7 U.S.C. § 1981b — Farm loan interest rates

Page 1127 TITLE 7—AGRICULTURE § 1981d PRIOR PROVISIONS Provisions similar to those in this section were con- tained in the following appropriation acts: Pub. L. 102–341, title III, Aug. 14, 1992, 106 Stat. 897. Pub. L. 102–142, title III, Oct. 28, 1991, 105 Stat. 902. Pub. L. 101–506, title II, Nov. 5, 1990, 104 Stat. 1333. Pub. L. 101–161, title II, Nov. 21, 1989, 103 Stat. 969. Pub. L. 100–460, title II, Oct. 1, 1988, 102 Stat. 2246. Pub. L. 100–202, § 101(k) [title II], Dec. 22, 1987, 101 Stat. 1329–322, 1329–340. Pub. L. 99–500, § 101(a) [title II], Oct. 18, 1986, 100 Stat. 1783, 1783–16, and Pub. L. 99–591, § 101(a) [title II], Oct. 30, 1986, 100 Stat. 3341, 3341–16. Pub. L. 99–190, § 101(a) [H.R. 3037, title II], Dec. 19, 1985, 99 Stat. 1185; Pub. L. 100–202, § 106, Dec. 22, 1987, 101 Stat. 1329–433. Pub. L. 97–370, title II, Dec. 18, 1982, 96 Stat. 1800. AMENDMENTS 2008—Pub. L. 110–246, § 14002(a), designated existing provisions as subsec. (a) and added subsec. (b). 1990—Pub. L. 101–624 inserted ‘‘or by the Rural Devel- opment Administration’’ after ‘‘Farmers Home Admin- istration’’. 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. FORBEARANCE AND RESTRUCTURING FOR FARM LOANS Pub. L. 100–387, title III, § 313(a), Aug. 11, 1988, 102 Stat. 949, provided that: ‘‘It is the sense of Congress that the Secretary of Agriculture should, with respect to farmers and ranchers who suffer major losses due to drought, hail, excessive moisture, or related condition in 1988— ‘‘(1) exercise forbearance in the collection of inter- est and principal on direct farmer program loans under the Consolidated Farm and Rural Development Act [7 U.S.C. 1921 et seq.] outstanding for such farm- ers and ranchers; ‘‘(2) expedite the use of credit restructuring and other credit relief mechanisms authorized under the Agricultural Credit Act of 1987 [Pub. L. 100–233, Jan. 6, 1988, 101 Stat. 1568, see Tables for classification] and similar provisions of law for such farmers and ranchers; and ‘‘(3) encourage commercial lenders participating in guaranteed farmer lending programs under the Con- solidated Farm and Rural Development Act to exer- cise forbearance before declaring loans to such farm- ers and ranchers under such programs in default.’’ § 1981b. Farm loan interest rates Any loan for farm ownership purposes under subchapter I of this chapter, farm operating pur- poses under subchapter II of this chapter, or dis- aster emergency purposes under subchapter III of this chapter, other than a guaranteed loan, that is deferred, consolidated, rescheduled, or reamortized under this chapter shall, notwith- standing any other provision of this chapter, bear interest on the balance of the original loan and for the term of the original loan at a rate that is the lowest of— (1) the rate of interest on the original loan; (2) the rate being charged by the Secretary for loans, other than guaranteed loans, of the same type at the time at which the borrower applies for a deferral, consolidation, resched- uling, or reamortization; or (3) the rate being charged by the Secretary for loans, other than guaranteed loans, of the same type at the time of the deferral, consoli- dation, rescheduling, or reamortization. (Pub. L. 87–128, title III, § 331B, as added Pub. L. 98–258, title VI, § 605, Apr. 10, 1984, 98 Stat. 139; amended Pub. L. 107–171, title V, § 5305, May 13, 2002, 116 Stat. 345.) 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. AMENDMENTS 2002—Pub. L. 107–171 substituted ‘‘lowest of—’’ for ‘‘lower of’’, realigned margins for pars., substituted ‘‘original loan;’’ for ‘‘original loan or (2) the’’, added par. (2), and redesignated former par. (2) as (3). Statutory Notes and Related Subsidiaries ADJUSTMENT OF INTEREST RATES Pub. L. 100–71, title I, July 11, 1987, 101 Stat. 428, pro- vided that: ‘‘The Secretary may adjust interest rates on existing nonsubsidized loans if he determines such interest rates are excessive in relation to prevailing commercial rates for comparable loans: Provided, That such rate adjustments shall constitute a change in the loan agreement and not a new loan.’’ § 1981c. Oil and gas royalty payments on loans (a) The Secretary shall permit a borrower of a loan made or insured under this chapter to make a prospective payment on such loan with proceeds from— (1) the leasing of oil, gas, or other mineral rights to real property used to secure such loan; or (2) the sale of oil, gas, or other minerals re- moved from real property used to secure such loan, if the value of the rights to such oil, gas, or other minerals has not been used to secure such loan. (b) Subsection (a) shall not apply to a bor- rower of a loan made or insured under this chap- ter with respect to which a liquidation or fore- closure proceeding is pending on December 23, 1985. (Pub. L. 87–128, title III, § 331C, as added Pub. L. 99–198, title XIII, § 1310(a), Dec. 23, 1985, 99 Stat. 1523.) 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. § 1981d. Notice of loan service programs (a) Requirement The Secretary shall provide notice by certified mail to each borrower who is at least 90 days