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7 USC CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION

PROGRAMS 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

.

-HEAD-

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

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Sec.

5101. Qualifying States.

(a) In general.

(b) Determination by Secretary.

(c) Requirements of State mediation programs.

(d) Definition of mediation services.

5102. Matching grants to States.

(a) Matching grants.

(b) Amount of grant.

(c) Use of grant.

(d) Penalty.

5103. Participation of Federal agencies.

(a) Duties of Secretary of Agriculture.

(b) Duties of Farm Credit Administration.

5104. Regulations.

5105. Report.

5106. Authorization of appropriations.

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CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 6995 of this title.

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7 USC Sec. 5101 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

-HEAD-

Sec. 5101. Qualifying States

-STATUTE-

(a) In general

A State is a qualifying State if the Secretary of Agriculture

(hereinafter in this chapter referred to as the ''Secretary'')

determines that the State has in effect a mediation program that

meets the requirements of subsection (c) of this section.

(b) Determination by Secretary

Within 15 days after the Secretary receives from the Governor of

a State a description of the mediation program of the State and a

statement certifying that the State has met all of the requirements

of subsection (c) of this section, the Secretary shall determine

whether the State is a qualifying State.

(c) Requirements of State mediation programs

(1) Issues covered

(A) In general

To be certified as a qualifying State, the mediation program

of the State must provide mediation services to persons

described in paragraph (2) that are involved in agricultural

loans (regardless of whether the loans are made or guaranteed

by the Secretary or made by a third party).

(B) Other issues

The mediation program of a qualifying State may provide

mediation services to persons described in paragraph (2) that

are involved in one or more of the following issues under the

jurisdiction of the Department of Agriculture:

(i) Wetlands determinations.

(ii) Compliance with farm programs, including conservation

programs.

(iii) Agricultural credit.

(iv) Rural water loan programs.

(v) Grazing on National Forest System land.

(vi) Pesticides.

(vii) Such other issues as the Secretary considers

appropriate.

(2) Persons eligible for mediation

(A) In general

Subject to subparagraph (B), the persons referred to in

paragraph (1) include -

(i) agricultural producers;

(ii) creditors of producers (as applicable); and

(iii) persons directly affected by actions of the

Department of Agriculture.

(B) Voluntary participation

(i) In general

Subject to clause (ii) and section 5103 of this title, a

person may not be compelled to participate in mediation

services provided under this Act.

(ii) State laws

Clause (i) shall not affect a State law requiring mediation

before foreclosure on agricultural land or property.

(3) Certification conditions

The Secretary shall certify a State as a qualifying State with

respect to the issues proposed to be covered by the mediation

program of the State if the mediation program -

(A) provides for mediation services that, if decisions are

reached, result in mediated, mutually agreeable decisions

between the parties to the mediation;

(B) is authorized or administered by an agency of the State

government or by the Governor of the State;

(C) provides for the training of mediators;

(D) provides that the mediation sessions shall be

confidential;

(E) ensures, in the case of agricultural loans, that all

lenders and borrowers of agricultural loans receive adequate

notification of the mediation program; and

(F) ensures, in the case of other issues covered by the

mediation program, that persons directly affected by actions of

the Department of Agriculture receive adequate notification of

the mediation program.

(d) Definition of mediation services

In this section, the term ''mediation services'', with respect to

mediation or a request for mediation, may include all activities

related to -

(1) the intake and scheduling of cases;

(2) the provision of background and selected information

regarding the mediation process;

(3) financial advisory and counseling services (as appropriate)

performed by a person other than a State mediation program

mediator; and

(4) the mediation session.

-SOURCE-

(Pub. L. 100-233, title V, Sec. 501, Jan. 6, 1988, 101 Stat. 1662;

Pub. L. 100-399, title V, Sec. 501, Aug. 17, 1988, 102 Stat. 1005;

Pub. L. 103-354, title II, Sec. 282(a), Oct. 13, 1994, 108 Stat.

3233; Pub. L. 106-472, title III, Sec. 306(a), Nov. 9, 2000, 114

Stat. 2072.)

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REFERENCES IN TEXT

This Act, referred to in subsec. (c)(2)(B)(i), is Pub. L.

100-233, Jan. 6, 1988, 101 Stat. 1568, as amended, known as the

Agricultural Credit Act of 1987. Provisions relating to mediation

services are contained in title V of the Act, which is classified

principally to this chapter. For complete classification of this

Act to the Code, see Tables.

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AMENDMENTS

2000 - Subsec. (c)(1), (2). Pub. L. 106-472, Sec. 306(a)(1),

added pars. (1) and (2) and struck out former pars. (1) and (2),

which required State mediation program to provide services for

producers, their creditors, and other persons involved in

agricultural loans, or involved in agricultural loans and such

issues as wetlands determinations, compliance with farm programs,

agricultural credit, rural water loan programs, grazing on National

Forest System lands, pesticides, or such other issues considered

appropriate.

Subsec. (d). Pub. L. 106-472, Sec. 306(a)(2), added subsec. (d).

1994 - Subsec. (a). Pub. L. 103-354, Sec. 282(a)(1), substituted

''a mediation program'' for ''an agricultural loan mediation

program''.

Subsec. (b). Pub. L. 103-354, Sec. 282(a)(2), struck out

''agricultural loan'' before ''mediation program''.

Subsec. (c). Pub. L. 103-354, Sec. 282(a)(3), added subsec. (c)

and struck out heading and text of former subsec. (c). Text read as

follows: ''Within 15 days after the Secretary receives a

description of a State agricultural loan mediation program, the

Secretary shall certify the State as a qualifying State if the

State program -

''(1) provides for mediation services to be provided to

producers, and their creditors, that, if decisions are reached,

result in mediated, mutually agreeable decisions between parties

under an agricultural loan mediation program;

''(2) is authorized or administered by an agency of the State

government or by the Governor of the State;

''(3) provides for the training of mediators;

''(4) provides that the mediation sessions shall be

confidential; and

''(5) ensures that all lenders and borrowers of agricultural

loans receive adequate notification of the mediation program.''

1988 - Subsec. (b). Pub. L. 100-399 struck out comma after

''Governor of a State''.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-399 effective as if enacted immediately

after enactment of Pub. L. 100-233, which was approved Jan. 6,

1988, see section 1001(a) of Pub. L. 100-399, set out as a note

under section 2002 of Title 12, Banks and Banking.

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5102, 5103 of this title.

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7 USC Sec. 5102 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

-HEAD-

Sec. 5102. Matching grants to States

-STATUTE-

(a) Matching grants

Within 60 days after the Secretary certifies the State as a

qualifying State under section 5101(b) of this title, the Secretary

shall provide financial assistance to the State, in accordance with

subsection (b) of this section, for the operation and

administration of the mediation program.

(b) Amount of grant

(1) In general

Subject to paragraph (2), the Secretary shall pay to a State

under subsection (a) of this section not more than 70 percent of

the cost of the operation and administration of the mediation

program within the State.

(2) Maximum amount

The Secretary shall not pay more than $500,000 per year to a

single State under subsection (a) of this section.

(c) Use of grant

(1) In general

Each State that receives an amount paid under subsection (a) of

this section shall use that amount only for the operation and

administration of the mediation program of the State with respect

to which the amount was paid.

(2) Operation and administration expenses

For purposes of paragraph (1), operation and administration

expenses for which a grant may be used include -

(A) salaries;

(B) reasonable fees and costs of mediators;

(C) office rent and expenses, such as utilities and equipment

rental;

(D) office supplies;

(E) administrative costs, such as workers' compensation,

liability insurance, the employer's share of Social Security,

and necessary travel;

(F) education and training;

(G) security systems necessary to ensure the confidentiality

of mediation sessions and records of mediation sessions;

(H) costs associated with publicity and promotion of the

mediation program;

(I) preparation of the parties for mediation; and

(J) financial advisory and counseling services for parties

requesting mediation.

(d) Penalty

If the Secretary determines that a State has not complied with

subsection (c) of this section, such State shall not be eligible

for additional financial assistance under this chapter.

-SOURCE-

(Pub. L. 100-233, title V, Sec. 502, Jan. 6, 1988, 101 Stat. 1663;

Pub. L. 102-554, Sec. 22, Oct. 28, 1992, 106 Stat. 4161; Pub. L.

103-354, title II, Sec. 282(f)(1)(A), Oct. 13, 1994, 108 Stat.

3235; Pub. L. 106-472, title III, Sec. 306(b), Nov. 9, 2000, 114

Stat. 2072.)

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AMENDMENTS

2000 - Subsec. (c). Pub. L. 106-472 designated existing

provisions as par. (1), inserted heading, and added par. (2).

1994 - Subsecs. (a), (b)(1), (c). Pub. L. 103-354 struck out

''agricultural loan'' before ''mediation program''.

1992 - Subsec. (b)(1). Pub. L. 102-554, Sec. 22(1), substituted

''70'' for ''50''.

Subsec. (c). Pub. L. 102-554, Sec. 22(2), inserted before period

at end ''with respect to which the amount was paid''.

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7 USC Sec. 5103 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

-HEAD-

Sec. 5103. Participation of Federal agencies

-STATUTE-

(a) Duties of Secretary of Agriculture

(1) In general

The Secretary, with respect to each program or agency under the

jurisdiction of the Secretary -

(A) shall prescribe rules requiring each such program or

agency to participate in good faith in any State mediation

program certified under section 5101 of this title;

(B) shall participate in mediation programs certified under

section 5101 of this title; and

(C) shall -

(i) cooperate in good faith with requests for information

or analysis of information made in the course of mediation

under any mediation program certified under section 5101 of

this title; and

(ii) if applicable, present and explore debt restructuring

proposals advanced in the course of such mediation.

(2) Nonbinding on Secretary

The Secretary shall not be bound by any determination made in a

program described in section 5101 of this title if the Secretary

has not agreed to such determination.

(b) Duties of Farm Credit Administration

The Farm Credit Administration shall prescribe rules requiring

the institutions of the Farm Credit System -

(1) to cooperate in good faith with requests for information or

analysis of information made in the course of mediation under any

mediation program described in section 5101 of this title; and

(2) to present and explore debt restructuring proposals

advanced in the course of such mediation.

-SOURCE-

(Pub. L. 100-233, title V, Sec. 503, Jan. 6, 1988, 101 Stat. 1663;

Pub. L. 100-399, title V, Sec. 502, Aug. 17, 1988, 102 Stat. 1005;

Pub. L. 103-354, title II, Sec. 282(b), Oct. 13, 1994, 108 Stat.

3234.)

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AMENDMENTS

1994 - Subsec. (a)(1). Pub. L. 103-354, Sec. 282(b)(2), in

introductory provisions inserted ''or agency'' after ''each

program'' and struck out ''that makes, guarantees, or insures

agricultural loans'' after ''of the Secretary''.

Subsec. (a)(1)(A). Pub. L. 103-354, Sec. 282(b)(1), (3), inserted

''or agency'' after ''such program'', struck out ''agricultural

loan'' after ''any State'', and inserted ''certified under section

5101 of this title'' after ''mediation program''.

Subsec. (a)(1)(B). Pub. L. 103-354, Sec. 282(b)(1), (4), struck

out '', effective beginning on January 6, 1988,'' after ''shall'',

and ''agricultural loan'' after ''participate in'', and inserted

''certified under section 5101 of this title'' after ''mediation

programs''.

Subsec. (a)(1)(C)(i). Pub. L. 103-354, Sec. 282(b)(1), (5)(A),

struck out ''agricultural loan'' before ''mediation program'' and

substituted ''certified under'' for ''described in''.

Subsec. (a)(1)(C)(ii). Pub. L. 103-354, Sec. 282(b)(5)(B),

inserted ''if applicable,'' before ''present''.

Subsec. (b)(1). Pub. L. 103-354, Sec. 282(b)(1), struck out

''agricultural loan'' before ''mediation program''.

1988 - Subsec. (a)(1)(B). Pub. L. 100-399, Sec. 502(a), inserted

''effective beginning'' before ''on''.

Subsec. (a)(2). Pub. L. 100-399, Sec. 502(b), substituted

''section 5101 of this title'' for ''paragraph (1)''.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-399 effective as if enacted immediately

after enactment of Pub. L. 100-233, which was approved Jan. 6,

1988, see section 1001(a) of Pub. L. 100-399, set out as a note

under section 2002 of Title 12, Banks and Banking.

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5101 of this title.

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7 USC Sec. 5104 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

-HEAD-

Sec. 5104. Regulations

-STATUTE-

The Secretary and the Farm Credit Administration shall prescribe

such regulations as may be necessary to carry out this chapter.

The regulations prescribed by the Secretary shall require

qualifying States to adequately train mediators to address all of

the issues covered by the mediation program of the State.

-SOURCE-

(Pub. L. 100-233, title V, Sec. 504, Jan. 6, 1988, 101 Stat. 1664;

Pub. L. 103-354, title II, Sec. 282(c), Oct. 13, 1994, 108 Stat.

3235.)

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AMENDMENTS

1994 - Pub. L. 103-354 in first sentence substituted ''The'' for

''Within 150 days after January 6, 1988, the'' and inserted at end

''The regulations prescribed by the Secretary shall require

qualifying States to adequately train mediators to address all of

the issues covered by the mediation program of the State.''

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7 USC Sec. 5105 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

-HEAD-

Sec. 5105. Report

-STATUTE-

Not later than January 1, 1998, the Secretary of Agriculture

shall report to Congress on -

(1) the effectiveness of the State mediation programs receiving

matching grants under this chapter;

(2) recommendations for improving the delivery of mediation

services to producers; and

(3) the savings to the States as a result of having a mediation

program.

-SOURCE-

(Pub. L. 100-233, title V, Sec. 505, Jan. 6, 1988, 101 Stat. 1664;

Pub. L. 103-354, title II, Sec. 282(d), (f)(1), Oct. 13, 1994, 108

Stat. 3235.)

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AMENDMENTS

1994 - Pub. L. 103-354 in introductory provisions substituted

''1998'' for ''1990'', in par. (1) struck out ''agricultural loan''

before ''mediation programs'', and in par. (3) substituted ''a

mediation'' for ''an agricultural loan mediation''.

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7 USC Sec. 5106 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 82 - STATE AGRICULTURAL LOAN MEDIATION PROGRAMS

-HEAD-

Sec. 5106. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated to carry out this chapter

$7,500,000 for each of the fiscal years 1988 through 2005.

-SOURCE-

(Pub. L. 100-233, title V, Sec. 506, Jan. 6, 1988, 101 Stat. 1664;

Pub. L. 101-624, title XVIII, Sec. 1853, Nov. 28, 1990, 104 Stat.

3837; Pub. L. 103-354, title II, Sec. 282(e), Oct. 13, 1994, 108

Stat. 3235; Pub. L. 106-472, title III, Sec. 306(c), Nov. 9, 2000,

114 Stat. 2073.)

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AMENDMENTS

2000 - Pub. L. 106-472 substituted ''2005'' for ''2000''.

1994 - Pub. L. 103-354 substituted ''2000'' for ''1995''.

1990 - Pub. L. 101-624 substituted ''1995'' for ''1991''.

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