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12 USC CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM

LOANS 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM LOANS

.

-HEAD-

CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM LOANS

-MISC1-

Sec.

1150. Compromise, adjustment, and cancellation of farm loans;

conditions; delegation of powers and duties by Secretary of

Agriculture.

1150a. Farm loans to which chapter is applicable.

1150b. Authorization of appropriations.

1150c. Self-hauling of hay or other roughages under hay

transportation assistance program; liability for or refund of

excess payments; availability of funds for payments.

-COD-

CODIFICATION

For provisions similar to former chapter 8 of this title,

relating to federal intermediate credit banks, see Part A (Sec.

2071 et seq.) of subchapter II of chapter 23 of this title.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 42 section 1480.

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12 USC Sec. 1150 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM LOANS

-HEAD-

Sec. 1150. Compromise, adjustment, and cancellation of farm loans;

conditions; delegation of powers and duties by Secretary of

Agriculture

-STATUTE-

The Secretary of Agriculture, hereinafter referred to as the

Secretary, is authorized and directed to compromise, adjust, or

cancel indebtedness arising from loans and payments made or credit

extended to farmers under the provisions of the several Acts of

Congress or programs enumerated in section 1150a of this title:

Provided, That the Secretary finds, after such investigation as he

deems sufficient to establish the facts, that (1) said indebtedness

has been due and payable for five years or more; (2) the debtor is

unable to pay said indebtedness in full and has no reasonable

prospect of being able to do so; (3) the debtor has acted in good

faith in an effort to meet his obligation; and (4) the principal

amount of said indebtedness is not in excess of $1,000. The

Secretary is further authorized at his discretion to cancel and

discharge indebtedness arising under said Acts of Congress or

programs when the amount of said indebtedness is less than $10, or

the debtor is deceased and there is no reasonable prospect of

recovering from his estate, or his whereabouts has remained unknown

for two years and there is no reasonable prospect of obtaining

collection, or he has been discharged of the indebtedness in any

proceeding under the Bankruptcy Act or under title 11. The

compromises, adjustments, or cancelations (FOOTNOTE 1) authorized

by this section shall be effected through such agencies, upon such

terms and conditions, and subject to such regulations, as the

Secretary may prescribe, and the Secretary may delegate the

exercise of any such powers and functions to such officers or

employees of the Department of Agriculture as he may designate.

(FOOTNOTE 1) So in original. Probably should be

''cancellations''.

-SOURCE-

(Dec. 20, 1944, ch. 623, Sec. 1, 58 Stat. 836; Pub. L. 95-598,

title III, Sec. 305, Nov. 6, 1978, 92 Stat. 2674.)

-REFTEXT-

REFERENCES IN TEXT

The Bankruptcy Act, referred to in text, is act July 1, 1898, ch.

541, 30 Stat. 544, as amended, which was classified generally to

Title 11, Bankruptcy. The Act was repealed effective Oct. 1, 1979,

by Pub. L. 95-598, Sec. 401(a), 402(a), Nov. 6, 1978, 92 Stat.

2682, section 101 of which enacted revised Title 11.

-MISC2-

AMENDMENTS

1978 - Pub. L. 95-598 substituted ''Bankruptcy Act or under title

11'' for ''Act entitled 'An Act to establish a uniform system of

bankruptcy throughout the United States' ''.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment effective Oct. 1, 1979, see section 402(a) of Pub. L.

95-598, set out as an Effective Date note preceding section 101 of

Title 11, Bankruptcy.

-TRANS-

TRANSFER OF FUNCTIONS

All functions of all officers, agencies, and employees of the

Department of Agriculture were transferred, with certain

exceptions, to the Secretary of Agriculture by Reorg. Plan No. 2 of

1953, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set

out in the Appendix to Title 5, Government Organization and

Employees.

EXCEPTIONS FROM TRANSFER OF FUNCTIONS

Functions of Corporations of Department of Agriculture, boards of

directors and officers of such corporations, Advisory Board of

Commodity Credit Corporation, and Farm Credit Administration or any

agency, officer, or entity of, under, or subject to supervision of

said Administration excepted from functions of officers, agencies,

and employees transferred to Secretary of Agriculture by Reorg.

Plan No. 2 of 1953, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67

Stat. 633, set out in the Appendix to Title 5, Government

Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 18 sections 217, 1026.

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12 USC Sec. 1150a 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM LOANS

-HEAD-

Sec. 1150a. Farm loans to which chapter is applicable

-STATUTE-

The provisions of this chapter shall apply to any indebtedness of

farmers arising from loans or payments made or credit extended to

them under any of the following Acts or programs: (a) July 1, 1918

(40 Stat. 635); March 3, 1921 (41 Stat. 1347); March 20, 1922 (42

Stat. 467); April 26, 1924 (43 Stat. 110); February 25, 1927 (44

Stat. 1245); February 28, 1927 (44 Stat., part II, 1251); February

25, 1929 (45 Stat. 1306), as amended May 17, 1929 (46 Stat. 3);

March 3, 1930 (46 Stat. 78-79), as amended April 24, 1930 (46 Stat.

254); December 20, 1930 (46 Stat. 1032), as amended February 14,

1931 (46 Stat. 1160); February 23, 1931 (46 Stat. 1276); January

22, 1932 (47 Stat. 5); March 3, 1932 (47 Stat. 60); February 4,

1933 (47 Stat. 795); February 23, 1934 (48 Stat. 354); June 19,

1934 (48 Stat. 1056); February 20, 1935 (49 Stat. 28); March 21,

1935 (49 Stat. 50); April 8, 1935 (49 Stat. 115); (Executive Order

Numbered 7305); January 29, 1937 (50 Stat. 5); and February 4, 1938

(52 Stat. 27); (b) Agricultural Adjustment Act (of 1933); Bankhead

Cotton Act of April 21, 1934, on account of the several cotton

tax-exemption certificate pools; Jones-Connally Cattle Act of April

7, 1934; Emergency Appropriation Act, fiscal year 1935, approved

June 19, 1934; Kerr Tobacco Act of June 28, 1934, and Public

Resolution Numbered 76, approved March 14, 1936; section 32 of the

Act of August 24, 1935, and related legislation; Supplemental

Appropriation Act, fiscal year 1936; sections 7 to 17 of the Soil

Conservation and Domestic Allotment Act; Sugar Act of 1937;

sections 303 and 381(a) of the Agricultural Adjustment Act of 1938

and related or subsequent legislation authorizing parity or price

adjustment payments; title IV and title V of the Agricultural

Adjustment Act of 1938 and related legislation; any amendment to

any of the foregoing Acts heretofore and any other Act of Congress

heretofore enacted authorizing payments to farmers under programs

administered through the Agricultural Adjustment Agency; (c) Loans

made by or through the Resettlement Administration of the Farm

Security Administration out of funds appropriated or made available

by or pursuant to the following Acts; April 8, 1935 (49 Stat. 115);

June 22, 1936 (49 Stat. 1608); February 9, 1937 (50 Stat. 8); June

29, 1937 (50 Stat. 352); The Bankhead-Jones Farm Tenant Act, July

22, 1937 (50 Stat. 522 et seq.); the Water Facilities Act of August

28, 1937 (50 Stat. 869 et seq.); March 2, 1938 (52 Stat. 83, Public

Resolution Numbered 80); June 21, 1938 (52 Stat. 809); June 30,

1939 (53 Stat. 927); June 26, 1940 (Public Resolution Numbered 88);

flood-restoration loans, Second Deficiency Appropriation Act, 1943

(57 Stat. 537, 542); and subsequent legislation appropriating or

making available funds for such loans; commodity loan, purchase,

sale, and other programs of the Commodity Credit Corporation; and

crop-insurance programs formulated pursuant to title V of the

Agricultural Adjustment Act of 1938 (the Federal Crop Insurance

Act), and any amendment or supplement thereto heretofore or

hereafter enacted. This chapter shall also apply to any

indebtedness of farmers evidenced by notes or accounts receivable,

title to which has been acquired in the liquidation of loans to

cooperative associations made under the provisions of the Act of

June 15, 1929 (46 Stat. 11).

-SOURCE-

(Dec. 20, 1944, ch. 623, Sec. 2, 58 Stat. 836.)

-REFTEXT-

REFERENCES IN TEXT

Act of January 22, 1932 (47 Stat. 5), referred to in text, is act

Jan. 22, 1932, ch. 8, 47 Stat. 5, as amended, known as the

Reconstruction Finance Corporation Act, which was formerly

classified to chapter 14 (Sec. 601 et seq.) of Title 15, Commerce

and Trade, and which has been eliminated from the Code. For

complete classification of this Act prior to its elimination from

the Code, see Tables.

Act of March 3, 1932 (47 Stat. 60), referred to in text, is act

Mar. 3, 1932, ch. 70, 47 Stat. 60, which is classified generally to

chapter 10 (Sec. 1401 et seq.) of this title. For complete

classification of this Act to the Code, see Tables.

Act of April 8, 1935 (49 Stat. 115), and (Executive Order

Numbered 7305), referred to in text, mean act Apr. 8, 1935, ch. 48,

49 Stat. 115, and Ex. Ord. No. 7305, Feb. 28, 1936, respectively,

which were formerly classified to Chapter 16 (Sec. 721 et seq.) of

Title 15, as legislation supplementary to the Federal Emergency

Relief Act of 1933. Such provisions have been eliminated from the

Code.

Act of June 19, 1934 (48 Stat. 1056), referred to in text,

probably means act June 19, 1934, ch. 648, title II, Sec. 1, 48

Stat. 1056. See References in Text note for the Emergency

Appropriation Act, fiscal year 1935, below.

Act of January 29, 1937 (50 Stat. 5), referred to in text, is act

Jan. 29, 1937, ch. 7, 50 Stat. 5, which was formerly classified to

subchapter II-B (Sec. 1020i et seq.) of chapter 7 of this title,

and which was repealed by act Aug. 14, 1946, ch. 964, Sec. 2(a)(2),

60 Stat. 1062.

The Agricultural Adjustment Act (of 1933), referred to in text,

probably means title I of act May 12, 1933, ch. 25, 48 Stat. 31, as

amended, known as the Agricultural Adjustment Act, which is

classified generally to chapter 26 (Sec. 601 et seq.) of Title 7,

Agriculture. For complete classification of this Act to the Code,

see Short Title note set out under section 601 of Title 7 and

Tables.

The Bankhead Cotton Act of April 21, 1934, referred to in text,

is act Apr. 21, 1934, ch. 157, 48 Stat. 598, as amended, which is

classified generally to chapter 27 (Sec. 701 et seq.) of Title 7.

The Bankhead Cotton Act was substantially repealed by act Feb. 10,

1936, ch. 42, 49 Stat. 1106. For complete classification of this

Act to the Code, see Tables.

The Jones-Connally Cattle Act of April 7, 1934, referred to in

text, is act Apr. 7, 1934, ch. 103, 48 Stat. 528, which is

classified to sections 608, 608b, 609, 611, 612, and 612a of Title

7. For complete classification of this Act to the Code, see Tables.

Emergency Appropriation Act, fiscal year 1935, approved June 19,

1934, referred to in text, is act June 19, 1934, ch. 648, title II,

48 Stat. 1055, relevant provisions of which were classified to

sections 604 and 605 of Title 7, and section 59 of former Title 49,

Transportation. Section 605 of Title 7 was repealed by act June 30,

1947, ch. 166, title II, Sec. 206(d), 61 Stat. 208, and section 59

of former Title 49, was repealed by Pub. L. 95-473, Sec. 4(b), Oct.

17, 1978, 92 Stat. 1466, the first section of which enacted

subtitle IV (Sec. 10101 et seq.) of Title 49, Transportation. For

complete classification of this Act to the Code, see Tables.

The Kerr Tobacco Act of June 28, 1934, referred to in text, is

act June 28, 1934, ch. 866, Sec. 1 to 16, 48 Stat. 1275, as

amended, which was formerly classified to chapter 28 (Sec. 751 et

seq.) of Title 7, and which was repealed by act Feb. 10, 1936, ch.

42, 49 Stat. 1106.

Section 32 of the Act of August 24, 1935, referred to in text, is

classified to section 612c of Title 7.

Supplemental Appropriation Act, fiscal year 1936, referred to in

text, is act Feb. 11, 1936, ch. 49, 49 Stat. 1134, provisions of

which were formerly classified to chapter 16 (Sec. 721 et seq.) of

Title 15, Commerce and Trade, as legislation supplementary to the

Federal Emergency Relief Act of 1933. Such provisions have been

eliminated from the Code. For complete classification of this Act

to the Code, see Tables.

Sections 7 to 17 of the Soil Conservation and Domestic Allotment

Act, referred to in text, are classified to sections 590g, 590h,

590i, and 590j to 590q of Title 16, Conservation. Section 16 of the

Act, classified to section 590p of Title 16, was repealed by Pub.

L. 104-127, title III, Sec. 336(b)(1), Apr. 4, 1996, 110 Stat.

1006.

The Sugar Act of 1937, referred to in text, is act Sept. 1, 1937,

ch. 898, 50 Stat. 903, which was formerly classified to chapter 34

(Sec. 1100 et seq.) of Title 7, Agriculture. The Sugar Act of 1937

expired on Dec. 31, 1947, and was superseded by the Sugar Act of

1948, which in turn expired on Dec. 31, 1974, and which has now

been eliminated from the Code. For complete classification of the

Sugar Act of 1937 to the Code prior to its expiration, see Tables.

Sections 303 and 381(a) of the Agricultural Adjustment Act of

1938, referred to in text, are classified to sections 1303 and

1381(a), respectively, of Title 7. Section 1381 of Title 7, was

omitted from the Code.

The Agricultural Adjustment Act of 1938, referred to in text, is

act Feb. 16, 1938, ch. 30, 52 Stat. 31, as amended. Title IV of

the Act was formerly classified to subchapter III (Sec. 1401 et

seq.) of chapter 35 of Title 7, and has been eliminated from the

Code. Title V of the Act, known as the Federal Crop Insurance Act,

is classified generally to chapter 36 (Sec. 1501 et seq.) of Title

7. For complete classification of these Acts to the Code, see

sections 1281 and 1501 of Title 7 and Tables.

Act of June 22, 1936 (49 Stat. 1608), referred to in text,

probably means act June 22, 1936, ch. 689, title II, 49 Stat. 1608,

provisions of which were formerly classified to chapter 16 (Sec.

721 et seq.) of Title 15, Commerce and Trade, as legislation

supplementary to the Federal Emergency Relief Act of 1933. Such

provisions have been eliminated from the Code.

Act of June 29, 1937 (50 Stat. 352), referred to in text,

probably means act June 29, 1937, ch. 401, 50 Stat. 357, provisions

of which were formerly classified to chapter 16 (Sec. 721 et seq.)

of Title 15, as legislation supplementary to the Federal Emergency

Relief Act of 1933. Such provisions have been eliminated from the

Code. For complete classification of this Act to the Code, see

Tables.

The Bankhead-Jones Farm Tenant Act, referred to in text, is act

July 22, 1937, ch. 517, 50 Stat. 522, as amended, which is

classified generally to chapter 33 (Sec. 1000 et seq.) of Title 7,

Agriculture. For complete classification of this Act to the Code,

see section 1000 of Title 7 and Tables.

The Water Facilities Act of August 28, 1937 (50 Stat. 869 et

seq.), referred to in text, is act Aug. 28, 1937, ch. 870, 50 Stat.

869, which was formerly classified to sections 590r to 590x-4 of

Title 16, Conservation, and was repealed by section 341(a) of Pub.

L. 87-128, title III, Aug. 8, 1961, 75 Stat. 318. See chapter 50

(Sec. 1921 et seq.) of Title 7, Agriculture.

Acts of March 2, 1938 (52 Stat. 83, Public Resolution Numbered

80), June 21, 1938 (52 Stat. 809), and June 30, 1939 (53 Stat.

927), referred to in text, are acts Mar. 2, 1938, ch. 38, 52 Stat.

83, June 21, 1938, ch. 554, 52 Stat. 809, and June 30, 1939, ch.

252, 53 Stat. 927, respectively, which were formerly classified to

chapter 16 (Sec. 721 et seq.) of Title 15, Commerce and Trade, as

legislation supplementary to the Federal Emergency Relief Act of

1933. Such provisions have been eliminated from the Code.

Act of June 26, 1940 (Public Resolution Numbered 88), referred to

in text, is act June 26, 1940, ch. 432, 54 Stat. 611, provisions of

which were formerly classified to section 609i of Title 15, and

also to chapter 16 (Sec. 721 et seq.) of Title 15, as legislation

supplementary to the Federal Emergency Relief Act of 1933. Such

provisions have been eliminated from the Code. For complete

classification of this Act to the Code, see Tables.

Act of June 15, 1929 (46 Stat. 11), referred to in text, is act

June 15, 1929, ch. 24, 46 Stat. 11, as amended, known as the

Agricultural Marketing Act, which is classified generally to

chapter 7A (Sec. 1141 et seq.) of this title. For complete

classification of this Act to the Code, see section 1141j(f) of

this title and Tables.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers, agencies, and employees of Department

of Agriculture transferred, with certain exceptions, to Secretary

of Agriculture by Reorg. Plan No. 2, of 1953, Sec. 1, eff. June 4,

1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to Title

5, Government Organization and Employees.

Functions of Agricultural Adjustment Agency and administration of

programs of Commodity Credit Corporation and Federal Crop Insurance

Corporation transferred to Secretary of Agriculture by Reorg. Plan

No. 3 of 1946, Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 60

Stat. 1100, set out in the Appendix to Title 5. See, also, notes

under sections 610 and 1503 of Title 7, Agriculture.

Farm Security Administration abolished, see note under sections

1001 to 1006 of Title 7, Agriculture.

EXCEPTIONS FROM TRANSFER OF FUNCTIONS

Functions of Corporations of Department of Agriculture, boards of

directors and officers of such corporations, Advisory Board of

Commodity Credit Corporation, and Farm Credit Administration or any

agency, officer, or entity of, under, or subject to supervision of

said Administration excepted from functions of officers, agencies,

and employees transferred to Secretary of Agriculture by Reorg.

Plan No. 2 of 1953, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67

Stat. 633, set out in the Appendix to Title 5, Government

Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 18 sections 217, 1026.

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12 USC Sec. 1150b 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM LOANS

-HEAD-

Sec. 1150b. Authorization of appropriations

-STATUTE-

There is authorized to be appropriated, out of any money in the

Treasury not otherwise appropriated, such amount as may be

necessary to enable the Secretary to carry out the provisions of

this chapter, and the current and subsequent appropriations to

enable the Secretary to administer the respective Acts of Congress

or programs to which the aforesaid payments or loans or extensions

of credit relate shall also be available for the administrative

expenses of carrying out this chapter.

-SOURCE-

(Dec. 20, 1944, ch. 623, Sec. 3, 58 Stat. 837.)

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers, agencies, and employees of Department

of Agriculture transferred, with certain exceptions, to Secretary

of Agriculture by Reorg. Plan. No. 2 of 1953, Sec. 1, eff. June 4,

1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to Title

5, Government Organization and Employees.

EXCEPTIONS FROM TRANSFER OF FUNCTIONS

Functions of Corporations of Department of Agriculture, boards of

directors and officers of such corporations, Advisory Board of

Commodity Credit Corporation, and Farm Credit Administration or any

agency, officer, or entity of, under, or subject to supervision of

said Administration excepted from functions of officers, agencies,

and employees transferred to Secretary of Agriculture by Reorg.

Plan No. 2 of 1953, Sec. 1, effective June 4, 1953, 18 F.R. 3219,

67 Stat. 633, set out in the Appendix to Title 5, Government

Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 18 sections 217, 1026.

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12 USC Sec. 1150c 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 8 - ADJUSTMENT AND CANCELLATION OF FARM LOANS

-HEAD-

Sec. 1150c. Self-hauling of hay or other roughages under hay

transportation assistance program; liability for or refund of

excess payments; availability of funds for payments

-STATUTE-

Notwithstanding any other provision of law, no persons who have

received or have owing to them, prior to September 24, 1980,

payments at rates announced by the Secretary of Agriculture for

self-hauling of hay or other roughages under the hay transportation

assistance program shall be liable for, or be obligated to refund,

any amount that is determined by the Secretary to be in excess of

the payment computed in accordance with the maximum rate provided

by section 8 of the Farmer-to-Consumer Direct Marketing Act of

1976: Provided, That the Secretary determines that such persons

have otherwise complied with the terms and conditions of, and are

otherwise entitled to payments under, the hay transportation

assistance program. Any payments made pursuant to this section

shall be made out of funds appropriated or otherwise available on

September 24, 1980 for disaster relief.

-SOURCE-

(Dec. 20, 1944, ch. 623, Sec. 4, as added Pub. L. 96-356, Sept. 24,

1980, 94 Stat. 1177.)

-REFTEXT-

REFERENCES IN TEXT

Section 8 of the Farmer-to-Consumer Direct Marketing Act of 1976,

referred to in text, is section 8 of Pub. L. 94-463, Oct. 8, 1976,

90 Stat. 1983, which is set out as a note under section 5145 of

Title 42, The Public Health and Welfare.

-COD-

CODIFICATION

''This section'' and ''September 24, 1980'', referred to in the

last sentence, were in the original ''this Act'' and ''the date of

enactment of this Act''. These references were editorially

translated as Pub. L. 96-356, Sept. 24, 1980, 94 Stat. 1177 and the

date of enactment of Pub. L. 96-356, as the probable intent of

Congress.

-MISC3-

PRIOR PROVISIONS

A prior section 1150c, act Dec. 20, 1944, ch. 623, Sec. 4, 58

Stat. 837, related to false representations, acceptance of fees,

etc., prior to repeal by act June 25, 1948, 645 Sec. 21, 62 Stat.

862, effective Sept. 1, 1948. See sections 217 and 1026 of Title

18, Crimes and Criminal Procedure.

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