7 U.S.C. § 1994 — Maximum amounts for loans authorized;

Page 1157 TITLE 7—AGRICULTURE § 1994 date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title. § 1994. Maximum amounts for loans authorized; long-term cost projections (a) Maximum aggregate principal amounts for loans authorized Effective October 1, 1979, the aggregate prin- cipal amount of loans under the programs au- thorized under each subchapter of this chapter during each three-year period thereafter shall not exceed such amounts as may be authorized by law after August 4, 1978. There shall be two amounts so established for each of such pro- grams and for any maximum levels provided in appropriation Acts for the programs authorized under this chapter, one against which direct and insured loans shall be charged and the other against which guaranteed loans shall be charged. (b) Authorization for loans (1) In general The Secretary may make or guarantee loans under subchapters I and II from the Agricul- tural Credit Insurance Fund provided for in section 1929 of this title for not more than $10,000,000,000 for each of fiscal years 2019 through 2023, of which, for each fiscal year— (A) $3,000,000,000 shall be for direct loans, of which— (i) $1,500,000,000 shall be for farm owner- ship loans under subchapter I; and (ii) $1,500,000,000 shall be for operating loans under subchapter II; and (B) $7,000,000,000 shall be for guaranteed loans, of which— (i) $3,500,000,000 shall be for farm owner- ship loans under subchapter I; and (ii) $3,500,000,000 shall be for operating loans under subchapter II. (2) Beginning farmers and ranchers (A) Direct loans (i) Farm ownership loans (I) In general Of the amounts made available under paragraph (1) for direct farm ownership loans, the Secretary shall reserve an amount that is not less than 75 percent of the total amount for qualified begin- ning farmers and ranchers. (II) Down payment loans; joint financing arrangements Of the amounts reserved for a fiscal year under subclause (I), the Secretary shall reserve an amount not less than 2⁄3 of the amount for the down payment loan program under section 1935 of this title and joint financing arrangements under section 1927(a)(3)(D) of this title until April 1 of the fiscal year. (ii) Operating loans Of the amounts made available under paragraph (1) for direct operating loans, the Secretary shall reserve for qualified beginning farmers and ranchers— (I) for each of fiscal years 1996 through 1998, 25 percent; (II) for fiscal year 1999, 30 percent; and (III) for each of fiscal years 2008 through 2023, an amount that is not less than 50 percent. (iii) Funds reserved until September 1 Except as provided in clause (i)(II), funds reserved for qualified beginning farmers or ranchers under this subparagraph for a fis- cal year shall be reserved only until Sep- tember 1 of the fiscal year. (B) Guaranteed loans (i) Farm ownership loans Of the amounts made available under paragraph (1) for guarantees of farm own- ership loans, the Secretary shall reserve an amount that is not less than 40 percent of the total amount for qualified beginning farmers and ranchers. (ii) Operating loans Of the amounts made available under paragraph (1) for guarantees of operating loans, the Secretary shall reserve 40 per- cent for qualified beginning farmers and ranchers. (iii) Funds reserved until April 1 Funds reserved for qualified beginning farmers or ranchers under this subpara- graph for a fiscal year shall be reserved only until April 1 of the fiscal year. (C) Reserved funds for all qualified begin- ning farmers and ranchers If a qualified beginning farmer or rancher meets the eligibility criteria for receiving a direct or guaranteed loan under section 1922, 1935, or 1941 of this title, the Secretary shall make or guarantee the loan if sufficient funds reserved under this paragraph are available to make or guarantee the loan. (3) Transfer for down payment loans (A) In general Notwithstanding subsection (a), subject to subparagraph (B)— (i) beginning on August 1 of each fiscal year, the Secretary shall use available un- subsidized guaranteed farm operating loan funds to provide direct farm ownership loans approved by the Secretary to quali- fied beginning farmers and ranchers under the down payment loan program estab- lished under section 1935 of this title, if sufficient direct farm ownership loan funds are not otherwise available; and (ii) beginning on September 1 of each fis- cal year, the Secretary shall use available unsubsidized guaranteed farm operating loan funds to provide direct farm owner- ship loans approved by the Secretary to qualified beginning farmers and ranchers, if sufficient direct farm ownership loan funds are not otherwise available. (B) Limitation The Secretary shall limit the transfer of funds under subparagraph (A) so that all guaranteed farm operating loans that have Page 1158 TITLE 7—AGRICULTURE § 1994 been approved, or will be approved, by the Secretary during the fiscal year will be made to the extent of available amounts. (4) Transfer for credit sales of farm inventory property (A) In general Notwithstanding subsection (a), subject to subparagraphs (B) and (C), beginning on Sep- tember 1 of each fiscal year, the Secretary may use available funds made available under subchapter III for the fiscal year to fund the credit sale of farm real estate in the inventory of the Secretary. (B) Supplemental appropriations The transfer authority provided under sub- paragraph (A) shall not apply to any funds made available to the Secretary for any fis- cal year under an Act making supplemental appropriations. (C) Limitation The Secretary shall limit the transfer of funds under subparagraph (A) so that all emergency disaster loans that have been ap- proved, or will be approved, by the Secretary during the fiscal year will be made to the ex- tent of available amounts. (5) Use of additional funds for direct operating microloans under certain conditions (A) In general If the Secretary determines that the amount needed for a fiscal year for direct operating loans (including microloans) under subchapter II is greater than the aggregate principal amount authorized for that fiscal year by this Act, an appropriations Act, or any other provision of law, the Secretary shall make additional microloans under sub- chapter II using amounts made available under subparagraph (C). (B) Notice Not later than 15 days before the date on which the Secretary uses the authority under subparagraph (A), the Secretary shall submit a notice of the use of that authority to— (i) the Committee on Appropriations of the House of Representatives; (ii) the Committee on Appropriations of the Senate; (iii) the Committee on Agriculture of the House of Representatives; and (iv) the Committee on Agriculture, Nu- trition, and Forestry of the Senate. (C) Authorization of appropriations There is authorized to be appropriated to carry out this paragraph $5,000,000 for each of fiscal years 2019 through 2023. (c) Development of long-term cost projections for loan program authorizations The Secretary shall develop long-term cost projections for loan program authorizations re- quired under subsection (a) of this section. Each such projection shall include analyses of (1) the long-term costs of the lending levels that the Secretary requests to be authorized under sub- section (a) of this section and (2) the long-term costs for increases in lending levels beyond those requested to be authorized, based on incre- ments of $10,000,000 or such other levels as the Secretary deems appropriate. Long-term cost projections for the three-year period beginning with fiscal year 1983 and each three-year period thereafter shall be submitted to the House Com- mittee on Agriculture, the House Committee on Appropriations, the Senate Committee on Agri- culture, Nutrition, and Forestry, and the Senate Committee on Appropriations at the time the requests for authorizations for those periods are submitted to Congress. Not later than fifteen days after October 13, 1980, the Secretary shall submit to such committees long-term cost pro- jections covering authorized lending levels for the loan programs for fiscal years 1981 and 1982. (d) Low-income, limited-resource borrowers (1) Notwithstanding any other provision of law, not less than 25 per centum of the loans for farm ownership purposes under subchapter I of this chapter, and not less than 25 per centum of the loans for farm operating purposes under sub- chapter II of this chapter, authorized to be in- sured, or made to be sold and insured, from the Agricultural Credit Insurance Fund during each fiscal year shall be for low-income, limited-re- source borrowers. (2) The Secretary shall provide notification to farm borrowers under this chapter, as soon as practicable after April 10, 1984, and in the nor- mal course of loan making and loan servicing operations, of the provisions of this chapter re- lating to low-income, limited-resource bor- rowers and the procedures by which persons may apply for loans under the low-income, limited- resource borrower program. (Pub. L. 87–128, title III, § 346, as added Pub. L. 95–334, title I, § 125, Aug. 4, 1978, 92 Stat. 428; amended Pub. L. 96–438, § 4, Oct. 13, 1980, 94 Stat. 1876; Pub. L. 97–35, title I, § 164, Aug. 13, 1981, 95 Stat. 379; Pub. L. 98–258, title VI, § 607, Apr. 10, 1984, 98 Stat. 140; Pub. L. 99–198, title XIII, § 1317, Dec. 23, 1985, 99 Stat. 1529; Pub. L. 101–508, title I, § 1202(a), Nov. 5, 1990, 104 Stat. 1388–9; Pub. L. 101–624, title XXIII, § 2388(i), Nov. 28, 1990, 104 Stat. 4053; Pub. L. 102–237, title VII, §§ 701(h)(1)(F), 702(i), Dec. 13, 1991, 105 Stat. 1880, 1881; Pub. L. 102–554, § 20, Oct. 28, 1992, 106 Stat. 4159; Pub. L. 104–127, title VI, § 641, Apr. 4, 1996, 110 Stat. 1098; Pub. L. 107–171, title V, §§ 5311, 5312, May 13, 2002, 116 Stat. 346, 347; Pub. L. 110–234, title V, §§ 5302(b), 5303, May 22, 2008, 122 Stat. 1152; Pub. L. 110–246, § 4(a), title V, §§ 5302(b), 5303, June 18, 2008, 122 Stat. 1664, 1913, 1914; Pub. L. 113–79, title V, §§ 5304, 5305, Feb. 7, 2014, 128 Stat. 840; Pub. L. 115–334, title V, §§ 5302–5304, 5401(g), Dec. 20, 2018, 132 Stat. 4671, 4672, 4674.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (d)(2), was in the original ‘‘this title’’, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consoli- dated Farm and Rural Development Act, which is clas- sified principally to this chapter. For complete classi- fication of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. This Act, referred to in subsec. (b)(5), is Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 294, known as the Agricul- Page 1159 TITLE 7—AGRICULTURE § 1994 tural Act of 1961. Title III of the Act, which is classified principally to this chapter, is known as the Consoli- dated Farm and Rural Development Act. For complete classification of these Acts to the Code, see Short Title notes set out under sections 1911 and 1921 of this title and Tables. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 5401(g), struck out comma before period at end. Subsec. (b)(1). Pub. L. 115–334, § 5302, substituted ‘‘$10,000,000,000 for each of fiscal years 2019 through 2023’’ for ‘‘$4,226,000,000 for each of fiscal years 2008 through 2018’’ in introductory provisions, added sub- pars. (A) and (B), and struck out former subpars. (A) and (B) which set aside, out of the $4,226,000,000 loan amount authorized, $1,200,000,000 for direct loans and $3,026,000,000 for guaranteed loans. Subsec. (b)(2)(A)(ii)(III). Pub. L. 115–334, § 5303, sub- stituted ‘‘2023’’ for ‘‘2018’’. Subsec. (b)(5). Pub. L. 115–334, § 5304, added par. (5). 2014—Subsec. (b)(1). Pub. L. 113–79, § 5304, substituted ‘‘2018’’ for ‘‘2012’’ in introductory provisions. Subsec. (b)(2)(A)(ii)(III). Pub. L. 113–79, § 5305, sub- stituted ‘‘2018’’ for ‘‘2012’’ and struck out ‘‘of the total amount’’ before period at end. 2008—Subsec. (b)(1). Pub. L. 110–246, § 5303(1), sub- stituted ‘‘$4,226,000,000 for each of fiscal years 2008 through 2012’’ for ‘‘$3,796,000,000 for each of fiscal years 2003 through 2007’’ in introductory provisions. Subsec. (b)(1)(A). Pub. L. 110–246, § 5303(2), in introduc- tory provisions, substituted ‘‘$1,200,000,000’’ for ‘‘$770,000,000’’, in cl. (i), substituted ‘‘$350,000,000’’ for ‘‘$205,000,000’’, and, in cl. (ii), substituted ‘‘$850,000,000’’ for ‘‘$565,000,000’’. Subsec. (b)(2)(A)(i). Pub. L. 110–246, § 5302(b)(1)(A), in subcl. (I), substituted ‘‘an amount that is not less than 75 percent of the total amount’’ for ‘‘70 percent’’ and, in subcl. (II), inserted ‘‘; joint financing arrangements’’ at end of heading and, in text, substituted ‘‘an amount not less than 2⁄3 of the amount’’ for ‘‘60 percent’’ and in- serted ‘‘and joint financing arrangements under section 1927(a)(3)(D) of this title’’ after ‘‘section 1935 of this title’’. Subsec. (b)(2)(A)(ii)(III). Pub. L. 110–246, § 5302(b)(1)(B), substituted ‘‘2008 through 2012, an amount that is not less than 50 percent of the total amount’’ for ‘‘2003 through 2007, 35 percent’’. Subsec. (b)(2)(B)(i). Pub. L. 110–246, § 5302(b)(2), sub- stituted ‘‘an amount that is not less than 40 percent of the total amount’’ for ‘‘25 percent’’. 2002—Subsec. (b)(1). Pub. L. 107–171, § 5311, reenacted heading without change and amended text generally. Prior to amendment, text related to guaranteed loans under subchapters I and II of this chapter from the Ag- ricultural Credit Insurance Fund provided for in sec- tion 1929 of this title for fiscal years 1996 to 2002. Subsec. (b)(2)(A)(ii)(III). Pub. L. 107–171, § 5312, sub- stituted ‘‘2003 through 2007’’ for ‘‘2000 through 2002’’. 1996—Subsec. (a). Pub. L. 104–127, § 641(1), in second sentence, struck out ‘‘with or without authority for the Secretary to transfer amounts between such categories within a given program for more effective administra- tion’’ before period at end. Subsec. (b). Pub. L. 104–127, § 641(2), added subsec. (b) and struck out former subsec. (b), which set forth max- imum amounts for direct and guaranteed loans under the Agricultural Credit Insurance Fund for fiscal years 1991 to 1995. 1992—Subsec. (b)(2). Pub. L. 102–554, § 20(b), inserted sentence at end. Subsec. (b)(3)(D) to (G). Pub. L. 102–554, § 20(c), (d), added subpars. (D) to (G). Subsec. (b)(5), (6). Pub. L. 102–554, § 20(a), (e), added pars. (5) and (6). 1991—Subsec. (b). Pub. L. 102–237, § 702(i), repealed Pub. L. 101–624, § 2388(i). See 1990 Amendment note below. Subsec. (b)(3)(C). Pub. L. 102–237, § 701(h)(1)(F), sub- stituted ‘‘this chapter’’ for ‘‘this Act’’ in two places. 1990—Subsec. (b). Pub. L. 101–624, § 2388(i), which amended subsec. (b), in par. (1)(B), by striking ‘‘sub- paragraph (C)’’ and inserting ‘‘paragraph (3)’’; in par. (1)(C), by striking ‘‘subparagraph (A)’’ and inserting ‘‘paragraph (1)’’; by redesignating pars. (1)(A), (B), (C), (D)(i), and (E) as (1), (2), (3), (4), and (5), respectively; in par. (2), by redesignating cls. (i), (ii), and (iii) as sub- pars. (A), (B), and (C), respectively; in subpars. (A) to (C) of par. (2), by redesignating subcls. (I) and (II) as cls. (i) and (ii), respectively; and in par. (5), by redesig- nating cls. (i), (ii), and (iii) as subpars. (A), (B), and (C), respectively, was repealed by Pub. L. 102–237, § 702(i). See Construction of 1990 Amendment note below. Pub. L. 101–508, § 1202(a), amended subsec. (b) gen- erally, substituting present provisions for provisions relating to maximum amounts for loans under the Ag- ricultural Credit Insurance Fund and the Rural Devel- opment Insurance Fund for fiscal years 1986 through 1988. 1985—Subsec. (b). Pub. L. 99–198, § 1317(a), amended subsec. (b) generally, substituting provisions setting maximum amounts for loans under the Agricultural Credit Insurance Fund and the Rural Development In- surance Fund for each of fiscal years ending September 30, 1986, through September 30, 1988, for provisions set- ting such amounts for each of fiscal years 1980, 1981, and 1982. Subsecs. (d), (e). Pub. L. 99–198, § 1317, struck out sub- sec. (d) which authorized special amounts for fiscal year 1982, redesignated subsec. (e) as (d), and in par. (1) substituted ‘‘25 per centum’’ for ‘‘20 per centum’’ wher- ever appearing and ‘‘each fiscal year’’ for ‘‘fiscal year 1984’’. 1984—Subsec. (e). Pub. L. 98–258 added subsec. (e). 1981—Subsec. (d). Pub. L. 97–35 added subsec. (d). 1980—Pub. L. 96–438 designated existing provisions as subsec. (a) and added subsecs. (b) and (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF 1991 AMENDMENT Amendment by section 701(h)(1)(F) of Pub. L. 102–237 to any provision specified therein effective as if in- cluded in act that added provision so specified at the time such act became law, and amendment by section 702(i) of 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 amend- ment relates, see section 1101(b)(7), (c) of Pub. L. 102–237, set out as a note under section 1421 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–508, title I, § 1301, Nov. 5, 1990, 104 Stat. 1388–12, provided that: ‘‘This title and the amendments made by this title [enacting section 940d of this title, amending this section, sections 511r, 1441–2, 1444–2, 1444f, 1445, 1445b–3a, 1445c–3, 1445j, 1446e, 1446f to 1446h, 1722, 1736, 1736a, 1783, 1999, and 5822 of this title, and sec- tion 136a of Title 21, Food and Drugs, enacting provi- sions set out as notes under sections 136w, 1421, and 1445b–3a of this title, and amending provisions set out as notes under sections 1421 and 1999 of this title] shall become effective 1 day after the date of enactment of the Food, Agriculture, Conservation, and Trade Act of 1990 [Nov. 28, 1990], or December 1, 1990, whichever is earlier.’’ Page 1160 TITLE 7—AGRICULTURE § 1995 CONSTRUCTION OF 1990 AMENDMENT Pub. L. 102–237, title VII, § 702(i), Dec. 13, 1991, 105 Stat. 1881, provided that: ‘‘Subsection (i) of section 2388 of the Food, Agriculture, Conservation, and Trade Act of 1990 (104 Stat. 4053) [Pub. L. 101–624, amending this section] is hereby repealed and the Consolidated Farm and Rural Development Act [title III of Pub. L. 87–128, see Short Title note set out under section 1921 of this title] shall be applied and administered as if the amendments made by such subsection had never been enacted.’’ NULLIFICATION OF RESERVATION OF FUNDS DURING FIS- CAL YEAR 1999 FOR GUARANTEED LOANS FOR QUALI- FIED BEGINNING FARMERS AND RANCHERS Pub. L. 106–2, § 1, Mar. 15, 1999, 113 Stat. 5, provided that: ‘‘Amounts shall be made available pursuant to section 346(b)(1)(D) of the Consolidated Farm and Rural Development Act [7 U.S.C. 1994(b)(1)(D)] for guaranteed loans, without regard to any reservation under section 346(b)(2)(B) of such Act.’’ § 1995. Participation and financial and technical assistance by other Federal departments, etc., to program participants Notwithstanding any other provision of law, other departments, agencies, and executive es- tablishments of the Federal Government may participate and provide financial and technical assistance jointly with the Secretary to any ap- plicant to whom assistance is being provided under any program administered by the Farmers Home Administration. Participation by any other department, agency, or executive estab- lishment shall be only to the extent authorized for, and subject to the authorities of, such other department, agency, or executive establishment, except that any limitation on joint participa- tion is superseded by this section. (Pub. L. 87–128, title III, § 347, as added Pub. L. 95–334, title I, § 125, Aug. 4, 1978, 92 Stat. 429.) § 1996. Loans to resident aliens Notwithstanding the provisions of this chapter limiting the making and insuring of loans to citizens of the United States, the Secretary may make and insure loans under this chapter to aliens lawfully admitted to the United States for permanent residence under the Immigration and Nationality Act [8 U.S.C. 1101 et seq.]: Pro- vided, That no loans may be made or insured under this chapter to such aliens until the Sec- retary issues regulations establishing the terms and conditions under which such aliens may re- ceive loans: Provided further, That the Secretary shall submit the regulations to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least thirty days prior to the date the regulations are published in the Federal Register. (Pub. L. 87–128, title III, § 348, as added Pub. L. 96–438, § 2(3), Oct. 13, 1980, 94 Stat. 1872.) 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. The Immigration and Nationality Act, referred to in text, is act June 27, 1952, ch. 477, 66 Stat. 163, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality. For complete classi- fication of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables. § 1997. Conservation easements (a) Definitions For purposes of this section: (1) The term ‘‘governmental entity’’ means any agency of the United States, a State, or a unit of local government of a State. (2) The terms ‘‘highly erodible land’’ and ‘‘wetland’’ have the meanings, respectively, that such terms are given in section 3801 of title 16. (3) The term ‘‘wildlife’’ means fish or wild- life as defined in section 3371 of title 16. (4) The term ‘‘recreational purposes’’ in- cludes hunting. (b) Contracts on loan security properties Subject to subsection (c), the Secretary may enter into a contract related to real property for conservation, recreation, or wildlife purposes. (c) Limitations The Secretary may enter into a contract under subsection (b) if— (1) such property is wetland, upland, or high- ly erodible land; (2) such property is determined by the Sec- retary to be suitable for the purposes involved; and (3)(A) such property secures any loan made under any law administered by the Secretary and held by the Secretary; and (B) such contract better enables a qualified borrower to repay the loan in a timely man- ner, as determined by the Secretary. (d) Terms and conditions The terms and conditions specified in each such contract shall— (1) specify the purposes for which such real property may be used; (2) identify the conservation measures to be taken, and the recreational and wildlife uses to be allowed, with respect to such real prop- erty; and (3) require such owner to permit the Sec- retary, and any person or governmental entity designated by the Secretary, to have access to such real property for the purpose of moni- toring compliance with such contract. (e) Purchase; limitation upon cancellation or prepayment (1) Subject to paragraph (2), the Secretary may reduce or forgive the outstanding debt of a borrower— (A) in the case of a borrower to whom the Secretary has made one or more outstanding loans under laws administered by the Sec- retary, by canceling that part of the aggregate amount of such outstanding loans that bears the same ratio to such aggregate amount as the number of acres of the real property of the borrower that are subject to the contract bears to the aggregate number of acres secur- ing such loans; or