§ 1964. Terms of loans

Legislative history

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

1. 1961

   Agricultural Act of 1961

   Pub. L. 87–128 title III § 324 · 75 Stat. 294

   Enacted · 7 U.S.C. § 1964

   Pub. L. 87–128, title III, § 324, Aug. 8, 1961, 75 Stat. 311

   Source evidence

   Code source credit
   Pub. L. 87–128, title III, § 324, Aug. 8, 1961, 75 Stat. 311

   Enacted provision · exact public law section
   Sec. 324. The Secretary shall make all loans under this subtitle at a rate of interest not in excess of 3 per centum per annum repayable at such times as the Secretary may determine, taking into account the purpose of the loan and the nature and effect of the emergency, but not later than provided for loans for similar purposes under subtitles A and B of this title, and upon the full personal liability of the borrower and upon such security as the Secretary may prescribe.

2. 1973

   Pub. L. 93–24 § 4 · 87 Stat. 24

   Substituted · 7 U.S.C. § 1964

   Pub. L. 93–24 substituted “5” for “3” per centum

   Source evidence

   Code amendment note
   Pub. L. 93–24 substituted “5” for “3” per centum.

   Enacted provision · exact public law section
   Sec. 4. Section 324 of the Consolidated Farm and Rural Development Interest rate. Act is amended by striking out “3 per centum” and inserting in 75 Stat. 311. 7 USC 1964. lieu thereof “5 per centum”.

3. 1975

   Pub. L. 94–68 § 5 · 89 Stat. 381

   1. Inserted · 7 U.S.C. § 1964

      Pub. L. 94–68 made the existing rate of 5 percent applicable to loans up to the amount of the actual loss caused by the disaster, inserted provisions that for loans or portions of loans in excess of that amount the interest rate will be that prevailing in the private market for similar loans, as determined by the Secretary

   2. Inserted · 7 U.S.C. § 1964

      Pub. L. 94–68 made the existing rate of 5 percent applicable to loans up to the amount of the actual loss caused by the disaster, inserted provisos relating to security, disasters occurring after Jan. 1, 1975, and loans made by Small Business Administration

   Source evidence

   Code amendment note
   Pub. L. 94–68 made the existing rate of 5 percent applicable to loans up to the amount of the actual loss caused by the disaster, inserted provisions that for loans or portions of loans in excess of that amount the interest rate will be that prevailing in the private market for similar loans, as determined by the Secretary, and inserted provisos relating to security, disasters occurring after Jan. 1, 1975, and loans made by Small Business Administration.

   Enacted provision · exact public law section
   Sec. 5. Section 324 of the Act is amended to read: “Loans made or Interest rate. 7 USC 1964. insured under this Act shall be (1) at a rate of interest not in excess of 5 per centum per annum on loans up to the amount of the actual loss caused by the disaster, and (2) for any loans or portions of loans in excess of that, amount, the interest rate will be that prevailing in the private market for similar loans, as determined by the Secretary. All Liability and security. such loans 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 provided for loans for similar purposes under subtitles A and B of this title, and upon the full personal 7 USC 1922, 1941. 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 (i) 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 his confidence in the repayment ability of the applicant, is adequate security for the loan, and (ii) make such loan repayable at such times as he may determine, not later than that 7 USC 1922, 1941. provided under subtitles A and B of this title, as justified by the needs of the applicant: Provided further, That for any disaster occurring after January 1, 1975, the Secretary, if the loan is for a purpose described in 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 notwithstanding the provisions of any other law, any loan made by the Small Business Administration in connection with a disaster occurring on or after the date of enactment of this amendment under 15 USC 636. section 7(b) (1), (2), or (4) of the Small Business Act shall bear interest at the rate determined in the first paragraph following section 7(b) (8) of such Act for loans under paragraphs (3), (5), (6), (7), or (8) of section 7 (b).”.

4. 1977

   Pub. L. 95–89 title IV § 406 · 91 Stat. 553

   1. Amended · 7 U.S.C. § 1964(a)

      Pub. L. 95–89 designated existing provisions as subsec. (a)

   2. Struck · 7 U.S.C. § 1964(a)

      Pub. L. 95–89 struck out last proviso prescribing for any loan made by the Small Business Administration in connection with a disaster occurring on or after Aug. 5, 1975, under section 636(b)(1), (2), or (4) of title 15 a rate of interest determined in the first paragraph following section 636(b)(8) of title 15 for loans under paragraphs (3), (5), (6), (7), or (8) of section 636(b) of title 15, now covered in subsec. (b) of this section

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–89 designated existing provisions as subsec. (a) and struck out last proviso prescribing for any loan made by the Small Business Administration in connection with a disaster occurring on or after Aug. 5, 1975, under section 636(b)(1), (2), or (4) of title 15 a rate of interest determined in the first paragraph following section 636(b)(8) of title 15 for loans under paragraphs (3), (5), (6), (7), or (8) of section 636(b) of title 15, now covered in subsec. (b) of this section.

   Enacted provision · exact public law section
   Sec. 406. Section 324 of the Consolidated Farm and Rural Development Act is amended as follows: 7 USC 1964. (a) by inserting “(a)” at the beginning thereof and by striking the proviso at the end thereof: and (b) by inserting the following at the end thereof: “(b) Notwithstanding the provisions of any other law, during any Interest rate. period in which the Small Business Administration is making loans under sections 7(b)(1) and 7(b)(2) of the Small Business Act to 15 USC 636. businesses at a rate of interest below the average annual interest rate on all interest-bearing obligations of the United States, loans made hereunder shall bear interest at a rate not to exceed such lower interest rates in amounts not to exceed $250,000 to businesses and $40,000 to homeowners. “(c) Any political subdivision of a State with a population of less Grant eligibility. than 10,000 which, if such subdivision had a population of 10,000 or more, would be eligible for a grant under the first title of the Community Emergency Drought Relief Act of 1977 shall be eligible for a 42 USC 5184 note. 7 USC 1921 note. grant under the Consolidated Farm and Rural Development Act during any period in which such Community Relief Act of 1977 is or has been in effect.”.

5. 1977

   Pub. L. 95–89 title IV § 406 · 91 Stat. 553

   Added · 7 U.S.C. § 1964(b); 7 U.S.C. § 1964(c)

   Pub. L. 95–89 added subsecs. (b) and (c)

   Source evidence

   Code amendment note
   Subsecs. (b), (c). Pub. L. 95–89 added subsecs. (b) and (c).

   Enacted provision · exact public law section
   Sec. 406. Section 324 of the Consolidated Farm and Rural Development Act is amended as follows: 7 USC 1964. (a) by inserting “(a)” at the beginning thereof and by striking the proviso at the end thereof: and (b) by inserting the following at the end thereof: “(b) Notwithstanding the provisions of any other law, during any Interest rate. period in which the Small Business Administration is making loans under sections 7(b)(1) and 7(b)(2) of the Small Business Act to 15 USC 636. businesses at a rate of interest below the average annual interest rate on all interest-bearing obligations of the United States, loans made hereunder shall bear interest at a rate not to exceed such lower interest rates in amounts not to exceed $250,000 to businesses and $40,000 to homeowners. “(c) Any political subdivision of a State with a population of less Grant eligibility. than 10,000 which, if such subdivision had a population of 10,000 or more, would be eligible for a grant under the first title of the Community Emergency Drought Relief Act of 1977 shall be eligible for a 42 USC 5184 note. 7 USC 1921 note. grant under the Consolidated Farm and Rural Development Act during any period in which such Community Relief Act of 1977 is or has been in effect.”.

6. 1978

   Agricultural Credit Act of 1978

   Pub. L. 95–334 title I § 119 · 92 Stat. 420

   Redesignated · 7 U.S.C. § 1964(b); 7 U.S.C. § 1964(c)

   Pub. L. 95–334 redesignated subsec. (c) as (b). Former subsec. (b), which related to reductions in the interest rate based on interest rate of the Small Business Administration, was struck out

   Source evidence

   Code amendment note
   Subsecs. (b), (c). Pub. L. 95–334 redesignated subsec. (c) as (b). Former subsec. (b), which related to reductions in the interest rate based on interest rate of the Small Business Administration, was struck out.

   Enacted provision · exact public law section
   Sec. 119. deletion of requirement for emergency loan interest rates to be based on small business administration loan rates Section 324 of the Consolidated Farm and Rural Development Act is amended, effective October 1, 1978, by striking out subsection 7 USC 1964. (b) and redesignating subsection (c) as subsection (b).

7. 1980

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

   1. Substituted · 7 U.S.C. § 1964(a)

      Pub. L. 96–302, § 120(b) (see par. above), substituted interest rate provisions of first sentence for prior provision for loans “(1) at a rate of interest not in excess of 5 per centum per annum on loans up to the amount of the actual loss caused by the disaster, and (2) for any loans or portions of loans in excess of that amount, the interest rate will be that prevailing in the private market for similar loans, as determined by the Secretary”

   2. Inserted · 7 U.S.C. § 1964(a)

      Pub. L. 96–302, § 120(b) (see par. above), inserted proviso in second sentence for repayment of subsec. (a)(1)(B) loans

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 96–302, § 120(b) (see par. above), substituted interest rate provisions of first sentence for prior provision for loans “(1) at a rate of interest not in excess of 5 per centum per annum on loans up to the amount of the actual loss caused by the disaster, and (2) for any loans or portions of loans in excess of that amount, the interest rate will be that prevailing in the private market for similar loans, as determined by the Secretary” and inserted proviso in second sentence for repayment of subsec. (a)(1)(B) loans.

   Enacted provision · exact public law section
   (b) Section 324(a) of the Consolidated Farm and Rural Development Loan interest rates. 7 USC 1964. Act is amended by— (1) striking out the first sentence and inserting in lieu thereof the following: “Loans made or insured under this subtitle shall be at rates of interest as follows: “(1) with respect to loans or portions of loans up to the amount of the applicant’s actual loss caused by the disaster, (A) if the applicant is unable 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, the interest rate shall be a rate prescribed by the Secretary not in excess of 5 percent per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, the interest rate shall be the rate prescribed 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 percent, as determined by the Secretary, and adjusted to the nearest one-eighth of 1 percent: Provided, That the total amount outstanding and committed to the borrower under this paragraph (1) shall not exceed $500,000 for each disaster; and “(2) with respect to loans or portions of loans exceeding the amount of actual loss caused by the disaster, the interest rate shall be that prevailing in the private market for similar loans, as determined by the Secretary.”; and (2) inserting in the second sentence after “Provided, That” the following: “for loans approved under subsection (a)(1)(B), three years after such loan is made or insured and every two years thereafter for the term of the loan, if the Secretary determines that the borrower is able to obtain a loan from non-Federal sources at reasonable rates and terms for loans of similar purposes and periods of time, the borrower shall, upon request by the Secretary, apply for and accept such loan in sufficient amount to repay the Secretary: Provided further, That ”.

8. 1980

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

   1. Repealed · 7 U.S.C. § 1964(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. § 1964(a)

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

   3. Substituted · 7 U.S.C. § 1964(a)

      Pub. L. 96–348, § 3(a), (b)(1), substituting provisions relating to the limitation on loans made or insured under this subchapter and authorizing excess loan amounts for provisions relating to the interest rates, maturity and security of loans made or insured under this chapter

   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 subsec. (a) generally, substituting provisions relating to the limitation on loans made or insured under this subchapter and authorizing excess loan amounts for provisions relating to the interest rates, maturity and security of loans made or insured under this chapter.

   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.

9. 1980

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

   Substituted · 7 U.S.C. § 1964(b)

   Pub. L. 96–438, § 3(b)(1), substituted provisions relating to interest rates on loans made or insured under this subchapter for provisions relating to eligibility of political subdivisions of states for grants under this chapter

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 96–438, § 3(b)(1), substituted provisions relating to interest rates on loans made or insured under this subchapter for provisions relating to eligibility of political subdivisions of states for grants under this chapter.

   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

10. 1980

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

    Added · 7 U.S.C. § 1964(c)(e)

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

    Source evidence

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

    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

11. 1981

    Pub. L. 97–35 title I § 162(a) · 95 Stat. 357

    Substituted · 7 U.S.C. § 1964(b)(1)

    Pub. L. 97–35 in cl. (A) increased amount from 5 to 8 per centum, and in cl. (B) substituted provisions relating to a rate not in excess of the rate prevailing in the private market for similar loans, for provisions relating to a rate not in excess of current average market yield on outstanding United States marketable obligations, plus additional charges and adjustments

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 97–35 in cl. (A) increased amount from 5 to 8 per centum, and in cl. (B) substituted provisions relating to a rate not in excess of the rate prevailing in the private market for similar loans, for provisions relating to a rate not in excess of current average market yield on outstanding United States marketable obligations, plus additional charges and adjustments.

    Enacted provision · exact public law section
    (a) Section 324(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964(b)(1)) is amended to read 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 8 per centum per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, not in excess of the rate prevailing in the private market for similar loans, as determined by the Secretary; and”.

12. 1984

    Emergency Agricultural Credit Act of 1984

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

    Inserted · 7 U.S.C. § 1964(d)

    Pub. L. 98–258 inserted provision that, if farm assets (including land, livestock, and equipment) are used as collateral to secure a loan made under this subchapter, the Secretary shall value the assets based on the higher of (A) the value of the assets on the day before the date the governor of the State in which the farm is located requests assistance under this subchapter or the Disaster Relief Act of 1974 for any portion of such State affected by the disaster with respect to which the application for the loan is made, or (B) the value of the assets one year before such day

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 98–258 inserted provision that, if farm assets (including land, livestock, and equipment) are used as collateral to secure a loan made under this subchapter, the Secretary shall value the assets based on the higher of (A) the value of the assets on the day before the date the governor of the State in which the farm is located requests assistance under this subchapter or the Disaster Relief Act of 1974 for any portion of such State affected by the disaster with respect to which the application for the loan is made, or (B) the value of the assets one year before such day.

    Enacted provision · exact public law section
    (b) Section 324(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964(d)) is amended by adding at the end thereof the following new sentence: “If farm assets (including land, live-stock, and equipment) are used as collateral to secure a loan made under this subtitle, the Secretary shall value the assets based on the higher of (A) the value of the assets on the day before the date the governor of the State in which the farm is located requests assistance under this subtitle or the Disaster Relief Act of 1974 for any 42 USC 5121 note. portion of such State affected by the disaster with respect to which the application for the loan is made, or (B) the value of the assets one year before such day.”.

13. 1985

    Food Security Act of 1985

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

    1. Changed · 7 U.S.C. § 1964(a)

       Pub. L. 99–198, § 1308(c), in amending subsec. (a) generally

    2. Struck · 7 U.S.C. § 1964(a)

       Pub. L. 99–198, § 1308(c), in struck out par. (1) designation

    3. Substituted · 7 U.S.C. § 1964(a)

       Pub. L. 99–198, § 1308(c), in substituted “No loan” for “Except as otherwise provided in paragraph (2) of this subsection, no loan”

    4. Struck · 7 U.S.C. § 1964(a)

       Pub. L. 99–198, § 1308(c), in struck out par. (2) authorization of loans through Sept. 30, 1982 for applicants unable to obtain sufficient credit elsewhere, limited to an amount that would not cause the total unpaid principal indebtedness of the loan applicant to exceed: $1,500,000 through end of fiscal year 1980; $1,000,000 during fiscal year 1981; and $500,000 during fiscal year 1982; and restricted loans in excess of amount of actual loss that were for more than $300,000 without a prior determination of the Secretary of applicant’s inability to obtain loans to finance actual needs at reasonable rates and terms in the residential community of the applicant for loans for similar purposes and periods of time

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–198, § 1308(c), in amending subsec. (a) generally, struck out par. (1) designation, substituted “No loan” for “Except as otherwise provided in paragraph (2) of this subsection, no loan”, and struck out par. (2) authorization of loans through Sept. 30, 1982 for applicants unable to obtain sufficient credit elsewhere, limited to an amount that would not cause the total unpaid principal indebtedness of the loan applicant to exceed: $1,500,000 through end of fiscal year 1980; $1,000,000 during fiscal year 1981; and $500,000 during fiscal year 1982; and restricted loans in excess of amount of actual loss that were for more than $300,000 without a prior determination of the Secretary of applicant’s inability to obtain loans to finance actual needs at reasonable rates and terms in the residential community of the applicant for loans for similar purposes and periods of time.

    Enacted provision · exact public law section
    (c) Subsection (a) of section 324 of such Act (7 U.S.C. 1964(a)) is amended to read as follows: “(a) No loan made or insured under this subtitle may exceed the Prohibition. amount of the actual loss caused by the disaster or $500,000, whichever is less, for each disaster.”.

14. 1985

    Food Security Act of 1985

    Pub. L. 99–198 § 1308(b)(3) · 99 Stat. 1354

    Substituted · 7 U.S.C. § 1964(b)(1)

    Pub. L. 99–198, § 1308(b)(3), substituted provision for interest rates prescribed by the Secretary but “not in excess of 8 percent per annum” for former such provision but “(A) if the applicant is not able to obtain sufficient credit elsewhere, not in excess of 8 per centum per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, not in excess of the rate prevailing in the private market for similar loans, as determined by the Secretary”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 99–198, § 1308(b)(3), substituted provision for interest rates prescribed by the Secretary but “not in excess of 8 percent per annum” for former such provision but “(A) if the applicant is not able to obtain sufficient credit elsewhere, not in excess of 8 per centum per annum, and (B) if the applicant is able to obtain sufficient credit elsewhere, not in excess of the rate prevailing in the private market for similar loans, as determined by the Secretary”.

    Enacted provision · exact public law section
    (3) Section 324(b)(1) of such Act (7 U.S.C. 1964(b)(1)) is amended by striking out “but (A)” and all that follows through “Secretary” and inserting in lieu thereof “but not in excess of 8 percent per annum”.

15. 1988

    The Disaster Relief and Emergency Assistance Amendments of 1988

    Pub. L. 100–707 title I § 109(c)(2) · 102 Stat. 4689

    Substituted · 7 U.S.C. § 1964(d)

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

    Source evidence

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

    Enacted provision · exact public law section
    (2) Section 324(d) of such Act (7 U.S.C. 1964(d)) is amended by striking out “Act of 1974” and inserting in lieu thereof “and Emergency Assistance Act”.

16. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 624 · 110 Stat. 888

    Inserted · 7 U.S.C. § 1964

    Pub. L. 104–127, § 624, inserted section catchline

    Source evidence

    Code amendment note
    Pub. L. 104–127, § 624, inserted section catchline.

    Enacted provision · exact public law section
    SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS. Section 324 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964) is amended by striking “Sec. 324. (a) No loan” and all that follows through the end of subsection (a) and inserting the following: “SEC. 324. TERMS OF LOANS. “(a) Maximum Amount of Loan.— The Secretary may not make a loan under this subtitle to a borrower who has suffered a loss in an amount that— “(1) exceeds the actual loss caused by a disaster; or “(2) would cause the total indebtedness of the borrower under this subtitle to exceed $500,000.”.

    Effective date note
    Amendment by section 624 of Pub. L. 104–127 effective Apr. 4, 1996, and amendment by section 625 of Pub. L. 104–127 effective 90 days after Apr. 4, 1996, see section 663(a), (b) of Pub. L. 104–127, set out as a note under section 1922 of this title.

17. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 624 · 110 Stat. 888

    1. Added · 7 U.S.C. § 1964(a)

       Pub. L. 104–127, § 624, added subsec. (a)

    2. Struck · 7 U.S.C. § 1964(a)

       Pub. L. 104–127, § 624, struck out former subsec. (a) which read as follows: “No loan made or insured under this subchapter may exceed the amount of the actual loss caused by the disaster or $500,000, whichever is less, for each disaster.”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 104–127, § 624, added subsec. (a) and struck out former subsec. (a) which read as follows: “No loan made or insured under this subchapter may exceed the amount of the actual loss caused by the disaster or $500,000, whichever is less, for each disaster.”

    Enacted provision · exact public law section
    SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS. Section 324 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964) is amended by striking “Sec. 324. (a) No loan” and all that follows through the end of subsection (a) and inserting the following: “SEC. 324. TERMS OF LOANS. “(a) Maximum Amount of Loan.— The Secretary may not make a loan under this subtitle to a borrower who has suffered a loss in an amount that— “(1) exceeds the actual loss caused by a disaster; or “(2) would cause the total indebtedness of the borrower under this subtitle to exceed $500,000.”.

    Effective date note
    Amendment by section 624 of Pub. L. 104–127 effective Apr. 4, 1996, and amendment by section 625 of Pub. L. 104–127 effective 90 days after Apr. 4, 1996, see section 663(a), (b) of Pub. L. 104–127, set out as a note under section 1922 of this title.

18. 1996

    Federal Agriculture Improvement and Reform Act of 1996

    Pub. L. 104–127 § 625 · 110 Stat. 888

    Substituted · 7 U.S.C. § 1964(d)

    Pub. L. 104–127, § 625, in last sentence, substituted “establish the value of the assets as of the day before the occurrence of the natural disaster, major disaster, or emergency that is the basis for a request for assistance under this subchapter or the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).” for “value the assets based on the higher of (A) the value of the assets on the day before the date the governor of the State in which the farm is located requests assistance under this subchapter or the Disaster Relief and Emergency Assistance Act for any portion of such State affected by the disaster with respect to which the application for the loan is made, or (B) the value of the assets one year before such day.”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 104–127, § 625, in last sentence, substituted “establish the value of the assets as of the day before the occurrence of the natural disaster, major disaster, or emergency that is the basis for a request for assistance under this subchapter or the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).” for “value the assets based on the higher of (A) the value of the assets on the day before the date the governor of the State in which the farm is located requests assistance under this subchapter or the Disaster Relief and Emergency Assistance Act for any portion of such State affected by the disaster with respect to which the application for the loan is made, or (B) the value of the assets one year before such day.”

    Enacted provision · exact public law section
    SEC. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION. The last sentence of section 324(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964(d)) is amended by striking “value the assets” and all that follows through the period and inserting “establish the value of the assets as of the day before the occurrence of the natural disaster, major disaster, or emergency that is the basis for a request for assistance under this subtitle or the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).”.

    Effective date note
    Amendment by section 624 of Pub. L. 104–127 effective Apr. 4, 1996, and amendment by section 625 of Pub. L. 104–127 effective 90 days after Apr. 4, 1996, see section 663(a), (b) of Pub. L. 104–127, set out as a note under section 1922 of this title.

19. 1998

    Pub. L. 105–277 div. A § 101(a)(tVIII)(s802) · 112 Stat. 2681

    1. Inserted · 7 U.S.C. § 1964(d)

       Pub. L. 105–277 inserted heading

    2. Amended · 7 U.S.C. § 1964(d)

       Pub. L. 105–277 designated existing provisions as par. (1)

    3. Added · 7 U.S.C. § 1964(d)

       Pub. L. 105–277 added par. (2)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 105–277 inserted heading, designated existing provisions as par. (1) and inserted heading, and added par. (2).

    Enacted provision · exact public law section
    Sec. 101. For programs, projects or activities in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999, provided as follows, to be effective as if it had been enacted into law as the regular appropriations Act: AN ACT Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1999, and for other purposes. Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999.

30 of 30 references resolved to an enrolled provision