§ 1981b. — Farm loan interest rates.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1981b]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1981b. Farm loan interest rates
Any loan for farm ownership purposes under subchapter I of this
chapter, farm operating purposes under subchapter II of this chapter, or
disaster emergency purposes under subchapter III of this chapter, other
than a guaranteed loan, that is deferred, consolidated, rescheduled, or
reamortized under this chapter shall, notwithstanding any other
provision of this chapter, bear interest on the balance of the original
loan and for the term of the original loan at a rate that is the lowest
of--
(1) the rate of interest on the original loan;
(2) the rate being charged by the Secretary for loans, other
than guaranteed loans, of the same type at the time at which the
borrower applies for a deferral, consolidation, rescheduling, or
reamortization; or
(3) the rate being charged by the Secretary for loans, other
than guaranteed loans, of the same type at the time of the deferral,
consolidation, rescheduling, or reamortization.
(Pub. L. 87-128, title III, Sec. 331B, as added Pub. L. 98-258, title
VI, Sec. 605, Apr. 10, 1984, 98 Stat. 139; amended Pub. L. 107-171,
title V, Sec. 5305, May 13, 2002, 116 Stat. 345.)
References in Text
For definition of ``this chapter'', referred to in text, see note
set out under section 1921 of this title.
Amendments
2002--Pub. L. 107-171 substituted ``lowest of--'' for ``lower of'',
realigned margins for pars., substituted ``original loan;'' for
``original loan or (2) the'', added par. (2), and redesignated former
par. (2) as (3).
Adjustment of Interest Rates
Pub. L. 100-71, title I, July 11, 1987, 101 Stat. 428, provided
that: ``The Secretary may adjust interest rates on existing
nonsubsidized loans if he determines such interest rates are excessive
in relation to prevailing commercial rates for comparable loans:
Provided, That such rate adjustments shall constitute a change in the
loan agreement and not a new loan.''
Section Referred to in Other Sections
This section is referred to in section 1946 of this title.
