7 U.S.C. § 1944 — Soil conservation district loans; limita-

Page 1111 TITLE 7—AGRICULTURE § 1946 1 See References in Text note below. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–334, § 5201(1), sub- stituted ‘‘$400,000’’ for ‘‘$300,000’’, ‘‘$1,750,000’’ for ‘‘$700,000’’, and ‘‘2019’’ for ‘‘2000’’. Subsec. (b)(1). Pub. L. 115–334, § 5201(2)(A), substituted ‘‘July’’ for ‘‘August’’. Subsec. (b)(2). Pub. L. 115–334, § 5201(2)(B), substituted ‘‘that immediately precedes the 12-month period de- scribed in paragraph (1)’’ for ‘‘ending on August 31, 1996’’. Subsec. (c)(2). Pub. L. 115–334, § 5202, substituted ‘‘sub- section to any 1 borrower’’ for ‘‘chapter to any 1 bor- rower’’. Subsec. (c)(4)(A). Pub. L. 115–334, § 5203, substituted ‘‘2023’’ for ‘‘2018’’ in introductory provisions. 2014—Subsec. (c). Pub. L. 113–79 added subsec. (c). 2008—Subsec. (a)(1). Pub. L. 110–246, § 5102, substituted ‘‘$300,000’’ for ‘‘$200,000’’. 1998—Pub. L. 105–277 inserted section catchline, des- ignated existing provisions as subsec. (a), inserted heading, substituted ‘‘this subchapter—’’ for ‘‘this sub- chapter’’, in introductory provisions, realigned margin of par. (1) and substituted ‘‘$700,000 (increased, begin- ning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guar- anteed and reduced by the unpaid indebtedness of the borrower on loans under the sections specified in sec- tion 1925 of this title that are guaranteed by the Sec- retary); or’’ for ‘‘$400,000; or’’, realigned margin of par. (2), and added subsec. (b). 1984—Pub. L. 98–258 substituted ‘‘$200,000’’ and ‘‘$400,000’’ for ‘‘$100,000’’ and ‘‘$200,000’’, respectively. 1978—Pub. L. 95–334 substituted provisions setting forth criteria for Secretary to make or insure loans under this subchapter for provisions setting forth cri- teria for Secretary to make loans under this sub- chapter. 1972—Pub. L. 92–419 substituted ‘‘$50,000’’ for ‘‘$35,000’’. 1968—Pub. L. 90–488 struck out from item (1) the pro- viso which limited the amount to be used for loans which would cause the indebtedness of any borrower to exceed $15,000 to 25 per centum of the sums made avail- able for loans. 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. § 1944. Soil conservation district loans; limita- tion; purchase of conservation equipment Loans aggregating not more than $500,000 in any one year may also be made to soil conserva- tion districts which cannot obtain necessary credit elsewhere upon reasonable terms and con- ditions for the purchase of equipment custom- arily used for soil conservation purposes. (Pub. L. 87–128, title III, § 314, Aug. 8, 1961, 75 Stat. 311.) § 1945. Repealed. Pub. L. 104–127, title VI, § 613, Apr. 4, 1996, 110 Stat. 1089 Section, Pub. L. 87–128, title III, § 315, Aug. 8, 1961, 75 Stat. 311, authorized Secretary to participate in certain loans made under this subchapter. § 1946. Liability of borrower (a) Determination of interest rates (1) The Secretary shall make all loans under this subchapter upon the full personal liability of the borrower and upon such security as the Secretary may prescribe. The interest rates on such loans, except for guaranteed loans and loans as provided in paragraphs (2) and (3),1 shall be as determined by the Secretary, but not in excess of the current average market yield on outstanding marketable obligations of the United States with remaining periods to matu- rity comparable to the average maturities of such loans, plus an additional charge not to ex- ceed 1 per centum as determined by the Sec- retary, which charge shall be deposited in the Rural Development Insurance Fund or the Agri- cultural Credit Insurance Fund, as appropriate, and adjusted to the nearest one-eighth of 1 per centum. The interest rate on any guaranteed loan made under this subchapter shall be such rate as may be agreed upon by the borrower and lender, but not in excess of a rate as may be de- termined by the Secretary. (2) The interest rate on a microloan to a be- ginning farmer or rancher or veteran farmer or rancher (as defined in section 2279(e) 1 of this title), or any loan (other than a guaranteed loan) to a low income, limited resource borrower under this subchapter shall not be— (A) greater than the sum of— (i) an amount that does not exceed one- half of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and (ii) an amount not exceeding 1 percent per year, as the Secretary determines is appro- priate; or (B) less than 5 percent per year. (b) Payment period; consolidation and resched- uling of loans Loans made under this subchapter shall be payable in not to exceed seven years. The Sec- retary may consolidate or reschedule out- standing loans for payment over a period not to exceed seven years (or, in the case of loans for farm operating purposes, fifteen years) from the date of such consolidation or rescheduling, and the amount of unpaid principal and interest of the prior loans so consolidated or rescheduled shall not create a new charge against any loan levels authorized by law. A new loan may be in- cluded in a consolidation. Such new loan shall be charged against any loan level authorized by law. Except as otherwise provided for farm loans under section 1981b of this title, the interest rate on such consolidated or rescheduled loans, other than guaranteed loans, may be changed by the Secretary to a rate not to exceed the rate being charged for loans made under this sub- chapter at the time of the consolidation or re- scheduling. The interest rate on any guaranteed loan under this subchapter that may be consoli- dated or rescheduled for payment shall be such rate as may be agreed upon by the borrower and the lender, but not in excess of a rate as may be determined by the Secretary.