§ 1927. Repayment requirements

Footnotes

1. 1 So in original. The semicolon probably should be a comma.

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 § 307 · 75 Stat. 294

   Enacted · 7 U.S.C. § 1927

   Pub. L. 87–128, title III, § 307, Aug. 8, 1961, 75 Stat. 308

   Source evidence

   Code source credit
   Pub. L. 87–128, title III, § 307, Aug. 8, 1961, 75 Stat. 308

   Enacted provision · exact public law section
   Sec. 307. (a) The period for repayment of loans under this subtitle shall not exceed forty years. The Secretary shall from time to time establish the interest rate or rates at which loans for various purposes will be made or insured under this subtitle but not in excess of 5 per centum per annum. The borrower shall pay such fees and other charges as the Secretary may require. (b) 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 306, shall take liens on the facility or such other security as he may determine to be necessary. Such security instruments shall constitute liens running to the United States notwithstanding the fact that the notes may be held by lenders other than the United States.

2. 1972

   Rural Development Act of 1972

   Pub. L. 92–419 title I · 86 Stat. 657

   Changed · 7 U.S.C. § 1927(a)

   Pub. L. 92–419, §§ 113, 114, prescribed interest rates on rural development other than guaranteed and guaranteed loans and escrow payment of taxes and insurance, respectively

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 92–419, §§ 113, 114, prescribed interest rates on rural development other than guaranteed and guaranteed loans and escrow payment of taxes and insurance, respectively.

   Enacted provision · exact public law
   TITLE I— AMENDMENTS TO THE CONSOLIDATED FARMERS HOME ADMINISTRATION ACT OF 1961 Sec. 101. Short Title.— Section 301(a) of the Consolidated Farmers Home Administration Act of 1961 is amended to read as follows: 75 Stat. 307. 7 USC 1921 note. “(a) This title may be cited as the ‘Consolidated Farm and Rural Development Act’.” Sec. 102. Rural Enterprise Loans— Section 304 of the Consolidated Farmers Home Administration Act of 1961 is amended by— 75 Stat. 308; 82 Stat. 770. 7 USC 1924. (1) inserting “(a)” before the first sentence and striking out “ (a) ” and “ (b) ” in the first sentence; and (2) adding at the end of section a new subsection as follows: “(b) Loans may also be made or insured under this subtitle to residents of rural areas without regard to the requirements of clauses (2) 75 Stat. 307; 84 Stat. 1862. 7 USC 1922. and (3) of section 302 to acquire or establish in rural areas small business enterprises to provide such residents with essential income.” Sec. 103. Appraisals.— Section 305 of the Consolidated Farmers 7 USC 1925. Home Administration Act of 1961 is amended by striking out “normal” in the first and second sentences and striking out the hist sentence. Sec. 104. Essential Rural Community Facilities.— Section 306 (a)(1) of the Consolidated Farmers Home Administration Act of 79 Stat. 931; 84 Stat. 1855. 7 USC 1926. 1961 is amended (1) by inserting after “corporations not operated for profit,” the following: “Indian tribes on Federal and State reservations and other federally recognized Indian tribes,” and (2) by striking out “and recreational developments” and inserting in lieu thereof “recreational developments, and essential community facilities including necessary related equipment”. Sec. 105. Grants for Water and Waste Disposal Systems.— Section 306(a) (2) of the Consolidated Farmers Home Administration 82 Stat. 770. Act of 1961 is amended by striking out “$100,000,000” and inserting in lieu thereof “$300,000,000”. Sec. 106. Planning Requirements.— The first sentence of section 306(a) (3) of the Consolidated Farmers Home Administration Act of 1961 is amended to read as follows: “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 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 area wide 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 are a wide goals and plans of such agency or government. No loan under this section shall be made that Is inconsistent with any multijurisdietional 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.” Sec. 107. Extension— in the second sentence of section 306(a) (3) of the Consolidated Farmers Home Administration Act of 1961 strike 79 Stat. 931; 82 Stat. 770. 7 USC 1926. out “1971” and insert “1973”. Sec. 108. Water and Waste Disposal Planning Grants.— Paragraph (6) of section 306(a) of the Consolidated Farmers Home Administration Act of 1961 is amended by— (1) striking out “$15,000,000” and inserting in lieu thereof “$30,000,000”; (2) striking out “official”; and (3) striking out “sewer” and inserting in lieu thereof “waste disposal”. Sec. 109. Definitions.— Section 306(a)(7) of the Consolidated Farmers Home Administration Act of 1961 is amended to read as follows: “(7) As used in this title, 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 for purposes of loans and grants for private business enterprises under sections 304(b), Ante, p. 657. Post, pp. 663, 665. 310B, and 312 (b), (c), and (d) the terms‘rural’ and ‘rural area’ may include all territory of a State, the Commonwealth of Puerto Rico and the Virgin Islands, that is not within the outer boundary of any city haring 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. Sec. 110. Repeal of Maximum Size Loan.— Section 306(a) of the Consolidated Farmers Home Administration Act of 1961 is amended by striking out paragraph (5). Sec. 111. Rural Development Planning Grants.— Section 306(a) of the Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof a new paragraph as follows: “(11) The Secretary may make grants, not to exceed $10,000,000 annually, to public bodies or such other agencies as he may select to prepare comprehensive plans for rural development or such aspects of rural development as he may specify.” Sec. 112. Priority for Certain Water Facility and Waste Disposal Loans and Grants.— Section 306(a) of the Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof the following: (12) 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.” Sec. 113. Interest Rates on Rural Development Loans.— Section 307(a) of the Consolidated Farmers Home Administration Act of 75 Stat. 308. 7 USC 1927. 1961 is amended by inserting before the period at the end of the second sentence thereof the following: “; except that loans (other than loans to public bodies or nonprofit associations (including Indian tribes on Federal and State reservations and other federally recognized Indian tribal groups) for community facilities, or loans of a type authorized by section 306(a) (1) prior to its amendment by the Rural Development Ante, pp. 657 658. Post, p. 663. Act of 1972) made or insured under section 304(b), 306(a) (1), or 310B shall— (1) when made other than as guaranteed loans, bear interest at a rate, prescribed by the Secretary, not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States comparable to the average maturities of such loans, adjusted in the judgment of the Secretary of the Treasury to provide for a rate 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: Provided, That the rate so prescribed shall be adjusted to the nearest one-eighth of 1 per centum; and (2) when made as guaranteed loans, bear interest, at such rate as may be agreed upon by the borrower and the lender”. Sec. 114. Escrow Payments.— Section 307(a) of the Consolidated Farmers Supra. Home Administration Act of 1961 is amended by inserting before the period at the end the following: “, and borrowers under this title shall prepay to the Secretary as escrow agent such taxes and insurance as lie may require, on such terms and conditions as he may prescribe”. Sec. 115. Agricultural Credit Insurance Fund Amendments.— (a) Section 309(f) of the Consolidated Farmers Home Administration 75 Stat. 309; 82 Stat. 771. 7 USC 1929. Act of 1961 is amended by— (1) changing “$100,000,000” to “$500.000.000” in paragraph (2) changing paragraph (2) by— (A) striking out “the interest” and inserting in lieu thereof “amounts”; (B) changing “prepayments” to “payments” in all three places; and (C) inserting after “until due” the following: “or until the next agreed annual or semiannual remittance date”. (3) striking out “section 335(a) in connection with insured loans.” in paragraph (5) and inserting in lieu thereof “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.”. (4) inserting in paragraph (5) after “to pay” the following: “for contract services,”. (b) Section 309 of such Act is amended by adding at the end thereof Ante, p. 660. the following new subsections: “(g) (1) The assets and liabilities of, and authorizations applicable Transfer of funds. 80 Stat. 167. 7 USC 1988. 7 USC 1966. to, the Farmers Home Administration direct loan account created by section 338(c) and the Emergency Credit Revolving Fund referred to in section 326 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, section 308, the last 7 USC 1928. 7 USC 1926, 1927. sentence of section 306 (a)(1), and the last sentence of section 307. “(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) The Secretary may provide financial assistance to borrowers Guaranteed loans. for purposes provided in this title by guaranteeing loans made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, or other legally organized lending agency.” Sec. 116. Rural Development Insurance Fund.— The Consolidated Farmers Home Administration Act of 1961 is amended by inserting the following new section after section 309: Supra. “Sec. 309A. (a) 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 “Rural develop ment loans.” this section ‘rural development loans shall be those provided for by sections 304(b), 306(a) (1), 310B, and 312(b), except loans (other than Ante, p. 658. Post, pp. 663, 665. for water systems and waste disposal facilities) of a type authorized by section 306(a)(1) prior to its amendment by the Rural Development Act of 1972. “(b) The assets and liabilities of the Agricultural Credit Insurance Transfer of funds. 7 USC 1929. Fund referred to in section 309(a) applicable to loans for water systems and waste disposal facilities under section 306(a) (1) 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 title shall be subject to the provisions of this section and section 308. “(c) 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 Notes, purchasing authority. 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) 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 tire 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 title. 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 the Second 40 Stat. 288; 85 Stat. 5. 31 USC 774. Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act, as amended, 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 acquired by the Secretary in connection with rural development loans made, guaranteed, or insured under this title or transferred by subsection (b) of this section shall become a part of the Insurance Fund. Notes 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. 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) 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 title. “(g) The Secretary may utilize the Insurance Fund— “(1) to make rural development loans which could be insured under this title whenever he has a reasonable assurance that they can be sold without undue delay, and he may sell and insure such loans; “(2) 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 semi annual remittance date; “(3) to pay to the holder of insured notes any defaulted installment, or upon assignment of the note to the Secretary at the Secretary’s request, the entire balance due on the loan; “(4) to purchase notes in accordance with contracts of insurance heretofore, or hereafter entered into by the Secretary; “(5) to make payments in compliance with the Secretary’s obligations under contracts of guarantee entered into by him: “(6) 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 335(a) of this title in connection with insured loans. Such items may be paid in connection 75 Stat. 315. 7 USC 1985. 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 title; “(7) 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 “(8) to pay the Secretary’s costs of administration of the rural development loan program, including costs of the Secretary incidental to guaranteeing rural development loans under this title. “(h) 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 the Internal Revenue Code of 1954.” Sec. 117. Insured Watershed and Resource Conservation and Development Loans.— Subtitle A of the Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end a new 75 Stat. 307. 7 USC 1922. section as follows: “Sec. 310A. Loans meeting the requirements of the Watershed Protection and Flood Prevention Act or title III of the Bankhead-Jones 16 USC 1001 note. 7 USC 1010. 7 USC 1928, 1929, 1926, 1927. Farm Tenant Act may be insured, or made to be sold and insured, in accordance with and subject to sections 308 and 309, the last sentence of section 306(a) (1), and the last sentence of section 307 of this title.” Sec. 118. Rural Industrialization Assistance.— (a) Subtitle A of the Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof, after section 310A as added by this Act, a new section as follows: “Sec. 310B. (a) 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 purpose of improving, developing, or financing business, industry, and employment and improving the economic and environmental climate in rural communities, including pollution abatement and control. Such loans, when originated, held, and serviced by other lenders, may be guaranteed by the Secretary under this section without regard to subsections (a) and (c) of section 333. “(b) The Secretary may make grants, not to exceed $50,000,000 Post, p. 666. Pollution abatement projects, grants. 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. “(c) The Secretary may also make grants, not to exceed $50,000,000 Private business enterprises, development grants. annually, to public bodies for measures designed to facilitate development of private business enterprises, including the development, construction or acquisition of land, buildings, points, equipment, access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities, refinancing, services and fees. “(d) 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) 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) for such purposes, including in the case of loans or grants the development, construction, or acquisition of hind, buildings, plants, equipment, access streets and roads, [larking areas, utility extensions, necessary water supply and waste disposal facilities, refining, service and fees. (1) No financial or other assistance shall be extended under any provision of sections 304(b), 310B, and 312(b) 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. (2) No financial or other assistance shall be extended under any provision of sections 304(b), 310B, and 312(b) 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. (3) No financial or other assistance, shall be extended under any provision of sections 304(b), 310B, and 312(b) if the Secretary of Labor certifies within 60 days after the matter has been submitted to him by the Secretary of Agriculture that the provisions of paragraph (1) and (2) 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.” (b) Section 333 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting “310B,” in paragraph (b) after “306,”. Sec. 119. Guaranteed Rural Housing Loans.— Subtitle A of the Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof a new section as follows: “Sec. 310C. (a) Rural Housing Loans which (1) are guaranteed by the Secretary under section 517(a)(2) of the Housing Act of 1949. (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 48 Stat. 1246. 12 USC 1701. Development under the National Housing Act or superseding legislation shall not be subject to sections 501(c) and 63 Stat. 432, 433. 42 USC 1471, 1472. 42 USC 1471. 502(b) (3) of the Housing Act of 1949,” “(b) For the purposes of title V of the Housing Act of 1949, as amended, 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.” Sec. 120. Young Farmers’ Loans.— (a) Section 311 of the Consolidated Farmers Home Administration Act of 1961 is amended by— 75 Stat. 310. 7 USC 1941. (1) inserting “ (a) ” before the first word; and (2) adding at the end of the section a new subsection as follows: “(b) (1) Loans may also be made under this subtitle without regard to the requirements of clauses (2) and (3) of subsection (a) 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 and for the purposes specified in section 312. Bl Stat. 771. 7 USC 1942. Liability. “(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.” (b) Section 312 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting “ (a) ” after “311”. Sec. 121. Rural Enterprise Operating Loans.— Section 312 of the Consolidated Farmers Home Administration Act of 1961, as amended by this title, is amended by— (1) inserting “ (a) ” before the first word; and (2) further amending subsection (a) (as so designated by paragraph (1)) by striking out “and (9) for loan closing costs.” and by inserting in lieu thereof the following: “(9) loan closing costs, and (10) for assisting farmers or ranchers in effecting additions to or alterations in the equipment, facilities, or methods of operation of their farms or ranches in order to comply with the applicable standards promulgated pursuant to section 6 of the Occupational Safety and Health Act of 1970 or standards adopted 84 Stat. 1593. 29 USC 655. by a State pursuant to a plan approved under section 18 of the Occupational Safety and Health Act of 1970, if the Secretary 29 USC 667. determines that any such farmer or rancher is likely to suffer substantial economic injury due to such compliance without assistance under this paragraph.” (3) adding at the end of the section new subsections as follows: “(b) Leans may also be made under this subtitle to residents of rural areas without regard to the requirements of clauses (2) and (3) of section 311(a) to operate in rural areas small business enterprises to Supra. provide such residents with essential income. “(c) Loans may also be made to eligible applicants under this subtitle Pollution abatement. for pollution abatement and control projects in rural areas. “(d) The Secretary may make grants, not to exceed $25,000,000 annually, to eligible applicants under this subtitle for pollution abatement and control projects in rural areas. No such grant shall exceed 50 per cent inn of the development cost of such a project.” Sec. 122. Maximum Size.— Section 313 of the Consolidated Farmers Home Administration Act of 1961 is amended by changing “$35,000” 75 Stat. 310. 7 USC 1943. to “$50,000”. Sec. 123. Insure Operating Loans.— Subtitle B of the Consolidated Farmers Home Administration Act of 1961 is amended by adding 7 USC 1941. at the end thereof a new section as follows: “Sec. 317. Loans meeting the requirements of this subtitle (except section 312(b)) may be insured, or made to be sold and insured, in Supra. accordance with and subject to sections 308 and 309 and the last sentence of section 307 of this title.” 7 USC 1928. Ante, pp, 660, 661. 7 USC 1927. 7 USC 1981. Sec. 124. Amendments to Section 331.— Section 331 of the Consolidated Farmers Home Administration Act of 1961, is amended— (1) by inserting before the semicolon, in paragraph (a), the following: “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 Report to President, transmittal to Congress. carrying out the purposes of this title; (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)”; and (2) by changing the period at the end of any lettered paragraph thereof to a semicolon and adding at the end of such section the following additional paragraphs: “(g) 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 Ante, p. 202. 14, title 6, United States Code, and regulations issued pursuant thereto, but otherwise in accordance with the provisions thereof; “(h) 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; “(i) Consent to the transfer of property securing any loan or financed by any loan or grant made, insured, or held by the Secretary under this title, or the provisions of any other law administered 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.” Sec. 125. Credit Elsewhere Determination.— Paragraph (a) of section 333 is amended by inserting after “in writing” the following; “; and the Secretary shall determine,”. Sec. 126. Repeal of County Committee Approval Requirement for Association and District Loans.— Section 333(b) of the Consolidated Farmers Home Administration Act of 1961 is amended by striking out the words “said sections” and inserting “section 7 USC 1961. 321(b)(2)” Sec. 127. Disposition of Real Property.— Section 335(c) of the Consolidated Farmers Home Administration Act of 1961 is amended by— (1) striking out “subtitle A” in the first sentence and in=erting in lieu thereof “the provisions of any law administered by the Farmers Home Administration”; (2) stinking out “the provisions of subtitle A” in the second sentence and inserting in lien thereof “such provisions”; (3) striking out in the fourth sentence “of at least 20 per centum” and “not more than five annual”; and (4) adding at the end of the fourth sentence before the period the following: “, but not in any event at rates and terms more favorable than those legally permissible for eligible borrowers”. Sec. 128. (a) Guarantee or Loans.— Section 343 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting at the end thereof before the period the following: “, and (4) the word ‘insure’ as used in this title 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, and (5) the term ‘contract of insurance’ includes a contract of guarantee”. (b) Section 307(b) of the Consolidated Farmers Home Administration 75 Stat. 308. 7 USC 1927. Act of 1961 is amended by changing “shall” to “may” in the second sentence. Sec. 129. Order of Preference, Extent of Guaranty.— The Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof the following new section: “Sec. 344. No loan (other than one to a public body or nonprofit Loan limitations. 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 306(a) (1) prior to its amendment by the Rural Development Act. of 1072) shall be made 79 Stat. 931; 84 Stat. 1855. 7 USC 1926. Ante, pp. 657, 658, 663, 665. by the Secretary either for sale as an insured loan or otherwise under section 304(b), 306(a)(1), 310B, 312(b), or 312(c) 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 participate in more than 90 per centum of any loss sustained thereon.”

3. 1972

   Rural Development Act of 1972

   Pub. L. 92–419 § 128(b) · 86 Stat. 657

   Substituted · 7 U.S.C. § 1927(b)

   Pub. L. 92–419, § 128(b), substituted “may” for “shall” in second sentence

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 92–419, § 128(b), substituted “may” for “shall” in second sentence.

   Enacted provision · exact public law section
   (b) Section 307(b) of the Consolidated Farmers Home Administration 75 Stat. 308. 7 USC 1927. Act of 1961 is amended by changing “shall” to “may” in the second sentence.

4. 1978

   Agricultural Credit Act of 1978

   Pub. L. 95–334 § 108(1) · 92 Stat. 420

   Substituted · 7 U.S.C. § 1927(a)

   Pub. L. 95–334, § 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

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–334, § 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.

   Enacted provision · exact public law section
   (1) amending subsection (a) to read as follows: “(a) (1) The period for repayment of loans under this subtitle shall not exceed forty years. “(2) Except as otherwise provided in paragraphs (3), (4), and (5) of this subsection, the interest rates on loans under this subtitle 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) The interest rates on loans (other than guaranteed Post, p. 424. loans) under section 310D of this title, and loans (other than guaranteed loans) to public bodies or nonprofit associations (including Indian tribes on Federal and State reservations and other federally recog-nized Indian tribal groups) for water and waste disposal facilities and essential community facilities shall be as determined by the Secretary, but not in excess of 5 per centum per annum. “(4) The interest rates on loans under sections 304(b), 306(a)(1), and 310B of this title (other than guaranteed loans and loans as 7 USC 1924, 1926, 1932. 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) The interest rate on any loan made under this subtitle 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.”;

5. 1978

   Agricultural Credit Act of 1978

   Pub. L. 95–334 § 108(2) · 92 Stat. 420

   1. Added · 7 U.S.C. § 1927(b); 7 U.S.C. § 1927(c)

      Pub. L. 95–334, § 108(2), (3), added subsec. (b)

   2. Redesignated · 7 U.S.C. § 1927(b); 7 U.S.C. § 1927(c)

      Pub. L. 95–334, § 108(2), (3), redesignated former subsec. (b) as (c)

   Source evidence

   Code amendment note
   Subsecs. (b), (c). Pub. L. 95–334, § 108(2), (3), added subsec. (b) and redesignated former subsec. (b) as (c).

   Enacted provision · exact public law section
   (2) redesignating subsection (b) as subsection (c); and

6. 1981

   Pub. L. 97–35 title I § 160(a) · 95 Stat. 357

   1. Inserted · 7 U.S.C. § 1927(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

   2. Inserted · 7 U.S.C. § 1927(a)

      Pub. L. 97–35 in par. (2) added subpar. (B), in par. (4) inserted exception for par. (6)

   3. Added · 7 U.S.C. § 1927(a)

      Pub. L. 97–35 in par. (2) added par. (6)

   Source evidence

   Code amendment note
   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).

   Enacted provision · exact public law section
   (a) Section 307(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)) is amended by— (1) in paragraph (2), striking out “and (5)” and inserting in lieu thereof “(5), and (6)”; (2) in paragraph (4), striking out “The” and inserting in lieu thereof “Except as provided in paragraph (6), the”; (3) amending paragraph (3) to read as follows: “(3) (A) Except as provided in paragraph (6), the interest rates on loans (other than guranteed loans), to public bodies or nonprofit associations (including Indian tribes on Federal and State reservations arid 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 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 624 of the Economic Opportunity Act of 1964 (42 U.S.C 2971d) 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. “(B) Except as provided in paragraph (6), the interest rates on loans 7 USC 1934. (other than guaranteed loans) under section 310D 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.”; and (4) adding at the end thereof a new paragraph (6) as follows: “(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 Act 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) clauses (2) and (3) of section 303(a), 7 USC 1923. “(ii) the provisions of section 304(a) relating to the financing of 7 USC 1924. outdoor recreational enterprises or the conversion of farming or ranching operations to recreational uses, “(iii) section 304(b), “(iv) the provisions of section 306(a)(1) relating to loans for 7 USC 1926. recreational developments and essential community facilities, “(v) section 306(a)(15), “(vi) clause (1) of section 310B(a), 7 USC 1932. “(vii) subsections (d) and (e) of section 310B, and “(viii) section 310D(a) as it relates to the making or insuring of 7 USC 1934. loans under clauses (2) and (3) of section 303(a). “(C) For purposes of this paragraph, the term ‘prime farmland’ “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).”.

7. 1985

   Food Security Act of 1985

   Pub. L. 99–198 § 1304A · 99 Stat. 1354

   Substituted · 7 U.S.C. § 1927(a)(3)(A)

   Pub. L. 99–198, § 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

   Source evidence

   Code amendment note
   Subsec. (a)(3)(A). Pub. L. 99–198, § 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.

   Enacted provision · exact public law section
   Sec. 1304A. interest rates—water and waste disposal facility and community facility loans Section 307(a)(3)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(A)) is amended by— (1) striking out “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 624 of the Economic Opportunity Act of 1964 (42 U.S.C. 2971d)” and inserting in lieu thereof “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 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))”; and (2) inserting before the period at the end thereof the following: “; 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”.

8. 1985

   Food Security Act of 1985

   Pub. L. 99–198 § 1305 · 99 Stat. 1354

   Added · 7 U.S.C. § 1927(d)

   Pub. L. 99–198, § 1305, added subsec. (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 99–198, § 1305, added subsec. (d).

   Enacted provision · exact public law section
   Sec. 1305. mineral rights as collateral Section 307 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927) is amended by adding at the end thereof Supra. the following: “(d) With respect to a farm ownership loan made after the date of Loans. Petroleum and petroleum products. the enactment of this subsection, 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.”.

9. 1988

   Agricultural Credit Act of 1987

   Pub. L. 100–233 § 603 · 101 Stat. 1568

   Inserted · 7 U.S.C. § 1927(c)

   Pub. L. 100–233, § 603, inserted provisions at end relating to use of same collateral to secure two or more loans made, insured, or guaranteed under this subchapter

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 100–233, § 603, inserted provisions at end relating to use of same collateral to secure two or more loans made, insured, or guaranteed under this subchapter.

   Enacted provision · exact public law section
   SEC. 603. SECURITY FOR FMHA REAL ESTATE LOANS. Section 307(c) (7 U.S.C. 1927(c)) is amended by adding at the end thereof the following new sentence: “A borrower may use the same collateral to secure two or more loans made, insured, or guaranteed under this subtitle, except that the outstanding amount of such loans may not exceed the total value of the collateral so used.”.

10. 1988

    Agricultural Credit Act of 1987

    Pub. L. 100–233 § 604 · 101 Stat. 1568

    Added · 7 U.S.C. § 1927(e)

    Pub. L. 100–233, § 604, added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 100–233, § 604, added subsec. (e).

    Enacted provision · exact public law section
    SEC. 604. ADDITIONAL COLLATERAL. Section 307 (7 U.S.C. 1927) is amended by adding at the end thereof the following new subsection: “(e) The Secretary may not— “(1) require any borrower to provide additional collateral to secure a farmer program loan made or insured under this title, 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.”.

11. 1990

    Rural Economic Development Act of 1990

    Pub. L. 101–624 § 2383(1) · 104 Stat. 3359

    Substituted · 7 U.S.C. § 1927(a)(3)(A)

    Pub. L. 101–624, § 2383(1), substituted “guaranteed” for “guranteed”

    Source evidence

    Code amendment note
    Subsec. (a)(3)(A). Pub. L. 101–624, § 2383(1), substituted “guaranteed” for “guranteed”.

    Enacted provision · exact public law section
    (1) in subparagraph (A), by striking “guranteed” and inserting “guaranteed”; and

12. 1990

    Food, Agriculture, Conservation, and Trade Act of 1990

    Pub. L. 101–624 § 1803(a) · 104 Stat. 3359

    Amended · 7 U.S.C. § 1927(a)(3)(B)

    Pub. L. 101–624, § 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.”

    Source evidence

    Code amendment note
    Subsec. (a)(3)(B). Pub. L. 101–624, § 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.”

    Enacted provision · exact public law section
    (a) Farm Ownership Loans.— Subparagraph (B) of section 307(a)(3) (7 U.S.C. 1927(a)(3)(B)) is amended to read as follows: “(B) Except as provided in paragraph (6), the interest rate on loans (other than guaranteed loans) under section 310D 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.”.

13. 1990

    Rural Economic Development Act of 1990

    Pub. L. 101–624 § 2383(2) · 104 Stat. 3359

    Added · 7 U.S.C. § 1927(a)(3)(C)

    Pub. L. 101–624, § 2383(2), added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (a)(3)(C). Pub. L. 101–624, § 2383(2), added subpar. (C).

    Enacted provision · exact public law section
    (2) by adding at the end the following new subparagraph: “(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.”.

14. 1992

    Farm Credit Banks and Associations Safety and Soundness Act of 1992

    Pub. L. 102–552 title V § 516(c)(1) · 106 Stat. 4102

    1. Redesignated · 7 U.S.C. § 1927(a)(6)(B)(ii)(viii)

       Pub. L. 102–552 redesignated cls. (iii) to (viii) as (ii) to (vii)

    2. Struck · 7 U.S.C. § 1927(a)(6)(B)(ii)(viii)

       Pub. L. 102–552 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,”

    Source evidence

    Code amendment note
    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,”.

    Enacted provision · exact public law section
    (1) Correction.— Section 307(a)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking clause (ii), and by redesignating clauses (iii) through (viii) as clauses (ii) through (vii), respectively.

15. 1994

    Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

    Pub. L. 103–328 § 113(a)(1) · 108 Stat. 2338

    Substituted · 7 U.S.C. § 1927(a)(3)(A)

    Pub. L. 103–328, § 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”

    Source evidence

    Code amendment note
    Subsec. (a)(3)(A). Pub. L. 103–328, § 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”.

    Enacted provision · exact public law section
    (1) in paragraph (3)(A), by striking “Except” and inserting “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”; and

16. 1994

    Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

    Pub. L. 103–328 § 113(a)(2) · 108 Stat. 2338

    1. Substituted · 7 U.S.C. § 1927(a)(5)

       Pub. L. 103–328, § 113(a)(2), substituted “(5)(A) Except as provided in subparagraph (B), the” for “(5) The”

    2. Added · 7 U.S.C. § 1927(a)(5)

       Pub. L. 103–328, § 113(a)(2), added subpar. (B)

    Source evidence

    Code amendment note
    Subsec. (a)(5). Pub. L. 103–328, § 113(a)(2), substituted “(5)(A) Except as provided in subparagraph (B), the” for “(5) The” and added subpar. (B).

    Enacted provision · exact public law section
    (2) in paragraph (5)— (A) by striking “(5) The” and inserting “(5)(A) Except as provided in subparagraph (B), the”; and (B) by adding at the end the following new subparagraph: “(B) In the case of a loan made under section 310B 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.”.

17. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 604(1) · 110 Stat. 888

    Inserted · 7 U.S.C. § 1927(a)(3)(B)

    Pub. L. 104–127, § 604(1), inserted “subparagraph (D) and in” after “Except as provided in”

    Source evidence

    Code amendment note
    Subsec. (a)(3)(B). Pub. L. 104–127, § 604(1), inserted “subparagraph (D) and in” after “Except as provided in”.

    Enacted provision · exact public law section
    (1) in subparagraph (B), by inserting “subparagraph (D) and in” after “Except as provided in”; and

18. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 604(2) · 110 Stat. 888

    Added · 7 U.S.C. § 1927(a)(3)(D)

    Pub. L. 104–127, § 604(2), added subpar. (D)

    Source evidence

    Code amendment note
    Subsec. (a)(3)(D). Pub. L. 104–127, § 604(2), added subpar. (D).

    Enacted provision · exact public law section
    (2) by adding at the end the following: “(D) Joint financing arrangement.— If a direct farm ownership loan is made under this subtitle 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.”.

19. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 661(a)(1) · 110 Stat. 888

    Substituted · 7 U.S.C. § 1927(a)(4)

    Pub. L. 104–127, § 661(a)(1), substituted “1926(a)(1) and 1932 of this title” for “1924(b), 1926(a)(1), and 1932 of this title”

    Source evidence

    Code amendment note
    Subsec. (a)(4). Pub. L. 104–127, § 661(a)(1), substituted “1926(a)(1) and 1932 of this title” for “1924(b), 1926(a)(1), and 1932 of this title”.

    Enacted provision · exact public law section
    (1) in paragraph (4), by striking “304(b), 306(a)(1), and 310B” and inserting “306(a)(1) and 310B”; and

20. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 661(a)(2) · 110 Stat. 888

    1. Inserted · 7 U.S.C. § 1927(a)(6)(B)

       Pub. L. 104–127, § 661(a)(2), inserted “and” at end of cl. (v)

    2. Substituted · 7 U.S.C. § 1927(a)(6)(B)

       Pub. L. 104–127, § 661(a)(2), substituted a period for “, and” at end of cl. (vi)

    3. Redesignated · 7 U.S.C. § 1927(a)(6)(B)

       Pub. L. 104–127, § 661(a)(2), redesignated cls. (iii), (v), and (vi) as (i), (ii), and (iii), respectively

    4. Struck · 7 U.S.C. § 1927(a)(6)(B)

       Pub. L. 104–127, § 661(a)(2), struck out cls. (i), (ii), (iv), and (vii) which read as follows:

    Source evidence

    Code amendment note
    Subsec. (a)(6)(B). Pub. L. 104–127, § 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.”

    Enacted provision · exact public law section
    (2) in paragraph (6)(B)— (A) by striking clauses (i), (ii), (iv), and (vii); (B) in clause (v), by adding “and” at the end; (C) in clause (vi), by striking “, and” at the end and inserting a period; and (D) by redesignating clauses (iii), (v), and (vi) as clauses (i), (ii), and (iii), respectively.

21. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 747(b)(1) · 110 Stat. 888

    Substituted · 7 U.S.C. § 1927(a)(6)(B)(iii)

    Pub. L. 104–127, § 747(b)(1), substituted “section 1932(d) of this title” for “subsections (d) and (e) of section 1932 of this title”

    Source evidence

    Code amendment note
    Subsec. (a)(6)(B)(iii). Pub. L. 104–127, § 747(b)(1), substituted “section 1932(d) of this title” for “subsections (d) and (e) of section 1932 of this title”.

    Enacted provision · exact public law section
    (1) Clause (iii) of section 307(a)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) (as redesignated by section 661(a)(2)) is amended by striking “subsections (d) and (e) of section 310B” and inserting “section 310B(d)”.

22. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 6011 · 122 Stat. 1651

    Added · 7 U.S.C. § 1927(a)(3)(E)

    Pub. L. 110–246, § 6011, added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (a)(3)(E). Pub. L. 110–246, § 6011, added subpar. (E).

    Enacted provision · exact public law section
    SEC. 6011. INTEREST RATES FOR WATER AND WASTE DISPOSAL FACILITIES LOANS.   Section 307(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)) is amended by adding at the end the following: “(E) Interest rates for water and waste disposal facilities loans.— “(i) In general.— Except as provided in clause (ii) and notwithstanding subparagraph (A), in the case of a direct loan for a water or waste disposal facility— “(I) in the case of a loan that would be subject to the 5 percent interest rate limitation under subparagraph (A), the Secretary shall establish the interest rate at a rate that is equal to 60 percent of the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity of the loan, adjusted to the nearest ⅛ of 1 percent; and “(II) in the case of a loan that would be subject to the 7 percent limitation under subparagraph (A), the Secretary shall establish the interest rate at a rate that is equal to 80 percent of the current market yield for outstanding municipal obligations with remaining periods to maturity comparable to the average maturity of the loan, adjusted to the nearest ⅛ of 1 percent. “(ii) Exception.— Clause (i) does not apply to a loan for a specific project that is the subject of a loan that has been approved, but not closed, as of the date of enactment of this subparagraph.” .

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

23. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 6012(b)(1) · 122 Stat. 1651

    1. Added · 7 U.S.C. § 1927(a)(6)(B)(ii)

       Pub. L. 110–246, § 6012(b)(1), added cl. (ii)

    2. Struck · 7 U.S.C. § 1927(a)(6)(B)(ii)

       Pub. L. 110–246, § 6012(b)(1), struck out former cl. (ii) which read as follows: “clause (1) of section 1932(a) of this title, and”

    Source evidence

    Code amendment note
    Subsec. (a)(6)(B)(ii). Pub. L. 110–246, § 6012(b)(1), added cl. (ii) and struck out former cl. (ii) which read as follows: “clause (1) of section 1932(a) of this title, and”.

    Enacted provision · exact public law section
    (1) Section 307(a)(6)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(6)(B)) is amended by striking clause (ii) and inserting the following: “(ii) section 310B(a)(2)(A); and” .

    Effective date note
    Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

24. 2014

    Agricultural Act of 2014

    Pub. L. 113–79 § 5003 · 128 Stat. 649

    1. Added · 7 U.S.C. § 1927(a)(3)(D)

       Pub. L. 113–79, § 5003, added subpar. (D)

    2. Struck · 7 U.S.C. § 1927(a)(3)(D)

       Pub. L. 113–79, § 5003, struck out former subpar. (D). Prior to amendment, text read as follows: “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.”

    Source evidence

    Code amendment note
    Subsec. (a)(3)(D). Pub. L. 113–79, § 5003, added subpar. (D) and struck out former subpar. (D). Prior to amendment, text read as follows: “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.”

    Enacted provision · exact public law section
    SEC. 5003. JOINT FINANCING ARRANGEMENTS.   Section 307(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)) is amended by striking subparagraph (D) and inserting the following: “(D) Joint financing arrangements.— If a direct farm ownership loan is made under this subtitle 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 a rate equal to the greater of— “(i) the difference between— “(I) 2 percent; and “(II) the interest rate for farm ownership loans under this subtitle; or “(ii) 2.5 percent.” .

25. 2014

    Agricultural Act of 2014

    Pub. L. 113–79 § 5004 · 128 Stat. 649

    1. Redesignated · 7 U.S.C. § 1927(d); 7 U.S.C. § 1927(e)

       Pub. L. 113–79, § 5004, redesignated subsec. (e) as (d)

    2. Struck · 7 U.S.C. § 1927(d); 7 U.S.C. § 1927(e)

       Pub. L. 113–79, § 5004, struck out former subsec. (d). Prior to amendment, text read as follows: “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.”

    Source evidence

    Code amendment note
    Subsecs. (d), (e). Pub. L. 113–79, § 5004, redesignated subsec. (e) as (d) and struck out former subsec. (d). Prior to amendment, text read as follows: “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.”

    Enacted provision · exact public law section
    SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL REQUIREMENT.   Section 307 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927) is amended— (1) by striking subsection (d); and (2) by redesignating subsection (e) as subsection (d).

35 of 36 references resolved to an enrolled provision · 1 partial