7 U.S.C. § 1925 — Limitations on amount of farm ownership

Page 1063 TITLE 7—AGRICULTURE § 1926 amendment relates, see section 1101(b)(3) of Pub. L. 102–237, set out as a note under section 1421 of this title. § 1925. Limitations on amount of farm ownership loans (a) In general The Secretary shall make or insure no loan under sections 1922, 1923, 1924, 1934, and 1935 of this title that would cause the unpaid indebted- ness under such sections of any one borrower to exceed the smaller of (1) the value of the farm or other security, or (2) in the case of a loan other than a loan guaranteed by the Secretary, $600,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary). (b) Determination of value In determining the value of the farm, the Sec- retary shall consider appraisals made by com- petent appraisers under rules established by the Secretary. (c) Inflation percentage For purposes of this section, the inflation per- centage applicable to a fiscal year is the per- centage (if any) by which— (1) the average of the Prices Paid By Farm- ers Index (as compiled by the National Agri- cultural Statistics Service of the Department of Agriculture) for the 12-month period ending on July 31 of the immediately preceding fiscal year; exceeds (2) the average of such index (as so defined) for the 12-month period that immediately pre- cedes the 12-month period described in para- graph (1). (Pub. L. 87–128, title III, § 305, Aug. 8, 1961, 75 Stat. 308; Pub. L. 91–620, § 1, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92–419, title I, § 103, Aug. 30, 1972, 86 Stat. 658; Pub. L. 91–524, title VIII, § 807, as added Pub. L. 93–86, § 1(27)(B), Aug. 10, 1973, 87 Stat. 237; Pub. L. 95–334, title I, § 103, Aug. 4, 1978, 92 Stat. 421; Pub. L. 102–554, § 3, Oct. 28, 1992, 106 Stat. 4142; Pub. L. 105–277, div. A, § 101(a) [title VIII, § 806(a)], Oct. 21, 1998, 112 Stat. 2681, 2681–39; Pub. L. 110–234, title V, § 5003, May 22, 2008, 122 Stat. 1144; Pub. L. 110–246, § 4(a), title V, § 5003, June 18, 2008, 122 Stat. 1664, 1905; Pub. L. 115–334, title V, § 5103, Dec. 20, 2018, 132 Stat. 4669.) Editorial Notes 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)(2). Pub. L. 115–334, § 5103(1), sub- stituted ‘‘$600,000’’ for ‘‘$300,000’’, ‘‘$1,750,000’’ for ‘‘$700,000’’, and ‘‘2019’’ for ‘‘2000’’. Subsec. (c)(1). Pub. L. 115–334, § 5103(2)(A), substituted ‘‘July’’ for ‘‘August’’. Subsec. (c)(2). Pub. L. 115–334, § 5103(2)(B), substituted ‘‘that immediately precedes the 12-month period de- scribed in paragraph (1)’’ for ‘‘ending on August 31, 1996’’. 2008—Subsec. (a)(2). Pub. L. 110–246, § 5003, substituted ‘‘$300,000’’ for ‘‘$200,000’’. 1998—Pub. L. 105–277 inserted section catchline, des- ignated first sentence as subsec. (a), inserted heading, and substituted ‘‘$700,000 (increased, beginning with fis- cal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and re- duced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaran- teed by the Secretary)’’ for ‘‘$300,000’’, designated sec- ond sentence as subsec. (b) and inserted heading, and added subsec. (c). 1992—Pub. L. 102–554 inserted reference to section 1935 of this title. 1978—Pub. L. 95–334 substituted provisions setting forth requirements for loans under sections 1922, 1923, 1924, and 1934 of this title for provisions setting forth requirements for loans under sections 1922, 1923, and 1924 of this title. 1973—Pub. L. 91–524, § 807, as added by Pub. L. 93–86, substituted ‘‘$225,000’’ for ‘‘$100,000’’ in cl. (a), added cl. (b), and redesignated former cl. (b) as (c). 1972—Pub. L. 92–419 struck out ‘‘normal’’ before ‘‘value’’ in first and second sentences and before ‘‘mar- ket value’’ in last sentence. 1970—Pub. L. 91–620 substituted ‘‘$100,000’’ for ‘‘$60,000’’. 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. § 1926. Water and waste facility loans and grants (a) In general (1) The Secretary is also authorized to make or insure loans to associations, including cor- porations not operated for profit, Indian tribes on Federal and State reservations and other fed- erally recognized Indian tribes, and public and quasi-public agencies to provide for the applica- tion or establishment of soil conservation prac- tices, shifts in land use, the conservation, devel- opment, use, and control of water, and the in- stallation or improvement of drainage or waste disposal facilities, recreational developments, and essential community facilities including necessary related equipment, all primarily serv- ing farmers, ranchers, farm tenants, farm labor- ers, rural businesses, and other rural residents, and to furnish financial assistance or other aid in planning projects for such purposes. The Sec- retary may also make or insure loans to com- munities that have been designated as rural em- powerment zones or rural enterprise commu- nities pursuant to part I of subchapter U of chapter 1 of title 26, or as rural enterprise com- munities pursuant to section 766 of the Agri- culture, Rural Development, Food and Drug Ad- ministration, and Related Agencies Appropria- tions Act, 1999 (Public Law 105–277; 112 Stat. 2681, 2681–37), to provide for the installation or improvement of essential community facilities including necessary related equipment, and to furnish financial assistance or other aid in plan- ning projects for such purposes. The Secretary may also make loans to any borrower to whom a loan has been made under the Rural Elec-