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7 U.S.C. § 1947, 1948 — Liability of borrower
Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination of interest rates**
(1) The Secretary shall make all loans under this subchapter upon the full personal liability of the borrower and upon such security as the Secretary may prescribe. The interest rates on such loans, except for guaranteed loans and loans as provided in paragraphs (2) and (3),11 See References in Text note below. shall be as determined by the Secretary, but not in excess of the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, plus an additional charge not to exceed 1 per centum as determined by the Secretary, which charge shall be deposited in the Rural Development Insurance Fund or the Agricultural Credit Insurance Fund, as appropriate, and adjusted to the nearest one-eighth of 1 per centum. The interest rate on any guaranteed loan made under this subchapter shall be such rate as may be agreed upon by the borrower and lender, but not in excess of a rate as may be determined by the Secretary.
(2) The interest rate on a microloan to a beginning farmer or rancher or veteran farmer or rancher (as defined in section 2279(e) 1 of this title), or any loan (other than a guaranteed loan) to a low income, limited resource borrower under this subchapter shall not be—
(A) greater than the sum of—
(i) an amount that does not exceed one-half of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and
(ii) an amount not exceeding 1 percent per year, as the Secretary determines is appropriate; or
(B) less than 5 percent per year.
**(b) Payment period; consolidation and rescheduling of loans** Loans made under this subchapter shall be payab
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1947, 1948
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Source file: Laws/federal/codes/united-states-code/title-7/section-1947-1948-7-u-s-c-1947-1948-liability-of-borrower--7b726d446b.md
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Source location: Title 7, Chapter 50, § 1947, 1948; chapter-050-agricultural-credit.md
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**(a) Determination of interest rates**
(1) The Secretary shall make all loans under this subchapter upon the full personal liability of the borrower and upon such security as the Secretary may prescribe. The interest rates on such loans, except for guaranteed loans and loans as provided in paragraphs (2) and (3),11 See References in Text note below. shall be as determined by the Secretary, but not in excess of the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, plus an additional charge not to exceed 1 per centum as determined by the Secretary, which charge shall be deposited in the Rural Development Insurance Fund or the Agricultural Credit Insurance Fund, as appropriate, and adjusted to the nearest one-eighth of 1 per centum. The interest rate on any guaranteed loan made under this subchapter shall be such rate as may be agreed upon by the borrower and lender, but not in excess of a rate as may be determined by the Secretary.
(2) The interest rate on a microloan to a beginning farmer or rancher or veteran farmer or rancher (as defined in section 2279(e) 1 of this title), or any loan (other than a guaranteed loan) to a low income, limited resource borrower under this subchapter shall not be—
(A) greater than the sum of—
(i) an amount that does not exceed one-half of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and
(ii) an amount not exceeding 1 percent per year, as the Secretary determines is appropriate; or
(B) less than 5 percent per year.
**(b) Payment period; consolidation and rescheduling of loans** Loans made under this subchapter shall be payable in not to exceed seven years. The Secretary may consolidate or reschedule outstanding loans for payment over a period not to exceed seven years (or, in the case of loans for farm operating purposes, fifteen years) from the date of such consolidation or rescheduling, and the amount of unpaid principal and interest of the prior loans so consolidated or rescheduled shall not create a new charge against any loan levels authorized by law. A new loan may be included in a consolidation. Such new loan shall be charged against any loan level authorized by law. Except as otherwise provided for farm loans under [section 1981b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1981b&num=0&edition=prelim), the interest rate on such consolidated or rescheduled loans, other than guaranteed loans, may be changed by the Secretary to a rate not to exceed the rate being charged for loans made under this subchapter at the time of the consolidation or rescheduling. The interest rate on any guaranteed loan under this subchapter that may be consolidated or rescheduled for payment shall be such rate as may be agreed upon by the borrower and the lender, but not in excess of a rate as may be determined by the Secretary.
**(c) Line-of-credit loans**
(1) **In general** — A loan made or guaranteed by the Secretary under this subchapter may be in the form of a line-of-credit loan.
(2) **Term** — A line-of-credit loan under paragraph (1) shall terminate not later than 5 years after the date that the loan is made or guaranteed.
(3) **Eligibility** — For purposes of determining eligibility for a farm operating loan under this subchapter, each year during which a farmer or rancher takes an advance or draws on a line-of-credit loan the farmer or rancher shall be considered to have received an operating loan for 1 year.
(4) **Termination of delinquent loans** — If a borrower does not pay an installment on a line-of-credit loan on schedule, the borrower may not take an advance or draw on the line-of-credit, unless the Secretary determines that—
(A) the borrower’s failure to pay on schedule was due to unusual conditions that the borrower could not control; and
(B) the borrower will reduce the line-of-credit balance to the scheduled level at the end of—
(i) the production cycle; or
(ii) the marketing of the borrower’s agricultural products.
(5) **Agricultural commodities** — A line-of-credit loan may be used to finance the production or marketing of an agricultural commodity that—
(A) is eligible for a price support program of the Department of Agriculture; or
(B) was eligible for a price support program of the Department of Agriculture on the day before April 4, 1996.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** In addition to any other authority that the Secretary may have to defer principal and interest and forego foreclosure, the Secretary may permit, at the request of the borrower, the deferral of principal and interest on any outstanding loan made, insured, or held by the Secretary under this chapter, or under the provisions of any other law administered by the Farmers Home Administration or by the Rural Development Administration, and may forego foreclosure of any such loan, for such period as the Secretary deems necessary upon a showing by the borrower that due to circumstances beyond the borrower’s control, the borrower is temporarily unable to continue making payments of such principal and interest when due without unduly impairing the standard of living of the borrower. The Secretary may permit interest that accrues during the deferral period on any loan deferred under this section to bear no interest during or after such period: Provided, That if the security instrument securing such loan is foreclosed such interest as is included in the purchase price at such foreclosure shall become part of the principal and draw interest from the date of foreclosure at the rate prescribed by law.
**(b) Moratorium**
(1) **In general** — Subject to the other provisions of this subsection, effective beginning on the date of the enactment of this subsection, there shall be in effect a moratorium, with respect to farmer program loans made under subchapter I, II, or III, on all acceleration and foreclosure proceedings instituted by the Department of Agriculture against any farmer or rancher who—
(A) has pending against the Department a claim of program discrimination that is accepted by the Department as valid; or
(B) files a claim of program discrimination th
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1981b
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Federal law — U.S. Code and appendices · legal_authorities
On and after November 10, 2005, notwithstanding the provisions of the Consolidated Farm and Rural Development Act [[7 U.S.C. 1921](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1921&num=0&edition=prelim) et seq.] (including the associated regulations) governing the Community Facilities Program, the Secretary may allow all Community Facility Program facility borrowers and grantees to enter into contracts with not-for-profit third parties for services consistent with the requirements of the Program, grant, and/or loan: Provided, That the contracts protect the interests of the Government regarding cost, liability, maintenance, and administrative fees.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1927
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