[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1925]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER I--REAL ESTATE LOANS
Sec. 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
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, $200,000,
or, in the case of a loan guaranteed by the Secretary, $700,000
(increased, beginning with fiscal year 2000, 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 of this chapter 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 August 31 of the
immediately preceding fiscal year; exceeds
(2) the average of such index (as so defined) for the 12-month
period ending on August 31, 1996.
(Pub. L. 87-128, title III, Sec. 305, Aug. 8, 1961, 75 Stat. 308; Pub.
L. 91-620, Sec. 1, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92-419, title
I, Sec. 103, Aug. 30, 1972, 86 Stat. 658; Pub. L. 91-524, title VIII,
Sec. 807, as added Pub. L. 93-86, Sec. 1(27)(B), Aug. 10, 1973, 87 Stat.
237; Pub. L. 95-334, title I, Sec. 103, Aug. 4, 1978, 92 Stat. 421; Pub.
L. 102-554, Sec. 3, Oct. 28, 1992, 106 Stat. 4142; Pub. L. 105-277, div.
A, Sec. 101(a) [title VIII, Sec. 806(a)], Oct. 21, 1998, 112 Stat. 2681,
2681-39.)
Amendments
1998--Pub. L. 105-277 inserted section catchline, designated first
sentence as subsec. (a), inserted heading, and substituted ``$700,000
(increased, beginning with fiscal year 2000, 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 of this chapter that are guaranteed by the
Secretary)'' for ``$300,000'', designated second sentence as subsec. (b)
and inser
