7 U.S.C. § 1929a — Rural Development Insurance Fund

Page 1086 TITLE 7—AGRICULTURE § 1929–1 ‘‘(E) The National Institute of Food and Agri- culture. ‘‘(F) Community colleges or other educational in- stitutions with demonstrated experience in training beginning farmers or ranchers. ‘‘(G) Other entities or persons providing lending or technical assistance for qualified beginning farmers or ranchers.’’ LIMITATION ON SALES FROM AGRICULTURAL CREDIT INSURANCE FUND Pub. L. 99–509, title I, § 1002, Oct. 21, 1986, 100 Stat. 1875, provided that: ‘‘During fiscal years 1987 through 1989, no note shall be sold out of the Agricultural Cred- it Insurance Fund, except in connection with trans- actions with the Secretary of the Treasury, without prior approval by Congress.’’ LOANS TO INDIANS Authority of the Secretary of Agriculture to make loans to Indian tribes and tribal corporations to ac- quire land within reservations, see sections 5136 to 5143 of Title 25, Indians. § 1929–1. Level of loan programs under Agricul- tural Credit Insurance Fund On and after October 28, 1991, no funds in this Act or any other Act shall be available to carry out loan programs under the Agricultural Credit Insurance Fund at levels other than those pro- vided for in advance in appropriations Acts. (Pub. L. 102–142, title III, Oct. 28, 1991, 105 Stat. 899.) Editorial Notes CODIFICATION Section was enacted as part of the Agriculture, Rural Development, Food and Drug Administration, and Re- lated Agencies Appropriations Act, 1992, and not as part of the Consolidated Farm and Rural Development Act which comprises this chapter. § 1929a. Rural Development Insurance Fund (a) Creation; revolving fund; rural development loans There is hereby created the Rural Develop- ment Insurance Fund (hereinafter in this sec- tion referred to as the ‘‘Insurance Fund’’) which shall be used by the Secretary as a revolving fund for the discharge of the obligations of the Secretary under contracts guaranteeing or in- suring rural development loans. For the purpose of this section ‘‘rural development loans’’ shall be those provided for by sections 1926(a)(1) and 1932 of this title, except loans (other than for water systems and waste disposal facilities) of a type authorized by section 1926(a)(1) of this title prior to its amendment by the Rural Develop- ment Act of 1972. (b) Transfer of assets and liabilities The assets and liabilities of the Agricultural Credit Insurance Fund referred to in section 1929(a) of this title applicable to loans for water systems and waste disposal facilities under sec- tion 1926(a)(1) of this title are hereby transferred to the Insurance Fund. Such assets (including the proceeds thereof) and liabilities and rural development loans guaranteed or insured pursu- ant to this chapter shall be subject to the provi- sions of this section. (c) Credits in the Treasury; investments; notes, purchasing authority of the Secretary Moneys in the Insurance Fund not needed for current operations shall be deposited in the Treasury of the United States to the credit of the Insurance Fund or invested in direct obliga- tions of the United States or obligations guaran- teed by the United States. The Secretary may purchase with money in the Insurance Fund any notes issued by the Secretary to the Secretary of the Treasury for the purpose of obtaining money for the Insurance Fund. (d) Notes, issuing authority of the Secretary; use of funds; terms and conditions, form, denomi- nations, maturities, and interest rate of notes; notes, purchasing authority of the Sec- retary of the Treasury; public debt trans- actions The Secretary is authorized to make and issue notes to the Secretary of the Treasury for the purpose of obtaining funds necessary for dis- charging obligations under this section and for making loans, advances, and authorized expendi- tures out of the Insurance Fund. Such notes shall be in such form and denominations and have such maturities and be subject to such terms and conditions as may be prescribed by the Secretary with the approval of the Sec- retary of the Treasury. Such notes shall bear in- terest at a rate fixed by the Secretary of the Treasury, taking into consideration the current average market yield of outstanding marketable obligations of the United States having matu- rities comparable to the average maturities of rural development loans made, guaranteed, or insured under this chapter. The Secretary of the Treasury is authorized and directed to purchase any notes of the Secretary issued hereunder, and, for that purpose, the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any se- curities issued under chapter 31 of title 31, and the purposes for which such securities may be issued under such chapter are extended to in- clude the purchase of notes issued by the Sec- retary hereunder. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes shall be treated as public debt trans- actions of the United States. (e) Notes and security as part of Insurance Fund; collection and sale of notes and other obliga- tions; deposit of net proceeds in Insurance Fund Notes and security acquired by the Secretary in connection with rural development loans made, guaranteed, or insured under this chapter or transferred by subsection (b) of this section shall become a part of the Insurance Fund. Notes and other obligations may be held in the Insurance Fund and collected in accordance with their terms or may be sold by the Sec- retary with or without agreements for insurance thereof at the balance due thereon, or on such other basis as the Secretary may determine from time to time, including sale on a non- recourse basis. The Secretary and any subse- quent purchaser of such notes and other obliga- tions sold by the Secretary on a nonrecourse basis shall be relieved of any responsibilities Page 1087 TITLE 7—AGRICULTURE § 1929a that might have been imposed had the borrower remained indebted to the Secretary. All net pro- ceeds from such collections, including sales of notes or property, shall be deposited in and be- come a part of the Insurance Fund. (f) Deposit of loan service charges in Insurance Fund The Secretary shall deposit in the Insurance Fund any charges collected for loan services provided by the Secretary as well as charges as- sessed for losses and costs of administration in connection with making, guaranteeing, or insur- ing rural development loans under this chapter. (g) Use of Insurance Fund The Secretary may utilize the Insurance Fund— (1) to pay amounts to which the holder of in- sured notes is entitled on loans heretofore or hereafter insured accruing between the date of any payments by the borrower and the date of transmittal of any such payments to the hold- er. In the discretion of the Secretary, pay- ments other than final payments need not be remitted to the holder until due or until the next agreed annual or semiannual remittance date; (2) to pay to the holder of insured notes any deferred or defaulted installment, or upon as- signment of the note to the Secretary at the Secretary’s request, the entire balance due on the loan; (3) to purchase notes in accordance with con- tracts of insurance heretofore or hereafter en- tered into by the Secretary; (4) to make payments in compliance with the Secretary’s obligations under contracts of guarantee entered into by him; (5) to pay taxes, insurance, prior liens, ex- penses necessary to make fiscal adjustments in connection with the application and trans- mittal of collections or necessary to obtain credit reports on applicants or borrowers, ex- penses for necessary services, including con- struction inspections, commercial appraisals, loan servicing, consulting business advisory or other commercial and technical services, and other program services, and other expenses and advances authorized in section 1985(a) of this title in connection with insured loans. Such items may be paid in connection with guaranteed loans after or in connection with acquisition by the Secretary of such loans or security therefor after default, to an extent determined by the Secretary to be necessary to protect the interest of the Government, or in connection with grants and any other activ- ity authorized in this chapter; (6) to pay the difference between interest payments by borrowers and interest to which holders of insured notes are entitled under contracts of insurance heretofore or hereafter entered into by the Secretary; and (7) to pay the Secretary’s costs of adminis- tration necessary to insure loans under the programs referred to in subsection (a) of this section, make grants under sections 1926(a) and 1932 of this title, service, and otherwise carry out such programs, including costs of the Secretary incidental to guaranteeing rural development loans under this chapter, either directly from the Insurance Fund or by trans- fers from the Fund to, and merger with, any appropriations for administrative expenses. (h) Gross income; interest or other income on in- sured loans When any loan is sold out of the 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 chap- ter 1 of title 26. (Pub. L. 87–128, title III, § 309A, as added Pub. L. 92–419, title I, § 116, Aug. 30, 1972, 86 Stat. 661; amended Pub. L. 95–113, title XV, § 1510(b), Sept. 29, 1977, 91 Stat. 1022; Pub. L. 95–334, title I, §§ 107(b), 110, Aug. 4, 1978, 92 Stat. 422, 424; Pub. L. 99–500, title III, § 381(b), Oct. 18, 1986, 100 Stat. 1783–369, and Pub. L. 99–591, title III, § 381(b), Oct. 30, 1986, 100 Stat. 3341–372; Pub. L. 99–509, title I, § 1001(b), Oct. 21, 1986, 100 Stat. 1874; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 104–127, title VI, § 661(c), title VII, §§ 741(b), 745, Apr. 4, 1996, 110 Stat. 1106, 1124, 1125; Pub. L. 115–334, title VI, § 6701(b)(1), Dec. 20, 2018, 132 Stat. 4778.) Editorial Notes REFERENCES IN TEXT For statutory changes to section 1926(a)(1) of this title by the Rural Development Act of 1972, referred to in subsec. (a), see 1972 Amendment note for section 104 of Pub. L. 92–419, set out under section 1926 of this title. For complete classification of the Rural Development Act of 1972 to the Code, see Short Title of 1972 Amend- ment note set out under section 1921 of this title and Tables. This chapter, referred to in subsecs. (b), (d), (e), (f), and (g)(5), (7), was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Develop- ment Act, which is classified principally to this chap- ter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. CODIFICATION Pub. L. 99–591 is a corrected version of Pub. L. 99–500. In subsec. (d), ‘‘chapter 31 of title 31’’ and ‘‘such chap- ter’’ substituted for ‘‘the Second Liberty Bond Act, as amended’’ and ‘‘such Act, as amended,’’ respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. AMENDMENTS 2018—Subsec. (b). Pub. L. 115–334 struck out ‘‘and sec- tion 1928 of this title’’ after ‘‘provisions of this sec- tion’’. 1996—Subsec. (a). Pub. L. 104–127, § 741(b), struck out ‘‘, 1926(a)(14),’’ after ‘‘1926(a)(1)’’. Pub. L. 104–127, § 661(c)(1), substituted ‘‘1926(a)(1), 1926(a)(14), and 1932 of this title’’ for ‘‘1924(b), 1926(a)(1), 1926(a)(14), 1932, and 1942(b) of this title’’. Subsec. (b). Pub. L. 104–127, § 661(c)(2), which directed amendment of the first sentence of subsection (b) by striking ‘‘and section 1928 of this title’’, could not be executed because ‘‘and section 1928 of this title’’ did not appear in such sentence. Corrected amendment was made by Pub. L. 115–334, effective as if included in Pub. L. 104–127. See 2018 Amendment note above and Effec- tive Date of 2018 Amendment note below. Subsec. (g). Pub. L. 104–127, § 745, redesignated pars. (2) to (8) as (1) to (7), respectively, and struck out former par. (1) which read as follows: ‘‘to make rural development loans which could be insured under this Page 1088 TITLE 7—AGRICULTURE § 1929a chapter whenever he has a reasonable assurance that they can be sold without undue delay, and he may sell and insure such loans;’’. 1986—Subsec. (e). Pub. L. 99–500, Pub. L. 99–509, and Pub. L. 99–591 amended second sentence of subsec. (e) identically, substituting ‘‘Notes and other obligations’’ for ‘‘Notes’’ and substituting ‘‘, including sale on a nonrecourse basis. The Secretary and any subsequent purchaser of such notes or other obligations sold by the Secretary on a nonrecourse basis shall be relieved of any responsibilities that might have been imposed had the borrower remained indebted to the Secretary.’’ for period at end. Subsec. (h). Pub. L. 99–514 substituted ‘‘Internal Rev- enue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 1978—Subsec. (a). Pub. L. 95–334, § 107(b), inserted ref- erence to section 1926(a)(14) of this title. Subsec. (g)(8). Pub. L. 95–334, § 110, substituted provi- sions relating to payment of costs of administration necessary to insure loans under subsec. (a) of this sec- tion, make grants under sections 1926(a) and 1932 of this title, and otherwise carry out such programs for provi- sions relating to payment of costs of administration of the rural loan development program. 1977—Subsec. (g)(3). Pub. L. 95–113 substituted ‘‘any deferred or defaulted installment’’ for ‘‘any defaulted installment’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–334, title VI, § 6701(b)(2), Dec. 20, 2018, 132 Stat. 4778, provided that: ‘‘The amendment made by this subsection [amending this section] shall take ef- fect as if included in the enactment of section 661(c)(2) of the Federal Agricultural Improvement and Reform Act of 1996 (Public Law 104–127).’’ 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. DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES Pub. L. 101–82, title IV, § 401, Aug. 14, 1989, 103 Stat. 583, as amended by Pub. L. 101–220, § 9(d), Dec. 12, 1989, 103 Stat. 1882, provided that: ‘‘(a) LOAN GUARANTEES.—The Secretary of Agri- culture shall guarantee loans made in rural areas to— ‘‘(1) public, private, or cooperative organizations, to Indian tribes on Federal and State reservations or other federally recognized Indian tribal groups, or to any other business entities to assist such organiza- tions, tribes, or entities in alleviating the distress caused to such organizations, tribes, or entities, di- rectly or indirectly, by the drought, freeze, storm, ex- cessive moisture, earthquake, or related condition in 1988 or 1989; and ‘‘(2) such organizations, tribes, or entities that refi- nance or restructure debt as a result of losses in- curred, directly or indirectly, because of such natural disasters in 1988 or 1989. ‘‘(b) ELIGIBLE LOANS.— ‘‘(1) IN GENERAL.—Loans guaranteed under this sec- tion shall be loans made by any Federal or State chartered bank, savings and loan association, cooper- ative lending agency, insurance company, or other le- gally organized lending agency. ‘‘(2) PRODUCTION AGRICULTURE.—No application for a loan guarantee under this section shall be denied on the basis that such organization, tribe, or entity en- gages in whole or in part in production agriculture. ‘‘(c) LOAN GUARANTEE LIMITS.— ‘‘(1) PERCENTAGE OF PRINCIPAL AND INTEREST.—No guarantee under this section shall exceed 90 percent of the principal and interest amount of the loan or $2,500,000, whichever is the lesser amount. ‘‘(2) TOTAL AMOUNT.—The total amount of loan guarantee under this section shall not exceed $300,000,000. ‘‘(d) USE OF THE RURAL DEVELOPMENT INSURANCE FUND.—The Secretary shall use the Rural Development Insurance Fund established under section 309A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a) for the purposes of discharging the obliga- tions of the Secretary under this section.’’ Similar provisions were contained in the following prior act: Pub. L. 100–387, title III, § 331, Aug. 11, 1988, 102 Stat. 951. SALE OF RURAL DEVELOPMENT NOTES AND OTHER OBLIGATIONS Pub. L. 99–509, title I, § 1001, Oct. 21, 1986, 100 Stat. 1874, as amended by Pub. L. 100–233, title VIII, § 803, Jan. 6, 1988, 101 Stat. 1714; Pub. L. 101–220, § 12, Dec. 12, 1989, 103 Stat. 1883, provided that: ‘‘(a) SALES REQUIRED.—The Secretary of Agriculture, under such terms as the Secretary may prescribe, shall sell notes and other obligations held in the Rural De- velopment Insurance Fund established under section 309A of the Consolidated Farm and Rural Development Act [7 U.S.C. 1929a] in such amounts as to realize net proceeds to the Government of not less than— ‘‘(1) $1,000,000,000 from such sales during fiscal year 1987, ‘‘(2) $552,000,000 from such sales during fiscal year 1988, and ‘‘(3) $547,000,000 from such sales during fiscal year 1989. ‘‘(b) [Amended subsec. (e) of this section] ‘‘(c) CONTRACT PROVISIONS.—Consistent with section 309A(e) of the Consolidated Farm and Rural Develop- ment Act [7 U.S.C. 1929a(e)], as amended by subsection (b), any sale of notes or other obligations, as described in subsection (a), shall not alter the terms specified in the note or other obligation, except that, on sale, a note or other obligation shall not be subject to the pro- visions of section 333(c) of the Consolidated Farm and Rural Development Act [7 U.S.C. 1983(c)]. ‘‘(d) ELIGIBILITY TO PURCHASE NOTES.—Notwith- standing any other provision of law, each institution of the Farm Credit System shall be eligible to purchase notes and other obligations held in the Rural Develop- ment Insurance Fund and to service (including the ex- tension of additional credit and all other actions nec- essary to preserve, conserve, or protect the institu- tion’s interest in the purchased notes or other obliga- tions), collect, and dispose of such notes and other obli- gations, subject only to such terms and conditions as may be agreed to by the Secretary of Agriculture and the purchasing institution and as may be approved by the Farm Credit Administration. ‘‘(e) LOAN SERVICING.—Prior to selling any note or other obligation, as described in subsection (a), the Secretary of Agriculture shall require persons offering to purchase the note or other obligation to dem- onstrate— ‘‘(1) an ability or resources to provide such serv- icing, with respect to the loans represented by the note or other obligation, that the Secretary deems necessary to ensure the continued performance on the loan; and ‘‘(2) the ability to generate capital to provide the borrowers of the loans such additional credit as may be necessary in proper servicing of the loans. ‘‘(f) RIGHT OF FIRST REFUSAL.— ‘‘(1) IN GENERAL.—Before conducting a sale of a portfolio of notes or other obligations under this sec- tion, the Secretary of Agriculture shall— ‘‘(A) determine whether the issuer of any unsold note or other obligation desires to purchase the note or other obligation; and ‘‘(B) if so, hold open for 30 days, an offer to sell the note or other obligation to the issuer at a price to be determined under paragraph (2). ‘‘(2) DETERMINATION OF OFFERING PRICE.— Page 1089 TITLE 7—AGRICULTURE § 1932 ‘‘(A) AUTHORITY.—The Secretary of Agriculture shall determine, in accordance with subparagraph (B), the price at which a note or other obligation shall be offered for sale under this subsection. ‘‘(B) PRICE.—Such price shall be determined by discounting the payment stream of such note or other obligation at the yield on the then most re- cent sale of the portfolio, adjusted for changes in market interest rates, servicing and sales expenses, and the maturity and interest rate of such note. ‘‘(3) PROHIBITIONS.— ‘‘(A) PURCHASE OF OBLIGATION NOT TIED TO PUR- CHASE OF OTHER OBLIGATIONS.—The Secretary of Ag- riculture shall not require the issuer of any unsold note or other obligation to be offered for sale under this subsection to purchase any other such note or other obligation as a condition of the sale of any such note or other obligation to the issuer. ‘‘(B) OFFER TO BE MADE WITHOUT REGARD TO FI- NANCING.—The Secretary shall offer notes or other obligations for sale to the issuers thereof under this subsection without regard to the manner in which such issuers intend to finance the purchase of such notes or other obligations. However, the price of sale to any issuer using tax exempt financing shall be determined using a yield reflective of the Sched- ule of Certified Interest Rates as published monthly by the Secretary of the Treasury. ‘‘(g) APPLICABILITY OF PROHIBITION ON CURTAILMENT OR LIMITATION OF SERVICE.—Section 306(b) of the Con- solidated Farm and Rural Development Act (7 U.S.C. 1926(b)) shall be applicable to all notes or other obliga- tions sold or intended to be sold under this section. ‘‘(h)(1) Notwithstanding the provisions of section 633 of the Rural Development, Agriculture, and Related Agencies Appropriations Act, 1989 (Public Law 100–460) [title VI, Oct. 1, 1988, 102 Stat. 2263], the Secretary of Agriculture shall offer to the issuer of any unsold note or other obligation described in paragraph (2)(A) for which such issuer made the good faith deposit described in paragraph (2)(A) the opportunity to purchase such note or other obligation consistent with the provisions of this subsection and subsections (f)(2) and (f)(3). ‘‘(2) The provisions of this subsection shall apply only to those issuers who: ‘‘(A) on or before March 9, 1989, made a good faith deposit under this section for fiscal year 1989 with the Secretary to purchase a note or other obligation held in the Rural Development Insurance Fund; and ‘‘(B) otherwise meet all eligibility criteria, as such criteria existed immediately prior to May 9, 1989, at the time the purchase occurs under this subsection. ‘‘(3) The opportunity to purchase any such note or other obligation shall be held open, under the policies and procedures in effect under subsections (f)(2) and (f)(3) immediately prior to May 9, 1989, for 150 days after the date of enactment of this subsection [Dec. 12, 1989]. The Secretary shall not require any further good faith deposit from issuers who qualify under this sub- section. The Secretary shall notify eligible issuers of the opportunity afforded under this subsection within 30 days after the date of enactment of this subsection and may require such issuers to express an intention to purchase their note or other obligation by a date cer- tain.’’ Pub. L. 99–500, title III, § 381, Oct. 18, 1986, 100 Stat. 1783–369, and Pub. L. 99–591, title III, § 381, Oct. 30, 1986, 100 Stat. 3341–372, provided that: ‘‘(a) IN GENERAL.—The Secretary of Agriculture shall, under such terms as the Secretary may prescribe, sell notes and other obligations held in the Rural Develop- ment Insurance Fund established under section 309A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a) in such amounts as to realize net proceeds of not less than— ‘‘(1) $25,000,000 from such sales during fiscal year 1987; ‘‘(2) $36,000,000 from such sales during fiscal year 1988; and ‘‘(3) $37,000,000 from such sales during fiscal year 1989. ‘‘(b) [Amended subsec. (e) of this section] ‘‘(c) FARM CREDIT SYSTEM INSTITUTIONS.—Notwith- standing any other provision of law, institutions of the Farm Credit System operating under the Farm Credit Act of 1971 (12 U.S.C. 2001) shall be eligible to purchase notes and other obligations held in the Rural Develop- ment Insurance Fund and to service (including the ex- tension of additional credit and all other actions nec- essary to preserve, conserve, or protect the institu- tions’ interests in such notes and other obligations), collect, and dispose of such notes and other obligations, subject only to such terms and conditions as may be agreed to by the Secretary of Agriculture and such pur- chasing institutions and as are approved by the Farm Credit Administration.’’ § 1929b. Purchase of guaranteed portions of loans; terms and conditions; exercise of au- thorities The Secretary may purchase, on such terms and conditions as the Secretary deems appro- priate, the guaranteed portion of any loan guar- anteed under this chapter: Provided, That the Secretary may not pay for any such guaranteed portion of a loan in excess of an amount equal to the unpaid principal balance and accrued inter- est on the guaranteed portion of the loan. The Secretary may use for such purchases funds from the Rural Development Insurance Fund with respect to rural development loans as de- fined in section 1929a(a) of this title and funds from the Agricultural Credit Insurance Fund with respect to all other loans under this chap- ter. This authority may be exercised only if the Secretary determines that an adequate sec- ondary market is not available in the private sector. (Pub. L. 87–128, title III, § 309B, as added Pub. L. 95–334, title I, § 111, Aug. 4, 1978, 92 Stat. 424.) Editorial Notes 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, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. § 1930. Continued availability of appropriated funds for direct real estate loans to farmers and ranchers Funds appropriated for the purpose of making direct real estate loans to farmers and ranchers under this subchapter shall remain available until expended. (Pub. L. 87–128, title III, § 310, as added Pub. L. 91–524, title VIII, § 806(b), Nov. 30, 1970, 84 Stat. 1383.) § 1931. Repealed. Pub. L. 104–127, title VII, § 746, Apr. 4, 1996, 110 Stat. 1125 Section, Pub. L. 87–128, title III, § 310A, as added Pub. L. 92–419, title I, § 117, Aug. 30, 1972, 86 Stat. 663, related to insured watershed and resource conservation and de- velopment loans. § 1932. Assistance for rural entities (a) Loans to private business enterprises (1) Definitions In this subsection: