§ 1983. — Special conditions and limitations 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: 7USC1983]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1983. Special conditions and limitations on loans
In connection with loans made or insured under this chapter, the
Secretary shall require--
(1) the applicant (A) to certify in writing, and the Secretary
shall determine, that he is unable to obtain sufficient credit
elsewhere to finance his actual needs at reasonable rates and terms,
taking into consideration prevailing private and cooperative rates
and terms in the community in or near which the applicant resides
for loans for similar purposes and periods of time, and (B) to
furnish an appropriate written financial statement;
(2) except with respect to a loan under section 1926, 1932, or
1944 of this title--
(A) an annual review of the credit history and business
operation of the borrower; and
(B) an annual review of the continued eligibility of the
borrower for the loan;
(3) except for guaranteed loans, an agreement by the borrower
that if at any time it shall appear to the Secretary that the
borrower may be able to obtain a loan from a production credit
association, a Federal land bank, or other responsible cooperative
or private credit source (or, in the case of a borrower under
section 1934 of this title, the borrower may be able to obtain a
loan under section 1922 of this title), at reasonable rates and
terms for loans for similar purposes and periods of time, the
borrower will, upon request by the Secretary, apply for and accept
such loan in sufficient amount to repay the Secretary or the insured
lender, or both, and to pay for any stock necessary to be purchased
in a cooperative lending agency in connection with such loan;
(4) such provision for supervision of the borrower's operations
as the Secretary shall deem necessary to achieve the objectives of
the loan and protect the interests of the United States; and
(5) the application of a person who is a veteran of any war, as
defined in section 101(12) of title 38, for a loan under subchapter
I or II of this chapter to be given preference over a similar
application from a person who is not a veteran of any war, if the
applications are on file in a county or area office at the same
time.
(Pub. L. 87-128, title III, Sec. 333, Aug. 8, 1961, 75 Stat. 314; Pub.
L. 90-488, Sec. 12, Aug. 15, 1968, 82 Stat. 771; Pub. L. 91-620, Sec. 3,
Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92-419, title I, Secs. 118(b),
125, 126, Aug. 30, 1972, 86 Stat. 664, 666; Pub. L. 95-334, title I,
Sec. 123, Aug. 4, 1978, 92 Stat. 428; Pub. L. 96-438, Sec. 3(c), Oct.
13, 1980, 94 Stat. 1875; Pub. L. 97-98, title XVI, Sec. 1604, Dec. 22,
1981, 95 Stat. 1346; Pub. L. 101-624, title XVIII, Sec. 1810, title
XXIII, Sec. 2388(e), Nov. 28, 1990, 104 Stat. 3820, 4053; Pub. L. 102-
237, title V, Sec. 501(e), Dec. 13, 1991, 105 Stat. 1867; Pub. L. 102-
554, Sec. 12, Oct. 28, 1992, 106 Stat. 4151; Pub. L. 103-354, title II,
Sec. 227(b)(2), Oct. 13, 1994, 108 Stat. 3218; Pub. L. 104-127, title
VI, Secs. 634, 635(a), 636, Apr. 4, 1996, 110 Stat. 1093; Pub. L. 107-
171, title V, Sec. 5306, May 13, 2002, 116 Stat. 345.)
References in Text
For definition of ``this chapter'', referred to in introductory
provisions, see note set out under section 1921 of this title.
Amendments
2002--Par. (2). Pub. L. 107-171 amended par. (2) generally. Prior to
amendment, par. (2) read as follows: ``except with respect to a loan
under section 1926, 1932, or 1944 of this title, the county or area
committee established under section 590h(b)(5)(B) of title 16 to certify
in writing--
``(A) that an annual review of the credit history and business
operation of the borrower has been conducted; and
``(B) that a review of the continued eligibility of the borrower
for the loan has been conducted;''.
1996--Par. (1)(B). Pub. L. 104-127, Sec. 634, substituted ``an
appropriate written financial statement'' for ``a written statement
showing the applicant's net worth''.
Pars. (2) to (4). Pub. L. 104-127, Sec. 635(a), added par. (2) and
redesignated former pars. (2) and (3) as (3) and (4), respectively.
Former par. (4) redesignated (5).
Par. (5). Pub. L. 104-127, Sec. 636, added par. (5) and struck out
former par. (5) which read as follows: ``the applications of veterans
for loans under subchapter I or II of this chapter to be given
preference over similar applications of nonveterans on file in any
county or area office at the same time. Veterans as used herein shall
mean persons who served in the Armed Forces of the United States during
any war between the United States and any other nation, during the
Korean conflict or the Vietnam era and who were discharged or released
therefrom under conditions other than dishonorable.''
Pub. L. 104-127, Sec. 635(a)(1), redesignated par. (4) as (5).
1994--Pars. (2) to (5). Pub. L. 103-354 redesignated pars. (3) to
(5) as (2) to (4), respectively, and struck out former par. (2) relating
to certification by county committee of applicant's eligibility for
loan.
1992--Par. (2)(A)(iii). Pub. L. 102-554 substituted ``5 years'' for
``2 years''.
1991--Par. (2)(A). Pub. L. 102-237 redesignated cls. (1) to (3) as
(i) to (iii), respectively.
1990--Pub. L. 101-624, Sec. 2388(e), redesignated pars. (a) to (e)
as (1) to (5), respectively, and in par. (1) redesignated subpars. (1)
and (2) as (A) and (B), respectively; in par. (2) redesignated subpars.
(1) and (2) as (A) and (B), respectively, and in subpar. (A)
redesignated cls. (A) to (C) as (1) to (3), respectively; in par. (3)
made technical amendments to references to sections 1934 and 1922 of
this title involving original act and requiring no change in text; and
in par. (5) made technical amendments to reference to subchapter I or II
of this chapter involving original act and requiring no change in text.
Pub. L. 101-624, Sec. 1810, amended par. (b) generally. Prior to
amendment, par. (b) read as follows: ``except for loans under sections
1926, 1932, 1944 and 1961(a)(2) of this title, the county committee to
certify in writing that the applicant meets the eligibility requirements
for the loan, and has the character, industry, and ability to carry out
the proposed operations, and will, in the opinion of the committee,
honestly endeavor to carry out his undertakings and obligations; and for
loans under section 1961(a)(2) of this title, the Secretary shall
require the recommendation of the county committee as to the making or
insuring of the loan: Provided, That the Secretary may provide a
procedure for appeal and review of any determination relating to a
certification or recommendation required to be made by the county
committee, and for reversal or modification thereof should the facts
warrant such action;''.
1981--Par. (a). Pub. L. 97-98 designated existing provisions after
``the applicant'' as cl. (1), and added cl. (2).
1980--Par. (b). Pub. L. 96-438 substituted ``section 1961(a)(2)''
for ``section 1961(b)(2)'' in two places.
1978--Par. (b). Pub. L. 95-334, Sec. 123(1), inserted proviso
relating to appeal and review procedure for any determination regarding
a certification, etc.
Par. (c). Pub. L. 95-334, Sec. 123(2), (3), inserted provisions
excepting guaranteed loans and provisions relating to borrowers under
section 1934 of this title obtaining loans under section 1922 of this
title.
1972--Par. (a). Pub. L. 92-419, Sec. 125, inserted ``, and the
Secretary shall determine,'' after ``in writing''.
Par. (b). Pub. L. 92-419, Secs. 118(b), 126, inserted reference to
section 1932 of this title and substituted ``section 1961(b)(2) of this
title'' for ``said sections'', respectively.
1970--Pub. L. 91-620 included persons who served during the Vietnam
era within the definition of ``Veterans'' in par. (e).
1968--Par. (b). Pub. L. 90-488 struck out ``farming'' from phrase
``proposed farming operations''.
Effective Date of 1991 Amendment
Amendment by 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, see section 1101(b)(3)
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.
Section Referred to in Other Sections
This section is referred to in section 1932 of this title.
