§ 1981c. — Oil and gas royalty payments on loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1981c]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1981c. Oil and gas royalty payments on loans
(a) The Secretary shall permit a borrower of a loan made or insured
under this chapter to make a prospective payment on such loan with
proceeds from--
(1) the leasing of oil, gas, or other mineral rights to real
property used to secure such loan; or
(2) the sale of oil, gas, or other minerals removed from real
property used to secure such loan, if the value of the rights to
such oil, gas, or other minerals has not been used to secure such
loan.
(b) Subsection (a) of this section shall not apply to a borrower of
a loan made or insured under this chapter with respect to which a
liquidation or foreclosure proceeding is pending on December 23, 1985.
(Pub. L. 87-128, title III, Sec. 331C, as added Pub. L. 99-198, title
XIII, Sec. 1310(a), Dec. 23, 1985, 99 Stat. 1523.)
References in Text
For definition of ``this chapter'', referred to in text, see note
set out under section 1921 of this title.
