 1997, 111 Stat. 2094.)
 
-MISC1-
                                 AMENDMENTS
      1997 - Subsec. (d)(3)(B). Pub. L. 105-86 inserted ''direct and''
    after ''business and industry''.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2009e, 2009f of this
    title.
 
-CITE-
     7 USC Sec. 2009e                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009e. Transfers of funds
 
-STATUTE-
    (a) General authority
      Subject to subsection (b) of this section, the State Director
    (FOOTNOTE 1) of any State may, during any fiscal year, transfer
    from each account specified in section 2009d(c) of this title a
    total of not more than 25 percent of the amount in the account that
    is allocated for the State for the fiscal year to any other account
    in which amounts are allocated for the State for the fiscal year.
       (FOOTNOTE 1) So in original.  Probably should not be
    capitalized.
    (b) Limitation
      Except as provided in subsection (c) of this section, a transfer
    otherwise authorized by subsection (a) of this section to be made
    during a fiscal year may not be made to the extent that the sum of
    the amount to be transferred and all amounts so transferred by
    State directors under subsection (a) of this section during the
    fiscal year exceeds 10 percent of the total amount made available
    to carry out the authorities described in section 2009d(d) of this
    title for the fiscal year.
    (c) Exceptions
      Subsections (a) and (b) of this section shall not apply to a
    transfer of funds by a State director if the State director
    certifies to the Secretary that -
        (1) there is an approved application for a project in the
      function category to which the funds are to be transferred but
      funds are not available for the project in the function category;
      and
        (2)(A) there is no such approved application in the function
      category from which the funds are to be transferred; or
        (B) the community that would benefit from the project has a
      smaller population and a lesser per capita income than any
      community that would benefit from a project in the function
      category from which the funds are to be transferred.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381F, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1142.)
 
-CITE-
     7 USC Sec. 2009f                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009f. Grants to States
 
-STATUTE-
    (a) Simple grants
      (1) Mandatory grant
        The Secretary shall make a grant to any eligible State for any
      fiscal year for which the State requests a grant under this
      section in an amount equal to 5 percent of the total amount
      allocated for the State under section 2009d(g) of this title.
      (2) Permissive grant
        Before July 15 of each fiscal year, the Secretary may make a
      grant to any State to defray the cost of any subsidy associated
      with a guarantee provided by an eligible public entity of the
      State under section 2009g of this title in an amount that does
      not exceed 5 percent of the total amount allocated for the State
      under section 2009d(g) of this title.
      (3) Source of funds
        The Secretary shall make grants to a State under paragraphs (1)
      and (2) from amounts allocated for the State in the accounts
      specified in section 2009d(c) of this title, by reducing each
      such allocated amount by the same percentage.
    (b) Matching grants
      (1) In general
        Subject to paragraph (2), the Secretary shall make a grant to
      any eligible State for any fiscal year for which the State
      requests a grant under this section in an amount equal to 5
      percent of the amount allocated for the State for the fiscal year
      under section 2009d(h) of this title.
      (2) Eligibility
        A State shall be eligible for a grant under paragraph (1) if
      the State makes commitments to the Secretary to -
          (A) expend from non-Federal sources in accordance with
        subsection (c) of this section an amount that is not less than
        200 percent of the amount of the grant; and
          (B) maintain the amounts paid to the State under this
        subsection and the amount referred to in subparagraph (A) in an
        account separate from all other State funds until expended in
        accordance with subsection (c) of this section.
      (3) Source of funds
        If the Secretary makes a grant under paragraph (1) before July
      15 of the fiscal year, the grant shall be made from amounts
      allocated for the State in the accounts specified in section
      2009d(c) of this title for the fiscal year, by reducing each
      allocated amount by the same percentage.
    (c) Use of funds
      A State to which funds are provided under this section shall use
    the funds in rural areas for any activity authorized under the
    authorities described in section 2009d(d) of this title in
    accordance with the State strategic plan referred to in section
    2009c of this title.
    (d) Maintenance of effort
      The State shall provide assurances to the Secretary that funds
    provided to the State under this section will be used only to
    supplement, not to supplant, the amount of Federal, State, and
    local funds otherwise expended for rural development assistance in
    the State.
    (e) Appeals
      The Secretary shall provide to a State an opportunity to appeal
    any action taken with respect to the State under this section.
    (f) Administrative costs
      Federal funds shall not be used for any administrative costs
    incurred by a State in carrying out this subchapter.
    (g) Expenditure of funds by State
      (1) In general
        Payments to a State from a grant under this section for a
      fiscal year shall be obligated by the State in the fiscal year or
      in the succeeding fiscal year.  A State shall obligate funds
      under this section to provide assistance to rural areas.
      (2) Failure to obligate
        If a State fails to obligate payments in accordance with
      paragraph (1), the Secretary shall make an equal reduction in the
      amount of payments provided to the State under this section for
      the immediately succeeding fiscal year.
      (3) Noncompliance
        (A) Review
          The Secretary shall review and monitor State compliance with
        this section.
        (B) Penalty
          If the Secretary finds that there has been misuse of grant
        funds provided under this section, or noncompliance with any of
        the terms and conditions of a grant, after reasonable notice
        and opportunity for a hearing -
            (i) the Secretary shall notify the State of the finding;
          and
            (ii) no further payments to the State shall be made with
          respect to the programs funded under this section until the
          Secretary is satisfied that there is no longer any failure to
          comply or that the noncompliance will be promptly corrected.
        (C) Other sanctions
          In the case of a finding of noncompliance made pursuant to
        subparagraph (B), the Secretary may, in addition to, or in lieu
        of, imposing the sanctions described in subparagraph (B),
        impose other appropriate sanctions, including recoupment of
        money improperly expended for purposes prohibited or not
        authorized by this section and disqualification from the
        receipt of financial assistance under this section.
    (h) No entitlement to contract, grant, or assistance
      Nothing in this subchapter -
        (1) entitles any person to assistance or a contract or grant;
      or
        (2) limits the right of a State to impose additional
      limitations or conditions on assistance or a contract or grant
      under this section.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381G, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1143.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2009d, 2009g of this
    title.
 
-CITE-
     7 USC Sec. 2009g                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009g. Guarantee and commitment to guarantee loans
 
-STATUTE-
    (a) ''Eligible public entity'' defined
      In this section, the term ''eligible public entity'' means any
    unit of general local government.
    (b) Guarantee and commitment
      The Secretary, on such terms and conditions as the Secretary may
    prescribe, may guarantee and make commitments to guarantee notes or
    other obligations issued by eligible public entities, or by public
    agencies designated by the eligible public entities, for the
    purposes of financing rural development activities authorized and
    funded under section 2009f of this title.
    (c) Limitation
      The Secretary may not make a guarantee or commitment to guarantee
    with respect to a note or other obligation if the total amount of
    outstanding notes or obligations guaranteed under this section
    (excluding any amount repaid under the contract entered into under
    subsection (e)(1)(A) of this section) for issuers in the State
    would exceed an amount equal to 5 times the sum of the total amount
    of grants made to the State under section 2009f of this title.
    (d) Payment of principal, interest, and costs
      Notwithstanding any other provision of this subchapter, a State
    to which a grant is made under section 2009f of this title may use
    the grant (including program income derived from the grant) to pay
    principal and interest due (including such servicing, underwriting,
    or other costs as may be specified in regulations of the Secretary)
    on any note or other obligation guaranteed under this section.
    (e) Repayment contract; security
      (1) In general
        To ensure the repayment of notes or other obligations and
      charges incurred under this section and as a condition for
      receiving the guarantees, the Secretary shall require the issuer
      to -
          (A) enter into a contract, in a form acceptable to the
        Secretary, for repayment of notes or other obligations
        guaranteed under this section;
          (B) pledge any grant for which the issuer may become eligible
        under this subchapter; and
          (C) furnish, at the discretion of the Secretary, such other
        security as may be considered appropriate by the Secretary in
        making the guarantees.
      (2) Security
        To assist in ensuring the repayment of notes or other
      obligations and charges incurred under this section, a State
      shall pledge any grant for which the State may become eligible
      under this subchapter as security for notes or other obligations
      and charges issued under this section by any eligible public
      entity in the State.
    (f) Pledged grants for repayments
      Notwithstanding any other provision of this subchapter, the
    Secretary may apply grants pledged pursuant to paragraphs (1)(B)
    and (2) of subsection (e) of this section to any repayments due the
    United States as a result of the guarantees.
    (g) Outstanding obligations
      The total amount of outstanding obligations guaranteed on a
    cumulative basis by the Secretary pursuant to subsection (b) of
    this section shall not at any time exceed such amount as may be
    authorized to be appropriated for such purpose for any fiscal year.
    (h) Purchase of guaranteed obligations by Federal Financing Bank
      Notes or other obligations guaranteed under this section may not
    be purchased by the Federal Financing Bank.
    (i) Full faith and credit
      The full faith and credit of the United States is pledged to the
    payment of all guarantees made under this section.  Any such
    guarantee made by the Secretary shall be conclusive evidence of the
    eligibility of the obligations for the guarantee with respect to
    principal and interest.  The validity of the guarantee shall be
    incontestable in the hands of a holder of the guaranteed
    obligations.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381H, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1145.)
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 2009f of this title.
 
-CITE-
     7 USC Sec. 2009h                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009h. Local involvement
 
-STATUTE-
      An application for assistance under this subchapter shall include
    evidence of significant community support for the project for which
    the assistance is requested.  In the case of assistance for a
    community facilities or infrastructure project, the evidence shall
    be in the form of a certification of support for the project from
    each affected general purpose local government.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381I, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1146.)
 
-CITE-
     7 USC Sec. 2009i                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009i. Interstate collaboration
 
-STATUTE-
      The Secretary shall permit the establishment of voluntary pooling
    arrangements among States, and regional fund-sharing agreements, to
    carry out projects receiving assistance under this subchapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381J, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1146.)
 
-CITE-
     7 USC Sec. 2009j                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009j. Annual report
 
-STATUTE-
    (a) In general
      The Secretary, in collaboration with State, local, public, and
    private entities, State rural development councils, and
    community-based organizations, shall prepare an annual report that
    contains evaluations, assessments, and performance outcomes
    concerning the rural community advancement programs carried out
    under this subchapter.
    (b) Submission
      Not later than March 1 of each year, the Secretary shall -
        (1) submit the report required by subsection (a) of this
      section to Congress and the chief executives of the States
      participating in the program established under this subchapter;
      and
        (2) make the report available to State and local participants.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381K, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1146.)
 
-CITE-
     7 USC Sec. 2009k                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009k. Rural development interagency working group
 
-STATUTE-
    (a) In general
      The Secretary shall provide leadership within the Executive
    branch for, and assume responsibility for, establishing an
    interagency working group chaired by the Secretary.
    (b) Duties
      The working group shall establish policy for, coordinate, make
    recommendations with respect to, and evaluate the performance of,
    all Federal rural development efforts.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381L, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1146.)
 
-CITE-
     7 USC Sec. 2009l                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009l. Duties of Rural Economic and Community Development
        State Offices
 
-STATUTE-
      In carrying out this subchapter, the Director of a Rural Economic
    and Community Development State Office shall -
        (1) to the maximum extent practicable, ensure that the State
      strategic plan referred to in section 2009c of this title is
      implemented;
        (2) coordinate community development objectives within the
      State;
        (3) establish links between local, State, and field office
      program administrators of the Department of Agriculture;
        (4) ensure that recipient communities comply with applicable
      Federal and State laws and requirements; and
        (5) integrate State development programs with assistance under
      this subchapter.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381M, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1146.)
 
-CITE-
     7 USC Sec. 2009m                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009m. Electronic transfer
 
-STATUTE-
      The Secretary shall transfer funds in accordance with this
    subchapter through electronic transfer as soon as practicable after
    April 4, 1996.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381N, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1147.)
 
-CITE-
     7 USC Sec. 2009n                                            01/05/99
 
-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 50 - AGRICULTURAL CREDIT
    SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM
 
-HEAD-
    Sec. 2009n. Rural venture capital demonstration program
 
-STATUTE-
    (a) In general
      The Secretary may designate for each fiscal year up to 10
    community development venture capital organizations to demonstrate
    the utility of guarantees to attract increased private investment
    in rural private business enterprises.
    (b) Rural business investment pool
      (1) Establishment
        To be eligible to participate in the demonstration program, an
      organization referred to in subsection (a) of this section shall
      establish a rural business private investment pool (referred to
      in this subsection as a ''pool'') for the purpose of making
      equity investments in rural private business enterprises.
      (2) Guarantee
        From amounts in the national reserve account of the Trust Fund,
      the Secretary shall guarantee the funds in a pool against loss,
      except that the guarantee shall not exceed an amount equal to 30
      percent of the total funds in the pool.
      (3) Amount
        The Secretary shall issue guarantees covering not more than
      $15,000,000 of contingent liabilities for each of fiscal years
      1996 through 2002.
      (4) Term
        The term of a guarantee provided under this subsection shall
      not exceed 10 years.
      (5) Submission of plan
        To be eligible to participate in the demonstration program, an
      organization referred to in subsection (a) of this section shall
      submit a plan that describes -
          (A) potential sources and uses of the pool to be established
        by the organization;
          (B) the utility of the guarantee authority in attracting
        capital for the pool; and
          (C) on selection, mechanisms for notifying State, local, and
        private nonprofit business development organizations and
        businesses of the existence of the pool.
      (6) Competition
        (A) In general
          The Secretary shall conduct a competition for the designation
        and establishment of pools.
        (B) Priority
          In conducting the competition, the Secretary shall give
        priority to organizations that -
            (i) have a demonstrated record of performance, or have a
          board and executive director with experience, in venture
          capital, small business equity investment, or community
          development finance;
            (ii) propose to serve low-income communities;
            (iii) propose to maintain an average investment of not more
          than $500,000 from the pool of the organization;
            (iv) invest funds statewide or in a multicounty region; and
            (v) propose to target job opportunities resulting from the
          investments primarily to economically disadvantaged
          individuals, as determined by the Secretary.
        (C) Geographic diversity
          To the extent practicable, the Secretary shall designate
        organizations in diverse geographic areas.
 
-SOURCE-
    (Pub. L. 87-128, title III, Sec. 381O, as added Pub. L. 104-127,
    title VII, Sec. 761, Apr. 4, 1996, 110 Stat. 1147.)
 


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