7 U.S.C. § 912 — Extension of time for repayment of loans

Page 524 TITLE 7—AGRICULTURE § 911a carrying vehicles; and printing and binding) as are appropriate and necessary to carry out the provisions of this chapter. (May 20, 1936, ch. 432, title I, § 11, 49 Stat. 1366; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.) Editorial Notes CODIFICATION Provisions which authorized the appointment and fix- ing of compensation of attorneys, engineers, and ex- perts ‘‘without regard to the provisions of the civil service laws applicable to officers and employees of the United States’’ were omitted from the Code as obsolete and superseded. Such appointments are now subject to the civil service laws unless specifically excepted by those laws or by laws enacted subsequent to Executive Order 8743, Apr. 23, 1941, issued by the President pursu- ant to act Nov. 26, 1940, ch. 919, title I, § 1, 54 Stat. 1211, which covered most excepted positions into the classi- fied (competitive) civil service. The Order is set out as a note under section 3301 of Title 5, Government Orga- nization and Employees. As to the compensation of such personnel, sections 1202 and 1204 of the Classifica- tion Act of 1949, 63 Stat. 972, 973, repealed the Classi- fication Act of 1923 and all other laws or parts of laws inconsistent with the 1949 Act. The Classification Act of 1949 was repealed by Pub. L. 89–554, Sept. 6, 1966, § 8(a), 80 Stat. 632, and reenacted as chapter 51 and sub- chapter III of chapter 53 of Title 5. Section 5102 of Title 5 now contains the applicability provisions of the 1949 Act, and section 5103 of Title 5 authorizes the Office of Personnel Management to determine the applicability to specific positions and employees. AMENDMENTS 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’ in two places. 1949—Act Oct. 28, 1949, inserted ‘‘title I,’’ in credit of act May 20, 1936. § 911a. Repealed. Pub. L. 103–354, title II, § 235(a)(5), Oct. 13, 1994, 108 Stat. 3221 Section, act May 20, 1936, ch. 432, title I, § 11A, as added Nov. 28, 1990, Pub. L. 101–624, title XXIII, § 2350, 104 Stat. 4037; amended Dec. 13, 1991, Pub. L. 102–237, title VII, § 703(a), 105 Stat. 1881, related to Assistant Ad- ministrator for Economic Development. § 912. Extension of time for repayment of loans (a) In general The Secretary is authorized and empowered to extend the time of payment of interest or prin- cipal of any loans made by the Secretary pursu- ant to this chapter, except that, with respect to any loan made under section 904 or 922 of this title, the payment of interest or principal shall not be extended more than five years after such payment shall have become due. (b) Terms of deferment (1) Subject to limitations established in appro- priations Acts, the Secretary shall permit any borrower to defer the payment of principal and interest on any insured or direct loan made under this chapter under circumstances de- scribed in this subsection, notwithstanding any limitation contained in subsection (a), except that such deferment shall not be permitted based on the determination of the Secretary of the financial hardship of the borrower. (2)(A) In the case of deferments made to enable the borrower to provide financing to local busi- nesses, the deferment shall be repaid in equal in- stallments, without the accrual of interest, over the 60-month period beginning on the date of the deferment, and the total amount of such pay- ments shall be equal to the amount of the pay- ment deferred. (B) In the case of deferments made to enable the borrower to provide community develop- ment assistance, technical assistance to busi- nesses, and for other community, business, or economic development projects not included under subparagraph (A), the deferment shall be repaid in equal installments, without the ac- crual of interest, over the 120-month period be- ginning on the date of the deferment, and the total amount of such payments shall be equal to the amount of the payment deferred. (3)(A) A borrower may defer its debt service payments only in an amount equal to an invest- ment made by such borrower as described in paragraph (2). (B) The amount of the deferment shall not ex- ceed 50 percent of the total cost of a community or economic development project for which a deferment is provided under this subsection. (C) The total amount of deferments under this subsection during each of the fiscal years 1990 through 1993 shall not exceed 3 percent of the total payments due during such fiscal year from all borrowers on direct and insured loans made under this chapter and shall not exceed 5 per- cent of such total payments due in each subse- quent fiscal year. (D) At the time of a deferment, the borrower shall make a payment to a cushion of credit ac- count established and maintained pursuant to section 940c of this title in an amount equal to the amount of the payment deferred. The bal- ance of such account shall not be reduced by the borrower below the level of the unpaid balance of the payment deferred. Subject to limitations established in annual appropriations Acts, such cushion of credit amounts and any other cushion of credit and advance payments of any borrower shall be included in the interest differential cal- culation under section 940c(b)(2) of this title. (4) The Secretary shall undertake all reason- able efforts to permit the full amount of deferments authorized by this subsection during each fiscal year. (c) Deferment of payments on loans (1) In general The Secretary shall allow borrowers to defer payment of principal and interest on any di- rect loan made under this chapter to enable the borrower to make loans to residential, commercial, and industrial consumers— (A) to conduct energy efficiency and use audits; and (B) to install energy efficient measures or devices that reduce the demand on electric systems. (2) Amount The total amount of a deferment under this subsection shall not exceed the sum of the principal and interest on the loans made to a customer of the borrower, as determined by the Secretary. (3) Term The term of a deferment under this sub- section shall not exceed 60 months. Page 525 TITLE 7—AGRICULTURE § 913 (May 20, 1936, ch. 432, title I, § 12, 49 Stat. 1366; Oct. 28, 1949, ch. 776, §§ 2, 4(f), 63 Stat. 948; Pub. L. 101–624, title XXIII, § 2344, Nov. 28, 1990, 104 Stat. 4028; Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 104–127, title VII, § 774(b), Apr. 4, 1996, 110 Stat. 1150; Pub. L. 110–234, title VI, § 6103, May 22, 2008, 122 Stat. 1195; Pub. L. 110–246, § 4(a), title VI, § 6103, June 18, 2008, 122 Stat. 1664, 1956; Pub. L. 115–334, title VI, § 6504(a), Dec. 20, 2018, 132 Stat. 4773.) 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. (b)(3)(D). Pub. L. 115–334 substituted ‘‘940c(b)(2) of this title’’ for ‘‘940c(b)(2)(A) of this title’’. 2008—Subsec. (c). Pub. L. 110–246, § 6103, added subsec. (c). 1996—Subsec. (a). Pub. L. 104–127 substituted ‘‘, except that, with respect to any loan’’ for ‘‘: Provided, however, That with respect to any loan’’ and struck out ‘‘, and with respect to any loan made under section 905 of this title, the payment of principal or interest shall not be extended more than two years after such payment shall have become due: And pro- vided further, That the provisions of this section shall not apply to any obligations or the security therefor which may be held by the Reconstruction Finance Cor- poration under the provisions of section 903 of this title’’ after ‘‘such payment shall have become due’’. 1994—Subsecs. (a), (b)(1), (4). Pub. L. 103–354 sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever ap- pearing. 1990—Pub. L. 101–624 designated existing provisions as subsec. (a) and added subsec. (b). 1949—Act Oct. 28, 1949, inserted ‘‘or section 922’’ after ‘‘904’’ in first proviso, and inserted ‘‘title I,’’ in credit of act May 20, 1936. 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. § 912a. Rescheduling and refinancing of loans In addition to the loan extension authority provided in section 912 of this title, the Sec- retary of Agriculture is authorized to adjust and readjust the schedules for payment of principal and interest on loans to borrowers under pro- grams administered by the Secretary under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), and to extend the maturity date of any such loan to a date not beyond forty years from the date of such loan where he determines such action is necessary because of the impairment of the economic feasibility of the system, or the loss, destruction, or damage of the property of such borrowers as a result of a major disaster. (Pub. L. 91–606, title II, § 236(a), Dec. 31, 1970, 84 Stat. 1754; Pub. L. 103–354, title II, § 235(b)(1), Oct. 13, 1994, 108 Stat. 3221.) Editorial Notes REFERENCES IN TEXT The Rural Electrification Act of 1936, referred to in text, is act May 20, 1936, ch. 432, 49 Stat. 1363, which is classified generally to this chapter. For complete clas- sification of this Act to the Code, see section 901 of this title and Tables. CODIFICATION Section was enacted as part of the Disaster Relief Act of 1970, and not as part of the Rural Electrification Act of 1936 which constitutes this chapter. Section was for- merly classified to section 4455(a) of Title 42, The Pub- lic Health and Welfare. AMENDMENTS 1994—Pub. L. 103–354 substituted ‘‘Secretary under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.)’’ for ‘‘Rural Electrification Administration’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Dec. 31, 1970, see section 304 of Pub. L. 91–606, set out as an Effective Date of 1970 Amend- ment note under section 165 of Title 26, Internal Rev- enue Code. § 913. Definitions In this chapter: (1) Farm The term ‘‘farm’’ means a farm, as defined by the Bureau of the Census. (2) Indian tribe The term ‘‘Indian tribe’’ has the meaning given the term in section 5304 of title 25. (3) Rural area Except as provided otherwise in this chap- ter, the term ‘‘rural area’’ means the farm and nonfarm population of— (A) any area described in section 1991(a)(13)(C) of this title; and (B) any area within a service area of a bor- rower for which a borrower has an out- standing loan made under subchapters I through V as of the date of enactment of this paragraph. (4) Territory The term ‘‘territory’’ includes any insular possession of the United States. (5) Secretary The term ‘‘Secretary’’ means the Secretary of Agriculture. (May 20, 1936, ch. 432, title I, § 13, 49 Stat. 1367; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948; Pub. L. 103–129, § 2(c)(3), Nov. 1, 1993, 107 Stat. 1363; Pub. L. 103–354, title II, § 235(a)(6), Oct. 13, 1994, 108 Stat. 3221; Pub. L. 110–234, title VI, § 6104, May 22, 2008, 122 Stat. 1195; Pub. L. 110–246, § 4(a), title VI, § 6104, June 18, 2008, 122 Stat. 1664, 1957.) Editorial Notes REFERENCES IN TEXT The date of enactment of this paragraph, referred to in par. (3)(B), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub.