§ 1923. Purposes of loans

Legislative history

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

1. 1961

   Agricultural Act of 1961

   Pub. L. 87–128 title III § 303 · 75 Stat. 294

   Enacted · 7 U.S.C. § 1923

   Pub. L. 87–128, title III, § 303, Aug. 8, 1961, 75 Stat. 307

   Source evidence

   Code source credit
   Pub. L. 87–128, title III, § 303, Aug. 8, 1961, 75 Stat. 307

   Enacted provision · exact public law section
   Sec. 303. Loans may be made or insured under this subtitle for acquiring, enlarging, or improving farms, including farm buildings, land and water development, use and conservation, refinancing existing indebtedness, and for loan closing costs. In making or insuring loans for farm purchase, the Secretary shall give preference to persons who are married or have dependent families and, wherever practicable, to persons who are able to make initial downpayments, or who are owners of livestock and farm implements necessary successfully to carry on farming operations.

2. 1962

   Food and Agriculture Act of 1962

   Pub. L. 87–703 title IV § 401(1) · 76 Stat. 605

   Changed · 7 U.S.C. § 1923

   Pub. L. 87–703 authorized loans to be made or insured for recreational uses and facilities

   Source evidence

   Code amendment note
   Pub. L. 87–703 authorized loans to be made or insured for recreational uses and facilities.

   Enacted provision · exact public law section
   (1) By inserting in section 303 after “use and conservation” a comma and the following “including recreational uses and facilities”;

3. 1968

   Pub. L. 90–488 § 1 · 82 Stat. 770

   1. Amended · 7 U.S.C. § 1923

      Pub. L. 90–488 designated existing provisions as cls. (1), (2), (4), (5)

   2. Added · 7 U.S.C. § 1923

      Pub. L. 90–488 added cl. (3)

   Source evidence

   Code amendment note
   Pub. L. 90–488 designated existing provisions as cls. (1), (2), (4), (5), and added cl. (3).

4. 1977

   National Agricultural Research, Extension, and Teaching Policy Act of 1977

   Pub. L. 95–113 title XIV § 1448(a) · 91 Stat. 913

   1. Amended · 7 U.S.C. § 1923

      Pub. L. 95–113 designated existing provisions as subsec. (a)

   2. Added · 7 U.S.C. § 1923

      Pub. L. 95–113 added subsec. (b)

   Source evidence

   Code amendment note
   Pub. L. 95–113 designated existing provisions as subsec. (a) and added subsec. (b).

   Enacted provision · exact public law section
   (a) Section 303 of the Consolidated Farm and Rural Development Act (75 Stat. 307, as amended; 7 U.S.C. 1923) is amended by inserting “(a)” immediately before the first sentence and by adding the following new subsection: “(b) For purposes of this subtitle— “(1) the term ‘improving farms’ includes, but is not limited to, the acquisition and installation of any qualified non-fossil energy system in any residential structure located on a family farm; and “(2) the term ‘qualified non-fossil energy system’ means any system that utilizes technologies to generate fuel, energy, or energy intensive products from products other than fossil fuels as included in the Federal Non-Nuclear Energy Research and 42 USC 5901 note. Development Act of 1974, as amended, which meets such standards as may be prescribed by the Secretary, taking into consideration appropriate and available standards prescribed by the Secretary of Housing and Urban Development.”.

5. 1980

   Pub. L. 96–438 § 1(1) · 94 Stat. 1871

   1. Substituted · 7 U.S.C. § 1923(b)(1)

      Pub. L. 96–438 substituted “the acquisition, installation, and modification” for “the acquisition and installation”

   2. Struck · 7 U.S.C. § 1923(b)(1)

      Pub. L. 96–438 struck out “in any residential structure” after “energy system”

   Source evidence

   Code amendment note
   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”.

   Enacted provision · exact public law section
   (1) in section 303(b), amending paragraph (1) to read as follows: 7 USC 1923. “Improving farms.” “(1) the term ‘improving farms’ includes, but is not limited to, the acquisition, installation, and modification of any qualified nonfossil energy system located on a family farm; and”;

6. 1981

   Agriculture and Food Act of 1981

   Pub. L. 97–98 title XVI § 1602 · 95 Stat. 1213

   Substituted · 7 U.S.C. § 1923(a)

   Pub. L. 97–98 substituted “who have dependent families” for “who are married or have dependent families”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–98 substituted “who have dependent families” for “who are married or have dependent families”.

   Enacted provision · exact public law section
   Sec. 1602. equalizing access to credit for widows and other single parents The second sentence of section 303(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)) is amended by striking out “are married or”.

7. 1996

   Federal Agriculture Improvement and Reform Act of 1996

   Pub. L. 104–127 title VI § 602(a) · 110 Stat. 888

   1. Amended · 7 U.S.C. § 1923

      Pub. L. 104–127 amended section generally

   2. Substituted · 7 U.S.C. § 1923

      Pub. L. 104–127 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”

   Source evidence

   Code amendment note
   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”.

   Enacted provision · exact public law section
   (a) In General.— Section 303 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923) is amended to read as follows: “SEC. 303. PURPOSES OF LOANS. “(a) Allowed Purposes.— “(1) Direct loans.— A farmer or rancher may use a direct loan made under this subtitle 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 304 on a farm or ranch. “(2) Guaranteed loans.— A farmer or rancher may use a loan guaranteed under this subtitle 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 304 on a farm or ranch; or “(E) refinancing indebtedness. “(b) Preferences.— In making or guaranteeing a loan under this subtitle 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 subtitle 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 the date of enactment of this subsection, the Secretary shall determine the appropriate level of insurance to be required under paragraph (1).”.

   Effective date note
   Pub. L. 104–127, title VI, § 602(b), Apr. 4, 1996, 110 Stat. 1085, 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.]

8. 2002

   Pub. L. 107–171 title V § 5002 · 116 Stat. 134

   Added · 7 U.S.C. § 1923(a)(1)(E)

   Pub. L. 107–171 added subpar. (E)

   Source evidence

   Code amendment note
   Subsec. (a)(1)(E). Pub. L. 107–171 added subpar. (E).

   Enacted provision · exact public law section
   SEC. 5002. FINANCING OF BRIDGE LOANS. Section 303(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is amended— (1) in subparagraph (C), by striking “or” at the end; (2) in subparagraph (D), by striking the period at the end and inserting “; or”; and (3) by adding at the end the following: “(E) refinancing a temporary bridge loan made by a commercial or cooperative lender to a farmer or rancher for the acquisition of land for a farm or ranch, if— “(i) the Secretary approved an application for a direct farm ownership loan to the farmer or rancher for acquisition of the land; and “(ii) funds for direct farm ownership loans under section 346(b) were not available at the time at which the application was approved.”.

10 of 12 references resolved to an enrolled provision · 2 partial