§ 1949. — Graduation of borrowers with operating loans or guarantees to private commercial credit.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1949]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER II--OPERATING LOANS
Sec. 1949. Graduation of borrowers with operating loans or
guarantees to private commercial credit
(a) Graduation plan
The Secretary shall establish a plan, in coordination with
activities under sections 2006a, 2006b, 2006c, and 2006d of this title,
to encourage each borrower with an outstanding loan under this
subchapter or with respect to whom there is an outstanding guarantee
under this subchapter to graduate to private commercial or other sources
of credit.
(b) Limitation on period borrowers are eligible for guaranteed
assistance
(1) General rule
Subject to paragraph (2), the Secretary shall not guarantee a
loan under this subchapter for a borrower for any year after the
15th year that a loan is made to, or a guarantee is provided with
respect to, the borrower under this subchapter.
(2) Transition rule
If, as of October 28, 1992, a farmer or rancher has received a
direct or guaranteed operating loan under this subchapter during
each of 10 or more previous years, the borrower shall be eligible to
receive a guaranteed operating loan under this subchapter during 5
additional years after October 28, 1992.
(Pub. L. 87-128, title III, Sec. 319, as added Pub. L. 102-554, Sec. 9,
Oct. 28, 1992, 106 Stat. 4150; amended Pub. L. 104-127, title VI,
Sec. 617, Apr. 4, 1996, 110 Stat. 1090.)
Amendments
1996--Subsec. (b). Pub. L. 104-127 added subsec. (b) and struck out
former subsec. (b) which provided for limitation on period for which
borrowers were eligible for assistance under this subchapter and
contained transition rule.
Suspension of Limitation on Period for Which Borrowers Are Eligible for
Guaranteed Assistance
Pub. L. 107-171, title V, Sec. 5102, May 13, 2002, 116 Stat. 343,
provided that: ``During the period beginning January 1, 2002, and ending
December 31, 2006, section 319(b) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1949(b)) shall have no force or effect.''
