7 U.S.C. § 2005 — Payment of losses on guaranteed loans

Page 1172 TITLE 7—AGRICULTURE § 2004 within the State.’’ for ‘‘Any funds reserved and allo- cated for purposes of this paragraph, but not used shall be reallocated within such State.’’ 1996—Subsec. (f). Pub. L. 104–127 added subsec. (f). 1992—Subsec. (a)(2). Pub. L. 102–554, § 21(a)(1), sub- stituted ‘‘Except as provided in paragraph (3), in estab- lishing’’ for ‘‘In establishing’’. Subsec. (a)(3). Pub. L. 102–554, § 21(a)(2), added par. (3). Subsec. (e)(1). Pub. L. 102–554, § 21(b), substituted ‘‘, ethnic, or gender’’ for ‘‘or ethnic’’. 1990—Subsec. (b)(3). Pub. L. 101–624, § 1817, added par. (3). Subsecs. (c), (d). Pub. L. 101–624, § 2501(f)(1)–(3), added subsec. (c), redesignated former subsec. (c) as (d), and struck out former subsec. (d) which read as follows: ‘‘As used in this section, the term ‘socially disadvantaged group’ means a group whose members have been sub- jected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities.’’ Subsec. (e). Pub. L. 101–624, § 2501(f)(4), added subsec. (e). Statutory Notes and Related Subsidiaries TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which the report required by subsec. (d) of this section is listed on page 44), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. § 2004. Expedited clearing of title to inventory property The Farmers Home Administration may em- ploy local attorneys, on a case-by-case basis, to process all legal procedures necessary to clear the title to foreclosed properties in the inven- tory of the Farmers Home Administration. Such attorneys shall be compensated at not more than their usual and customary charges for such work. (Pub. L. 87–128, title III, § 356, as added Pub. L. 100–233, title VI, § 618, Jan. 6, 1988, 101 Stat. 1683.) § 2005. Payment of losses on guaranteed loans (a) Payments to lenders (1) Requirement Within 3 months after a court of competent jurisdiction confirms a plan of reorganization under chapter 12 of title 11, for any borrower to whom a lender has made a loan guaranteed under this chapter, the Secretary shall pay the lender an amount estimated by the Secretary to be equal to the loss incurred by the lender for purposes of the guarantee. (2) Payment toward loan guarantee Any amount paid to a lender under this sub- section with respect to a loan guaranteed under this chapter shall be treated as payment towards satisfaction of the loan guarantee. (b) Administration (1) Loss by lender If the lender of a guaranteed farmer program loan takes any action described in section 1981(b)(4) of this title with respect to the loan and the Secretary approves such action, then, for purposes of the guarantee, the lender shall be treated as having sustained a loss equal to the amount by which— (A) the outstanding balance of the loan immediately before such action, exceeds (B) the outstanding balance of the loan im- mediately after such action. (2) Net present value of loan The Secretary shall approve the taking of an action described in section 1981(b)(4) of this title by the lender of a guaranteed farmer pro- gram loan with respect to the loan if such ac- tion reduces the net present value of the loan to an amount equal to not less than the great- er of— (A) the greatest net present value of a loan the borrower could reasonably be expected to repay; and (B) the greatest amount that the lender of the loan could reasonably expect to recover from the borrower through bankruptcy, or liquidation of the property securing the loan, less all reasonable and necessary costs and expenses that the lender of the loan could reasonably expect to incur to preserve or dispose of such property (including all as- sociated legal and property management costs) in the course of such a bankruptcy or liquidation. (3) Construction of subsection This subsection shall not be construed to limit the authority of the Secretary to enter into a shared appreciation arrangement with a borrower, or the terms and conditions which shall be required of a borrower, under section 2001(e) of this title. (Pub. L. 87–128, title III, § 357, as added Pub. L. 100–233, title VI, § 619, Jan. 6, 1988, 101 Stat. 1683; amended Pub. L. 101–624, title XXIII, § 2388(d)(2), Nov. 28, 1990, 104 Stat. 4053.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), 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. AMENDMENTS 1990—Subsec. (b)(1), (2). Pub. L. 101–624 substituted ‘‘1981(b)(4)’’ for ‘‘1981(d)’’. § 2006. Waiver of mediation rights by borrowers The Secretary may not make, insure, or guar- antee any farmer program loan to a farm bor- rower on the condition that the borrower waive any right under the mediation program of any State. (Pub. L. 87–128, title III, § 358, as added Pub. L. 100–233, title V, § 512, Jan. 6, 1988, 101 Stat. 1664; amended Pub. L. 103–354, title II, § 282(f)(3), Oct. 13, 1994, 108 Stat. 3235.) Editorial Notes AMENDMENTS 1994—Pub. L. 103–354 struck out ‘‘agricultural loan’’ before ‘‘mediation program’’.