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7 U.S.C. § 6944 — Rural Business and Cooperative Develop-
Federal law — U.S. Code and appendices · legal_authorities
Page 1938
TITLE 7—AGRICULTURE
§ 6944
1 See References in Text note below.
1 See References in Text note below.
Code, see Short Title note set out under section 1441 of
Title 42 and Tables.
AMENDMENTS
1996—Subsec. (b)(2), (3). Pub. L. 104–127 redesignated
par. (3) as (2), substituted ‘‘section 2008d of this title’’
for ‘‘sections 2008 through 2008d of this title’’, and
struck out former par. (2) which read as follows: ‘‘Pro-
grams and activities authorized under section 1932(i) of
this title and related provisions of law.’’
§ 6944. Rural Business and Cooperative Develop-
ment Service
(a) Establishment authorized
Notwithstanding any other provision of law,
the Secretary is authorized to establish and
maintain within the Department the Rural Busi-
ness and Cooperative Development Service and
to assign to the Service such functions as the
Secretary considers appropriate.
(b) Functions
If the Secretary establishes the Rural Busi-
ness
and
Cooperative
Development
Service
under subsection (a), the Secretary is authorized
to assign to the Service jurisdiction over the fol-
lowing:
(1) Section 313 and title V of the Rural Elec-
trification Act of 1936 (7 U.S.C. 940c and 950aa
et seq.).
(2) Subtitle G 1 of title XVI of the Food, Ag-
riculture, Conservation, and Trade Act of 1990.
(3) Sections 306(a)(1) and 310B of the Consoli-
dated Farm and Rural Development Act (7
U.S.C. 1926(a)(1) and 1932).
(4) Section 1323 of the Food Security Act of
1985 (Public Law 99–198; 7 U.S.C. 1932 note).
(5) The Act of July 2, 1926 (44 Stat. 802, chap-
ter 725; 7 U.S.C. 451 et seq.).
(Pub. L. 103–354, title II, § 234, Oct. 13, 1994, 108
Stat. 3220.)
Editorial Notes
REFERENCES IN TEXT
The Rural Electrification Act of 1936, referred to in
subsec. (b)(1), is act May 2
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Page 1938
TITLE 7—AGRICULTURE
§ 6944
1 See References in Text note below.
1 See References in Text note below.
Code, see Short Title note set out under section 1441 of
Title 42 and Tables.
AMENDMENTS
1996—Subsec. (b)(2), (3). Pub. L. 104–127 redesignated
par. (3) as (2), substituted ‘‘section 2008d of this title’’
for ‘‘sections 2008 through 2008d of this title’’, and
struck out former par. (2) which read as follows: ‘‘Pro-
grams and activities authorized under section 1932(i) of
this title and related provisions of law.’’
§ 6944. Rural Business and Cooperative Develop-
ment Service
(a) Establishment authorized
Notwithstanding any other provision of law,
the Secretary is authorized to establish and
maintain within the Department the Rural Busi-
ness and Cooperative Development Service and
to assign to the Service such functions as the
Secretary considers appropriate.
(b) Functions
If the Secretary establishes the Rural Busi-
ness
and
Cooperative
Development
Service
under subsection (a), the Secretary is authorized
to assign to the Service jurisdiction over the fol-
lowing:
(1) Section 313 and title V of the Rural Elec-
trification Act of 1936 (7 U.S.C. 940c and 950aa
et seq.).
(2) Subtitle G 1 of title XVI of the Food, Ag-
riculture, Conservation, and Trade Act of 1990.
(3) Sections 306(a)(1) and 310B of the Consoli-
dated Farm and Rural Development Act (7
U.S.C. 1926(a)(1) and 1932).
(4) Section 1323 of the Food Security Act of
1985 (Public Law 99–198; 7 U.S.C. 1932 note).
(5) The Act of July 2, 1926 (44 Stat. 802, chap-
ter 725; 7 U.S.C. 451 et seq.).
(Pub. L. 103–354, title II, § 234, Oct. 13, 1994, 108
Stat. 3220.)
Editorial Notes
REFERENCES IN TEXT
The Rural Electrification Act of 1936, referred to in
subsec. (b)(1), is act May 20, 1936, ch. 432, 49 Stat. 1363.
Title V of the Act is classified generally to subchapter
V (§ 950aa et seq.) of chapter 31 of this title. For com-
plete classification of this Act to the Code, see section
901 of this title and Tables.
The Food, Agriculture, Conservation, and Trade Act
of 1990, referred to in subsec. (b)(2), is Pub. L. 101–624,
Nov. 28, 1990, 104 Stat. 3359, as amended. Subtitle G of
title XVI of the Act, known as the Alternative Agricul-
tural Research and Commercialization Act of 1990, was
classified generally to subchapter VI (§ 5901 et seq.) of
chapter 88 of this title prior to repeal by Pub. L.
107–171, title VI, § 6201(a), May 13, 2002, 116 Stat. 418. For
complete classification of this Act to the Code, see
Short Title of 1990 Amendments note set out under sec-
tion 1421 of this title and Tables.
Act of July 2, 1926, referred to in subsec. (b)(5), is act
July 2, 1926, ch. 725, 44 Stat. 802, which is classified gen-
erally to chapter 18 (§ 451 et seq.) of this title. For com-
plete classification of this Act to the Code, see Tables.
§ 6945. Rural Development Disaster Assistance
Fund
(a) Rural Development Disaster Assistance Fund
On and after September 30, 2008, there is estab-
lished in the Treasury a fund entitled the
‘‘Rural Development Disaster Assistance Fund’’.
(b) Purpose and availability of Fund
Subject to subsection (d), amounts in the
Rural Development Disaster Assistance Fund
shall be available to the Secretary of Agri-
culture, until expended, to provide additional
amounts, in the form of loans, grants, loan guar-
antees, or cooperative agreements, for any au-
thorized activity of agencies of the Rural Devel-
opment Mission Area in areas affected by a dis-
aster declared by the President, the Secretary of
Agriculture, or the Governor of a State or Terri-
tory. The cost of such direct and guaranteed
loans, including the cost of modifying loans,
shall be as defined in section 661a of title 2.
Amounts so provided shall be in addition to any
other amounts available to carry out the activ-
ity, but shall not be limited to the original form
of assistance, if any. In carrying out this sec-
tion, the Secretary may transfer funds into ex-
isting or new accounts as determined by the
Secretary.
(c) Waiver of activity or project limitations
For any activity or project for which amounts
in the Rural Development Disaster Assistance
Fund will be obligated under subsection (b)—
(1) the Secretary of Agriculture may waive
any limits on population, income, age, and du-
plication with respect to replacement of dam-
aged or destroyed utilities, or cost-sharing
otherwise applicable, except that, if the
amounts proposed to be obligated in connec-
tion with the disaster would exceed the
amount specified in subsection (h), the notifi-
cation required by that subsection shall in-
clude information and justification with re-
gard to any waivers to be granted under this
subsection;
(2) the Secretary of Agriculture may use al-
ternative sources of income data provided by
local, regional, State, or Federal government
sources to determine program eligibility; and
(3) with respect to grants authorized by 7
U.S.C. 1926(a)(19),1
the Secretary of Agri-
culture shall not require the applicant to dem-
onstrate that it is unable to finance the pro-
posed project from its own resources, or
through commercial credit at reasonable rates
and terms, or other funding sources without
grant assistance.
(d) Treatment of certain amounts in Fund
Amounts appropriated directly to the Rural
Development Disaster Assistance Fund by this
Act or any subsequent Act for a specific purpose
shall be available only for that purpose until
such time as the transfer authority provided by
subsection (f) takes effect with regard to the
amounts. Only subsection (c), including the no-
tification requirements of such subsection, and
subsections (g) and (i) apply to amounts de-
scribed in this subsection.
(e) Transfer of prior appropriations to Fund
The Secretary of Agriculture may transfer to
the Rural Development Disaster Assistance
Fund, and merge with other amounts generally
appropriated to the Fund, the available unobli-
gated balance of any amounts that were appro-
priated before September 30, 2008, for programs
Cross-references
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Federal law — U.S. Code and appendices · legal_authorities
**(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 indebtedness 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 Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.
**(c) Inflation percentage** For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—
(1) the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural 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 precedes the 12-month period described in paragraph (1).
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1926
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Federal law — U.S. Code and appendices · legal_authorities
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, A
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 1926
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
Section, Pub. L. 87–128, title III, § 310A, as added Pub. L. 92–419, title I, § 117, Aug. 30, 1972, 86 Stat. 663, related to insured watershed and resource conservation and development loans.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1932
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Federal law — U.S. Code and appendices · legal_authorities
Page 1089
TITLE 7—AGRICULTURE
§ 1932
‘‘(A) AUTHORITY.—The Secretary of Agriculture
shall determine, in accordance with subparagraph
(B), the price at which a note or other obligation
shall be offered for sale under this subsection.
‘‘(B) PRICE.—Such price shall be determined by
discounting the payment stream of such note or
other obligation at the yield on the then most re-
cent sale of the portfolio, adjusted for changes in
market interest rates, servicing and sales expenses,
and the maturity and interest rate of such note.
‘‘(3) PROHIBITIONS.—
‘‘(A) PURCHASE OF OBLIGATION NOT TIED TO PUR-
CHASE OF OTHER OBLIGATIONS.—The Secretary of Ag-
riculture shall not require the issuer of any unsold
note or other obligation to be offered for sale under
this subsection to purchase any other such note or
other obligation as a condition of the sale of any
such note or other obligation to the issuer.
‘‘(B) OFFER TO BE MADE WITHOUT REGARD TO FI-
NANCING.—The Secretary shall offer notes or other
obligations for sale to the issuers thereof under this
subsection without regard to the manner in which
such issuers intend to finance the purchase of such
notes or other obligations. However, the price of
sale to any issuer using tax exempt financing shall
be determined using a yield reflective of the Sched-
ule of Certified Interest Rates as published monthly
by the Secretary of the Treasury.
‘‘(g) APPLICABILITY OF PROHIBITION ON CURTAILMENT
OR LIMITATION OF SERVICE.—Section 306(b) of the Con-
solidated Farm and Rural Development Act (7 U.S.C.
1926(b)) shall be applicable to all notes or other obliga-
tions sold or intended to be sold under this section.
‘‘(h)(1) Notwithstanding the provisions of section 633
of the Rural Development, Agriculture, and Related
Agenci
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 1932
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Federal law — U.S. Code and appendices · legal_authorities
When used in this chapter the term “agricultural products” means agricultural, horticultural, viticultural, and dairy products, livestock and the products thereof, the products of poultry and bee raising, the edible products of forestry, and any and all products raised or produced on farms and processed or manufactured products thereof, transported or intended to be transported in interstate and/or foreign commerce.
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 451
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Federal law — U.S. Code and appendices · legal_authorities
Page 407
TITLE 7—AGRICULTURE
§ 452
Section was formerly classified to sections 67 and 564
of Title 5 prior to the general revision and enactment
of Title 5, Government Organization and Employees, by
Pub. L. 89–554, § 1, Sept. 6, 1966, 80 Stat. 378.
§ 450i. Transferred
Editorial Notes
CODIFICATION
Section 450i was editorially reclassified as section
3157 of this title.
§ 450j. Transferred
Editorial Notes
CODIFICATION
Section 450j was editorially reclassified as section
4551 of this title.
§ 450k. Transferred
Editorial Notes
CODIFICATION
Section 450k was editorially reclassified as section
4552 of this title.
§ 450l. Transferred
Editorial Notes
CODIFICATION
Section 450l was editorially reclassified as section
4553 of this title.
CHAPTER 18—COOPERATIVE MARKETING
Sec.
451.
‘‘Agricultural products’’ defined.
452.
Supervision of division of cooperative mar-
keting.
453.
Authority and duties of division.
454.
Advisers to counsel with Secretary of Agri-
culture; expenses and subsistence.
455.
Dissemination of crop, market, etc., informa-
tion by cooperative marketing associations.
456.
Rules and regulations; appointment, removal,
and compensation of employees; expendi-
tures; authorization of appropriations.
457.
Separability.
§ 451. ‘‘Agricultural products’’ defined
When used in this chapter the term ‘‘agricul-
tural
products’’
means
agricultural,
horti-
cultural, viticultural, and dairy products, live-
stock and the products thereof, the products of
poultry and bee raising, the edible products of
forestry, and any and all products raised or pro-
duced on farms and processed or manufactured
products thereof, transported or intended to be
transported in interstate and/or foreign com-
merce.
(July 2, 1926, ch. 725, § 1, 44 Stat. 802.
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 451
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment required** The Secretary shall establish and maintain within the Department the Rural Utilities Service and assign to the Service such functions as the Secretary considers appropriate.
**(b) Administrator**
(1) **Appointment** — The Rural Utilities Service shall be headed by an Administrator who shall be appointed by the President.
(2) **Compensation** — The Administrator of the Rural Utilities Service shall receive basic pay at a rate not to exceed the maximum amount of compensation payable to a member of the Senior Executive Service under subsection (b) of [section 5382 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5382&num=0&edition=prelim).
**(c) Functions** The Secretary shall carry out through the Rural Utilities Service the following functions that are under the jurisdiction of the Department:
(1) Electric and telephone loan programs and water and waste facility activities authorized by law, including—
(A) the Rural Electrification Act of 1936 ([7 U.S.C. 901](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section901&num=0&edition=prelim) et seq.); and
(B) section 1926–1 11 See References in Text note below. of this title; and
(2) Water and waste facility programs and activities authorized by law, including—
(A) sections 1926, 1926a, 1926b,1 and 1926c of this title, the provisions of sections 1929 and 1929a of this title relating to assets, terms, and conditions of water and sewer programs, [section 1932(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1932/b&num=0&edition=prelim), and [section 1013a of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1013a&num=0&edition=prelim); and
(
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment**
(1) **In general**
(A) *Development and promotion of program* — The Secretary shall develop and promote a program to encourage borrowers to voluntarily make deposits into cushion of credit accounts established within the Rural Electrification and Telephone Revolving Fund.
(B) *Termination* — Effective on December 20, 2018, no deposits may be made under subparagraph (A).
(2) **Interest**
(A) *In general* — Amounts in each cushion of credit account shall accrue interest to the borrower at a rate of 5 percent per annum.
(B) *Reduction* — Notwithstanding subparagraph (A), amounts in each cushion of credit account shall accrue interest to the borrower at a rate equal to—
(i) 4 percent per annum in fiscal year 2021; and
(ii) the then applicable 1-year Treasury rate thereafter.
(3) **Balance**
(A) *In general* — A borrower may reduce the balance of its cushion of credit account only if the amount obtained from the reduction is used to make scheduled payments on loans made or guaranteed under this chapter.
(B) *Prepayment* — Notwithstanding subparagraph (A) and subject to subparagraph (C), beginning on December 20, 2018, and ending with September 30, 2020, a borrower may, at the sole discretion of the borrower, reduce the balance of its cushion of credit account if the amount obtained from the reduction is used to prepay loans made or guaranteed under this chapter.
(C) *No prepayment premium* — Notwithstanding any other provision of this chapter, no prepayment premium shall be imposed or collected with respect to that portion of a loan that is prepaid by a borrower in accordance with subparagraph (B).
(D) *Mandatory funding* — Notwithstanding [section 661c of title 2](https://uscode.house.gov/view.xhtml?req=granuleid:US
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 940c
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Federal law — U.S. Code and appendices · legal_authorities
Page 546
TITLE 7—AGRICULTURE
§ 940a
amended Pub. L. 103–354, title II, § 235(a)(13), Oct.
13, 1994, 108 Stat. 3221.)
Editorial Notes
REFERENCES IN TEXT
The Consolidated Farm and Rural Development Act,
referred to in text, is title III of Pub. L. 87–128, Aug. 8,
1961, 75 Stat. 307, which is classified principally to chap-
ter 50 (§ 1921 et seq.) of this title. For complete classi-
fication of the Act to the Code, see Short Title note set
out under section 1921 of this title and Tables.
AMENDMENTS
1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad-
ministrator’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective May 11, 1973, see section 12 of Pub.
L. 93–32, set out as a note under section 930 of this title.
§ 940a. Repealed. Pub. L. 104–127, title VII, § 780,
Apr. 4, 1996, 110 Stat. 1151
Section, act May 20, 1936, ch. 432, title III, § 311, as
added Oct. 18, 1986, Pub. L. 99–500, § 101(m) [title VI,
§ 623], 100 Stat. 1783–308, 1783–333, and Oct. 30, 1986, Pub.
L. 99–591, § 101(m) [title VI, § 623], 100 Stat. 3341–308,
3341–333; amended Oct. 13, 1994, Pub. L. 103–354, title II,
§ 235(a)(7), (13), 108 Stat. 3221, related to privatization
demonstration program.
§ 940b. Use of funds
A borrower of an insured or guaranteed elec-
tric loan under this chapter may, without re-
striction or prior approval of the Secretary, in-
vest its own funds or make loans or guarantees,
not in excess of 15 percent of its total utility
plant.
(May 20, 1936, ch. 432, title III, § 312, as added
Pub. L. 100–203, title I, § 1402, Dec. 22, 1987, 101
Stat. 1330–21; amended Pub. L. 103–354, title II,
§ 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)
Editorial Notes
AMENDMENTS
1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad-
ministrator’’.
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 940c
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