7 U.S.C. § 1981 — Farmers Home Administration

Page 1121 TITLE 7—AGRICULTURE § 1981 § 1969. Repealed. Pub. L. 93–24, § 1, Apr. 20, 1973, 87 Stat. 24 Section, Pub. L. 87–128, title III, § 328, as added Pub. L. 92–385, § 5, Aug. 16, 1972, 86 Stat. 557, provided for emergency loans for major and natural disasters occur- ring between June 30, 1971, and July 1, 1973, providing in: subsec. (a) for cancellation of existing loans and the considerations in making grants, loans, and refinancing of loans; subsec. (b) for loans for loss or damage to agri- cultural crops; subsec. (c) for amount of loans and in- terest rates; subsec. (d) for availability of benefits irre- spective of age; subsec. (e) for availability of benefits irrespective of approval date; and subsec. (f) for report to Congress. Statutory Notes and Related Subsidiaries LOANS TO ELIGIBLE APPLICANTS IN AREAS DETERMINED AS NATURAL DISASTER AREAS AFTER JANUARY 1, 1972, AND BEFORE DECEMBER 27, 1972; TIME FOR AC- CEPTANCE OF APPLICATIONS Pub. L. 93–24, § 8, Apr. 20, 1973, 87 Stat. 25, provided that: ‘‘Notwithstanding the repeal herein of section 5 of Public Law 92–385 [this section], and notwithstanding any other provision of law, the Secretary of Agri- culture shall make loans in accordance with the provi- sions of section 5 of Public Law 92–385 [this section] to eligible applicants in natural disaster areas determined or designated by the Secretary of Agriculture where such determination or designation had been made after January 1, 1972 and prior to December 27, 1972. The au- thority to accept applications for such loans shall ex- pire 18 days after the effective date of this Act [Apr. 20, 1973].’’ CONTINUATION OF SECRETARY’S AUTHORITY WITH RE- SPECT TO NATURAL DISASTERS OCCURRING AFTER DE- CEMBER 26, 1972, AND PRIOR TO APRIL 20, 1973 Pub. L. 93–237, § 4, Jan. 2, 1974, 87 Stat. 1024, provided that: ‘‘Notwithstanding the provisions of Public Law 93–24 [which repealed this section], the Secretary of Ag- riculture shall continue to exercise his authority with respect to natural disasters which occurred after De- cember 26, 1972, but prior to April 20, 1973, in accord- ance with the provisions of section 5 of Public Law 92–385 [this section] as such section was in effect prior to April 20, 1973.’’ § 1970. Eligibility for assistance based on produc- tion loss The Secretary shall make financial assistance under this subchapter available to any applicant seeking assistance based on production losses if the applicant shows that a single enterprise which constitutes a basic part of the applicant’s farming, ranching, or aquaculture operation has sustained at least a 30 per centum loss of normal per acre or per animal production, or such lesser per centum of loss as the Secretary may deter- mine, as a result of the disaster based upon the average monthly price in effect for the previous year and the applicant otherwise meets the con- ditions of eligibility prescribed under this sub- chapter. Such loans shall be made available based upon 80 per centum, or such greater per centum as the Secretary may determine, of the total calculated actual production loss sus- tained by the applicant. (Pub. L. 87–128, title III, § 329, as added Pub. L. 94–68, § 7, Aug. 5, 1975, 89 Stat. 382; amended Pub. L. 97–35, title I, § 163, Aug. 13, 1981, 95 Stat. 378.) Editorial Notes AMENDMENTS 1981—Pub. L. 97–35 increased specific per centum loss from 20 to 30, and authorized a lesser per centum loss pursuant to determinations by the Secretary under ap- plicable criteria. § 1971. Repealed. Pub. L. 99–198, title XIII, § 1308(d), Dec. 23, 1985, 99 Stat. 1523 Section, Pub. L. 87–128, title III, § 330, as added Pub. L. 94–68, § 8, Aug. 5, 1975, 89 Stat. 382; amended Pub. L. 96–438, § 3(b)(2), Oct. 13, 1980, 94 Stat. 1875, authorized ad- ditional emergency loans. SUBCHAPTER IV—ADMINISTRATIVE PROVISIONS § 1981. Farmers Home Administration (a) Appointment and compensation of Adminis- trator; transfer of powers, duties, and assets pertaining to agricultural credit In accordance with section 2006a of this title, for purposes of this chapter, and for the admin- istration of assets under the jurisdiction of the Secretary of Agriculture pursuant to the Farm- ers Home Administration Act of 1946, as amend- ed, the Bankhead-Jones Farm Tenant Act, as amended, the Act of August 28, 1937, as amended, the Act of April 6, 1949, as amended, the Act of August 31, 1954, as amended, and the powers and duties of the Secretary under any other Act au- thorizing agricultural credit, the Secretary may assign and transfer such powers, duties, and as- sets to such officers or agencies of the Depart- ment of Agriculture as the Secretary considers appropriate. (b) Powers of Secretary of Agriculture The Secretary may— (1) administer his powers and duties through such national, area, State, or local offices and employees in the United States as he deter- mines to be necessary and may authorize an office to serve the area composed of two or more States if he determines that the volume of business in the area is not sufficient to jus- tify separate State offices, and until January 1, 1975, make contracts for services incident to making, insuring, collecting, and servicing loans and property as determined by the Sec- retary to be necessary for carrying out the purposes of this chapter; (and the Secretary shall prior to June 30, 1974, report to the Con- gress through the President on the experience in using such contracts, together with rec- ommendations for such legislation as he may see fit); (2) accept and utilize voluntary and uncom- pensated services, and, with the consent of the agency concerned, utilize the officers, employ- ees, equipment, and information of any agency of the Federal Government, or of any State, territory, or political subdivision; (3) within the limits of appropriations made therefor, make necessary expenditures for pur- chase or hire of passenger vehicles, and such other facilities and services as he may from time to time find necessary for the proper ad- ministration of this chapter; (4) compromise, adjust, reduce, or charge-off debts or claims (including debts and claims Page 1122 TITLE 7—AGRICULTURE § 1981 1 See Change of Name note below. 2 See References in Text note below. arising from loan guarantees), and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Consolidated Farm Service Agency,1 Rural Utilities Service, Rural Housing Service, Rural Business-Cooperative Service, or a suc- cessor agency, or the Rural Development Ad- ministration, except for activities under the Housing Act of 1949 [42 U.S.C. 1441 et seq.]. In the case of a security instrument entered into under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the Attorney General of the intent of the Sec- retary to exercise the authority of the Sec- retary under this paragraph. The Secretary may not require liquidation of property secur- ing any farmer program loan or acceleration of any payment required under any farmer program loan as a prerequisite to initiating an action authorized under this subsection. After consultation with a local or area county com- mittee, the Secretary may release borrowers or others obligated on a debt, except for debt incurred under the Housing Act of 1949, from personal liability with or without payment of any consideration at the time of the com- promise, adjustment, reduction, or charge-off of any claim, except that no compromise, ad- justment, reduction, or charge-off of any claim may be made or carried out after the claim has been referred to the Attorney Gen- eral, unless the Attorney General approves; (5) except for activities conducted under the Housing Act of 1949 [42 U.S.C. 1441 et seq.], col- lect all claims and obligations administered by the Farmers Home Administration, or under any mortgage, lease, contract, or agree- ment entered into or administered by the Farmers Home Administration and, if in his judgment necessary and advisable, pursue the same to final collection in any court having jurisdiction; (6) release mortgage and other contract liens if it appears that they have no present or pro- spective value or that their enforcement like- ly would be ineffectual or uneconomical; (7) obtain fidelity bonds protecting the Gov- ernment against fraud and dishonesty of offi- cers and employees of the Farmers Home Ad- ministration in lieu of faithful performance of duties bonds under section 14 2 of title 6, and regulations issued pursuant thereto, but oth- erwise in accordance with the provisions thereof; (8) consent to (A) long-term leases of facili- ties financed under this subchapter notwith- standing the failure of the lessee to meet any of the requirements of this subchapter if such long-term leases are necessary to ensure the continuation of services for which financing was extended to the lessor, and (B) the trans- fer of property securing any loan or financed by any loan or grant made, insured, or held by the Secretary under this chapter, or the provi- sions of any other law administered by the Rural Development Administration under this chapter or by the Farmers Home Administra- tion, upon such terms as he deems necessary to carry out the purpose of the loan or grant or to protect the financial interest of the Gov- ernment, and shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower; and (9) notwithstanding that an area ceases, or has ceased, to be ‘‘rural’’, in a ‘‘rural area’’, or an eligible area, make loans and grants, and approve transfers and assumptions, under this chapter on the same basis as though the area still was rural in connection with property se- curing any loan made, insured, or held by the Secretary under this chapter or in connection with any property held by the Secretary under this chapter. (c) Delinquent claims and obligations The Secretary may use for the prosecution or defense of any claim or obligation described in subsection (b)(5) the Attorney General, the Gen- eral Counsel of the Department of Agriculture, or a private attorney who has entered into a contract with the Secretary. (d) Rural college coordinated strategy (1) In general The Secretary shall develop a coordinated strategy across the relevant programs within the Rural Development mission areas to serve the specific, local needs of rural communities when making investments in rural community colleges and technical colleges through other authorities in effect on February 7, 2014. (2) Consultation In developing a coordinated strategy, the Secretary shall consult with groups rep- resenting rural-serving community colleges and technical colleges to coordinate critical investments in rural community colleges and technical colleges involved in workforce train- ing. (3) Administration Nothing in this subsection provides a pri- ority for funding under authorities in effect on February 7, 2014. (4) Use The Secretary shall use the coordinated strategy and information developed for the strategy to more effectively serve rural com- munities with respect to investments in com- munity colleges and technical colleges. (e) Development of rural broadband infrastruc- ture (1) Except as provided in paragraph (2), the Secretary may allow a recipient of a grant, loan, or loan guarantee provided by the Office of Rural Development under this chapter to use not more than 10 percent of the amount so pro- vided— (A) for any activity for which assistance may be provided under section 601 of the Rural Electrification Act of 1936 [7 U.S.C. 950bb]; or (B) to construct other broadband infrastruc- ture. (2) Paragraph (1) of this subsection shall not apply to a recipient who is seeking to provide retail broadband service in any area where retail Page 1123 TITLE 7—AGRICULTURE § 1981 broadband service is available at the minimum broadband speeds, as defined under section 601(e) of the Rural Electrification Act of 1936 [7 U.S.C. 950bb(e)]. (3) The Secretary shall not provide funding under paragraph (1) if the funding would result in competitive harm to any grant, loan, or loan guarantee provided under the Rural Electrifica- tion Act of 1936. (f) Access to information to verify income for participants in certain rural housing pro- grams The Secretary and the designees of the Sec- retary are hereby granted the same access to in- formation and subject to the same requirements applicable to the Secretary of Housing and Urban Development as provided in section 653 of title 42 and section 6103(l)(7)(D)(ix) of title 26 to verify income for individuals participating in sections 502, 504, 521, and 542 of the Housing Act of 1949 (42 U.S.C. 1472, 1474, 1490a, and 1490r), not- withstanding section 653(l) of title 42. (Pub. L. 87–128, title III, § 331, Aug. 8, 1961, 75 Stat. 312; Pub. L. 90–488, § 11, Aug. 15, 1968, 82 Stat. 771; Pub. L. 92–419, title I, § 124, Aug. 30, 1972, 86 Stat. 665; Pub. L. 95–334, title I, § 121, Aug. 4, 1978, 92 Stat. 427; Pub. L. 97–98, title XVI, § 1603, Dec. 22, 1981, 95 Stat. 1346; Pub. L. 99–198, title XIII, § 1309, Dec. 23, 1985, 99 Stat. 1523; Pub. L. 100–233, title VI, § 615(c), Jan. 6, 1988, 101 Stat. 1682; Pub. L. 101–624, title XVIII, §§ 1805, 1806, title XXIII, §§ 2303(a), 2388(d)(1), Nov. 28, 1990, 104 Stat. 3819, 3981, 4052; Pub. L. 102–237, title V, § 501(c), title VII, § 701(h)(1)(E), Dec. 13, 1991, 105 Stat. 1866, 1880; Pub. L. 103–248, § 2, May 11, 1994, 108 Stat. 619; Pub. L. 103–354, title II, § 226(h), Oct. 13, 1994, 108 Stat. 3216; Pub. L. 104–127, title VI, §§ 631, 632, title VII, § 748, Apr. 4, 1996, 110 Stat. 1092, 1128; Pub. L. 107–171, title V, §§ 5303, 5304(a), May 13, 2002, 116 Stat. 345; Pub. L. 113–79, title VI, § 6018, Feb. 7, 2014, 128 Stat. 846; Pub. L. 115–334, title VI, §§ 6210(a), 6417, Dec. 20, 2018, 132 Stat. 4743, 4763.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a), (b)(1), (3), (8), (9), and (e)(1), 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 Develop- ment Act, which is classified principally to this chap- ter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables. The Farmers Home Administration Act of 1946, as amended, referred to in subsec. (a), is act Aug. 14, 1946, ch. 964, 60 Stat. 1062, as amended, which was classified to sections 1001 to 1005, 1005a to 1005d, 1007, 1008, 1009, 1015 to 1029, 1030, and 1031 of this title, section 371 of Title 12, Banks and Banking, and section 82h of Title 31, Money and Finance, and in so far as it amended pro- visions of Title I, II, and IV of the Bankhead-Jones Farm Tenant Act, was repealed by section 341(a) of Pub. L. 87–128, and is covered by this chapter. The Bankhead-Jones Farm Tenant Act, as amended, referred to in subsec. (a), is act July 22, 1937, ch. 517, 50 Stat. 522, as amended. Title III of act July 22, 1937, as amended, is classified to sections 1010 to 1012 and 1013a of this title. Titles I, II, and IV of act July 22, 1937, as amended, were formerly classified to sections 1001 to 1005, 1005a to 1005d, 1006, 1006c to 1006e, 1007, 1008, 1009, 1014 to 1025, 1026, and 1027 to 1029 of this title, respec- tively, were repealed by section 341(a) of Pub. L. 87–128, and are covered by this chapter. Act of August 28, 1937, as amended, referred to in sub- sec. (a), is act Aug. 28, 1937, ch. 870, 50 Stat. 869, as amended, which was formerly classified to sections 590r to 590x–4 of Title 16, Conservation, was repealed by sec- tion 341(a) of Pub. L. 87–128, and is covered by this chap- ter. Act of April 6, 1949, as amended, referred to in subsec. (a), is act Apr. 6, 1949, ch. 49, 63 Stat. 43, as amended, which was formerly classified to sections 1148a–1 to 1148a–3 of Title 12, Banks and Banking, was repealed by section 341(a) of Pub. L. 87–128, and is covered by this chapter. Act of August 31, 1954, as amended, referred to in sub- sec. (a), is act Aug. 31, 1954, ch. 1145, 68 Stat. 999, which was formerly classified as a note under section 1148a–1 of Title 12, was repealed by section 341(a) of Pub. L. 87–128, and is covered by this chapter. The Housing Act of 1949, as amended, referred to in subsec. (b)(4), (5), is act July 15, 1949, ch. 338, 63 Stat. 413, as amended, which is classified principally to chap- ter 8A (§ 1441 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of Title 42 and Tables. The Rural Electrification Act of 1936, referred to in subsecs. (b)(4) and (e)(3), is act May 20, 1936, ch. 432, 49 Stat. 1363, which is classified generally to chapter 31 (§ 901 et seq.) of this title. For complete classification of this Act to the Code, see section 901 of this title and Tables. Section 14 of title 6, referred to in subsec. (b)(7), was repealed by Pub. L. 92–310, title II, § 203(1), June 6, 1972, 86 Stat. 202. For provisions relating to surety bonds of Federal personnel, see section 9301 et seq. of Title 31, Money and Finance. AMENDMENTS 2018—Subsec. (e). Pub. L. 115–334, § 6210(a), added sub- sec. (e). Subsec. (f). Pub. L. 115–334, § 6417, added subsec. (f). 2014—Subsec. (d). Pub. L. 113–79 added subsec. (d). 2002—Subsec. (b)(4). Pub. L. 107–171, § 5303, substituted ‘‘After consultation with a local or area county com- mittee, the Secretary may release’’ for ‘‘The Secretary may release’’ and ‘‘carried out after’’ for ‘‘carried out— ‘‘(A) with respect to farmer program loans, on terms more favorable than those recommended by the appropriate county committee utilized pursuant to section 1982 of this title; or ‘‘(B) after’’. Subsecs. (d), (e). Pub. L. 107–171, § 5304(a), struck out subsecs. (d) and (e) which related to temporary author- ity to enter into contracts, and private collection agen- cy, respectively. 1996—Subsec. (b)(4). Pub. L. 104–127, § 748, inserted ‘‘(including debts and claims arising from loan guaran- tees)’’ after ‘‘debts or claims’’, substituted ‘‘Consoli- dated Farm Service Agency, Rural Utilities Service, Rural Housing Service, Rural Business-Cooperative Service, or a successor agency, or’’ for ‘‘Farmers Home Administration or’’, and inserted ‘‘In the case of a secu- rity instrument entered into under the Rural Elec- trification Act of 1936 (7 U.S.C. 901 et seq.), the Sec- retary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Sec- retary under this paragraph.’’ after ‘‘activities under the Housing Act of 1949 [42 U.S.C. 1441 et seq.].’’ Subsec. (d). Pub. L. 104–127, § 631, added subsec. (d). Subsec. (e). Pub. L. 104–127, § 632, added subsec. (e). 1994—Subsec. (a). Pub. L. 103–354 substituted ‘‘assets to such officers or agencies of the Department of Agri- culture as the Secretary considers appropriate.’’ for ‘‘assets to the Farmers Home Administration, to be headed by an Administrator, appointed by the Presi- dent, by and with the advice and consent of the Senate, without regard to the civil service laws or chapter 51 and subchapter III of chapter 53 of title 5, who shall re- ceive basic compensation as provided by law for that Page 1124 TITLE 7—AGRICULTURE § 1981 office, or may assign and transfer such powers, duties, and assets to the Rural Development Administration as provided by law for that office.’’ Subsec. (c). Pub. L. 103–248 added subsec. (c). 1991—Pub. L. 102–237, § 501(c)(2)(B)(i), amended direc- tory language of Pub. L. 101–624, § 2388(d)(1). See 1990 Amendment note below. Subsec. (b)(1), (2). Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below. Subsec. (b)(3). Pub. L. 102–237, § 701(h)(1)(E), sub- stituted ‘‘this chapter’’ for ‘‘this Act’’. Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), amended direc- tory language of Pub. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below. Subsec. (b)(4). Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below. Pub. L. 102–237, § 501(c)(1), struck out ‘‘this chapter’’ after ‘‘activities under the Housing Act of 1949’’ and substituted ‘‘1949, from’’ for ‘‘1949 from’’. Subsec. (b)(4)(A). Pub. L. 102–237, § 501(c)(2)(B)(iii), re- designated Pub. L. 101–624, § 2388(d)(1)(A)(vi), as (v). See 1990 Amendment note below. Subsec. (b)(4)(B). Pub. L. 102–237, § 501(c)(2)(B)(iii), re- designated Pub. L. 101–624, § 2388(d)(1)(A)(vi), as (v). See 1990 Amendment note below. Subsec. (b)(5). Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below. Subsec. (b)(6). Pub. L. 102–237, § 501(c)(2)(B)(ii), (iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(i), (vi). See 1990 Amendment note below. Pub. L. 102–237, § 501(c)(2)(A), repealed Pub. L. 101–624, § 1805(c)(1), (2). See 1990 Amendment note below. Subsec. (b)(7). Pub. L. 102–237, § 501(c)(2)(B)(ii), (iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(i), (vi). See 1990 Amendment note below. Pub. L. 102–237, § 501(c)(2)(A), repealed Pub. L. 101–624, § 1805(c)(1), (3). See 1990 Amendment note below. Subsec. (b)(8). Pub. L. 102–237, § 501(c)(2)(B)(ii)–(v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(i), (iv), (vi). See 1990 Amendment note below. Pub. L. 102–237, § 501(c)(2)(A), repealed Pub. L. 101–624, § 1805(c)(1), (4). See 1990 Amendment note below. Subsec. (b)(9). Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below. Pars. (c) to (g). Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), amended directory language of Pub. L. 101–624, § 2388(d)(1)(A)(vi). See 1990 Amendment note below. Par. (h). Pub. L. 102–237, § 501(c)(2)(B)(iii), repealed Pub. L. 101–624, § 2388(d)(1)(A)(iv). See 1990 Amendment note below. Pub. L. 102–237, § 501(c)(2)(A), amended Pub. L. 101–624, § 1805(b), and repealed Pub. L. 101–624, § 1805(c)(5). See 1990 Amendment note below. Pars. (i), (j). Pub. L. 102–237, § 501(c)(2)(A), amended Pub. L. 101–624, § 1805(b), and repealed Pub. L. 101–624, § 1805(c)(5). See 1990 Amendment note below. 1990—Pub. L. 101–624, § 2388(d)(1), was amended in its directory language by Pub. L. 102–237, § 501(c)(2)(B)(i), resulting in no change in text. Subsec. (a). Pub. L. 101–624, §§ 2303(a)(1), 2388(d)(1)(B), designated first undesignated par. as subsec. (a) and substituted ‘‘In accordance with section 2006a of this title, for purposes of this chapter, and’’ for ‘‘For the purposes of this chapter and’’, and inserted before pe- riod at end ‘‘, or may assign and transfer such powers, duties, and assets to the Rural Development Adminis- tration as provided by law for that office’’. Subsec. (b). Pub. L. 101–624, § 2388(d)(1)(B), designated second undesignated par. beginning ‘‘The Secretary may—’’ as subsec. (b). Subsec. (b)(1) to (3). Pub. L. 101–624, § 2388(d)(1)(A)(vi), formerly (vii), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated pars. (a) to (c) as (1) to (3), respectively, of subsec. (b). Subsec. (b)(4). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (d) as (4) of subsec. (b). Pub. L. 101–624, §§ 1805(a)(1)(A), (B), 2303(a)(2), inserted ‘‘or the Rural Development Administration’’ after ‘‘Farmers Home Administration’’ in first sentence, sub- stituted ‘‘, except for activities under the Housing Act of 1949’’ for ‘‘under any of its programs, as cir- cumstances may require, to carry out’’ in first sen- tence, and substituted ‘‘, except for debt incurred under the Housing Act of 1949’’ for ‘‘incurred under this chapter’’ in third sentence. Subsec. (b)(4)(A). Pub. L. 101–624, § 2388(d)(1)(A)(v), for- merly (vi), as redesignated by Pub. L. 102–237, § 501(c)(2)(B)(iii), redesignated subpar. (1) as (A). Pub. L. 101–624, § 1805(a)(1)(C), inserted ‘‘with respect to farmer program loans,’’ before ‘‘on terms’’. Subsec. (b)(4)(B). Pub. L. 101–624, § 2388(d)(1)(A)(v), for- merly (vi), as redesignated by Pub. L. 102–237, § 501(c)(2)(B)(iii), redesignated subpar. (2) as (B). Subsec. (b)(5). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (e) as (5) of subsec. (b). Pub. L. 101–624, § 1805(a)(2), inserted ‘‘except for ac- tivities conducted under the Housing Act of 1949,’’ be- fore ‘‘collect’’, struck out ‘‘arising or’’ after ‘‘obliga- tions’’, substituted ‘‘by the Farmers Home Administra- tion’’ for ‘‘under this chapter’’ before ‘‘, or under any’’ and ‘‘by the Farmers Home Administration’’ for ‘‘pur- suant to this chapter’’ before ‘‘and, if in his’’. Subsec. (b)(6). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (f) as (6) of subsec. (b). Pub. L. 101–624, § 2388(d)(1)(A)(ii), substituted ‘‘re- lease’’ for ‘‘Release’’. Pub. L. 101–624, § 2388(d)(1)(A)(i), as amended by Pub. L. 102–237, § 501(c)(2)(B)(ii), realigned margin. Pub. L. 101–624, § 1805(c)(1), (2), which made amend- ments identical to those by Pub. L. 101–624, § 2388(d)(1)(A)(i), (ii), was repealed by Pub. L. 102–237, § 501(c)(2)(A). Subsec. (b)(7). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (g) as (7) of subsec. (b). Pub. L. 101–624, § 2388(d)(1)(A)(iii), substituted ‘‘ob- tain’’ for ‘‘Obtain’’. Pub. L. 101–624, § 2388(d)(1)(A)(i), as amended by Pub. L. 102–237, § 501(c)(2)(B)(ii), realigned margin. Pub. L. 101–624, § 1805(c)(1), (3), which made amend- ments identical to those by Pub. L. 101–624, § 2388(d)(1)(A)(i), (iii), was repealed by Pub. L. 102–237, § 501(c)(2)(A). Subsec. (b)(8). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (h) [par. (i) prior to redesignation by Pub. L. 101–624, § 1805(b), as amended] as (8) of subsec. (b). Pub. L. 101–624, § 2388(d)(1)(A)(iv)(II), formerly (v)(II), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (iv), redesignated former subpars. (1) and (2) as (A) and (B), respectively. Pub. L. 101–624, § 2303(a)(3), inserted ‘‘Rural Develop- ment Administration under this chapter or by the’’ be- fore ‘‘Farmers Home Administration’’. Pub. L. 101–624, § 1806, inserted before semicolon at end ‘‘, and shall document the consent of the Secretary for the transfer of the property of a borrower in the file of the borrower’’. Pub. L. 101–624, § 2388(d)(1)(A)(i), (iv)(I), formerly (v)(I), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(ii)–(iv), realigned margin and substituted ‘‘consent’’ for ‘‘Consent’’. Pub. L. 101–624, § 1805(c)(1), (4), which made amend- ments identical to those by Pub. L. 101–624, § 2388(d)(1)(A)(i), (iv)(I), was repealed by Pub. L. 102–237, § 501(c)(2)(A). Subsec. (b)(9). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), as redesignated and amended by Pub. L. Page 1125 TITLE 7—AGRICULTURE § 1981 102–237, § 501(c)(2)(B)(iii), (v), redesignated par. (i) [par. (j) prior to redesignation by Pub. L. 101–624, § 1805(b), as amended] as (9) of subsec. (b). Pars. (c) to (g). Pub. L. 101–624, § 2388(d)(1)(A)(vi), for- merly (vii), (B), as redesignated and amended by Pub. L. 102–237, § 501(c)(2)(B)(iii), (v), redesignated former pars. (c) to (g) as (3) to (7), respectively, of subsec. (b). See above. Par. (h). Pub. L. 101–624, § 2388(d)(1)(A)(iv), which di- rected substitution of ‘‘not’’ for ‘‘Not’’ before ‘‘re- quire’’, was repealed by Pub. L. 102–237, § 501(c)(2)(B)(iii). Pub. L. 101–624, § 1805(c)(5), which redesignated par. (i) as (h), was repealed by Pub. L. 102–237, § 501(c)(2)(A). Pub. L. 101–624, § 1805(b), as amended by Pub. L. 102–237, § 501(c)(2)(A), redesignated par. (i) as (h) and struck out par. (h) which read as follows: ‘‘Not require borrowers to pay interest accrued after December 31, 1972, on interest which is not more than 90 days overdue on any loan held or insured by the Farmers Home Ad- ministration;’’. Pars. (i), (j). Pub. L. 101–624, § 1805(c)(5), which redes- ignated pars. (i) and (j) as (h) and (i), respectively, was repealed by Pub. L. 102–237, § 501(c)(2)(A). Pub. L. 101–624, § 1805(b), as amended by Pub. L. 102–237, § 501(c)(2)(A), redesignated pars. (i) and (j) as (h) and (i), respectively. Pars. (h) and (i) subsequently re- designated pars. (8) and (9) of subsec. (b). See above. 1988—Par. (d). Pub. L. 100–233 inserted ‘‘or debts’’ be- fore ‘‘claims’’, and inserted ‘‘The Secretary may not re- quire liquidation of property securing any farmer pro- gram loan or acceleration of any payment required under any farmer program loan as a prerequisite to ini- tiating an action authorized under this subsection.’’ 1985—Par. (d). Pub. L. 99–198, § 1309, in amending par. (d) generally, substituted provisions authorizing the Secretary to compromise, adjust, reduce, or charge-off claims, and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farm- ers Home Administration to carry out this chapter for provisions which had authorized the Secretary to com- promise, adjust, or reduce claims, and adjust and mod- ify the terms of mortgages, leases, contracts and agree- ments entered into or administered by the Administra- tion under any of its programs, but not in the event of claims of $25,000 or more without the approval of the Administrator, substituted provisions authorizing the Secretary to release borrowers or others obligated on a debt incurred under this chapter from personal liability with or without consideration at the time of the com- promise, adjustment, reduction or charge-off of any claim for provisions authorizing the Secretary to re- lease from personal liability, with or without payment of any consideration at the time of adjustment of the claims, borrowers who transferred the security prop- erty to approved applicants, to other than approved ap- plicants, or for amounts less than the indebtedness se- cured thereby, struck out provisions that compromise, adjustment, or reduction of the claim shall be based on the value of the security and a determination of the debtor’s reasonable ability to pay considering his other assets and income, and struck out provisions relating to any claim due and payable for five years or more and to partial releases and subordination of mortgages. 1981—Par. (i). Pub. L. 97–98 designated existing provi- sions following ‘‘consent to’’ as cl. (2) and added cl. (1). 1978—Pub. L. 95–334 in par. (a) struck out references to Puerto Rico and the Virgin Islands, in par. (d) sub- stituted ‘‘$25,000’’ for ‘‘$15,000’’, and added par. (j). 1972—Par. (a). Pub. L. 92–419, § 124(1), authorized the Secretary of Agriculture, until Jan. 1, 1975, to make contracts for services incident to making, insuring, collecting, and servicing loans and property as deter- mined by the Secretary to be necessary for carrying out the purposes of this chapter, and required the Sec- retary, prior to June 30, 1974, to report to Congress through the President on the experience in using such contracts, together with recommendations for such leg- islation as he may see fit. Pars. (d) to (i). Pub. L. 92–419, § 124(2), substituted a semicolon for a period at end of lettered pars. (d), (e) and (f) and added pars. (g) to (i). 1968—Par. (f). Pub. L. 90–488 added par. (f). Statutory Notes and Related Subsidiaries CHANGE OF NAME Consolidated Farm Service Agency effectively re- named Farm Service Agency by the amendments made to section 6932 of this title by Pub. L. 115–334, title XII, § 12404(a), Dec. 20, 2018, 132 Stat. 4974. EFFECTIVE DATE OF 2002 AMENDMENT Pub. L. 107–171, title V, § 5304(b), May 13, 2002, 116 Stat. 345, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall not apply to a contract entered into before the effective date of this Act [May 13, 2002].’’ EFFECTIVE DATE OF 1991 AMENDMENT Amendment by section 501(c) of Pub. L. 102–237 effec- tive as if included in the provision of the Food, Agri- culture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, and amend- ment by section 701(h)(1)(E) of Pub. L. 102–237 to any provision specified therein effective as if included in act that added provision so specified at the time such act became law, see section 1101(b)(3), (c) of Pub. L. 102–237, set out as a note under section 1421 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title. CONTINUATION OF SMALL FARMER TRAINING AND TECHNICAL ASSISTANCE PROGRAM Pub. L. 99–198, title XIII, § 1328, Dec. 23, 1985, 99 Stat. 1541, provided that: ‘‘The Secretary of Agriculture shall, during the period beginning on the date of enact- ment of this Act [Dec. 23, 1985] and ending on Sep- tember 30, 1988, maintain at substantially current lev- els the small farmer training and technical assistance program in the office of the Administrator of the Farm- ers Home Administration.’’ REAMORTIZATION OF DISTRESSED FARMERS HOME AD- MINISTRATION LOANS FROM REVENUES FROM SOFTWOOD TIMBER CROP PLANTINGS ON MARGINAL LAND Pub. L. 98–258, title VI, § 608, Apr. 10, 1984, 98 Stat. 140, as amended by Pub. L. 99–198, title XII, § 1254, Dec. 23, 1985, 99 Stat. 1517, provided that: ‘‘(a)(1) Notwithstanding any other provision of law, the Secretary of Agriculture (hereinafter in this sec- tion referred to as the ‘Secretary’) may implement a program, pursuant to the recommendations contained in the study mandated by section 608 of the Agricul- tural Programs Adjustment Act of 1984 (7 U.S.C. 1421 [1981] note), under which a distressed loan (as deter- mined by the Secretary) made or insured under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), or a portion thereof, may be re- amortized with the use of future revenue produced from the planting of softwood timber crops on marginal land (as determined by the Secretary) that— ‘‘(A) was previously used to produce an agricultural commodity or as pasture; and ‘‘(B) secures a loan made or insured under such Act. ‘‘(2) Accrued interest on a loan reamortized under this section may be capitalized and interest charged on such interest. ‘‘(3) All or a portion of the payments on such reamor- tized loan may be deferred until such softwood timber crop produces revenue or for a term of 45 years, which- ever comes first. ‘‘(4) Repayment of such reamortized loan shall be made not later than 50 years after the date of re- amortization. Page 1126 TITLE 7—AGRICULTURE § 1981a ‘‘(b) The interest rate on such reamortized loans shall be determined by the Secretary, but not in excess of the current average yield on outstanding marketable obligations of the United States with periods to matu- rity comparable to the average maturities of such loans, plus not to exceed 1 percent, as determined by the Secretary and adjusted to the nearest one-eighth of 1 percent. ‘‘(c) To be eligible for such program— ‘‘(1) the borrower of such reamortized loan must place not less than 50 acres of such land in softwood timber production; ‘‘(2) such land (including timber) may not have any lien against such land other than a lien for— ‘‘(A) a loan made or insured under the Consoli- dated Farm and Rural Development Act [7 U.S.C. 1921 et seq.] to secure such reamortized loan; or ‘‘(B) a loan made under this section, at the time of reamortization or thereafter, that is subject to a lien on such land (including timber) in favor of the Secretary; and ‘‘(3) the total amount of loans secured by such land (including timber) may not exceed $1,000 per acre. ‘‘(d)(1) To assist such borrowers to place such land in softwood timber production, the Secretary may make loans to such borrowers for such purpose in an aggre- gate amount not to exceed the actual cost of tree planting for land placed in the program. ‘‘(2) Any such loan shall be secured by the land (in- cluding timber) on which the trees are planted. ‘‘(3) Such loans shall be made on the same terms and conditions as are provided in this section for reamor- tized loans. ‘‘(e) The Secretary shall issue such rules as are nec- essary to carry out this section, including rules pre- scribing terms and conditions for— ‘‘(1) reamortizing and making loans under this sec- tion; ‘‘(2) entering into security instruments and agree- ments under this section; and ‘‘(3) management and harvesting practices of the timber crop. ‘‘(f) There are authorized to be appropriated such sums as are necessary to carry out this section. ‘‘(g) No more than 50,000 acres may be placed in such program.’’ § 1981a. Loan moratorium and policy on fore- closures (a) In general In addition to any other authority that the Secretary may have to defer principal and inter- est and forego foreclosure, the Secretary may permit, at the request of the borrower, the de- ferral of principal and interest on any out- standing loan made, insured, or held by the Sec- retary under this chapter, or under the provi- sions of any other law administered by the Farmers Home Administration or by the Rural Development Administration, and may forego foreclosure of any such loan, for such period as the Secretary deems necessary upon a showing by the borrower that due to circumstances be- yond the borrower’s control, the borrower is temporarily unable to continue making pay- ments of such principal and interest when due without unduly impairing the standard of living of the borrower. The Secretary may permit in- terest that accrues during the deferral period on any loan deferred under this section to bear no interest during or after such period: Provided, That if the security instrument securing such loan is foreclosed such interest as is included in the purchase price at such foreclosure shall be- come part of the principal and draw interest from the date of foreclosure at the rate pre- scribed by law. (b) Moratorium (1) In general Subject to the other provisions of this sub- section, effective beginning on the date of the enactment of this subsection, there shall be in effect a moratorium, with respect to farmer program loans made under subchapter I, II, or III, on all acceleration and foreclosure pro- ceedings instituted by the Department of Ag- riculture against any farmer or rancher who— (A) has pending against the Department a claim of program discrimination that is ac- cepted by the Department as valid; or (B) files a claim of program discrimination that is accepted by the Department as valid. (2) Waiver of interest and offsets During the period of the moratorium, the Secretary shall waive the accrual of interest and offsets on all farmer program loans made under subchapter I, II, or III for which loan ac- celeration or foreclosure proceedings have been suspended under paragraph (1). (3) Termination of moratorium The moratorium shall terminate with re- spect to a claim of discrimination by a farmer or rancher on the earlier of— (A) the date the Secretary resolves the claim; or (B) if the farmer or rancher appeals the de- cision of the Secretary on the claim to a court of competent jurisdiction, the date that the court renders a final decision on the claim. (4) Failure to prevail If a farmer or rancher does not prevail on a claim of discrimination described in paragraph (1), the farmer or rancher shall be liable for any interest and offsets that accrued during the period that loan acceleration or fore- closure proceedings have been suspended under paragraph (1). (Pub. L. 87–128, title III, § 331A, as added Pub. L. 95–334, title I, § 122, Aug. 4, 1978, 92 Stat. 427; amended Pub. L. 101–624, title XXIII, § 2303(b), Nov. 28, 1990, 104 Stat. 3981; Pub. L. 110–234, title XIV, § 14002(a), May 22, 2008, 122 Stat. 1442; Pub. L. 110–246, § 4(a), title XIV, § 14002(a), June 18, 2008, 122 Stat. 1664, 2204.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), 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. The date of the enactment of this subsection, referred to in subsec. (b)(1), 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. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.