§ 1962. — Loan determination factors; written credit declinations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1962]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER III--EMERGENCY LOANS
Sec. 1962. Loan determination factors; written credit
declinations
(a) For the purpose of determining whether to make or insure any
loan under this subchapter, the Secretary shall take into consideration
the net worth of the applicant involved, including all the assets and
liabilities of the applicant.
(b) For the purpose of determining whether an applicant under this
subchapter is not able to obtain sufficient credit elsewhere, the
Secretary shall require at least one written indication of declination
of credit, from a legally organized lending institution within
reasonable proximity to the applicant, that specifies the reasons for
the declination: Provided, That for loans in excess of $300,000, the
Secretary shall require at least two such written declinations: Provided
further, That for loans of $100,000 or less, the Secretary may waive the
requirement of this subsection if the Secretary determines that it would
impose an undue burden on the applicant.
(Pub. L. 87-128, title III, Sec. 322, Aug. 8, 1961, 75 Stat. 311; Pub.
L. 94-68, Sec. 4, Aug. 5, 1975, 89 Stat. 381; Pub. L. 96-438,
Sec. 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L. 104-127, title VI,
Sec. 622, Apr. 4, 1996, 110 Stat. 1091.)
Amendments
1996--Subsec. (b). Pub. L. 104-127 substituted ``loans of $100,000
or less'' for ``loans of $300,000 or less''.
1980--Pub. L. 96-438 substituted provisions prescribing factors to
be considered in determining whether to make or insure a loan and
relating to the need for applicants unable to obtain sufficient credit
elsewhere to provide written credit declinations for provisions relating
to the purpose and extent of loans under this subchapter.
1975--Pub. L. 94-68 extended authority to finance crop or livestock
changes deemed desirable as a result of changes in market demand, and to
make emergency loans in excess of the actual loss sustained as a result
of the natural disaster.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-127 effective 90 days after Apr. 4, 1996,
see section 663(b) of Pub. L. 104-127, set out as a note under section
1922 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-438 effective with respect to loans approved
after Oct. 13, 1980, except for certain subsequent emergency loans, see
section 3(d) of Pub. L. 96-438, set out as a note under section 1961 of
this title.
