§ 1981. — Farmers Home Administration.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1981]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1981. Farmers Home Administration
(a) Appointment and compensation of Administrator; 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 administration of assets under the jurisdiction of
the Secretary of Agriculture pursuant to the Farmers Home Administration
Act of 1946, as amended, 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 power and
duties of the Secretary under any other Act authorizing agricultural
credit, the Secretary may assign and transfer such powers, duties, and
assets to such officers or agencies of the Department 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 determines 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 justify 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 Secretary to be necessary
for carrying out the purposes of this chapter; (and the Secretary
shall prior to June 30, 1974, report to the Congress through the
President on the experience in using such contracts, together with
recommendations for such legislation as he may see fit);
(2) accept and utilize voluntary and uncompensated services,
and, with the consent of the agency concerned, utilize the officers,
employees, 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 purchase or hire of passenger vehicles,
and such other facilities and services as he may from time to time
find necessary for the proper administration of this chapter;
(4) compromise, adjust, reduce, or charge-off debts or claims
(including debts and claims 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, Rural
Utilities Service, Rural Housing Service, Rural Business-Cooperative
Service, or a successor agency, or the Rural Development
Administration, 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 Secretary to exercise the authority of the Secretary
under this paragraph. The Secretary may not require liquidation of
property securing 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 committee, 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
compromise, adjustment, reduction, or charge-off of any claim,
except that no compromise, adjustment, reduction, or charge-off of
any claim may be made or carried out after the claim has been
referred to the Attorney General, unless the Attorney General
approves;
(5) except for activities conducted under the Housing Act of
1949 [42 U.S.C. 1441 et seq.], collect all claims and obligations
administered by the Farmers Home Administration, or under any
mortgage, lease, contract, or agreement 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 prospective value or that their enforcement
likely would be ineffectual or uneconomical;
(7) obtain fidelity bonds protecting the Government against
fraud and dishonesty of officers and employees of the Farmers Home
Administration in lieu of faithful performance of duties bonds under
section 14 \1\ of title 6, and regulations issued pursuant thereto,
but otherwise in accordance with the provisions thereof;
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\1\ See References in Text note below.
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(8) consent to (A) long-term leases of facilities financed under
this subchapter notwithstanding 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 transfer of
property securing any loan or financed by any loan or grant made,
insured, or held by the Secretary under this chapter, or the
provisions of any other law administered by the Rural Development
Administration under this chapter or by the Farmers Home
Administration, 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 Government, 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 securing 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) of this section the Attorney
General, the General Counsel of the Department of Agriculture, or a
private attorney who has entered into a contract with the Secretary.
(Pub. L. 87-128, title III, Sec. 331, Aug. 8, 1961, 75 Stat. 312; Pub.
L. 90-488, Sec. 11, Aug. 15, 1968, 82 Stat. 771; Pub. L. 92-419, title
I, Sec. 124, Aug. 30, 1972, 86 Stat. 665; Pub. L. 95-334, title I,
Sec. 121, Aug. 4, 1978, 92 Stat. 427; Pub. L. 97-98, title XVI,
Sec. 1603, Dec. 22, 1981, 95 Stat. 1346; Pub. L. 99-198, title XIII,
Sec. 1309, Dec. 23, 1985, 99 Stat. 1523; Pub. L. 100-233, title VI,
Sec. 615(c), Jan. 6, 1988, 101 Stat. 1682; Pub. L. 101-624, title XVIII,
Secs. 1805, 1806, title XXIII, Secs. 2303(a), 2388(d)(1), Nov. 28, 1990,
104 Stat. 3819, 3981, 4052; Pub. L. 102-237, title V, Sec. 501(c), title
VII, Sec. 701(h)(1)(E), Dec. 13, 1991, 105 Stat. 1866, 1880; Pub. L.
103-248, Sec. 2, May 11, 1994, 108 Stat. 619; Pub. L. 103-354, title II,
Sec. 226(h), Oct. 13, 1994, 108 Stat. 3216; Pub. L. 104-127, title VI,
Secs. 631, 632, title VII, Sec. 748, Apr. 4, 1996, 110 Stat. 1092, 1128;
Pub. L. 107-171, title V, Secs. 5303, 5304(a), May 13, 2002, 116 Stat.
345.)
References in Text
For definition of ``this chapter'', referred to in subsecs. (a) and
(b)(1), (3), (8), (9), see note set out under section 1921 of this
title.
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 provisions 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, respectively, 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 subsec. (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 section 341(a) of Pub. L. 87-128, and is covered by this
chapter.
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 subsec. (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 chapter 8A (Sec. 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 subsec.
(b)(4), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which
is classified generally to chapter 31 (Sec. 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, Sec. 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
2002--Subsec. (b)(4). Pub. L. 107-171, Sec. 5303, substituted
``After consultation with a local or area county committee, 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, Sec. 5304(a), struck out
subsecs. (d) and (e) which related to temporary authority to enter into
contracts, and private collection agency, respectively.
1996--Subsec. (b)(4). Pub. L. 104-127, Sec. 748, inserted
``(including debts and claims arising from loan guarantees)'' after
``debts or claims'', substituted ``Consolidated 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 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 Secretary to exercise the authority of the Secretary under this
paragraph.'' after ``activities under the Housing Act of 1949 [42 U.S.C.
1441 et seq.].''
Subsec. (d). Pub. L. 104-127, Sec. 631, added subsec. (d).
Subsec. (e). Pub. L. 104-127, Sec. 632, added subsec. (e).
1994--Subsec. (a). Pub. L. 103-354 substituted ``assets to such
officers or agencies of the Department of Agriculture as the Secretary
considers appropriate.'' for ``assets to the Farmers Home
Administration, to be headed by an Administrator, appointed by the
President, 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 receive basic compensation as provided
by law for that 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, Sec. 501(c)(2)(B)(i), amended directory
language of Pub. L. 101-624, Sec. 2388(d)(1). See 1990 Amendment note
below.
Subsec. (b)(1), (2). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi).
See 1990 Amendment note below.
Subsec. (b)(3). Pub. L. 102-237, Sec. 701(h)(1)(E), substituted
``this chapter'' for ``this Act''.
Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v), amended directory
language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi). See 1990 Amendment
note below.
Subsec. (b)(4). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi).
See 1990 Amendment note below.
Pub. L. 102-237, Sec. 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, Sec. 501(c)(2)(B)(iii),
redesignated Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), as (v). See 1990
Amendment note below.
Subsec. (b)(4)(B). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
redesignated Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), as (v). See 1990
Amendment note below.
Subsec. (b)(5). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi).
See 1990 Amendment note below.
Subsec. (b)(6). Pub. L. 102-237, Sec. 501(c)(2)(B)(ii), (iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(i),
(vi). See 1990 Amendment note below.
Pub. L. 102-237, Sec. 501(c)(2)(A), repealed Pub. L. 101-624,
Sec. 1805(c)(1), (2). See 1990 Amendment note below.
Subsec. (b)(7). Pub. L. 102-237, Sec. 501(c)(2)(B)(ii), (iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(i),
(vi). See 1990 Amendment note below.
Pub. L. 102-237, Sec. 501(c)(2)(A), repealed Pub. L. 101-624,
Sec. 1805(c)(1), (3). See 1990 Amendment note below.
Subsec. (b)(8). Pub. L. 102-237, Sec. 501(c)(2)(B)(ii)-(v), amended
directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), (iv),
(vi). See 1990 Amendment note below.
Pub. L. 102-237, Sec. 501(c)(2)(A), repealed Pub. L. 101-624,
Sec. 1805(c)(1), (4). See 1990 Amendment note below.
Subsec. (b)(9). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi).
See 1990 Amendment note below.
Pars. (c) to (g). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), (v),
amended directory language of Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi).
See 1990 Amendment note below.
Par. (h). Pub. L. 102-237, Sec. 501(c)(2)(B)(iii), repealed Pub. L.
101-624, Sec. 2388(d)(1)(A)(iv). See 1990 Amendment note below.
Pub. L. 102-237, Sec. 501(c)(2)(A), amended Pub. L. 101-624,
Sec. 1805(b), and repealed Pub. L. 101-624, Sec. 1805(c)(5). See 1990
Amendment note below.
Pars. (i), (j). Pub. L. 102-237, Sec. 501(c)(2)(A), amended Pub. L.
101-624, Sec. 1805(b), and repealed Pub. L. 101-624, Sec. 1805(c)(5).
See 1990 Amendment note below.
1990--Pub. L. 101-624, Sec. 2388(d)(1), was amended in its directory
language by Pub. L. 102-237, Sec. 501(c)(2)(B)(i), resulting in no
change in text.
Subsec. (a). Pub. L. 101-624, Secs. 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 period at end ``, or may assign and transfer such
powers, duties, and assets to the Rural Development Administration as
provided by law for that office''.
Subsec. (b). Pub. L. 101-624, Sec. 2388(d)(1)(B), designated second
undesignated par. beginning ``The Secretary may--'' as subsec. (b).
Subsec. (b)(1) to (3). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi),
formerly (vii), as redesignated and amended by Pub. L. 102-237,
Sec. 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, Sec. 2388(d)(1)(A)(vi), formerly
(vii), as redesignated and amended by Pub. L. 102-237,
Sec. 501(c)(2)(B)(iii), (v), redesignated par. (d) as (4) of subsec.
(b).
Pub. L. 101-624, Secs. 1805(a)(1)(A), (B), 2303(a)(2), inserted ``or
the Rural Development Administration'' after ``Farmers Home
Administration'' in first sentence, substituted ``, except for
activities under the Housing Act of 1949'' for ``under any of its
programs, as circumstances may require, to carry out'' in first
sentence, 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, Sec. 2388(d)(1)(A)(v), formerly
(vi), as redesignated by Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
redesignated subpar. (1) as (A).
Pub. L. 101-624, Sec. 1805(a)(1)(C), inserted ``with respect to
farmer program loans,'' before ``on terms''.
Subsec. (b)(4)(B). Pub. L. 101-624, Sec. 2388(d)(1)(A)(v), formerly
(vi), as redesignated by Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
redesignated subpar. (2) as (B).
Subsec. (b)(5). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
(vii), as redesignated and amended by Pub. L. 102-237,
Sec. 501(c)(2)(B)(iii), (v), redesignated par. (e) as (5) of subsec.
(b).
Pub. L. 101-624, Sec. 1805(a)(2), inserted ``except for activities
conducted under the Housing Act of 1949,'' before ``collect'', struck
out ``arising or'' after ``obligations'', substituted ``by the Farmers
Home Administration'' for ``under this chapter'' before ``, or under
any'' and ``by the Farmers Home Administration'' for ``pursuant to this
chapter'' before ``and, if in his''.
Subsec. (b)(6). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
(vii), as redesignated and amended by Pub. L. 102-237,
Sec. 501(c)(2)(B)(iii), (v), redesignated par. (f) as (6) of subsec.
(b).
Pub. L. 101-624, Sec. 2388(d)(1)(A)(ii), substituted ``release'' for
``Release''.
Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), as amended by Pub. L. 102-
237, Sec. 501(c)(2)(B)(ii), realigned margin.
Pub. L. 101-624, Sec. 1805(c)(1), (2), which made amendments
identical to those by Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), (ii), was
repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
Subsec. (b)(7). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
(vii), as redesignated and amended by Pub. L. 102-237,
Sec. 501(c)(2)(B)(iii), (v), redesignated par. (g) as (7) of subsec.
(b).
Pub. L. 101-624, Sec. 2388(d)(1)(A)(iii), substituted ``obtain'' for
``Obtain''.
Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), as amended by Pub. L. 102-
237, Sec. 501(c)(2)(B)(ii), realigned margin.
Pub. L. 101-624, Sec. 1805(c)(1), (3), which made amendments
identical to those by Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), (iii), was
repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
Subsec. (b)(8). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
(vii), as redesignated and amended by Pub. L. 102-237,
Sec. 501(c)(2)(B)(iii), (v), redesignated par. (h) [par. (i) prior to
redesignation by Pub. L. 101-624, Sec. 1805(b), as amended] as (8) of
subsec. (b).
Pub. L. 101-624, Sec. 2388(d)(1)(A)(iv)(II), formerly (v)(II), as
redesignated and amended by Pub. L. 102-237, Sec. 501(c)(2)(B)(iii),
(iv), redesignated former subpars. (1) and (2) as (A) and (B),
respectively.
Pub. L. 101-624, Sec. 2303(a)(3), inserted ``Rural Development
Administration under this chapter or by the'' before ``Farmers Home
Administration''.
Pub. L. 101-624, Sec. 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, Sec. 2388(d)(1)(A)(i), (iv)(I), formerly (v)(I), as
redesignated and amended by Pub. L. 102-237, Sec. 501(c)(2)(B)(ii)-(iv),
realigned margin and substituted ``consent'' for ``Consent''.
Pub. L. 101-624, Sec. 1805(c)(1), (4), which made amendments
identical to those by Pub. L. 101-624, Sec. 2388(d)(1)(A)(i), (iv)(I),
was repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
Subsec. (b)(9). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
(vii), as redesignated and amended by Pub. L. 102-237,
Sec. 501(c)(2)(B)(iii), (v), redesignated par. (i) [par. (j) prior to
redesignation by Pub. L. 101-624, Sec. 1805(b), as amended] as (9) of
subsec. (b).
Pars. (c) to (g). Pub. L. 101-624, Sec. 2388(d)(1)(A)(vi), formerly
(vii), (B), as redesignated and amended by Pub. L. 102-237,
Sec. 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, Sec. 2388(d)(1)(A)(iv), which directed
substitution of ``not'' for ``Not'' before ``require'', was repealed by
Pub. L. 102-237, Sec. 501(c)(2)(B)(iii).
Pub. L. 101-624, Sec. 1805(c)(5), which redesignated par. (i) as
(h), was repealed by Pub. L. 102-237, Sec. 501(c)(2)(A).
Pub. L. 101-624, Sec. 1805(b), as amended by Pub. L. 102-237,
Sec. 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
Administration;''.
Pars. (i), (j). Pub. L. 101-624, Sec. 1805(c)(5), which redesignated
pars. (i) and (j) as (h) and (i), respectively, was repealed by Pub. L.
102-237, Sec. 501(c)(2)(A).
Pub. L. 101-624, Sec. 1805(b), as amended by Pub. L. 102-237,
Sec. 501(c)(2)(A), redesignated pars. (i) and (j) as (h) and (i),
respectively. Pars. (h) and (i) subsequently redesignated pars. (8) and
(9) of subsec. (b). See above.
1988--Par. (d). Pub. L. 100-233 inserted ``or debts'' before
``claims'', and inserted ``The Secretary may not require liquidation of
property securing 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.''
1985--Par. (d). Pub. L. 99-198, Sec. 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 Farmers
Home Administration to carry out this chapter for provisions which had
authorized the Secretary to compromise, adjust, or reduce claims, and
adjust and modify the terms of mortgages, leases, contracts and
agreements entered into or administered by the Administration 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 compromise, adjustment, reduction or
charge-off of any claim for provisions authorizing the Secretary to
release from personal liability, with or without payment of any
consideration at the time of adjustment of the claims, borrowers who
transferred the security property to approved applicants, to other than
approved applicants, or for amounts less than the indebtedness secured
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 provisions
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) substituted ``$25,000'' for
``$15,000'', and added par. (j).
1972--Par. (a). Pub. L. 92-419, Sec. 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 determined by the Secretary to be necessary for carrying
out the purposes of this chapter, and required the Secretary, prior to
June 30, 1974, to report to Congress through the President on the
experience in using such contracts, together with recommendations for
such legislation as he may see fit.
Pars. (d) to (i). Pub. L. 92-419, Sec. 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).
Effective Date of 2002 Amendment
Pub. L. 107-171, title V, Sec. 5304(b), May 13, 2002, 116 Stat. 345,
provided that: ``The amendment made by subsection (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 effective as if
included in the provision of the Food, Agriculture, Conservation, and
Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, and
amendment 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
Section 1328 of Pub. L. 99-198 provided that: ``The Secretary of
Agriculture shall, during the period beginning on the date of enactment
of this Act [Dec. 23, 1985] and ending on September 30, 1988, maintain
at substantially current levels the small farmer training and technical
assistance program in the office of the Administrator of the Farmers
Home Administration.''
Reamortization of Distressed Farmers Home Administration Loans From
Revenues From Softwood Timber Crop Plantings on Marginal Land
Pub. L. 98-258, title VI, Sec. 608, Apr. 10, 1984, 98 Stat. 140, as
amended by Pub. L. 99-198, title XII, Sec. 1254, Dec. 23, 1985, 99 Stat.
1517, provided that:
``(a)(1) Notwithstanding any other provision of law, the Secretary
of Agriculture (hereinafter in this section referred to as the
`Secretary') may implement a program, pursuant to the recommendations
contained in the study mandated by section 608 of the Agricultural
Programs Adjustment Act of 1984 (7 U.S.C. 1421 [1981] note), under which
a distressed loan (as determined 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 reamortized 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 reamortized loan may
be deferred until such softwood timber crop produces revenue or for a
term of 45 years, whichever comes first.
``(4) Repayment of such reamortized loan shall be made not later
than 50 years after the date of reamortization.
``(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 maturity 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 Consolidated 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 aggregate 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 (including 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 reamortized loans.
``(e) The Secretary shall issue such rules as are necessary to carry
out this section, including rules prescribing terms and conditions for--
``(1) reamortizing and making loans under this section;
``(2) entering into security instruments and agreements 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.''
Section Referred to in Other Sections
This section is referred to in sections 1991, 2005 of this title.
