§ 1943. — Limitations on amount of operating loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1943]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER II--OPERATING LOANS
Sec. 1943. Limitations on amount of operating loans
(a) In general
The Secretary shall make or insure no loan under this subchapter--
(1) that would cause the total principal indebtedness
outstanding at any one time for loans made under this subchapter to
any one borrower to exceed, 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
unpaid indebtedness of the borrower on loans under the sections
specified in section 1925 of this title that are guaranteed by the
Secretary); or
(2) for the purchasing or leasing of land other than for cash
rent, or for carrying on any land leasing or land purchasing
program.
(b) 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. 313, Aug. 8, 1961, 75 Stat. 310; Pub.
L. 90-488, Sec. 9, Aug. 15, 1968, 82 Stat. 771; Pub. L. 92-419, title I,
Sec. 122, Aug. 30, 1972, 86 Stat. 665; Pub. L. 95-334, title I,
Sec. 116, Aug. 4, 1978, 92 Stat. 426; Pub. L. 98-258, title VI,
Sec. 604(a), Apr. 10, 1984, 98 Stat. 139; Pub. L. 105-277, div. A,
Sec. 101(a) [title VIII, Sec. 806(b)], Oct. 21, 1998, 112 Stat. 2681,
2681-39.)
Amendments
1998--Pub. L. 105-277 inserted section catchline, designated
existing provisions as subsec. (a), inserted heading, substituted ``this
subchapter--'' for ``this subchapter'', in introductory provisions,
realigned margin of par. (1) 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
unpaid indebtedness of the borrower on loans under the sections
specified in section 1925 of this title that are guaranteed by the
Secretary); 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 criteria for Secretary to make loans under this
subchapter.
1972--Pub. L. 92-419 substituted ``$50,000'' for ``$35,000''.
1968--Pub. L. 90-488 struck out from item (1) the proviso 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 available for loans.
