Title 7 — Agriculture
Chapter 50 — Agricultural Credit
§ 2006b. Loan assessments
Statutory text
In general
The Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant.
Determinations
In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine—
the amount that the applicant will need to borrow to carry out the proposed farming plan;
the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base;
the goals of the proposed farming plan of the applicant;
the financial viability of the plan and any changes that are necessary to make the plan viable; and
whether assistance is necessary under this chapter and, if so, the amount of the assistance.
Contract
The Secretary may contract with a third party (including those entities eligible to provide borrower training under section 2006a(b) of this title) to conduct loan assessments under this section.
Review of loans
In general
Loan assessments conducted under this section shall include annual review of direct loans, and periodic review (as determined necessary by the Secretary) of guaranteed loans, made under this chapter to assess the progress of a borrower in meeting the goals for the farm or ranch operation.
Contracts
The Secretary may contract with an entity that is eligible to provide borrower training under section 2006a(b) of this title to conduct loan reviews under paragraph (1).
Problem assessments
If a borrower is delinquent in payments on a direct or guaranteed loan made under this chapter, the Secretary or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency.
Guidelines
The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section.
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.
Agricultural Act of 1961
Pub. L. 87–128 title III § 360 · 75 Stat. 294
Enacted · 7 U.S.C. § 2006b
Pub. L. 87–128, title III, § 360, as added Pub. L. 101–624, title XVIII, § 1819, Nov. 28, 1990, 104 Stat. 3830
Source evidence
Code source credit
Pub. L. 87–128, title III, § 360, as added Pub. L. 101–624, title XVIII, § 1819, Nov. 28, 1990, 104 Stat. 3830Pub. L. 107–171 § 5317 · 116 Stat. 134
Substituted · 7 U.S.C. § 2006b(a)
Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section 1982 of this title, the Secretary”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section 1982 of this title, the Secretary”.Enacted provision · exact public law section
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”.Pub. L. 107–171 § 5318 · 116 Stat. 134
Substituted · 7 U.S.C. § 2006b(d)(1)
Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”.Enacted provision · exact public law section
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”.
2 of 3 references resolved to an enrolled provision · 1 partial
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a), (b)(5), and (d)(1), (3), was in the original “this title”, meaning title III of Pub. L. 87–128, , 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables.
Amendments
2002—Subsec. (a). Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section 1982 of this title, the Secretary”.
Subsec. (d)(1). Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”.
Credits
1990–2002 · 2 acts
- 1990Pub. L. 87–128, title III, § 360, as added Pub. L. 101–624, title XVIII, § 1819, , 104 Stat. 3830
- 2002amended Pub. L. 107–171, title V, §§ 5317, 5318, , 116 Stat. 348.
Show as published
(Pub. L. 87–128, title III, § 360, as added Pub. L. 101–624, title XVIII, § 1819, , 104 Stat. 3830; amended Pub. L. 107–171, title V, §§ 5317, 5318, , 116 Stat. 348.)