§ 1981a. — Loan moratorium and policy on foreclosures.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1981a]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1981a. Loan moratorium and policy on foreclosures
In addition to any other authority that the Secretary may have to
defer principal and interest and forego foreclosure, the Secretary may
permit, at the request of the borrower, the deferral of principal and
interest on any outstanding loan made, insured, or held by the Secretary
under this chapter, or under the provisions of any other law
administered by the Farmers Home Administration or by the Rural
Development Administration, and may forego foreclosure of any such loan,
for such period as the Secretary deems necessary upon a showing by the
borrower that due to circumstances beyond the borrower's control, the
borrower is temporarily unable to continue making payments of such
principal and interest when due without unduly impairing the standard of
living of the borrower. The Secretary may permit interest that accrues
during the deferral period on any loan deferred under this section to
bear no interest during or after such period: Provided, That if the
security instrument securing such loan is foreclosed such interest as is
included in the purchase price at such foreclosure shall become part of
the principal and draw interest from the date of foreclosure at the rate
prescribed by law.
(Pub. L. 87-128, title III, Sec. 331A, as added Pub. L. 95-334, title I,
Sec. 122, Aug. 4, 1978, 92 Stat. 427; amended Pub. L. 101-624, title
XXIII, Sec. 2303(b), Nov. 28, 1990, 104 Stat. 3981.)
References in Text
For definition of ``this chapter'', referred to in text, see note
set out under section 1921 of this title.
Amendments
1990--Pub. L. 101-624 inserted ``or by the Rural Development
Administration'' after ``Farmers Home Administration''.
Prior Provisions
Provisions similar to those in this section were contained in the
following appropriation acts:
Pub. L. 102-341, title III, Aug. 14, 1992, 106 Stat. 897.
Pub. L. 102-142, title III, Oct. 28, 1991, 105 Stat. 902.
Pub. L. 101-506, title II, Nov. 5, 1990, 104 Stat. 1333.
Pub. L. 101-161, title II, Nov. 21, 1989, 103 Stat. 969.
Pub. L. 100-460, title II, Oct. 1, 1988, 102 Stat. 2246.
Pub. L. 100-202, Sec. 101(k) [title II], Dec. 22, 1987, 101 Stat.
1329-322, 1329-340.
Pub. L. 99-500, Sec. 101(a) [title II], Oct. 18, 1986, 100 Stat.
1783, 1783-16, and Pub. L. 99-591, Sec. 101(a) [title II], Oct. 30,
1986, 100 Stat. 3341, 3341-16.
Pub. L. 99-190, Sec. 101(a) [H.R. 3037, title II], Dec. 19, 1985, 99
Stat. 1185.
Pub. L. 98-473, title I, Sec. 101(a) [H.R. 5743, title II], Oct. 12,
1984, 98 Stat. 1837.
Pub. L. 98-151, Sec. 101(d) [H.R. 3223, title II], Nov. 14, 1983, 97
Stat. 972.
Pub. L. 97-370, title II, Dec. 18, 1982, 96 Stat. 1800.
Forbearance and Restructuring for Farm Loans
Pub. L. 100-387, title III, Sec. 313(a), Aug. 11, 1988, 102 Stat.
949, provided that: ``It is the sense of Congress that the Secretary of
Agriculture should, with respect to farmers and ranchers who suffer
major losses due to drought, hail, excessive moisture, or related
condition in 1988--
``(1) exercise forbearance in the collection of interest and
principal on direct farmer program loans under the Consolidated Farm
and Rural Development Act [7 U.S.C. 1921 et seq.] outstanding for
such farmers and ranchers;
``(2) expedite the use of credit restructuring and other credit
relief mechanisms authorized under the Agricultural Credit Act of
1987 [Pub. L. 100-233, Jan. 6, 1988, 101 Stat. 1568, see Tables for
classification] and similar provisions of law for such farmers and
ranchers; and
``(3) encourage commercial lenders participating in guaranteed
farmer lending programs under the Consolidated Farm and Rural
Development Act to exercise forbearance before declaring loans to
such farmers and ranchers under such programs in default.''
