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US (United States) Code. Title 7. Chapter 50: Agricultural credit

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-CITE-

7 USC CHAPTER 50 - AGRICULTURAL CREDIT 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

-HEAD-

CHAPTER 50 - AGRICULTURAL CREDIT

-MISC1-

Sec.

1921. Congressional findings.

SUBCHAPTER I - REAL ESTATE LOANS

1922. Persons eligible for loans.

(a) Authorization and conditions.

(b) Direct loans.

1923. Purposes of loans.

(a) Allowed purposes.

(b) Preferences.

1924. Soil and water conservation and protection.

(a) In general.

(b) Priority.

1925. Limitations on amount of farm ownership loans.

(a) In general.

(b) Determination of value.

1926. Water and waste facility loans and grants.

(a) In general.

(b) Curtailment or limitation of service prohibited.

(d) Carryover of unused authorizations for

appropriations.

1926-1. Repealed.

1926a. Emergency and imminent community water assistance grant

program.

(a) In general.

(b) Priority.

(d) Uses.

(e) Restrictions.

(f) Maximum grants.

(g) Full funding.

(h) Application.

(i) Funding.

1926b. Repealed.

1926c. Water and waste facility loans and grants to alleviate

health risks.

(a) Loans and grants to persons other than

individuals.

(b) Loans and grants to individuals.

(d) ''Cooperative'' defined.

(e) Authorization of appropriations.

(f) Regulations.

1926d. Water systems for rural and Native villages in Alaska.

(a) In general.

(b) Matching funds.

(d) Authorization of appropriations.

1926e. Grants to nonprofit organizations to finance the

construction, refurbishing, and servicing of individually-owned

household water well systems in rural areas for individuals with

low or moderate incomes.

(a) Definition of eligible individual.

(b) Grants.

(d) Authorization of appropriations.

1927. Repayment requirements.

(a) Period of repayment; interest rates.

(b) Payment of charges; prepayment of taxes and

insurance.

(d) Mineral rights as collateral.

(e) Additional collateral.

1927a. Loan interest rates charged by Farmers Home Administration;

grant funds associated with loans.

1928. Full faith and credit.

(a) In general.

(b) Contestability.

1929. Agricultural Credit Insurance Fund.

(a) Revolving fund.

(b) Deposits of funds; investments; purchase of

notes.

and conditions; interest rate; purchase by

Treasury; public debt transaction.

(d) Notes and security as part of fund; collection or

sale of notes; deposit of net proceeds in fund.

(e) Deposit in fund of portion of charge on

outstanding principal obligations; availability

of remainder of charge, and merger with

appropriations, for administrative expenses.

(f) Utilization of fund.

(g) Transfer of funds from Farmers Home

Administration direct loan account and

Emergency Credit Revolving Fund; abolition of

such account and fund; payments from

Agricultural Credit Insurance Fund; interest.

(h) Guaranteed loans; interest rate for loans sold

into secondary market; loan fees.

(i) Coordination of assistance for qualified

beginning farmers and ranchers.

(j) Guarantee of loans made under State beginning

farmer or rancher programs.

1929-1. Level of loan programs under Agricultural Credit Insurance

Fund.

1929a. Rural Development Insurance Fund

(a) Creation; revolving fund; rural development

loans.

(b) Transfer of assets and liabilities.

purchasing authority of the Secretary.

(d) Notes, issuing authority of the Secretary; use of

funds; terms and conditions, form,

denominations, maturities, and interest rate of

notes; notes, purchasing authority of the

Secretary of the Treasury; public debt

transactions.

(e) Notes and security as part of Insurance Fund;

collection and sale of notes and other

obligations; deposit of net proceeds in

Insurance Fund.

(f) Deposit of loan service charges in Insurance

Fund.

(g) Use of Insurance Fund.

(h) Gross income; interest or other income on insured

loans.

1929b. Purchase of guaranteed portions of loans; terms and

conditions; exercise of authorities.

1930. Continued availability of appropriated funds for direct real

estate loans to farmers and ranchers.

1931. Repealed.

1932. Rural industrialization assistance.

(a) Loans for private business enterprises; pollution

abatement and control; aquaculture; solar

energy; loan guarantees.

(b) Solid waste management grants.

(d) Joint loans or grants for private business

enterprises; restrictions; system of

certification for expeditious processing of

requests for assistance; prior approval of

grant or loan; equity investment as condition

for loan commitment; issuance of certificates

of beneficial ownership of notes.

(e) Rural cooperative development grants.

(f) Grants to broadcasting systems.

(g) Business and industry direct and guaranteed

loans.

(h) Loan guarantees for certain loans.

1933. Guaranteed rural housing loans; Hawaiian home lands.

1934. Low-income farm ownership loan program; eligibility;

repayment requirements.

1935. Down payment loan program.

(a) In general.

(b) Loan terms.

(d) Administration.

1936. Beginning farmer and rancher contract land sales program.

(a) In general.

(b) Date of commencement of program.

1936a. Use of rural development loans and grants for other

purposes.

SUBCHAPTER II - OPERATING LOANS

1941. Persons eligible for loans.

(a) Requirements.

(b) Rural youths in 4-H Clubs, Future Farmers of

America, etc.

1942. Purposes of loans.

(a) In general.

(b) Guaranteed loans.

(d) Private reserve.

1943. Limitations on amount of operating loans.

(a) In general.

(b) Inflation percentage.

1944. Soil conservation district loans; limitation; purchase of

conservation equipment.

1945. Repealed.

1946. Liability of borrower.

(a) Determination of interest rates.

(b) Payment period; consolidation and rescheduling of

loans.

1947, 1948. Repealed.

1949. Graduation of borrowers with operating loans or guarantees to

private commercial credit.

(a) Graduation plan.

(b) Limitation on period borrowers are eligible for

guaranteed assistance.

SUBCHAPTER III - EMERGENCY LOANS

1961. Eligibility for loans.

(a) Persons eligible.

(b) Hazard insurance requirement.

(d) Definitions.

1962. Loan determination factors; written credit declinations.

1963. Purpose and extent of loans.

1964. Terms of loans.

(a) Maximum amount of loan.

(b) Interest rates.

(d) Repayment.

(e) Grant eligibility.

1965. Repealed.

1966. Emergency Credit Revolving Fund utilization.

1967. Addition to Emergency Credit Revolving Fund of sums from

liquidation of loans; authorization of appropriations.

1968, 1969. Repealed.

1970. Eligibility for assistance based on production loss.

1971. Repealed.

SUBCHAPTER IV - ADMINISTRATIVE PROVISIONS

1981. Farmers Home Administration.

(a) Appointment and compensation of Administrator;

transfer of powers, duties, and assets

pertaining to agricultural credit.

(b) Powers of Secretary of Agriculture.

1981a. Loan moratorium and policy on foreclosures.

1981b. Farm loan interest rates.

1981c. Oil and gas royalty payments on loans.

1981d. Notice of loan service programs.

(a) Requirement.

(b) Contents.

(d) Timing.

(e) Consideration of borrowers for loan service

programs.

1981e. Planting and production history guidelines.

(a) In general.

(b) Calculation of yields.

1981f. Underwriting forms and standards.

1982. Repealed.

1983. Special conditions and limitations on loans.

1983a. Prompt approval of loans and loan guarantees.

(a) Applications; time for action by Secretary;

notice; statement of reasons.

(b) Loan proceeds; time for receipt.

by Secretary.

(d) Approved lender designation applications; time

for decision by Secretary.

(e) Processing loan applications; personnel and other

resources made available; use of authorities of

law.

(f) Graduation of seasoned direct loan borrowers to

loan guarantee program.

(g) Simplified application forms for loan guarantees.

1983b. Repealed.

1983c. Provision of information to borrowers.

(a) In general.

(b) Construction of section.

1984. Taxation.

1985. Security servicing.

(a) Preservation and protection of security, lien, or

priority of lien securing loan.

(b) Operation or lease of realty.

(d) Easements; condemnations.

(e) Real property located within Indian reservation;

conservation practices; adverse effects

prohibition.

(f) Normal security income.

(g) Easements on inventoried property.

1986. Conflicts of interests.

(a) Acceptance of fees, commissions, gifts, or other

considerations prohibited.

(b) Acquisition of interest in land by certain

officers or employees of Department of

Agriculture prohibited; 3-year period.

prohibited.

(d) Penalties.

1987. Debt adjustment and credit counseling; ''summary period''

defined; loan summary statements.

1988. Appropriations.

(a) Authorization.

(b) Sale by lender and any holder of guaranteed

portion of loan pursuant to regulations

governing such sales; limitations; issuance of

pool certificates representing ownership of

guaranteed portion of guaranteed loan; terms

and conditions, etc.; reporting requirements.

1989. Rules and regulations.

(a) In general.

(b) Debt service margin requirements.

(d) Preferred Certified Lenders Program.

(e) Administration of Certified Lenders and Preferred

Certified Lenders programs.

1990. Transfer of lands to Secretary.

1991. Definitions.

1992. Loan limitations.

1993. Repealed.

1994. Maximum amounts for loans authorized; long-term cost

projections.

(a) Maximum aggregate principal amounts for loans

authorized.

(b) Authorization for loans.

loan program authorizations.

(d) Low-income, limited-resource borrowers.

1995. Participation and financial and technical assistance by other

Federal departments, etc., to program participants.

1996. Loans to resident aliens.

1997. Conservation easements.

(a) Definitions.

(b) Contracts on loan security properties.

(d) Terms and conditions.

(e) Purchase; limitation upon cancellation or

prepayment.

(f) Consultations with Director of Fish and Wildlife

Service.

(g) Enforcement.

1998. Guaranteed farm loan programs.

1999. Interest rate reduction program.

(a) Establishment of program.

(b) Contracts with lenders.

(d) Duration of contracts.

(e) Agricultural Credit Insurance Fund use

limitation.

(f) List of lender participants in guaranteed loan

program.

(g) Foreclosure action provision in farm loan

guarantees.

2000. Homestead protection.

(a) Definitions.

(b) Occupancy of homestead upon foreclosure,

bankruptcy, or liquidation; appraisal; period

of occupancy.

(d) First right of refusal of reacquisition.

(e) Value as measure of reacquisition payment of

principal.

(f) Contract authority.

(g) Conflict between Federal and State law.

2001. Debt restructuring and loan servicing.

(a) In general.

(b) Eligibility.

(d) Principal and interest write-down.

(e) Shared appreciation arrangements.

(f) Determination to restructure.

(g) Prerequisites to foreclosure or liquidation.

(h) Time limits for restructuring.

(i) Notice of ineligibility for restructuring.

(j) Independent appraisals.

(k) Partial liquidations.

(l) Disposition of normal income security.

(m) Only 1 write-down or net recovery buy-out per

borrower for loan made after January 6, 1988.

(n) Liquidation of assets.

(o) Lifetime limitation on debt forgiveness per

borrower.

2001a. Debt restructuring and loan servicing for community facility

loans.

2002. Transfer of inventory lands.

(a) In general.

(b) Conditions.

2003. Target participation rates.

(a) Establishment.

(b) Reservation and allocation.

(d) Report.

(e) Definitions.

(f) Implementation consistent with Supreme Court

holding.

2004. Expedited clearing of title to inventory property.

2005. Payment of losses on guaranteed loans.

(a) Payments to lenders.

(b) Administration.

2006. Waiver of mediation rights by borrowers.

2006a. Borrower training.

(a) In general.

(b) Contract.

(d) Guidelines and curriculum.

(e) Payment.

(f) Waivers.

2006b. Loan assessments.

(a) In general.

(b) Determinations.

(d) Review of loans.

(e) Guidelines.

2006c. Supervised credit.

2006d. Market placement.

2006e. Prohibition on use of loans for certain purposes.

2006f. Rural development certified lenders program.

(a) Certified lenders program.

(b) Preferred certified lenders program.

2007 to 2008c. Repealed.

2008d. Recordkeeping of loans by borrower's gender.

2008e. Prohibition under rural development programs.

(a) Prohibition.

(b) Ensuring compliance.

2008f. Crop insurance requirement.

(a) In general.

(b) Applicable benefits.

2008g. Payment of interest as condition of loan servicing for

borrowers.

2008h. Loan and loan servicing limitations.

(a) Delinquent borrowers prohibited from obtaining

direct operating loans.

(b) Prohibition of loans for borrowers that have

received debt forgiveness.

direct loan.

2008i. Short form certification of farm program borrower

compliance.

2008j. National Sheep Industry Improvement Center.

(a) Definitions.

(b) Establishment of Center.

(d) Strategic plan.

(e) Revolving Fund.

(f) Board of Directors.

(g) Officers and employees.

(h) Consultation.

(i) Oversight.

(j) Privatization.

2008k. Making and servicing of loans by personnel of State, county,

or area committees.

2008l. Eligibility of employees of State, county, or area committee

for loans and loan guarantees.

(a) In general.

(b) Approvals.

2008m. National Rural Development Partnership.

(a) Definitions.

(b) Partnership.

Committee.

(d) State rural development councils.

(e) Administrative support of the Partnership.

(f) Matching requirements for State rural development

councils.

(g) Funding.

(h) Termination.

2008n. Rural telework.

(a) Definitions.

(b) Rural telework institute.

(d) Applicability of certain Federal law.

(e) Regulations.

(f) Authorization of appropriation.

2008o. Historic barn preservation.

(a) Definitions.

(b) Program.

2008p. Grants for NOAA weather radio transmitters.

(a) In general.

(b) Eligibility.

(d) Authorization of appropriations.

2008q. Grants to train farm workers in new technologies and to

train farm workers in specialized skills necessary for higher

value crops.

(a) In general.

(b) Use of funds.

2008r. Delta region agricultural economic development.

(a) In general.

(b) Authorization of appropriations.

SUBCHAPTER V - RURAL COMMUNITY ADVANCEMENT PROGRAM

2009. Definitions.

2009a. Establishment.

2009b. National objectives.

2009c. Strategic plans.

(a) In general.

(b) Assistance.

(d) Contents.

2009d. Rural Development Trust Fund.

(a) Establishment.

(b) Accounts.

(d) Function categories.

(e) Federally recognized Indian tribe account.

(f) Allocation among States.

(g) Availability of funds allocated for States.

2009e. Transfers of funds.

(a) General authority.

(b) Limitation.

2009f. Grants to States.

(a) Simple grants.

(b) Matching grants.

(d) Maintenance of effort.

(e) Appeals.

(f) Administrative costs.

(g) Expenditure of funds by State.

(h) No entitlement to contract, grant, or assistance.

2009g. Guarantee and commitment to guarantee loans.

(a) ''Eligible public entity'' defined.

(b) Guarantee and commitment.

(d) Payment of principal, interest, and costs.

(e) Repayment contract; security.

(f) Pledged grants for repayments.

(g) Outstanding obligations.

(h) Purchase of guaranteed obligations by Federal

Financing Bank.

(i) Full faith and credit.

2009h. Local involvement.

2009i. Interstate collaboration.

2009j. Annual report.

(a) In general.

(b) Submission.

2009k. Rural development interagency working group.

(a) In general.

(b) Duties.

2009l. Duties of Rural Economic and Community Development State

Offices.

2009m. Electronic transfer.

2009n. Repealed.

SUBCHAPTER VI - DELTA REGIONAL AUTHORITY

2009aa. Definitions.

2009aa-1. Delta Regional Authority.

(a) Establishment.

(b) Alternate members.

(d) Duties.

(e) Administration.

(f) Federal agency cooperation.

(g) Administrative expenses.

(h) Compensation.

(i) Conflicts of interest.

(j) Validity of contracts, loans, and grants.

2009aa-2. Economic and community development grants.

(a) In general.

(b) Funding.

2009aa-3. Supplements to Federal grant programs.

(a) Finding.

(b) Federal grant program funding.

2009aa-4. Local development districts; certification and

administrative expenses.

(a) Definition of local development district.

(b) Grants to local development districts.

2009aa-5. Distressed counties and areas and nondistressed counties.

(a) Designations.

(b) Distressed counties.

(d) Transportation and basic public infrastructure.

2009aa-6. Development planning process.

(a) State development plan.

(b) Content of plan.

(d) Public participation.

2009aa-7. Program development criteria.

(a) In general.

(b) No relocation assistance.

2009aa-8. Approval of development plans and projects.

(a) In general.

(b) Evaluation by State member.

(d) Approval of grant applications.

2009aa-9. Consent of States.

2009aa-10. Records.

(a) Records of the Authority.

(b) Records of recipients of Federal assistance.

2009aa-11. Annual report.

2009aa-12. Authorization of appropriations.

(a) In general.

(b) Administrative expenses.

2009aa-13. Termination of authority.

SUBCHAPTER VII - NORTHERN GREAT PLAINS REGIONAL AUTHORITY

2009bb. Definitions.

2009bb-1. Northern Great Plains Regional Authority.

(a) Establishment.

(b) Alternate members.

(d) Duties.

(e) Administration.

(f) Federal agency cooperation.

(g) Administrative expenses.

(h) Compensation.

(i) Conflicts of interest.

(j) Validity of contracts, loans, and grants.

2009bb-2. Economic and community development grants.

(a) In general.

(b) Funding.

2009bb-3. Supplements to Federal grant programs.

(a) Finding.

(b) Federal grant program funding.

2009bb-4. Local development districts and organizations and

Northern Great Plains Inc.

(a) Definition of local development district.

(b) Grants to local development districts.

(d) Northern Great Plains Inc.

2009bb-5. Distressed counties and areas and nondistressed counties.

(a) Designations.

(b) Distressed counties.

(d) Transportation, telecommunication, and basic

public infrastructure.

2009bb-6. Development planning process.

(a) State development plan.

(b) Content of plan.

(d) Public participation.

2009bb-7. Program development criteria.

(a) In general.

(b) No relocation assistance.

2009bb-8. Approval of development plans and projects.

(a) In general.

(b) Evaluation by State member.

(d) Votes for decisions.

2009bb-9. Consent of States.

2009bb-10. Records.

(a) Records of the Authority.

(b) Records of recipients of Federal assistance.

2009bb-11. Annual report.

2009bb-12. Authorization of appropriations.

(a) In general.

(b) Administrative expenses.

2009bb-13. Termination of authority.

SUBCHAPTER VIII - RURAL BUSINESS INVESTMENT PROGRAM

2009cc. Definitions.

2009cc-1. Purposes.

2009cc-2. Establishment.

2009cc-3. Selection of rural business investment companies.

(a) Eligibility.

(b) Application.

(d) Matters considered.

(e) Approval; license.

2009cc-4. Debentures.

(a) In general.

(b) Terms and conditions.

(d) Maximum guarantee.

2009cc-5. Issuance and guarantee of trust certificates.

(a) Issuance.

(b) Guarantee.

(d) Subrogation and ownership rights.

(e) Management and administration.

2009cc-6. Fees.

(a) In general.

(b) Trust certificate.

2009cc-7. Operational assistance grants.

(a) In general.

(b) Terms.

(d) Submission of plans.

(e) Grant amount.

2009cc-8. Rural business investment companies.

(a) Organization.

(b) Articles.

(d) Diversification of ownership.

2009cc-9. Financial institution investments.

(a) In general.

(b) Limitation.

controlled by Farm Credit System institutions.

2009cc-10. Reporting requirements.

(a) Rural business investment companies.

(b) Public reports.

2009cc-11. Examinations.

(a) In general.

(b) Assistance of private sector entities.

(d) Deposit of funds.

2009cc-12. Injunctions and other orders.

(a) In general.

(b) Jurisdiction.

2009cc-13. Additional penalties for noncompliance.

(a) In general.

(b) Adjudication of noncompliance.

2009cc-14. Unlawful acts and omissions; breach of fiduciary duty.

(a) Parties deemed to commit a violation.

(b) Fiduciary duties.

2009cc-15. Removal or suspension of directors or officers.

2009cc-16. Contracting of functions.

(a) In general.

(b) Funding.

2009cc-17. Regulations.

2009cc-18. Funding.

(a) In general.

(b) Availability of funds.

SUBCHAPTER IX - RURAL STRATEGIC INVESTMENT PROGRAM

2009dd. Purpose.

2009dd-1. Definitions.

2009dd-2. Regional Investment Boards.

(a) In general.

(b) Requirements for certification.

2009dd-3. National Board on Rural America.

(a) Establishment.

(b) Composition.

(d) Duties.

2009dd-4. Rural strategic investment program.

(a) In general.

(b) Use by National Board.

2009dd-5. Regional strategic investment planning grants.

(a) In general.

(b) Regional plans.

(d) Amount.

(e) Cost sharing.

2009dd-6. Innovation grants.

(a) In general.

(b) Eligibility.

(d) Preferences.

(e) Uses.

(f) Amount.

(g) Cost sharing.

(h) Negotiation.

(i) Noncompliance.

(j) Other uses.

(k) Transfers.

2009dd-7. National Conference on Rural America.

(a) In general.

(b) Purpose.

(d) Report.

(e) Funding.

SUBCHAPTER X - SEARCH GRANTS FOR SMALL COMMUNITIES

2009ee. Definitions.

2009ee-1. SEARCH grant program.

(a) In general.

(b) Allocation to State rural development directors.

(d) Eligibility.

(e) Applications.

(f) Awards.

(g) Unexpended funds.

2009ee-2. Report.

2009ee-3. Funding.

(a) Allocation to State rural development directors.

(b) Other expenses.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 940, 1515, 2279, 2279a,

7996 of this title; title 12 sections 2219d, 2279aa; title 15

section 636; title 16 sections 590h, 3811, 3821; title 21 section

889; title 38 section 3711; title 40 section 14507; title 42

sections 8813, 9817.

-CITE-

7 USC Sec. 1921 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

-HEAD-

Sec. 1921. Congressional findings

-STATUTE-

The Congress finds that the statutory authority of the Secretary

of Agriculture, hereinafter referred to in this chapter as the

''Secretary,'' for making and insuring loans to farmers and

ranchers should be revised and consolidated to provide for more

effective credit services to farmers.

-SOURCE-

(Pub. L. 87-128, title III, Sec. 301(b), Aug. 8, 1961, 75 Stat.

307.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

title'', meaning title III of Pub. L. 87-128, Aug. 8, 1961, 75

Stat. 307, as amended, known as the Consolidated Farm and Rural

Development Act. For complete classification of title III to the

Code, see Short Title note set out below and Tables.

-COD-

CODIFICATION

Section is comprised of subsec. (b) of section 301 of Pub. L.

87-128. Subsec. (a) of such section 301 is set out as a Short Title

note below.

-MISC3-

EFFECTIVE DATE

Former section 300.1 of Title 6, Code of Federal Regulations,

promulgated on Oct. 15, 1961, by the Administrator of the Farmers

Home Administration, published in 26 F.R. 10031, provided: ''The

Consolidated Farmers Home Administration Act of 1961 (7 U.S.C.

1921) (this chapter), is hereby made effective on October 15, 1961,

except (a) as to its authorizations to make and sell insured loans

with 4 1/2 percent yield to the lender and a three-year repurchase

agreement which was made effective by regulations issued on

September 13, 1961 (26 F.R. 9307), pursuant to assignment of

functions contained in 26 F.R. 7888, and (b) that the provisions of

Title IV of the Bankhead-Jones Farm Tenant Act which requires

mineral reservations in lands disposed of under Title III of that

Act (sections 1010 to 1012 and 1013a of this title) shall not

become effective until December 7, 1961.'' See section 341(a) of

Pub. L. 87-128, set out as a note under this section.

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106-554, Sec. 1(a)(4) (div. B, title V, Sec. 501), Dec.

21, 2000, 114 Stat. 2763, 2763A-268, provided that: ''This title

(enacting subchapter VI of this chapter and amending provisions set

out as a note under section 3121 of Title 42, The Public Health and

Welfare) may be cited as the 'Delta Regional Authority Act of

2000'.''

SHORT TITLE OF 1994 AMENDMENT

Pub. L. 103-248, Sec. 1, May 11, 1994, 108 Stat. 619, provided

that: ''This Act (amending section 1981 of this title) may be cited

as the 'Farmers Home Administration Improvement Act of 1994'.''

SHORT TITLE OF 1992 AMENDMENT

Pub. L. 102-554, Sec. 1(a), Oct. 28, 1992, 106 Stat. 4142,

provided that: ''This Act (enacting sections 1935, 1936, 1948,

1949, and 2008d of this title, amending sections 1925, 1926c, 1929,

1932, 1981d, 1982, 1983, 1983a, 1985, 1989, 1991, 1994, 2003, and

5102 of this title, and enacting provisions set out as notes under

sections 1929 and 1989 of this title) may be cited as the

'Agricultural Credit Improvement Act of 1992'.''

SHORT TITLE OF 1990 AMENDMENT

Pub. L. 101-624, title XXIII, Sec. 2301, Nov. 28, 1990, 104 Stat.

3979, provided that: ''This title (see Tables for classification)

may be cited as the 'Rural Economic Development Act of 1990'.''

SHORT TITLE OF 1986 AMENDMENT

Pub. L. 99-409, Sec. 1, Aug. 28, 1986, 100 Stat. 923, provided:

''That this Act (amending section 1932 of this title and enacting

provisions set out as a note under section 1932 of this title) may

be cited as the 'Rural Industrial Assistance Act of 1986'.''

SHORT TITLE OF 1984 AMENDMENT

Pub. L. 98-258, title VI, Sec. 601, Apr. 10, 1984, 98 Stat. 138,

provided that: ''This title (enacting section 1981b of this title,

amending sections 1943, 1946, 1961, 1964, 1986, and 1994 of this

title, enacting provisions set out as notes under sections 1961 and

1981 of this title, and amending provisions set out as a note

preceding section 1961 of this title) may be cited as the

'Emergency Agricultural Credit Act of 1984'.''

SHORT TITLE OF 1978 AMENDMENT

Pub. L. 95-334, Sec. 1, Aug. 4, 1978, 92 Stat. 420, provided:

''That this Act (enacting sections 1929b, 1934, 1981a, 1994, and

1995 of this title and sections 2201 to 2205 of Title 16,

Conservation, amending sections 1309, 1922, 1924 to 1927, 1929,

1929a, 1932, 1941 to 1943, 1946, 1961, 1964, 1968, 1981, 1983,

1991, and 2908 of this title, repealing section 1965 of this title,

and enacting provisions set out as notes under this section and

sections 1309, 1926, preceding 1961, and 1964 of this title and

section 2201 of Title 16) may be cited as the 'Agricultural Credit

Act of 1978'.''

SHORT TITLE OF 1972 AMENDMENT

Section 1 of Pub. L. 92-419 provided: ''That this Act (enacting

sections 1010a, 1929a, 1931 to 1933, 1947, 1992, 2204a, 2212a, 2651

to 2654, and 2661 to 2668 of this title, amending sections 1006a,

1011, 1924 to 1927, 1929, 1941 to 1943, 1981, 1983, 1985, 1991,

2201, and 2204 of this title, section 5315 of Title 5, Government

Organization and Employees, sections 590g, 590h, 590o, and 1001 to

1005 of Title 16, Conservation, and section 3122 of Title 42, The

Public Health and Welfare, and amending provisions set out as a

note under this section) may be cited as the 'Rural Development Act

of 1972'.''

SHORT TITLE

Section 301(a) of title III of Pub. L. 87-128, as amended by Pub.

L. 92-419, title I, Sec. 101, Aug. 30, 1972, 86 Stat. 657, provided

that: ''This title (enacting this section and sections 1013a, 1922

to 1933, 1941 to 1947, 1961 to 1968, 1969, 1970, 1971, and 1981 to

1993 of this title, amending sections 1924 to 1927, 1929, 1941 to

1943, 1981, 1983, 1985, and 1991 of this title, repealing sections

1001 to 1005d, 1006c to 1006e, 1007, 1008, 1009, 1014 to 1025, 1027

to 1029 of this title, sections 1148a-1 to 1148a-3 of Title 12,

Banks and Banking, and sections 590r to 590x-4 of Title 16,

Conservation, and enacting provisions set out as a note under this

section) may be cited as the 'Consolidated Farm and Rural

Development Act'.''

REGULATIONS

Section 2396 of title XXIII of Pub. L. 101-624 provided that:

''Except as otherwise provided in this title (see Short Title of

1990 Amendment note set out above), no later than 180 days after

the date of the enactment of this Act (Nov. 28, 1990), the

Secretary shall promulgate such regulations as may be necessary to

carry out this title and the amendments made by this title.''

PRESERVATION OF ELIGIBILITY FOR CREDIT ASSISTANCE UNDER FEDERAL LAW

Section 2395 of title XXIII of Pub. L. 101-624 provided that:

''Notwithstanding any other provision of law, this title (see Short

Title of 1990 Amendment note set out above) shall not be construed

to adversely affect the eligibility, as it existed on the date of

enactment of this Act (Nov. 28, 1990), of cooperatives and other

entities for any other credit assistance under Federal law.''

USE OF QUALIFIED PERSONNEL BY THE DEPARTMENT OF AGRICULTURE

Pub. L. 95-334, title I, Sec. 126, Aug. 4, 1978, 92 Stat. 429,

provided that: ''It is the sense of Congress that, in carrying out

the provisions of the Consolidated Farm and Rural Development Act

(see Short Title note set out above), the Secretary of Agriculture

should ensure that -

''(1) only officers and employees of the Department of

Agriculture who are adequately prepared to understand the

particular needs and problems of farmers in an area are assigned

to such area; and

''(2) a high priority is placed on keeping existing farm

operations operating.''

REFERENCES IN OTHER LAWS TO BANKHEAD-JONES FARM TENANT ACT OR WATER

FACILITIES ACT; REPEALS; SAVINGS AND SEPARABILITY PROVISIONS

Section 341 of Pub. L. 87-128 provided that:

''(a) Reference to any provisions of the Bankhead-Jones Farm

Tenant Act (see section 1000 of this title) or the Act of August

28, 1937 (50 Stat. 869), as amended, superseded by any provision of

this title (this chapter) shall be construed as referring to the

appropriate provision of this title (this chapter). Titles I, II,

and IV of the Bankhead-Jones Farm Tenant Act, as amended, and the

Act of August 28, 1937 (50 Stat. 869), as amended, the Act of April

6, 1949 (63 Stat. 43), as amended, and the Act of August 31, 1954

(68 Stat. 999), as amended, are hereby repealed effective one

hundred and twenty days after enactment hereof (Aug. 8, 1961), or

such earlier date as the provisions of this title (this chapter)

are made effective by the Secretary's regulations except that the

repeal of section 2(c) of the Act of April 6, 1949, shall not be

effective prior to January 1, 1962. The foregoing provisions shall

not have the effect of repealing the amendments to section 24,

chapter 6 of the Federal Reserve Act (section 371 of Title 12), as

amended, section 5200 of the Revised Statutes (section 84 of Title

12), section 35 of chapter III of the Act approved June 19, 1934

(D.C. Code, title 35, section 535), enacted by section 15 of the

Bankhead-Jones Farm Tenant Act, as amended, and by section 10(f) of

the Act of August 28, 1937 (50 Stat. 869), as amended.

''(b) The repeal of any provision of law by this title (this

chapter) shall not -

''(1) affect the validity of any action taken or obligation

entered into pursuant to the authority of any of said Acts, or

''(2) prejudice the application of any person with respect to

receiving assistance under the provisions of this title (this

chapter), solely because such person is obligated to the

Secretary under authorization contained in any such repealed

provision.

''(c) If any provision of this title (this chapter) or the

application thereof to any person or circumstances is held invalid,

the remainder of the title (this chapter) and the application of

such provision to other persons or circumstances shall not be

affected thereby.''

-CITE-

7 USC SUBCHAPTER I - REAL ESTATE LOANS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

SUBCHAPTER I - REAL ESTATE LOANS

-HEAD-

SUBCHAPTER I - REAL ESTATE LOANS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1961, 1963, 1964,

1981b, 1983, 1983a, 1985, 1994, 2000, 2003, 2008l of this title.

-CITE-

7 USC Sec. 1922 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

SUBCHAPTER I - REAL ESTATE LOANS

-HEAD-

Sec. 1922. Persons eligible for loans

-STATUTE-

(a) Authorization and conditions

The Secretary is authorized to make and insure loans under this

subchapter to farmers and ranchers in the United States, and to

farm cooperatives and private domestic corporations, partnerships,

joint operations, trusts, and limited liability companies that are

controlled by farmers and ranchers and engaged primarily and

directly in farming or ranching in the United States, subject to

the conditions specified in this section. To be eligible for such

loans, applicants who are individuals, or, in the case of

cooperatives, corporations, partnerships, joint operations, trusts,

and limited liability companies, individuals holding a majority

interest in such entity, must (1) be citizens of the United States,

(2) for direct loans only, have either training or farming

experience that the Secretary determines is sufficient to assure

reasonable prospects of success in the proposed farming operations,

(3) be or will become owner-operators of not larger than family

farms (or in the case of cooperatives, corporations, partnerships,

joint operations, trusts, and limited liability companies 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

or will become either owners or operators of not larger than a

family farm and at least one such individual must be or will become

an operator of not larger than a family farm or, in the case of

holders of the entire interest who are related by blood or marriage

and all of whom are or will become farm operators, the ownership

interest of each such holder separately constitutes not larger than

a family farm, even if their interests collectively constitute

larger than a family farm, as defined by the Secretary), and (4) 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 the applicant resides for loans for

similar purposes and periods of time. In addition to the foregoing

requirements of this section, in the case of corporations,

partnerships, joint operations, trusts, and limited liability

companies, the family farm requirement of clause (3) of the

preceding sentence shall apply as well to the farm or farms in

which the entity has an ownership and operator interest and the

requirement of clause (4) of the preceding sentence shall apply as

well to the entity in the case of cooperatives, corporations,

partnerships, joint operations, trusts, and limited liability

companies.

(b) Direct loans

(1) In general

Subject to paragraph (3), the Secretary may make a direct loan

under this subchapter only to a farmer or rancher who has

participated in the business operations of a farm or ranch for

not less than 3 years and -

(A) is a qualified beginning farmer or rancher;

(B) has not received a previous direct farm ownership loan

made under this subchapter; or

subchapter more than 10 years before the date the new loan

would be made.

(2) Youth loans

The operation of an enterprise by a youth under section 1941(b)

of this title shall not be considered the operation of a farm or

ranch for purposes of paragraph (1).

(3) Transition rule

(A) In general

Subject to subparagraphs (B) and (C), the Secretary may make

a direct loan under this subchapter to a farmer or rancher who

has a direct loan outstanding under this subchapter on April 4,

1996.

(B) Less than 5 years

If, as of April 4, 1996, a farmer or rancher has had a direct

loan outstanding under this subchapter for less than 5 years,

the Secretary shall not make a loan to the farmer or rancher

under subparagraph (A) after the date that is 10 years after

April 4, 1996.

If, as of April 4, 1996, a farmer or rancher has had a direct

loan outstanding under this subchapter for 5 years or more, the

Secretary shall not make a loan to the farmer or rancher under

subparagraph (A) after the date that is 5 years after April 4,

1996.

(D) Notice

Beginning with fiscal year 2000 not later than 12 months

before a borrower will become ineligible for direct loans under

this subchapter by reason of this paragraph, the Secretary

shall notify the borrower of such impending ineligibility.

-SOURCE-

(Pub. L. 87-128, title III, Sec. 302, Aug. 8, 1961, 75 Stat. 307;

Pub. L. 91-620, Sec. 2, Dec. 31, 1970, 84 Stat. 1862; Pub. L.

95-334, title I, Sec. 101, Aug. 4, 1978, 92 Stat. 420; Pub. L.

97-98, title XVI, Sec. 1601(a), Dec. 22, 1981, 95 Stat. 1346; Pub.

L. 99-198, title XIII, Sec. 1301(a), 1302(a), 1303, Dec. 23, 1985,

99 Stat. 1518, 1519; Pub. L. 104-127, title VI, Sec. 601, Apr. 4,

1996, 110 Stat. 1084; Pub. L. 105-277, div. A, Sec. 101(a) (title

VIII, Sec. 804, 805(1)), Oct. 21, 1998, 112 Stat. 2681, 2681-39;

Pub. L. 107-171, title V, Sec. 5001, 5302(a), May 13, 2002, 116

Stat. 341, 344.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171, Sec. 5302(a), substituted

''joint operations, trusts, and limited liability companies'' for

''and joint operations'' wherever appearing.

Subsec. (b)(1). Pub. L. 107-171, Sec. 5001, substituted

''participated in the business operations of'' for ''operated'' in

introductory provisions.

1998 - Subsec. (a). Pub. L. 105-277, Sec. 101(a) (title VIII,

Sec. 805(1)), inserted ''for direct loans only,'' before ''have

either'' in cl. (2).

Subsec. (b)(3)(D). Pub. L. 105-277, Sec. 101(a) (title VIII, Sec.

804), added subpar. (D).

1996 - Subsec. (b). Pub. L. 104-127 added subsec. (b) and struck

out former subsec. (b) which read as follows: ''The Secretary may

not restrict eligibility for loans made or insured under this

subchapter for purposes set forth in section 1923 of this title

solely to borrowers of loans that are outstanding on December 23,

1985.''

1985 - Subsec. (a). Pub. L. 99-198, Sec. 1301(a), 1302(a)(1),

designated existing provisions as subsec. (a) and substituted -

(1) '', partnerships, and joint operations'' for ''and

partnerships'' wherever appearing after ''corporations'';

(2) '', partnerships, and joint operations'' for '', and

partnerships'' wherever appearing after ''corporations''; and

(3) ''individuals'' for ''members, stockholders, or partners,

as applicable,'' wherever appearing.

Pub. L. 99-198, Sec. 1303, in cl. (3) parenthetical, inserted

provision treating blood or marriage related owner-operators of the

entire farm interest as separate interest holders of not larger

than family farms though collective ownership constitutes a larger

than a family farm.

Subsec. (b). Pub. L. 99-198, Sec. 1302(a)(2), added subsec. (b).

1981 - Pub. L. 97-98 substituted ''corporations and partnerships,

the family farm'' for ''cooperatives, corporations, and

partnerships, the family farm'', and inserted ''in the case of

cooperatives, corporations, and partnerships'' at end.

1978 - Pub. L. 95-334 substituted provisions setting forth

eligibility criteria for loans to farmers and ranchers in the

United States, and to farm cooperatives and private domestic

corporations and partnerships controlled by farmers and ranchers

and engaged primarily and directly in farming or ranching in the

United States, for provisions setting forth eligibility criteria

for loans to farmers and ranchers in the United States, Puerto

Rico, and the Virgin Islands.

1970 - Pub. L. 91-620 provided that with respect to veterans as

defined in section 1983(e) of this title, a farm background shall

not be required as a condition precedent to obtaining any loan.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 663 of title VI of Pub. L. 104-127 provided that:

''(a) In General. - Except as provided in subsection (b), the

amendments made by this title (enacting sections 2008g to 2008i of

this title, amending this section and sections 1631, 1923, 1924,

1927, 1928, 1929, 1929a, 1932, 1934, 1941, 1942, 1946, 1949, 1961

to 1964, 1981, 1981d, 1983, 1983a, 1985, 1991, 1992, 1994, 1997,

1999, 2000, 2001, 2002, and 2003 of this title, repealing sections

1936, 1945, 1947, 1948, and 1968 of this title, and repealing

provisions set out as a note under section 1999 of this title)

shall become effective on the date of enactment of this Act (Apr.

4, 1996).

''(b) Delayed Effective Dates. - The amendments made by sections

601, 606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1),

648(a), and 649 (enacting sections 2008g and 2008i of this title

and amending this section and sections 1929, 1941, 1942, 1962,

1963, 1964, 1981d, 1991, 1997, and 2001 of this title) shall become

effective 90 days after the date of enactment of this Act (Apr. 4,

1996).

''(c) Transition Provision. - The amendments made by sections 638

and 644 (amending sections 1985 and 2000 of this title) shall not

apply with respect to a complete application to acquire inventory

property submitted prior to the date of enactment of this Act (Apr.

4, 1996).

''(d) Regulations. - Notwithstanding any other provision of law,

regulations to implement the amendments made by this title shall be

published as interim final rules with request for comments and may

be made effective immediately on publication.''

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of this title.

EVALUATIONS OF DIRECT AND GUARANTEED LOAN PROGRAMS

Pub. L. 107-171, title V, Sec. 5301, May 13, 2002, 116 Stat. 344,

provided that:

''(a) Studies. - The Secretary of Agriculture shall conduct 2

studies of the direct and guaranteed loan progams (sic) under

sections 302 and 311 of the Consolidated Farm and Rural Development

Act (7 U.S.C. 1922 and 1941), 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 (May 13, 2002).

''(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.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1925, 1934, 1983, 1994,

2006a of this title.

-CITE-

7 USC Sec. 1923 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

SUBCHAPTER I - REAL ESTATE LOANS

-HEAD-

Sec. 1923. Purposes of loans

-STATUTE-

(a) Allowed purposes

(1) Direct loans

A farmer or rancher may use a direct loan made under this

subchapter only for -

(A) acquiring or enlarging a farm or ranch;

(B) making capital improvements to a farm or ranch;

enlarging, or improving a farm or ranch;

(D) paying for activities to promote soil and water

conservation and protection described in section 1924 of this

title on a farm or ranch; or

(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

1994(b) of this title were not available at the time at which

the application was approved.

(2) Guaranteed loans

A farmer or rancher may use a loan guaranteed under this

subchapter only for -

(A) acquiring or enlarging a farm or ranch;

(B) making capital improvements to a farm or ranch;

enlarging, or improving a farm or ranch;

(D) paying for activities to promote soil and water

conservation and protection described in section 1924 of this

title on a farm or ranch; or

(E) refinancing indebtedness.

(b) Preferences

In making or guaranteeing a loan under this subchapter for

purchase of a farm or ranch, the Secretary shall give preference to

a person who -

(1) has a dependent family;

(2) to the extent practicable, is able to make an initial down

payment on the farm or ranch; or

(3) is an owner of livestock or farm or ranch equipment that is

necessary to successfully carry out farming or ranching

operations.

(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 subchapter unless the farmer or rancher has,

or agrees to obtain, hazard insurance on any real property to be

acquired or improved with the loan.

(2) Determination

Not later than 180 days after April 4, 1996, the Secretary

shall determine the appropriate level of insurance to be required

under paragraph (1).

-SOURCE-

(Pub. L. 87-128, title III, Sec. 303, Aug. 8, 1961, 75 Stat. 307;

Pub. L. 87-703, title IV, Sec. 401(1), Sept. 27, 1962, 76 Stat.

631; Pub. L. 90-488, Sec. 1, Aug. 15, 1968, 82 Stat. 770; Pub. L.

95-113, title XIV, Sec. 1448(a), Sept. 29, 1977, 91 Stat. 1011;

Pub. L. 96-438, Sec. 1(1), Oct. 13, 1980, 94 Stat. 1871; Pub. L.

97-98, title XVI, Sec. 1602, Dec. 22, 1981, 95 Stat. 1346; Pub. L.

104-127, title VI, Sec. 602(a), Apr. 4, 1996, 110 Stat. 1085; Pub.

L. 107-171, title V, Sec. 5002, May 13, 2002, 116 Stat. 341.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(1)(E). Pub. L. 107-171 added subpar. (E).

1996 - Pub. L. 104-127 amended section generally, substituting

present provisions for provisions outlining preferences for loans

made or insured under this subchapter and defining terms

''improving farms'' and ''qualified non-fossil energy system''.

1981 - Subsec. (a). Pub. L. 97-98 substituted ''who have

dependent families'' for ''who are married or have dependent

families''.

1980 - Subsec. (b)(1). Pub. L. 96-438 substituted ''the

acquisition, installation, and modification'' for ''the acquisition

and installation'' and struck out ''in any residential structure''

after ''energy system''.

1977 - Pub. L. 95-113 designated existing provisions as subsec.

(a) and added subsec. (b).

1968 - Pub. L. 90-488 designated existing provisions as cls. (1),

(2), (4), (5), and added cl. (3).

1962 - Pub. L. 87-703 authorized loans to be made or insured for

recreational uses and facilities.

EFFECTIVE DATE OF 1996 AMENDMENT

Section 602(b) of Pub. L. 104-127 provided that: ''Section

303(c)(1) of the Consolidated Farm and Rural Development Act (7

U.S.C. 1923(c)(1)) shall not apply until the Secretary of

Agriculture makes the determination required by section 303(c)(2)

of the Act.'' (The Secretary's determination relating to hazard

insurance under this provision was contained in interim rules

published Mar. 3, 1997, and effective Mar. 24, 1997, see 62 F.R.

9351.)

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of this title.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section

1901 of Pub. L. 95-113, set out as a note under section 1307 of

this title.

-TRANS-

TRANSFER OF FUNCTIONS

Powers, duties, and assets of agencies, offices, and other

entities within Department of Agriculture relating to rural

development functions transferred to Rural Development

Administration by section 2302(b) of Pub. L. 101-624.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1925, 1934, 1991, 2008f

of this title.

-CITE-

7 USC Sec. 1924 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

SUBCHAPTER I - REAL ESTATE LOANS

-HEAD-

Sec. 1924. Soil and water conservation and protection

-STATUTE-

(a) In general

Loans may also be made or insured under this subchapter for soil

and water conservation and protection. Such loans may be made to

farm owners or tenants who are eligible borrowers under this

subchapter for -

(1) the installation of conservation structures, including

terraces, sod waterways, permanently vegetated stream borders and

filter strips, windbreaks (tree or grass), shelterbelts, and

living snow fences;

(2) the establishment of forest cover for sustained yield

timber management, erosion control, or shelterbelt purposes;

(3) the establishment or improvement of permanent pasture;

(4) the conversion to and maintenance of sustainable

agricultural production systems, as described by Department

technical guides and handbooks;

(5) the payment of costs of complying with section 3812 of

title 16; and

(6) other purposes consistent with plans for soil and water

conservation, integrated farm management, water quality

protection and enhancement, and wildlife habitat improvement.

(b) Priority

In making or guaranteeing loans under this subsection, (FOOTNOTE

1) the Secretary shall give priority to producers who use such

loans to build conservation structures or establish conservation

practices to comply with section 3812 of title 16.

(FOOTNOTE 1) So in original. Probably should be ''this

section,''.

The Secretary shall not make or insure a loan under this section

that exceeds the lesser of -

(1) the value of the farm or other security for such loan; or

(2) $50,000.

-SOURCE-

(Pub. L. 87-128, title III, Sec. 304, Aug. 8, 1961, 75 Stat. 308;

Pub. L. 90-488, Sec. 2, Aug. 15, 1968, 82 Stat. 770; Pub. L.

92-419, title I, Sec. 102, Aug. 30, 1972, 86 Stat. 657; Pub. L.

95-334, title I, Sec. 102, Aug. 4, 1978, 92 Stat. 421; Pub. L.

101-624, title XVIII, Sec. 1802(a), Nov. 28, 1990, 104 Stat. 3817;

Pub. L. 102-237, title V, Sec. 501(a), Dec. 13, 1991, 105 Stat.

1865; Pub. L. 104-127, title VI, Sec. 603, Apr. 4, 1996, 110 Stat.

1085.)

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-127, Sec. 603(2), inserted section catchline.

Subsec. (a). Pub. L. 104-127, Sec. 603(2), (5), redesignated

subsec. (a)(1) as (a), inserted heading, and redesignated subpars.

(A) to (F) as pars. (1) to (6), respectively. Former pars. (2) and

(3) redesignated subsecs. (b) and (c), respectively.

Subsec. (b). Pub. L. 104-127, Sec. 603(1), (3), redesignated

subsec. (a)(2) as (b), inserted heading, substituted ''guaranteeing

loans'' for ''insuring loans'', and struck out former subsec. (b)

which read as follows: ''Loans may also be made or insured under

this subchapter to residents of rural areas without regard to the

requirements of clauses (2) and (3) of section 1922 of this title

to acquire or establish in rural areas small business enterprises

to provide such residents with essential income.''

Subsec. (c). Pub. L. 104-127, Sec. 603(1), (4), (6), redesignated

subsec. (a)(3) as (c), inserted heading, redesignated subpars. (A)

and (B) as pars. (1) and (2), respectively, and struck out former

subsec. (c) which read as follows: ''Loans may also be made or

insured under this subchapter to any farm owners or tenants without

regard to the requirements of clauses (1), (2), and (3) of section

1922 of this title for the purposes of meeting Federal, State, or

local requirements for agricultural, animal, or poultry waste

pollution abatement and control facilities, including the

construction, modification, or relocation of farm or other

structures necessary to comply with such pollution abatement

requirements.''

1991 - Subsecs. (a), (d). Pub. L. 102-237 redesignated subsec.

(d) as (a) and moved it to appear before subsec. (b) and struck out

former subsec. (a) which read as follows: ''Loans may also be made

or insured under this subchapter to any farmowners or tenants

without regard to the requirements of section 1922(1), (2), and (3)

of this title for the purposes only of land and water development,

use and conservation, not including recreational uses and

facilities, and without regard to the requirements of section

1922(2) and (3) of this title, to farmowners or tenants to finance

outdoor recreational enterprises or to convert to recreational uses

their farming or ranching operations, including those heretofore

financed under this chapter.''

1990 - Subsec. (d). Pub. L. 101-624 added subsec. (d).

1978 - Subsec. (a). Pub. L. 95-334, Sec. 102(1), struck out

''individual'' after ''title, to''.

Subsec. (c). Pub. L. 95-334, Sec. 102(2), added subsec. (c).

1972 - Pub. L. 92-419 designated existing provisions as subsec.

(a) and struck out item (a) and (b) designations appearing before

''to any farmowner'' and ''without regard to'', respectively, and

added subsec. (b).

1968 - Pub. L. 90-488 designated existing provisions as cl. (a),

excluded recreational uses and facilities, and added cl. (b).

EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by Pub. L. 102-237 effective as if included in the

provision of the Food, Agriculture, Conservation, and Trade Act of

1990, Pub. L. 101-624, to which the amendment relates, see section

1101(b)(3) of Pub. L. 102-237, set out as a note under section 1421

of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Powers, duties, and assets of agencies, offices, and other

entities within Department of Agriculture relating to rural

development functions transferred to Rural Development

Administration by section 2302(b) of Pub. L. 101-624.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 917, 1923, 1925, 1934,

1991, 6613 of this title.

-CITE-

7 USC Sec. 1925 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

SUBCHAPTER I - REAL ESTATE LOANS

-HEAD-

Sec. 1925. Limitations on amount of farm ownership loans

-STATUTE-

(a) In general

The Secretary shall make or insure no loan under sections 1922,

1923, 1924, 1934, and 1935 of this title that would cause the

unpaid indebtedness under such sections of any one borrower to

exceed the smaller of (1) the value of the farm or other security,

or (2) in the case of a loan other than a loan guaranteed by the

Secretary, $200,000, or, in the case of a loan guaranteed by the

Secretary, $700,000 (increased, beginning with fiscal year 2000, by

the inflation percentage applicable to the fiscal year in which the

loan is guaranteed and reduced by the amount of any unpaid

indebtedness of the borrower on loans under subchapter II of this

chapter that are guaranteed by the Secretary).

(b) Determination of value

In determining the value of the farm, the Secretary shall

consider appraisals made by competent appraisers under rules

established by the Secretary.

For purposes of this section, the inflation percentage applicable

to a fiscal year is the percentage (if any) by which -

(1) the average of the Prices Paid By Farmers Index (as

compiled by the National Agricultural Statistics Service of the

Department of Agriculture) for the 12-month period ending on

August 31 of the immediately preceding fiscal year; exceeds

(2) the average of such index (as so defined) for the 12-month

period ending on August 31, 1996.

-SOURCE-

(Pub. L. 87-128, title III, Sec. 305, Aug. 8, 1961, 75 Stat. 308;

Pub. L. 91-620, Sec. 1, Dec. 31, 1970, 84 Stat. 1862; Pub. L.

92-419, title I, Sec. 103, Aug. 30, 1972, 86 Stat. 658; Pub. L.

91-524, title VIII, Sec. 807, as added Pub. L. 93-86, Sec.

1(27)(B), Aug. 10, 1973, 87 Stat. 237; Pub. L. 95-334, title I,

Sec. 103, Aug. 4, 1978, 92 Stat. 421; Pub. L. 102-554, Sec. 3, Oct.

28, 1992, 106 Stat. 4142; Pub. L. 105-277, div. A, Sec. 101(a)

(title VIII, Sec. 806(a)), Oct. 21, 1998, 112 Stat. 2681, 2681-39.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-277 inserted section catchline, designated

first sentence as subsec. (a), inserted heading, and substituted

''$700,000 (increased, beginning with fiscal year 2000, by the

inflation percentage applicable to the fiscal year in which the

loan is guaranteed and reduced by the amount of any unpaid

indebtedness of the borrower on loans under subchapter II of this

chapter that are guaranteed by the Secretary)'' for ''$300,000'',

designated second sentence as subsec. (b) and inserted heading, and

added subsec. (c).

1992 - Pub. L. 102-554 inserted reference to section 1935 of this

title.

1978 - Pub. L. 95-334 substituted provisions setting forth

requirements for loans under sections 1922, 1923, 1924, and 1934 of

this title for provisions setting forth requirements for loans

under sections 1922, 1923, and 1924 of this title.

1973 - Pub. L. 91-524, Sec. 807, as added by Pub. L. 93-86,

substituted ''$225,000'' for ''$100,000'' in cl. (a), added cl.

(b), and redesignated former cl. (b) as (c).

1972 - Pub. L. 92-419 struck out ''normal'' before ''value'' in

first and second sentences and before ''market value'' in last

sentence.

1970 - Pub. L. 91-620 substituted ''$100,000'' for ''$60,000''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1943 of this title.

-CITE-

7 USC Sec. 1926 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 50 - AGRICULTURAL CREDIT

SUBCHAPTER I - REAL ESTATE LOANS

-HEAD-

Sec. 1926. Water and waste facility loans and grants

-STATUTE-

(a) In general

(1) The Secretary is also authorized to make or insure loans to

associations, including corporations not operated for profit,

Indian tribes on Federal and State reservations and other federally

recognized Indian tribes, and public and quasi-public agencies to

provide for the application or establishment of soil conservation

practices, shifts in land use, the conservation, development, use,

and control of water, and the installation or improvement of

drainage or waste disposal facilities, recreational developments,

and essential community facilities including necessary related

equipment, all primarily serving farmers, ranchers, farm tenants,

farm laborers, rural businesses, and other rural residents, and to

furnish financial assistance or other aid in planning projects for

such purposes. The Secretary may also make or insure loans to

communities that have been designated as rural empowerment zones or

rural enterprise communities pursuant to part I of subchapter U of

chapter 1 of title 26, or as rural enterprise communities pursuant

to section 766 of the Agriculture, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations Act, 1999

(Public Law 105-277; 112 Stat. 2681, 2681-37), to provide for the

installation or improvement of essential community facilities

including necessary related equipment, and to furnish financial

assistance or other aid in planning projects for such purposes.

The Secretary may also make loans to any borrower to whom a loan

has been made under the Rural Electrification Act of 1936 (7 U.S.C.

901 et seq.), for the conservation, development, use, and control

of water, and the installation of drainage or waste disposal

facilities, primarily serving farmers, ranchers, farm tenants, farm

laborers, rural businesses, and other rural residents. When any

loan made for a purpose specified in this paragraph is sold out of

the Agricultural Credit Insurance Fund as an insured loan, the

interest or other income thereon paid to an insured holder shall be

included in gross income for purposes of chapter 1 of title 26.

With respect to loans of less than $500,000 made or insured under

this paragraph that are evidenced by notes and mortgages, as

distinguished from bond issues, borrowers shall not be required to

appoint bond counsel to review the legal validity of the loan

whenever the Secretary has available legal counsel to perform such

review.

(2) Water, waste disposal, and wastewater facility grants. -

(A) Authority. -

(i) In general. - The Secretary is authorized to make grants

to such associations to finance specific projects for works for

the development, storage, treatment, purification, or

distribution of water or the collection, treatment, or disposal

of waste in rural areas.

(ii) Amount. - The amount of any grant made under the

authority of this subparagraph shall not exceed 75 per centum

of the development cost of the project to serve the area which

the association determines can be feasibly served by the

facility and to adequately serve the reasonably foreseeable

growth needs of the area.

(iii) Grant rate. - The Secretary shall fix the grant rate

for each project in conformity with regulations issued by the

Secretary that shall provide for a graduated scale of grant

rates establishing higher rates for projects in communities

that have lower community population and income levels.

(B) Revolving funds for financing water and wastewater

projects. -

(i) In general. - The Secretary may make grants to qualified

private, nonprofit entities to capitalize revolving funds for

the purpose of providing financing to eligible entities for -

(I) predevelopment costs associated with proposed water and

wastewater projects or with existing water and wastewater

systems; and

(II) short-term costs incurred for replacement equipment,

small-scale extension services, or other small capital

projects that are not part of the regular operations and

maintenance activities of existing water and wastewater

systems.

(ii) Eligible entities. - To be eligible to obtain financing

from a revolving fund under clause (i), an eligible entity must

be eligible to obtain a loan, loan guarantee, or grant under

paragraph (1) or this paragraph.

(iii) Maximum amount of financing. - The amount of financing

made to an eligible entity under this subparagraph shall not

exceed -

(I) $100,000 for costs described in clause (i)(I); and

(II) $100,000 for costs described in clause (i)(II).

(iv) Term. - The term of financing provided to an eligible

entity under this subparagraph shall not exceed 10 years.

(v) Administration. - The Secretary shall limit the amount of

grant funds that may be used by a grant recipient for

administrative costs incurred under this subparagraph.

(vi) Annual report. - A nonprofit entity receiving a grant

under this subparagraph shall submit to the Secretary an annual

report that describes the number and size of communities served

and the type of financing provided.

(vii) Authorization of appropriations. - There are authorized

to be appropriated to carry out this subparagraph $30,000,000

for each of fiscal years 2002 through 2007.

(3) No grant shall be made under paragraph (2) of this subsection

in connection with any project unless the Secretary determines that

the project (i) will serve a rural area which, if such project is

carried out, is not likely to decline in population below that for

which the project was designed, (ii) is designed and constructed so

that adequate capacity will or can be made available to serve the

present population of the area to the extent feasible and to serve

the reasonably foreseeable growth needs of the area, and (iii) is

necessary for an orderly community development consistent with a

comprehensive community water, waste disposal, or other development

plan of the rural area.

(4)(A) The term ''development cost'' means the cost of

construction of a facility and the land, easements, and

rights-of-way, and water rights necessary to the construction and

operation of the facility.

(B) The term ''project'' shall include facilities providing

central service or facilities serving individual properties, or

both.

(5) Application requirements. - Not earlier than 60 days before a

preliminary application is filed for a loan under paragraph (1) or

a grant under paragraph (2) for a water or waste disposal purpose,

a notice of the intent of the applicant to apply for the loan or

grant shall be published in a general circulation newspaper. The

selection of engineers for a project design shall be done by a

request for proposals by the applicant.

(6) The Secretary may make grants aggregating not to exceed

$30,000,000 in any fiscal year to public bodies or such other

agencies as the Secretary may determine having authority to prepare

comprehensive plans for the development of water or waste disposal

systems in rural areas which do not have funds available for

immediate undertaking of the preparation of such plan.

(7) Repealed. Pub. L. 107-171, title VI, Sec. 6020(b)(1), May 13,

2002, 116 Stat. 363.

(8) In each instance where the Secretary receives two or more

applications for financial assistance for projects that would serve

substantially the same group of residents within a single rural

area, and one such application is submitted by a city, town, county

or other unit of general local government, he shall, in the absence

of substantial reasons to the contrary, provide such assistance to

such city, town, county or other unit of general local government.

(9) Conformity with state drinking water standards. - No Federal

funds shall be made available under this section for a water system

unless the Secretary determines that the water system will make

significant progress toward meeting the standards established under

title XIV of the Public Health Service Act (commonly known as the

''Safe Drinking Water Act'') (42 U.S.C. 300f et seq.).

(10) Conformity with federal and state water pollution control

standards. - No Federal funds shall be made available under this

section for a water treatment discharge or waste disposal system

unless the Secretary determines that the effluent from the system

conforms with applicable Federal and State water pollution control

standards.

(11) Rural business opportunity grants. -

(A) In general. - The Secretary may make grants, not to exceed

$1,500,000 annually, to public bodies, private nonprofit

community development corporations or entities, or such other

agencies as the Secretary may select to enable the recipients -

(i) to identify and analyze business opportunities, including

opportunities in export markets, that will use local rural

economic and human resources;

(ii) to identify, train, and provide technical assistance to

existing or prospective rural entrepreneurs and managers;

(iii) to establish business support centers and otherwise

assist in the creation of new rural businesses, the development

of methods of financing local businesses, and the enhancement

of the capacity of local individuals and entities to engage in

sound economic activities;

(iv) to conduct regional, community, and local economic

development planning and coordination, and leadership

development; and

(v) to establish centers for training, technology, and trade

that will provide training to rural businesses in the

utilization of interactive communications technologies to

develop international trade opportunities and markets.

(B) Criteria. - In awarding the grants, the Secretary shall

consider, among other criteria to be established by the Secretary

(i) the extent to which the applicant provides development

services in the rural service area of the applicant; and

(ii) the capability of the applicant to accomplish the

activities described in the relevant clauses of subparagraph

(A).

extent practicable, that assistance provided under this paragraph

is coordinated with and delivered in cooperation with similar

services or assistance provided to rural residents by the

Cooperative State Research, Education, and Extension Service or

other Federal agencies.

(D) Authorization of appropriations. - There are authorized to

be appropriated to carry out this paragraph $15,000,000 for each

of fiscal years 1996 through 2007.

(12)(A) The Secretary shall, in cooperation with institutions

eligible to receive funds under the Act of July 2, 1862 (12 Stat.

503-505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of

August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and

328), including the Tuskegee Institute and State, substate, and

regional planning bodies, establish a system for the dissemination

of information and technical assistance on federally sponsored or

funded programs. The system shall be for the use of institutions

eligible to receive funds under the Act of July 2, 1862 (12 Stat.

503-505, as amended; 7 U.S.C. 301-305, 307, and 308), or the Act of

August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and

328), including the Tuskegee Institute and State, substate, and

regional planning bodies, and other persons concerned with rural

development.

(B) The informational system developed under this paragraph shall

contain all pertinent information, including, but not limited to,

information contained in the Federal Procurement Data System,

Federal Assistance Program Retrieval System, Catalogue of Federal

Domestic Assistance, Geographic Distribution of Federal Funds,

United States Census, and Code of Federal Regulations.

and agencies comprehensive, relevant, and applicable information on

programs under their jurisdiction that are operated in rural areas.

(D) Of the sums authorized to be appropriated to carry out the

provisions of this chapter, not more than $1,000,000 per year may

be expended to carry out the provisions of this paragraph.

(13) In the making of loans and grants for community waste

disposal and water facilities under paragraphs (1) and (2) of this

subsection the Secretary shall accord highest priority to the

application of any municipality or other public agency (including

an Indian tribe on a Federal or State reservation or other

federally recognized Indian tribal group) in a rural community

having a population not in excess of five thousand five hundred and

which, in the case of water facility loans, has a community water

supply system, where the Secretary determines that due to

unanticipated diminution or deterioration of its water supply,

immediate action is needed, or in the case of waste disposal, has a

community waste disposal system, where the Secretary determines

that due to unanticipated occurrences the system is not adequate to

the needs of the community. The Secretary shall utilize the Soil

Conservation Service in rendering technical assistance to

applicants under this paragraph to the extent he deems appropriate.

(14) Rural water and wastewater technical assistance and training

programs. -

(A) In general. - The Secretary may make grants to private

nonprofit organizations for the purpose of enabling them to

provide to associations described in paragraph (1) of this

subsection technical assistance and training to -

(i) identify, and evaluate alternative solutions to, problems

relating to the obtaining, storage, treatment, purification, or

distribution of water or the collection, treatment, or disposal

of waste in rural areas;

(ii) prepare applications to receive financial assistance for

any purpose specified in paragraph (2) of this subsection from

any public or private source; and

(iii) improve the operation and maintenance practices at any

existing works for the storage, treatment, purification, or

distribution of water or the collection, treatment, or disposal

of waste in rural areas.

(B) Selection priority. - In selecting recipients of grants to

be made under subparagraph (A), the Secretary shall give priority

to private nonprofit organizations that have experience in

providing the technical assistance and training described in

subparagraph (A) to associations serving rural areas in which

residents have low income and in which water supply systems or

waste facilities are unhealthful.

funds appropriated to carry out paragraph (2) of this subsection

for any fiscal year shall be reserved for grants under

subparagraph (A) unless the applications, qualifying for grants,

received by the Secretary from eligible nonprofit organizations

for the fiscal year total less than 1 per centum of those funds.

(15) In the case of water and waste disposal facility projects

serving more than one separate rural community, the Secretary shall

use the median population level and the community income level of

all the separate communities to be served in applying the standards

specified in paragraph (2) of this subsection and section

1927(a)(3)(A) of this title.

(16) Grants under paragraph (2) of this subsection may be used to

pay the local share requirements of another Federal grant-in-aid

program to the extent permitted under the law providing for such

grant-in-aid program.

(17)(A) In the approval and administration of a loan made under

paragraph (1) for a water or waste disposal facility, the Secretary

shall consider fully any recommendation made by the loan applicant

or borrower concerning the technical design and choice of materials

to be used for such facility.

(B) If the Secretary determines that a design or materials, other

than those that were recommended, should be used in the water or

waste disposal facility, the Secretary shall provide such applicant

or borrower with a comprehensive justification for such

determination.

(18) In making or insuring loans or making grants under this

subsection, the Secretary may not condition approval of such loans

or grants upon any requirement, condition or certification other

than those specified under this chapter.

(19) Community facilities grant program. -

(A) In general. - The Secretary may make grants, in a total

amount not to exceed $10,000,000 for any fiscal year, to

associations, units of general local government, nonprofit

corporations, Indian tribes (as such term is defined under

section 450b(e) of title 25), (FOOTNOTE 1) and federally

recognized Indian tribes to provide the Federal share of the cost

of developing specific essential community facilities in rural

areas.

(FOOTNOTE 1) So in original.

(B) Federal share. -

(i) In general. - Except as provided in clauses (ii) and

(iii), the Secretary shall, by regulation, establish the amount

of the Federal share of the cost of the facility under this

paragraph.

(ii) Maximum amount. - The amount of a grant provided under

this paragraph for a facility shall not exceed 75 percent of

the cost of developing the facility.

(iii) Graduated scale. - The Secretary shall provide for a

graduated scale for the amount of the Federal share provided

under this paragraph, with higher Federal shares for facilities

in communities that have lower community population and income

levels, as determined by the Secretary.

(i) In general. - For each fiscal year, not less than 10

percent of the funds made available to carry out this paragraph

shall be reserved for grants to pay the Federal share of the

cost of developing and constructing day care facilities for

children in rural areas.

(ii) Release. - Funds reserved under clause (i) for a fiscal

year shall be reserved only until April 1 of the fiscal year.

(20) Community facilities grant program for rural communities

with extreme unemployment and severe economic depression. -

(A) Definition of not employed rate. - In this paragraph, the

term ''not employed rate'', with respect to a community, means

the percentage of individuals over the age of 18 who reside

within the community and who are ready, willing, and able to be

employed but are unable to find employment, as determined by the

department of labor of the State in which the community is

located.

(B) Grant authority. - The Secretary may make grants to

associations, units of general local government, nonprofit

corporations, and Indian tribes (as defined in section 450b of

title 25) in a State to provide the Federal share of the cost of

developing specific essential community facilities in rural

communities with respect to which the not employed rate is

greater than the lesser of -

(i) 500 percent of the average national unemployment rate on

November 9, 2000, as determined by the Bureau of Labor

Statistics; or

(ii) 200 percent of the average national unemployment rate

during the Great Depression, as determined by the Bureau of

Labor Statistics.

made under this paragraph.

(D) Authorization of appropriations. - There are authorized to

be appropriated to carry out this paragraph $50,000,000 for

fiscal year 2001 and such sums as are necessary for each

subsequent fiscal year, of which not more than 5 percent of the

amount made available for a fiscal year shall be available for

community planning and implementation.

(E) Rural broadband. - Notwithstanding subparagraph (C), the

Secretary may make grants to state (FOOTNOTE 2) agencies for use

by regulatory commissions in states (FOOTNOTE 2) with rural

communities without local dial-up Internet access or broadband

service to establish a competitively, technologically neutral

grant program to telecommunications carriers or cable operators

that establish common carrier facilities and services which, in

the commission's determination, will result in the long-term

availability to such communities of affordable broadband services

which are used for the provision of high speed Internet access.

(FOOTNOTE 2) So in original. Probably should be capitalized.

(21) Community facilities grant program for rural communities

with high levels of out-migration or loss of population. -

(A) Grant authority. - The Secretary may make grants to

associations, units of general local government, nonprofit

corporations, and Indian tribes (as defined in section 450b of

title 25) in a State to provide the Federal share of the cost of

developing specific essential community facilities in any

geographic area -

(i) that is represented by -

(I) any political subdivision of a State;

(II) an Indian tribe on a Federal or State reservation; or

(III) other federally recognized Indian tribal group;

(ii) that is located in a rural area (as defined in section

2009 (FOOTNOTE 3) of this title);

(FOOTNOTE 3) See References in Text note below.

(iii) with respect to which, during the most recent 5-year

period, the net out-migration of inhabitants, or other

population loss, from the area equals or exceeds 5 percent of

the population of the area; and

(iv) that has a median household income that is less than the

nonmetropolitan median household income of the United States.

(B) Federal share. - Paragraph (19)(B) shall apply to a grant

made under this paragraph.

be appropriated to carry out this paragraph $50,000,000 for

fiscal year 2001 and such sums as are necessary for each

subsequent fiscal year, of which not more than 5 percent of the

amount made available for a fiscal year shall be available for

community planning and implementation.

(22) Rural water and wastewater circuit rider program. -

(A) In general. - The Secretary shall establish a national

rural water and wastewater circuit rider program that is based on

the rural water circuit rider program of the National Rural Water

Association that (as of May 13, 2002) receives funding from the

Secretary, acting through the Rural Utilities Service.

(B) Relationship to existing program. - The program established

under subparagraph (A) shall not affect the authority of the

Secretary to carry out the circuit rider program for which funds

are made available under the heading ''rural community

advancement program'' in title III of the Agriculture, Rural

Development, Food and Drug Administration, and Related Agencies

Appropriations Act, 2002 (115 Stat. 719).

be appropriated to carry out this paragraph $15,000,000 for

fiscal year 2003 and each fiscal year thereafter.

(23) Multijurisdictional regional planning organizations. -

(A) Grants. - The Secretary shall provide grants to

multijurisdictional regional planning and development

organizations to pay the Federal share of the cost of providing

assistance to local governments to improve the infrastructure,

services, and business development capabilities of local

governments and local economic development organizations.

(B) Priority. - In determining which organizations will receive

a grant under this paragraph, the Secretary shall give priority

to an organization that -

(i) serves a rural area that, during the most recent 5-year

period -

(I) had a net out-migration of inhabitants, or other

population loss, from the rural area that equals or exceeds 5

percent of the population of the rural area; or

(II) had a median household income that is less than the

nonmetropolitan median household income of the applicable

State; and

(ii) has a history of providing substantive assistance to

local governments and economic development organizations.

shall be for not more than 75 percent of the cost of providing

assistance described in subparagraph (A).

(D) Maximum amount of grants. - The amount of a grant provided

to an organization under this paragraph shall not exceed

$100,000.

(E) Authorization of appropriations. - There is authorized to

be appropriated to carry out this paragraph $30,000,000 for each

of fiscal years 2003 through 2007.

(24) Loan guarantees for water, wastewater, and essential

community facilities loans. -

(A) In general. - The Secretary may guarantee a loan made to

finance a community facility or water or waste facility project

in a rural area, including a loan financed by the net proceeds of

a bond described in section 142(a) of title 26.

(B) Requirements. - To be eligible for a loan guarantee under

subparagraph (A), an individual or entity offering to purchase

the loan shall demonstrate to the Secretary that the person has -

(i) the capabilities and resources necessary to service the

loan in a manner that ensures the continued performance of the

loan, as determined by the Secretary; and

(ii) the ability to generate capital to provide borrowers of

the loan with the additional credit necessary to properly

service the loan.

(25) Tribal college and university essential community

facilities. -

(A) In general. - The Secretary may make grants to tribal

colleges and universities (as defined in section 1059c of title

20) to provide the Federal share of the cost of developing

specific tribal college or university essential community

facilities in rural areas.

(B) Federal share. -

(i) In general. - Except as provided in clauses (ii) and

(iii), the Secretary shall, by regulation, establish the

maximum percentage of the cost of the facility that may be

covered by a grant under this paragraph.

(ii) Maximum amount. - The amount of a grant provided under

this paragraph for a facility shall not exceed 75 percent of

the cost of developing the facility.

(iii) Graduated scale. - The Secretary shall provide for a

graduated scale of the percentages of the cost covered by a

grant made under this paragraph that provides higher

percentages for facilities in communities that have lower

community population and income levels, as determined by the

Secretary.

be appropriated to carry out this paragraph $10,000,000 for each

of fiscal years 2003 through 2007.

(b) Curtailment or limitation of service prohibited

The service provided or made available through any such

association shall not be curtailed or limited by inclusion of the

area served by such association within the boundaries of any

municipal corporation or other public body, or by the granting of

any private franchise for similar service within such area during

the term of such loan; nor shall the happening of any such event be

the basis of requiring such association to secure any franchise,

license, or permit as a condition to continuing to serve the area

served by the association at the time of the occurrence of such

event.

1970, 84 Stat. 1759

(d) Carryover of unused authorizations for appropriations

Any amounts appropriated under this section shall remain

available until expended, and any amounts authorized for any fiscal

year under this section but not appropriated may be appropriated

for any succeeding fiscal year.

-SOURCE-

(Pub. L. 87-128, title III, Sec. 306, Aug. 8, 1961, 75 Stat. 308;

Pub. L. 87-703, title IV, Sec. 401(2), Sept. 27, 1962, 76 Stat.

632; Pub. L. 89-240, Sec. 1, Oct. 7, 1965, 79 Stat. 931; Pub. L.

89-769, Sec. 6(b), Nov. 6, 1966, 80 Stat. 1318; Pub. L. 90-488,

Sec. 3-5, Aug. 15, 1968, 82 Stat. 770; Pub. L. 91-524, title VIII,

Sec. 806(a), Nov. 30, 1970, 84 Stat. 1383; Pub. L. 91-606, title

III, Sec. 302(2), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 91-617,

Sec. 1(a), Dec. 31, 1970, 84 Stat. 1855; Pub. L. 92-419, title I,

Sec. 104-112, Aug. 30, 1972, 86 Stat. 658, 659; Pub. L. 91-524,

title VIII, Sec. 816(c), as added Pub. L. 93-86, Sec. 1(27)(B),

Aug. 10, 1973, 87 Stat. 240; Pub. L. 95-334, title I, Sec.

104-107(a), Aug. 4, 1978, 92 Stat. 421, 422; Pub. L. 96-355, Sec.

7, Sept. 24, 1980, 94 Stat. 1174; Pub. L. 96-438, Sec. 2(1), Oct.

13, 1980, 94 Stat. 1871; Pub. L. 97-35, title I, Sec. 121, Aug. 13,

1981, 95 Stat. 368; Pub. L. 99-198, title XIII, Sec. 1304(a), Dec.

23, 1985, 99 Stat. 1519; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100

Stat. 2095; Pub. L. 101-624, title XXIII, Sec. 2316(b), 2321, 2328,

2329, 2341, 2342, 2393, Nov. 28, 1990, 104 Stat. 4008, 4010, 4017,

4026, 4027, 4057; Pub. L. 102-237, title VII, Sec. 701(a),

(h)(1)(A), (B), Dec. 13, 1991, 105 Stat. 1879, 1880; Pub. L.

103-129, Sec. 3, Nov. 1, 1993, 107 Stat. 1366; Pub. L. 103-354,

title II, Sec. 235(b)(5), Oct. 13, 1994, 108 Stat. 3222; Pub. L.

104-127, title VII, Sec. 741(a), 758, 763, Apr. 4, 1996, 110 Stat.

1122, 1132, 1148; Pub. L. 106-387, Sec. 1(a) (title VII, Sec. 773),

Oct. 28, 2000, 114 Stat. 1549, 1549A-45; Pub. L. 106-472, title

III, Sec. 304(a), 305(a), Nov. 9, 2000, 114 Stat. 2070, 2071; Pub.

L. 107-76, title VII, Sec. 762, Nov. 28, 2001, 115 Stat. 743; Pub.

L. 107-171, title VI, Sec. 6001-6007(a), 6008, 6020(b)(1), May 13,

2002, 116 Stat. 352-355, 363.)

-REFTEXT-

REFERENCES IN TEXT

Section 766 of the Agriculture, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations Act, 1999,

referred to in subsec. (a)(1), is Pub. L. 105-277, div. A, Sec.

101(a)(title VII, Sec. 766), Oct. 21, 1998, 112 Stat. 2681,

2681-37, which is not classified to the Code.

The Rural Electrification Act of 1936, referred to in subsec.

(a)(1), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended,

which is classified generally to chapter 31 (Sec. 901 et seq.) of

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

see section 901 of this title and Tables.

The Public Health Service Act, referred to in subsec. (a)(9), is

act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title XIV of

the Act, known as the Safe Drinking Water Act, is classified

principally to subchapter XII (Sec. 300f et seq.) of chapter 6A of

Title 42, The Public Health and Welfare. For complete

classification of these Acts to the Code, see Short Title note and

Short Title of 1974 Amendments note set out under section 201 of

Title 42 and Tables.

Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C.

301-305, 307 and 308), referred to in subsec. (a)(12)(A), is act

July 2, 1862, ch. 130, 12 Stat. 503, as amended, popularly known as

the Morrill Act and also as the First Morrill Act, which is

classified generally to subchapter I (Sec. 301 et seq.) of chapter

13 of this title. For complete classification of this Act to the

Code, see Short Title note set out under section 301 of this title

and Tables.

Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C.

321-326 and 328), referred to in subsec. (a)(12)(A), is act Aug.

30, 1890, ch. 841, 26 Stat. 417, as amended, popularly known as the

Agricultural College Act of 1890 and also as the Second Morrill

Act, which is classified generally to subchapter II (Sec. 321 et

seq.) of chapter 13 of this title. For complete classification of

this Act to the Code, see Short Title note set out under section

321 of this title and Tables.

For definition of ''this chapter'', referred to in subsec.

(a)(12)(D), (18), see note set out under section 1921 of this

title.

Section 2009 of this title, referred to in subsec.

(a)(21)(A)(ii), was subsequently amended, and no longer defines the

term ''rural area''.

The Agriculture, Rural Development, Food and Drug Administration,

and Related Agencies Appropriations Act, 2002, referred to in

subsec. (a)(22)(B), is Pub. L. 107-76, Nov. 28, 2001, 115 Stat.

704. Provisions under the heading ''rural community advancement

program'' in title III of the Act appear at 115 Stat. 719 and are

not classified to the Code.

-MISC2-

AMENDMENTS

2002 - Subsec. (a)(1). Pub. L. 107-171, Sec. 6001, inserted after

first sentence ''The Secretary may also make or insure loans to