§ 1961. Eligibility for 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 § 321 · 75 Stat. 294

   Enacted · 7 U.S.C. § 1961

   Pub. L. 87–128, title III, § 321, Aug. 8, 1961, 75 Stat. 311

   Source evidence

   Code source credit
   Pub. L. 87–128, title III, § 321, Aug. 8, 1961, 75 Stat. 311

   Enacted provision · exact public law section
   Sec. 321. (a) The Secretary may designate any area in the United States and in Puerto Rico and the Virgin Islands as an emergency area if he finds (1) that there exists in such area a general need for agricultural credit which cannot be met for temporary periods of time by private, cooperative, or other responsible sources (including loans the Secretary is authorized to make under subtitle B or to make or insure under subtitle A of this title or any other Act of Congress), at reasonable rates and terms for loans for similar purposes and periods of time, and (2) that the need for such credit in such area is the result of a natural disaster. (b) The Secretary is authorized to make loans in any such area (1) to established farmers or ranchers who are citizens of the United States and (2) to private domestic corporations or partnerships engaged primarily in farming or ranching provided they have experience and resources necessary to assure a reasonable prospect for successful operation with the assistance of such loan, and are 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.

2. 1962

   Pub. L. 87–832 · 76 Stat. 958

   Changed · 7 U.S.C. § 1961(b)

   Pub. L. 87–832 authorized loans to established oyster planters and to private domestic corporations or partnerships engaged primarily in oyster planting

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 87–832 authorized loans to established oyster planters and to private domestic corporations or partnerships engaged primarily in oyster planting.

3. 1973

   Pub. L. 93–24 · 87 Stat. 24

   1. Substituted · 7 U.S.C. § 1961(a)

      Pub. L. 93–24, §§ 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”

   2. Substituted · 7 U.S.C. § 1961(a)

      Pub. L. 93–24, §§ 2, 6, substituted in parenthetical text “shall designate” for “may designate”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 93–24, §§ 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”.

4. 1973

   Pub. L. 93–24 § 3 · 87 Stat. 24

   1. Substituted · 7 U.S.C. § 1961(b)

      Pub. L. 93–24, § 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” before “they have experience”

   2. Substituted · 7 U.S.C. § 1961(b)

      Pub. L. 93–24, § 3, substituted introductory text “: Provided, That” for “provided” before “they have experience”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 93–24, § 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”.

   Enacted provision · exact public law section
   Sec. 3. Subsection (b) of section 321 of the Consolidated Farm and Rural Development Act is amended by deleting said subsection in its entirety and substituting in lieu thereof: “(b) The Secretary shall make loans in any such area designated by the Secretary in accordance with subsection (a) hereof and in any area designated as a major disaster by the President pursuant to the provisions 84 Stat. 1744. 42 USC 4401 note. of the Disaster Relief Act of 1970, as amended, (1) to established farmer’s, ranchers, or oyster planters who are citizens of the United States and (2) to private domestic corporations or partnerships engaged primarily in farming, ranching, or oyster planting: Provided, That they have experience and resources necessary to assure a reasonable prospect for successful operation with the assistance of such loan, and are 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.”

5. 1974

   Pub. L. 93–237 § 10(d) · 87 Stat. 1023

   Struck · 7 U.S.C. § 1961(a)

   Pub. L. 93–237, § 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”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 93–237, § 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”.

   Enacted provision · exact public law section
   (d) Section 321(a) of Public Law 87–128, as amended, is hereby amended by striking “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 subtitles A and B of this title or any other Act of Congress), at reasonable rates and terms for loans for similar purposes and periods of time”. The provisions of this subsection shall be given effect with respect to Effective date. all loan applications and loans made in connection with a disaster occurring on or after December 27, 1972.

6. 1974

   Pub. L. 93–237 § 10(a) · 87 Stat. 1023

   Struck and inserted · 7 U.S.C. § 1961(b)

   Pub. L. 93–237, § 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

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 93–237, § 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.

   Enacted provision · exact public law section
   (a) Section 3 of Public Law 93–24 is amended by striking Ante, p. 24. therefrom: “, and are 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”, and insert in lieu thereof the following: “Such loans shall be made without regard to whether the required financial assistance is otherwise available from private, cooperative, or other responsible sources”.

7. 1975

   Pub. L. 94–68 § 2 · 89 Stat. 381

   1. Substituted · 7 U.S.C. § 1961(a)

      Pub. L. 94–68, § 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

   2. Inserted · 7 U.S.C. § 1961(a)

      Pub. L. 94–68, § 2, inserted definition of “aquaculture”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 94–68, § 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”.

   Enacted provision · exact public law section
   Sec. 2. Subsection (a) of section 321 of the Act is amended to read; “The Secretary shall designate any area in the United States, Puerto Rico, and the Virgin Islands as an emergency area if he finds that a natural disaster has occurred in said area which substantially affected farming, ranching, or aquaculture operations. For purposes “Aquaculture.” of this subtitle ‘aquaculture’ means husbandry of aquatic organisms under a controlled or selected environment,”,

8. 1975

   Pub. L. 94–68 § 3 · 89 Stat. 381

   1. Amended · 7 U.S.C. § 1961(b)

      Pub. L. 94–68, § 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

   2. Substituted · 7 U.S.C. § 1961(b)

      Pub. L. 94–68, § 3, extended the authority of the Secretary to make loans to areas substituted reference to persons engaged in aquaculture and aquaculture for reference to oyster planters and oyster planting respectively

   3. Struck · 7 U.S.C. § 1961(b)

      Pub. L. 94–68, § 3, extended the authority of the Secretary to make loans to areas 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

   4. Inserted · 7 U.S.C. § 1961(b)

      Pub. L. 94–68, § 3, extended the authority of the Secretary to make loans to areas inserted requirement that the loan applicant be unable to obtain credit elsewhere at reasonable rates and terms

   5. Inserted · 7 U.S.C. § 1961(b)

      Pub. L. 94–68, § 3, extended the authority of the Secretary to make loans to areas inserted sentence that the provisions of this subsection shall not apply to loan applications filed prior to July 9, 1975

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 94–68, § 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.

   Enacted provision · exact public law section
   Sec. 3. Subsection (b) of section 321 of the Act is amended as follows: (a) in the first sentence after the words “major disaster” insert “or emergency”, strike the words “oyster planters” and “oyster planting” and insert in lieu thereof the words “persons engaged in aquaculture” and “aquaculture”, respectively; and (b) delete everything after the first sentence, strike the period, and insert: “and are unable to obtain sufficient credit elsewhere to finance their actual needs at reason able 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. The provisions of this subsection shall not be applicable to loan applications filed prior to July 9, 1975.”.

9. 1978

   Agricultural Credit Act of 1978

   Pub. L. 95–334 title I § 118 · 92 Stat. 420

   1. Struck · 7 U.S.C. § 1961

      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

   2. Substituted · 7 U.S.C. § 1961

      Pub. L. 95–334 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

   Source evidence

   Code amendment note
   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.

   Enacted provision · exact public law section
   Sec. 118. emergency loan eligibility Section 321 of the Consolidated Farm and Rural Development Act is amended to read as follows: 7 USC 1961. “Sec. 321. The Secretary shall make and insure loans under this subtitle to (1) established farmers, ranchers, or persons engaged in aquaculture, who are citizens of the United States, and (2) to farm cooperatives or private domestic corporations or partnerships in which a majority interest is held by members, stockholders, or partners who are citizens of the United States if the cooperative, corporation, or partnership is engaged primarily in farming, ranching, or aquaculture, 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 pursuant to the provisions of the Disaster Relief Act of 1974: Provided, That they have experience and resources necessary 42 USC 5121 note. to assure a reasonable prospect for successful operation with the assistance of such loan and are 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. For the purposes of this subtitle “Aquaculture.” ‘aquaculture’ means husbandry of aquatic organisms under a controlled or selected environment.”.

10. 1980

    Pub. L. 96–302 § 120(a) · 94 Stat. 833

    Struck · 7 U.S.C. § 1961(a)

    Pub. L. 96–302, § 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

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 96–302, § 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.

    Enacted provision · exact public law section
    (a) Section 321 of the Consolidated Farm and Rural Development Act is amended by striking out in the first sentence all 7 USC 1961. that follows after “with the assistance of such loan” through the end of the sentence and inserting in lieu thereof a period.

11. 1980

    Pub. L. 96–348 § 3(a) · 94 Stat. 1152

    1. Repealed · 7 U.S.C. § 1961(a)

       Pub. L. 96–348, § 3(a), (b)(1), repealed section 120 of Pub. L. 96–302 (see par. below)

    2. Amended · 7 U.S.C. § 1961(a)

       Pub. L. 96–348, § 3(a), (b)(1), amended section generally

    3. Amended · 7 U.S.C. § 1961(a)

       Pub. L. 96–348, § 3(a), (b)(1), 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

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 96–348, § 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.

    Enacted provision · exact public law section
    Sec. 3. The tracts of land identified in sales applications, Bureau of Land Management, serial numbers C–14117 and C–28389, shall not become a part of the White River National Forest unless such applications are denied, and if they are denied in accordance with the laws, rules, and regulations applicable thereto, such lands shall become part of the national forest and be administered in accordance with section 2 of the date of issuance of the denial.

12. 1980

    Pub. L. 96–438 § 3(b)(1) · 94 Stat. 1871

    Added · 7 U.S.C. § 1961(b)(d)

    Pub. L. 96–438, § 3(b)(1), added subsecs. (b) to (d)

    Source evidence

    Code amendment note
    Subsecs. (b) to (d). Pub. L. 96–438, § 3(b)(1), added subsecs. (b) to (d).

    Enacted provision · exact public law section
    (1) amending sections 321, 322, 323, and 324 to read as follows: “Sec. 321. (a) The Secretary shall make and insure loans under this subtitle to (1) established farmers, ranchers, or persons engaged in aquaculture, who are citizens of the United States, and (2) farm cooperatives or private domestic corporations or partnerships in which a majority interest is held by members, stockholders, or partners who are citizens of the United States if the cooperative, corporation, or partnership is engaged primarily in farming, ranching, or aquaculture, 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 42 USC 5121 note. Relief Act of 1974: 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. “(b) Notwithstanding the credit elsewhere requirements of 7 USC 1983. subsection (a) of this section and section 333(a) of this title, the Secretary shall implement a program under which the Secretary may make or insure loans under this subtitle to applicants able to obtain sufficient credit elsewhere, subject to the other terms and conditions for loans made or insured under this subtitle and such other terms and conditions as the Secretary may, by regulation, prescribe. “(c) The Secretary shall conduct the emergency loan program Family farm system. under this subtitle 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 102(a) of the Food and Agriculture Act of 1977. 7 USC 2266. “(d) For the purposes of this subtitle— Definitions. “(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. “Sec. 322. (a) For the purpose of determining whether to make or Loan determination factors. 7 USC 1962. insure any loan under this subtitle, 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 Written credit declination. this subtitle 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 $300,000 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. “Sec. 323. Loans may be made or insured under this subtitle for any Loans, extent. 7 USC 1963. 7 USC 1922, 1941. purpose authorized for loans under subtitle A or B of this title and for crop or livestock changes deemed desirable by the applicant, subject to the limitations on the amounts of loans provided in section 324(a) of this title. “Sec. 324. (a) (1) Except as otherwise provided in paragraph (2) of Loan limitation. 7 USC 1964. this subsection, no loan made or insured under this subtitle may exceed the amount of the actual loss caused by the disaster or $500,000, whichever is less, for each disaster. “(2) Through September 30, 1982, loans may be made or insured Excess loan amounts. under this subtitle in amounts in excess of the amount of actual loss (as limited under paragraph (1) of this subsection) to applicants who are not able to obtain sufficient credit elsewhere, within the following limits: “(A) Through the end of fiscal year 1980, no such loan may be made or insured in an amount that would cause the total unpaid principal indebtedness of the applicant for loans or portions of loans in excess of the amount of actual loss to exceed $1,500,000; “(B) During fiscal year 1981, no such loan may be made or insured in an amount that would cause the total unpaid principal indebtedness of the applicant for loans or portions of loans in excess of the amount of actual loss to exceed $1,000,000; “(C) During fiscal year 1982, no such loan may be made or insured in an amount that would cause the total unpaid principal indebtedness of the applicant for loans or portions of loans in excess of the amount of actual loss to exceed $500,000; and “(D) No loan or portion of a loan in excess of the amount of actual loss that is for more than $300,000 may be made or insured under this subtitle unless the Secretary determines that the applicant is not able to obtain from a private or cooperative lending agency a loan guaranteed by the Secretary under this subtitle sufficient 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). “(b) Loans under this subtitle 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 (A) if the applicant is not able to obtain sufficient credit elsewhere, not in excess of 5 per centum per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, 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 of not to exceed 1 per centum per annum as determined by the Secretary, and adjusted to the nearest one-eighth of 1 per centum; 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) For guaranteed loans under this subtitle, 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) All loans under this subtitle 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 subtitles A and B of this 7 USC 1922, 1941. Security. title, 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 subtitles A and B of this title, as justified by the needs 7 USC 1922, 1941. Repayment period, extension. of the applicant: Provided further, Review: non-Federal loans That for any disaster occurring after January 1, 1975, the Secretary, if the loan is for a purpose described in subtitle B of this title, 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 321(b) of this title, three years after the loan Ante, p. 1872. 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. “(e) Any political subdivision of a State with a population of less Grant eligibility. 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 the Consolidated Farm and 42 USC 5184 note. 7 USC 1921 note. Rural Development Act during any period in which the Community Emergency Drought Relief Act of 1977 is or has been in effect.”; and

13. 1981

    Pub. L. 97–35 title I § 161 · 95 Stat. 357

    Inserted · 7 U.S.C. § 1961(a)

    Pub. L. 97–35 inserted provisions relating to requirement for advance appropriation of amounts

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 97–35 inserted provisions relating to requirement for advance appropriation of amounts.

    Enacted provision · exact public law section
    Sec. 161. emergency loan amounts Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by inserting “only to the extent and in such amounts as provided in advance in appropriation Acts” after “The Secretary shall make and insure loans under this subtitle”.

14. 1984

    Emergency Agricultural Credit Act of 1984

    Pub. L. 98–258 title VI § 602(a) · 98 Stat. 130

    Inserted · 7 U.S.C. § 1961(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

    Source evidence

    Code amendment note
    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.

    Enacted provision · exact public law section
    (a) Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by adding at the end thereof the following new sentences: “The Secretary shall accept applications from, and make or insure loans pursuant to the requirements of this subtitle to, applicants, otherwise eligible under this subtitle, 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 42 USC 5121 note. Disaster Relief Act of 1974. The Secretary shall accept applications for assistance under this subtitle 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.”.

15. 1985

    Food Security Act of 1985

    Pub. L. 99–198 § 1308(a) · 99 Stat. 1354

    1. Inserted · 7 U.S.C. § 1961(a)(1)

       Pub. L. 99–198, § 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

    2. Substituted · 7 U.S.C. § 1961(a)(1)

       Pub. L. 99–198, § 1308(a), 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

    3. Inserted · 7 U.S.C. § 1961(a)(1)

       Pub. L. 99–198, § 1308(a), 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)

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 99–198, § 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).

    Enacted provision · exact public law section
    (a) Section 321(a) of the Consolidated Farm and Rural 98 Stat. 138. Development Act (7 U.S.C. 1961(a)) is amended by— (1) inserting after “United States” in clause (1) of the first sentence “and who are owner-operators (in the case of loans for a purpose under subtitle A) or operators (in the case of loans for a purpose under subtitle B) of not larger than family farms”; (2) in clause (2) of the first sentence, striking out “farm cooperatives or private domestic corporations or partnerships in which a majority interest is held by members, stockholders, or partners who are citizens of the United States if the cooperative, corporation, or partnership is engaged primarily in farming, ranching, or aquaculture,” and inserting in lieu thereof the following: “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 subtitle A) or operators (in the case of loans for a purpose under subtitle B) 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),”; and (3) inserting after the first sentence the following: “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 subtitle A) or an operator interest (in the case of loans for a purpose under subtitle B).”.

16. 1985

    Food Security Act of 1985

    Pub. L. 99–198 § 1308(b)(1) · 99 Stat. 1354

    1. Amended · 7 U.S.C. § 1961(b)

       Pub. L. 99–198, § 1308(b)(1), amended subsec. (b) generally

    2. Substituted · 7 U.S.C. § 1961(b)

       Pub. L. 99–198, § 1308(b)(1), 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

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 99–198, § 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.

    Enacted provision · exact public law section
    (1) Subsection (b) of section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(b)) is amended to read as follows: “(b) An applicant shall be ineligible for financial assistance under this subtitle 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.).”.

17. 1988

    The Disaster Relief and Emergency Assistance Amendments of 1988

    Pub. L. 100–707 title I § 109(c)(1) · 102 Stat. 4689

    Substituted · 7 U.S.C. § 1961(a)

    Pub. L. 100–707 substituted “and Emergency Assistance Act” for “Act of 1974” in two places

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 100–707 substituted “and Emergency Assistance Act” for “Act of 1974” in two places.

    Enacted provision · exact public law section
    (1) Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by striking out “Act of 1974” each place it appears and inserting in lieu thereof “and Emergency Assistance Act”.

18. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 title VI § 621(a) · 110 Stat. 888

    1. Added · 7 U.S.C. § 1961(b)

       Pub. L. 104–127 added subsec. (b)

    2. Struck · 7 U.S.C. § 1961(b)

       Pub. L. 104–127 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.).”

    Source evidence

    Code amendment note
    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.).”

    Enacted provision · exact public law section
    (a) In General.— Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended by striking subsection (b) and inserting the following: “(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 subtitle 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 the date of enactment of this paragraph, the Secretary shall determine the appropriate level of insurance to be required under paragraph (1).”.

19. 2000

    Pub. L. 106–387 § 1(a)(tVIII)(s833) · 114 Stat. 1549

    Added · 7 U.S.C. § 1961(b)(3)

    Pub. L. 106–387 added par. (3)

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 106–387 added par. (3).

    Enacted provision · exact public law section
    (a) The provisions of H.R. 5426 of the 106th Congress, as introduced on October 6, 2000, are hereby enacted into law.

20. 2002

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

    1. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 107–171 substituted “a quarantine imposed by the Secretary under the Plant Protection Act or the animal quarantine laws (as defined in section 136a of title 21), a natural disaster in the United States, or” for “a natural disaster in the United States or by”

    2. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 107–171 substituted “Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)” for “Disaster Relief and Emergency Assistance Act”

    3. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 107–171 substituted “joint operations, trusts, or limited liability companies” for “or joint operations”

    4. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 107–171 substituted “joint operations, trusts, and limited liability companies” for “and joint operations”

    5. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 107–171 substituted “such a quarantine or natural disaster at any time” for “a natural disaster at any time”

    6. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 107–171 substituted “by such quarantine or natural disaster or (B)” for “by such natural disaster or (B)”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 107–171 substituted “a quarantine imposed by the Secretary under the Plant Protection Act or the animal quarantine laws (as defined in section 136a of title 21), a natural disaster in the United States, or” for “a natural disaster in the United States or by” in two places, “Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)” for “Disaster Relief and Emergency Assistance Act” in two places, “joint operations, trusts, or limited liability companies” for “or joint operations” in two places, “joint operations, trusts, and limited liability companies” for “and joint operations”, “such a quarantine or natural disaster at any time” for “a natural disaster at any time”, and “by such quarantine or natural disaster or (B)” for “by such natural disaster or (B)”.

    Enacted provision · exact public law
    TITLE V— CREDIT Subtitle A— Farm Ownership Loans SEC. 5001. DIRECT LOANS. Section 302(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(b)(1)) is amended by striking “operated” and inserting “participated in the business operations of”. 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.”. SEC. 5003. AMOUNT OF GUARANTEE OF LOANS FOR FARM OPERATIONS ON TRIBAL LANDS. Section 309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)) is amended— (1) in paragraph (4), by striking “paragraphs (5) and (6)” and inserting “paragraphs (5), (6), and (7)”; and (2) by adding at the end the following: “(7) Amount of guarantee of loans for farm operations on tribal lands.— In the case of an operating loan made to a farmer or rancher whose farm or ranch land is subject to the jurisdiction of an Indian tribe and whose loan is secured by 1 or more security instruments that are subject to the jurisdiction of an Indian tribe, the Secretary shall guarantee 95 percent of the loan.”. SEC. 5004. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS. Section 309 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929) is amended by adding at the end the following: “(j) Guarantee of Loans Made Under State Beginning Farmer or Rancher Programs.— The Secretary may guarantee under this title a loan made under a State beginning farmer or rancher program, including a loan financed by the net proceeds of a qualified small issue agricultural bond for land or property described in section 144(a)(12)(b)(ii) of the Internal Revenue Code of 1986”. SEC. 5005. DOWN PAYMENT LOAN PROGRAM. Section 310E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935) is amended— (1) in subsection (b)— (A) in paragraph (1), by striking “30 percent” and inserting “40 percent”; and (B) in paragraph (3), by striking “10 years” and inserting “15 years”; and (2) in subsection (c)(3)(b), by striking “10-year” and inserting “15-year”. SEC. 5006. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM. Subtitle A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the following: “SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM. “(a) In General.— If the Secretary makes a determination that the risk is comparable under subsection (B), the Secretary shall carry out a pilot program in not fewer than 5 States, as determined by the Secretary, to guarantee up to 5 loans per State in each of fiscal years 2003 through 2007 made by a private seller of a farm or ranch to a qualified beginning farmer or rancher on a contract land sale basis, if the loan meets applicable underwriting criteria and a commercial lending institution agrees to serve as escrow agent. “(b) Date of Commencement of Program.— Not later than Deadline. October 1, 2002, the Secretary shall make a determination on whether guarantees of contract land sales present a risk that is comparable with the risk presented in the case of guarantees to commercial lenders.”. Subtitle B— Operating Loans SEC. 5101. DIRECT LOANS. Section 311(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended— (1) in paragraph (1)— (A) in the matter that precedes subparagraph (A), by striking “paragraph (3)” and inserting “paragraphs (3) and (4)”; and (B) in subparagraph (A), by striking “who has not” and all that follows through “5 years”; and (2) by adding at the end the following: “(4) Waivers.— “(A) Farm and ranch operations on tribal lands.— The Secretary shall waive the limitation under paragraph (1)(C) or (3) for a direct loan made under this subtitle to a farmer or rancher whose farm or ranch land is subject to the jurisdiction of an Indian tribe and whose loan is secured by 1 or more security instruments that are subject to the jurisdiction of an Indian tribe if the Secretary determines that commercial credit is not generally available for such farm or ranch operations. “(B) Other farm and ranch operations.— On a case-by-case determination not subject to administrative appeal, the Secretary may grant a borrower a waiver, 1 time only for a period of 2 years, of the limitation under paragraph (1)(C) or (3) for a direct operating loan if the borrower demonstrates to the satisfaction of the Secretary that— “(i) the borrower has a viable farm or ranch operation; “(ii) the borrower applied for commercial credit from at least 2 commercial lenders; “(iii) the borrower was unable to obtain a commercial loan (including a loan guaranteed by the Secretary); and “(iv) the borrower successfully has completed, or will complete within 1 year, borrower training under section 359 (from which requirement the Secretary shall not grant a waiver under section 359(f)).”. SEC. 5102. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE. During the period beginning January 1, 2002, and ending Effective date. December 31, 2006, section 319(b) of the Consolidated Farm and Termination date. Rural Development Act (7 U.S.C. 1949(b)) shall have no force or effect. Subtitle C— Emergency Loans SEC. 5201. EMERGENCY LOANS IN RESPONSE TO AN EMERGENCY RESULTING FROM QUARANTINES. (a) Loan Authority.— Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended— (1) in each of the 1st and 3rd sentences, by striking “a natural disaster in the United States or by” and inserting “a quarantine imposed by the Secretary under the Plant Protection Act or the animal quarantine laws (as defined in section 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990), a natural disaster in the United States, or”; and (2) in the 4th sentence— (A) by striking “a natural disaster” and inserting “such a quarantine or natural disaster”; and (B) by striking “by such natural disaster” and inserting “by such quarantine or natural disaster”. (b) Conforming Amendment.— Section 323 of such Act (7 U.S.C. 1963) is amended by inserting “quarantine,” before “natural disaster”. Subtitle D— Administrative Provisions SEC. 5301. EVALUATIONS OF DIRECT AND GUARANTEED LOAN PROGRAMS. (a) Studies.— The Secretary of Agriculture shall conduct 2 studies of the direct and guaranteed loan progams under sections 302 and 311 of the Consolidated Farm and Rural Development Act, each of which shall include an examination of the number, average principal amount, and delinquency and default rates of loans provided or guaranteed during the period covered by the study. (b) Periods Covered.— (1) First study.— One study under subsection (a) shall cover the 1-year period that begins 1 year after the date of the enactment of this section. (2) Second study.— One study under subsection (a) shall cover the 1-year period that begins 3 years after such date of enactment. (c) Reports to the Congress.— At the end of the period covered by each study under this section, the Secretary of Agriculture shall submit to the Congress a report that contains an evaluation of the results of the study, including an analysis of the effectiveness of loan programs referred to in subsection (a) in meeting the credit needs of agricultural producers in an efficient and fiscally responsible manner. SEC. 5302. ELIGIBILITY OF TRUSTS AND LIMITED LIABILITY COMPANIES FOR FARM OWNERSHIP LOANS, FARM OPERATING LOANS, AND EMERGENCY LOANS. (a) In General.— Sections 302(a), 311(a), and 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a), 1941(a), and 1961(a)) are each amended by striking “and joint operations” each place it appears and inserting “joint operations, trusts, and limited liability companies”. (b) Conforming Amendment.— Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by striking “or joint operations” each place it appears and inserting “joint operations, trusts, or limited liability companies”. SEC. 5303. DEBT SETTLEMENT. Section 331(b)(4) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) is amended— (1) by striking “The Secretary may release” and inserting “After consultation with a local or area county committee, the Secretary may release”; and (2) by striking “carried out—” and all that follows through “(B) after” and inserting “carried out after”. SEC. 5304. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE COLLECTION AGENCIES. (a) In General.— Section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981) is amended by striking subsections (d) and (e). (b) Application.— The amendment made by subsection (a) shall 7 USC 1981 note. not apply to a contract entered into before the effective date of this Act. SEC. 5305. INTEREST RATE OPTIONS FOR LOANS IN SERVICING. Section 331B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981b) is amended— (1) by striking “lower of (1) the” and inserting the following: “lowest of.— “(1) the”; and (2) by striking “original loan or (2) the” and inserting the following: “original loan; “(2) the rate being charged by the Secretary for loans, other than guaranteed loans, of the same type at the time at which the borrower applies for a deferral, consolidation, rescheduling, or reamortization; or “(3) the”. SEC. 5306. ELIMINATION OF REQUIREMENT THAT SECRETARY REQUIRE COUNTY COMMITTEES TO CERTIFY IN WRITING THAT CERTAIN LOAN REVIEWS HAVE BEEN CONDUCTED. Section 333(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983(2)) is amended to read as follows: “(2) except with respect to a loan under section 306, 310B, or 314— “(A) an annual review of the credit history and business operation of the borrower; and “(B) an annual review of the continued eligibility of the borrower for the loan;”. SEC. 5307. SIMPLIFIED LOAN GUARANTEE APPLICATION AVAILABLE FOR LOANS OF GREATER AMOUNTS. Section 333A(g)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a(g)(1)) is amended by striking “$50,000” and inserting “$125,000”. SEC. 5308. INVENTORY PROPERTY. Section 335(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) is amended— (1) in paragraph (1)— (A) in subparagraph (B)— (i) in clause (i), by striking “75 days” and inserting “135 days”; and (ii) by adding at the end the following: “(iv) Combining and dividing of property.— To the maximum extent practicable, the Secretary shall maximize the opportunity for beginning farmers and ranchers to purchase real property acquired by the Secretary under this title by combining or dividing inventory parcels of the property in such manner as the Secretary determines to be appropriate.”; and (B) in subparagraph (C)— (i) by striking “75 days” and inserting “135 days”; and (ii) by striking “75-day period” and inserting “135-day period”; and (2) by striking paragraph (2) and inserting the following: “(2) Previous lease.— In the case of real property acquired before April 4, 1996, that the Secretary leased before 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).”. SEC. 5309. ADMINISTRATION OF CERTIFIED LENDERS AND PREFERRED CERTIFIED LENDERS PROGRAMS. Section 339 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1989) is amended by adding at the end the following: “(e) Administration of Certified Lenders and Preferred Certified Lenders Programs.— The Secretary may administer the loan guarantee programs under subsections (c) and (d) through central offices established in States or in multi-State areas.”. SEC. 5310. DEFINITIONS. (a) Qualified Beginning Farmer or Rancher.— Section 343(a)(11)(F) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking “25 percent” and inserting “30 percent”. (b) Debt Forgiveness.— Section 343(a)(12)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as follows: “(B) Exceptions.— The term ‘debt forgiveness’ does not include— “(i) consolidation, rescheduling, reamortization, or deferral of a loan; or “(ii) any write-down provided as part of a resolution of a discrimination complaint against the Secretary.”. SEC. 5311. LOAN AUTHORIZATION LEVELS. Section 346(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(1)) is amended to read as follows: “(1) In general.— The Secretary may make or guarantee loans under subtitles A and B from the Agricultural Credit Insurance Fund provided for in section 309 for not more than $3,796,000,000 for each of fiscal years 2003 through 2007, of which, for each fiscal year— “(A) $770,000,000 shall be for direct loans, of which— “(i) $205,000,000 shall be for farm ownership loans under subtitle A; and “(ii) $565,000,000 shall be for operating loans under subtitle B; and “(B) $3,026,000,000 shall be for guaranteed loans, of which— “(i) $1,000,000,000 shall be for guarantees of farm ownership loans under subtitle A; and “(ii) $2,026,000,000 shall be for guarantees of operating loans under subtitle B.”. SEC. 5312. RESERVATION OF FUNDS FOR DIRECT OPERATING LOANS FOR BEGINNING FARMERS AND RANCHERS. Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended by striking “2000 through 2002” and inserting “2003 through 2007”. SEC. 5313. INTEREST RATE REDUCTION PROGRAM. Section 351 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1999) is amended— (1) in subsection (a)— (A) by striking “Program.—” and all that follows through “The Secretary” and inserting “Program.—The Secretary”; and (B) by striking paragraph (2); and (2) in subsection (e), by striking paragraph (2) and inserting the following: “(2) Maximum amount of funds.— “(A) In general.— The total amount of funds used by the Secretary to carry out this section for a fiscal year shall not exceed $750,000,000. “(B) Beginning farmers and ranchers.— “(i) In general.— The Secretary shall reserve not less than 15 percent of the funds used by the Secretary under subparagraph (A) to make payments for guaranteed loans made to beginning farmers and ranchers. “(ii) Duration of reservation of funds.— Funds reserved for beginning farmers or ranchers under clause (i) for a fiscal year shall be reserved only until March 1 of the fiscal year.”. SEC. 5314. REAMORTIZATION OF RECAPTURE PAYMENTS. Section 353(e)(7) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)(7)) is amended by adding at the end the following: “(D) Reamortization.— “(i) In general.— The Secretary may modify the amortization of a recapture payment referred to in subparagraph (A) of this paragraph on which a payment has become delinquent by using loan service tools under section 343(b)(3) if— “(I) the default is due to circumstances beyond the control of the borrower; and “(II) the borrower acted in good faith (as determined by the Secretary) in attempting to repay the recapture amount. “(ii) Limitations.— “(I) Term of reamortization.— The term of a reamortization under this subparagraph may not exceed 25 years from the date of the original amortization agreement. “(II) No reduction or principal or unpaid interest due.— A reamortization of a recapture payment under this subparagraph may not provide for reducing the outstanding principal or unpaid interest due on the recapture payment. SEC. 5315. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED FARMERS AND RANCHERS. The last sentence of section 355(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(c)(2)) is amended to read as follows: “Any funds reserved and allocated under this paragraph but not used within a State shall, to the extent necessary to satisfy pending applications under this title, be available for use by socially disadvantaged farmers and ranchers in other States, as determined by the Secretary, and any remaining funds shall be reallocated within the State.”. SEC. 5316. WAIVER OF BORROWER TRAINING CERTIFICATION REQUIREMENT. Section 359 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006a) is amended by striking subsection (f) and inserting the following: “(f) Waivers.— “(1) In general.— The Secretary may waive the requirements of this section for an individual borrower if the Secretary determines that the borrower demonstrates adequate knowledge in areas described in this section. “(2) Criteria.— The Secretary shall establish criteria providing for the application of paragraph (1) consistently in all counties nationwide.”. SEC. 5317. TIMING OF LOAN ASSESSMENTS. Section 360(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006b(a)) is amended by striking “After an applicant is determined eligible for assistance under this title by the appropriate county committee established pursuant to section 332, the” and inserting “The”. SEC. 5318. ANNUAL REVIEW OF BORROWERS. Section 360(d)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006b(d)(1)) is amended by striking “biannual” and inserting “annual”. SEC. 5319. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS. Section 373(b)(2)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008h(b)(2)(A)) is amended— (1) in clause (i), by striking “or”; (2) in clause (ii), by striking the period and inserting or”; and (3) by adding at the end the following: “(iii) received debt forgiveness on not more than 1 occasion resulting directly and primarily from a major disaster or emergency designated by the President on or after April 4, 1996, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).”. SEC. 5320. MAKING AND SERVICING OF WANS BY PERSONNEL OF STATE, COUNTY, OR AREA COMMITTEES. Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981-2008j) is amended by adding at the end the following: “SEC. 376. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, OR AREA COMMITTEES. “The Secretary shall use personnel of a State, county or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C 590h(b)(5)) to make and service loans under this title to the extent the personnel have been trained to do so.”. SEC. 5321. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE FOR LOANS AND LOAN GUARANTEES. Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981-2008j) is further amended by adding at the end the following: “SEC. 377. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE FOR LOANS AND LOAN GUARANTEES. “(a) In General.— The Secretary shall not prohibit an employee of a State, county or area committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) or an employee of the Department of Agriculture from obtaining a loan or loan guarantee under subtitle A, B or C ot this title. “(b) Approvals.— “(1) County or area office.— In the case of a loan application from an employee in a county or area office, the Farm Service Agency State office shall be responsible for reviewing and approving the application. “(2) State office.— In the case of a loan application from an employee of a State office, the Farm Service Agency national office shall be responsible for reviewing and approving the application.”. Subtitle E— Farm Credit SEC. 5401. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS. (a) Banks for Cooperatives.— Section 3.1(11)(B) of the Farm Credit Act of 1971 (12 U.S.C. 2122(11)(B)) is amended— (1) by striking clause (iii); and (2) by redesignating clause (iv) as clause (iii). (b) Other System Banks; Associations.— Section 4.18A of the Farm Credit Act of 1971 (12 U.S.C. 2206a) is amended— (1) in subsection (a)(1), by striking “3.1(11)(B)(iv)” and inserting “3.1(11)(B)(iii)”; and (2) by striking subsection (c). SEC. 5402. BANKS FOR COOPERATIVES. Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 2128(b)) is amended— (1) in paragraphs (1) and (2)(A)(i), by striking “farm supplies” each place it appears and inserting “agricultural supplies”; and (2) by adding at the end the following: “(4) Definition of agricultural supply.— In this subsection, the term ‘agricultural supply’ includes— “(A) a farm supply; and “(B) (i) agriculture-related processing equipment; “(ii) agriculture-related machinery; and “(iii) other capital goods related to the storage or handling of agricultural commodities or products.”. SEC. 5403. INSURANCE CORPORATION PREMIUMS. (a) Reduction in Premiums for GSE-Guaranteed Loans.— (1) In general.— Section 5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is amended— (A) in subsection (a)— (i) in paragraph (1)— (I) in subparagraph (A), by striking “government-guaranteed loans provided for in subparagraph (C)” and inserting “loans provided for in subparagraphs (C) and (D)”; (II) in subparagraph (B), by striking “and” at the end; (III) in subparagraph (C), by striking the period at the end and inserting “; and”; and (IV) by adding at the end the following: “(D) the annual average principal outstanding for such year on the guaranteed portions of Government Sponsored Enterprise-guaranteed loans made by the bank that are in accrual status, multiplied by a factor, not to exceed 0.0015, determined by the Corporation at the sole discretion of the Corporation.”; and (ii) by adding at the end the following: “(4) Definition of government sponsored enterprise-guaranteed loan.— In this section and sections 1.12(b) and 5.56(a), the term ‘Government Sponsored Enterprise-guaranteed loan’ means a loan or credit, or portion of a loan or credit, that is guaranteed by an entity that is chartered by Congress to serve a public purpose and the debt obligations of which are not explicitly guaranteed by the United States, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank System, and the Federal Agricultural Mortgage Corporation, but not including any other institution of the Farm Credit System.”; and (B) in subsection (e)(4)(B), by striking “government-guaranteed loans described in subsection (a)(1)(C)” and inserting “loans described in subparagraph (C) or (D) of subsection (a)(1)”. (2) Conforming amendments.— (A) Section 1.12(b) of the Farm Credit Act of 1971 (12 U.S.C. 2020(b)) is amended— (i) in paragraph (1), by inserting “and Government Sponsored Enterprise-guaranteed loans (as defined in section 5.55(a)(4)) provided for in paragraph (4)” after “government-guaranteed loans (as defined in section 5.55(a)(3)) provided for in paragraph (3)”; (ii) in paragraph (2), by striking “and” at the end; (iii) in paragraph (3), by striking the period at the end and inserting “; and”; and (iv) by adding at the end the following: “(4) the annual average principal outstanding for such year on the guaranteed portions of Government Sponsored Enterprise-guaranteed loans (as so defined) made by the association, or by the other financing institution and funded by or discounted with the Farm Credit Bank, that are in accrual status, multiplied by a factor, not to exceed 0.0015, determined by the Corporation for the purpose of setting the premium for such guaranteed portions of loans under section 5.55(a)(1)(D).”. (B) Section 5.56(a) of the Farm Credit Act of 1971 (12 U.S.C. 2277a-5(a)) is amended— (i) in paragraph (1), by inserting “and Government Sponsored Enterprise-guaranteed loans (as defined in section 5.55(a)(4))” after “government-guaranteed loans”; (ii) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and (iii) by inserting after paragraph (3) the following: “(4) the annual average principal outstanding on the guaranteed portions of Government Sponsored Enterprise-guaranteed loans (as defined in section 5.55(a)(4)) that are in accrual status;”. (b) Applicability.— The amendments made by this section shall 12 USC 2020. apply with respect to determinations of premiums for calendar note year 2002 and for any succeeding calendar year, and to certified statements with respect to such premiums. Subtitle F— General Provisions SEC. 5501. TECHNICAL AMENDMENTS. (a) Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by striking “Disaster Relief and Emergency Assistance Act” each place it appears and inserting “Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)”. (b) Section 336(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1986(b)) is amended in the second sentence by striking “provided for in section 332 of this title”. (c) Section 359(c)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking “established pursuant to section 332,”.

21. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5201(1) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1961(a)(1)

    Pub. L. 110–246, § 5201(1), substituted “farmers or ranchers (including equine farmers or ranchers)” for “farmers, ranchers”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 110–246, § 5201(1), substituted “farmers or ranchers (including equine farmers or ranchers)” for “farmers, ranchers”.

    Enacted provision · exact public law section
    (1) in paragraph (1), by striking “farmers, ranchers” and inserting “farmers or ranchers (including equine farmers or ranchers)”; and

22. 2008

    Food, Conservation, and Energy Act of 2008

    Pub. L. 110–246 § 5201(2) · 122 Stat. 1651

    Substituted · 7 U.S.C. § 1961(a)(2)(A)

    Pub. L. 110–246, § 5201(2), substituted “farming or ranching (including equine farming or ranching)” for “farming, ranching,”

    Source evidence

    Code amendment note
    Subsec. (a)(2)(A). Pub. L. 110–246, § 5201(2), substituted “farming or ranching (including equine farming or ranching)” for “farming, ranching,”.

    Enacted provision · exact public law section
    (2) in paragraph (2)(A), by striking “farming, ranching,” and inserting “farming or ranching (including equine farming or ranching)”.

23. 2014

    Agricultural Act of 2014

    Pub. L. 113–79 § 5201(4) · 128 Stat. 649

    Inserted · 7 U.S.C. § 1961(a)

    Pub. L. 113–79, § 5201(4), inserted before period at end “An entity that is an owner-operator or operator described in this subsection shall be considered to meet the direct ownership requirement imposed under this subsection if at least 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the individuals that own the family farm.”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 113–79, § 5201(4), inserted before period at end “An entity that is an owner-operator or operator described in this subsection shall be considered to meet the direct ownership requirement imposed under this subsection if at least 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the individuals that own the family farm.”

    Enacted provision · exact public law section
    (4) by adding at the end the following: “An entity that is an owner-operator or operator described in this subsection shall be considered to meet the direct ownership requirement imposed under this subsection if at least 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the individuals that own the family farm.”.

    Effective date note
    Pub. L. 115–334, title V, § 5401(a)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: “The amendment made by this subsection [amending this section] shall take effect as if included in the enactment of section 5201(2)(C) of the Agricultural Act of 2014 (Public Law 113–79) in lieu of the amendment made by such section.”

24. 2014

    Agricultural Act of 2014

    Pub. L. 113–79 § 5201(3) · 128 Stat. 649

    Substituted · 7 U.S.C. § 1961(a)

    Pub. L. 113–79, § 5201(3), in second sentence, substituted “ownership or operator” for “ownership and operator”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 113–79, § 5201(3), in second sentence, substituted “ownership or operator” for “ownership and operator”.

    Enacted provision · exact public law section
    (3) in the second sentence, by striking “ownership and operator” and inserting “ownership or operator”; and

    Effective date note
    Pub. L. 115–334, title V, § 5401(a)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: “The amendment made by this subsection [amending this section] shall take effect as if included in the enactment of section 5201(2)(C) of the Agricultural Act of 2014 (Public Law 113–79) in lieu of the amendment made by such section.”

25. 2014

    Agricultural Act of 2014

    Pub. L. 113–79 § 5201(2)(C) · 128 Stat. 649

    Substituted · 7 U.S.C. § 1961(a)

    Pub. L. 113–79, § 5201(2)(C), which directed substitution of “limited liability companies, and such other legal entities” for “and limited liability companies,” in first sentence and could not be executed as directed, was superseded by Pub. L. 115–334, § 5401(a)(1). See 2018 Amendment note above and Effective Date of 2018 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 113–79, § 5201(2)(C), which directed substitution of “limited liability companies, and such other legal entities” for “and limited liability companies,” in first sentence and could not be executed as directed, was superseded by Pub. L. 115–334, § 5401(a)(1). See 2018 Amendment note above and Effective Date of 2018 Amendment note below.

    Enacted provision · exact public law section
    (C) by striking “and limited liability companies,” and inserting “limited liability companies, and such other legal entities”;

    Effective date note
    Pub. L. 115–334, title V, § 5401(a)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: “The amendment made by this subsection [amending this section] shall take effect as if included in the enactment of section 5201(2)(C) of the Agricultural Act of 2014 (Public Law 113–79) in lieu of the amendment made by such section.”

26. 2014

    Agricultural Act of 2014

    Pub. L. 113–79 § 5201(1) · 128 Stat. 649

    1. Substituted · 7 U.S.C. § 1961(a)

       Pub. L. 113–79, § 5201(1), (2)(A), (B), in first sentence, substituted “(in the case of farm ownership loans in accordance with subchapter I) owner-operators or operators, or (in the case of loans for a purpose under subchapter II) operators” for “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)” in two places

    2. Inserted · 7 U.S.C. § 1961(a)

       Pub. L. 113–79, § 5201(1), (2)(A), (B), in first sentence, inserted “, or such other legal entities as the Secretary considers appropriate” after “limited liability companies” the first place appearing and “, or other legal entities” after “limited liability companies” the second place appearing

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 113–79, § 5201(1), (2)(A), (B), in first sentence, substituted “(in the case of farm ownership loans in accordance with subchapter I) owner-operators or operators, or (in the case of loans for a purpose under subchapter II) operators” for “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)” in two places, and inserted “, or such other legal entities as the Secretary considers appropriate” after “limited liability companies” the first place appearing and “, or other legal entities” after “limited liability companies” the second place appearing.

    Enacted provision · exact public law section
    (1) by striking “owner-operators (in the case of loans for a purpose under subtitle A) or operators (in the case of loans for a purpose under subtitle B)” each place it appears and inserting “(in the case of farm ownership loans in accordance with subtitle A) owner-operators or operators, or (in the case of loans for a purpose under subtitle B) operators”;

    Effective date note
    Pub. L. 115–334, title V, § 5401(a)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: “The amendment made by this subsection [amending this section] shall take effect as if included in the enactment of section 5201(2)(C) of the Agricultural Act of 2014 (Public Law 113–79) in lieu of the amendment made by such section.”

27. 2018

    Agriculture Improvement Act of 2018

    Pub. L. 115–334 title V § 5401(a)(1) · 132 Stat. 4490

    Substituted · 7 U.S.C. § 1961(a)

    Pub. L. 115–334, in second sentence, substituted “limited liability companies, and such other legal entities” for “and limited liability companies”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–334, in second sentence, substituted “limited liability companies, and such other legal entities” for “and limited liability companies”.

    Enacted provision · exact public law section
    (1) Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended in the second sentence by striking “and limited liability companies” and inserting “limited liability companies, and such other legal entities”.

    Effective date note
    Pub. L. 115–334, title V, § 5401(a)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: “The amendment made by this subsection [amending this section] shall take effect as if included in the enactment of section 5201(2)(C) of the Agricultural Act of 2014 (Public Law 113–79) in lieu of the amendment made by such section.”

38 of 47 references resolved to an enrolled provision · 9 partial