§ 1991. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1991]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1991. Definitions
(a) As used in this chapter:
(1) The term ``farmer'' includes a person who is engaged in, or
who, with assistance afforded under this chapter, intends to engage
in, fish farming.
(2) The term ``farming'' shall be deemed to include fish
farming.
(3) The term ``owner-operator'' shall include in the State of
Hawaii the lessee-operator of real property in any case in which the
Secretary determines that such real property cannot be acquired in
fee simple by such lessee-operator, that adequate security is
provided for the loan with respect to such real property for which
such lessee-operator applies under this chapter, and that there is a
reasonable probability of accomplishing the objectives and repayment
of such loan.
(4) The word ``insure'' as used in this chapter includes
guarantee, which means to guarantee the payment of a loan
originated, held, and serviced by a private financial agency or
other lender approved by the Secretary.
(5) The term ``contract of insurance'' includes a contract of
guarantee.
(6) The terms ``United States'' and ``State'' shall include each
of the several States, the Commonwealth of Puerto Rico, the Virgin
Islands of the United States, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, and, to the extent the Secretary
determines it to be feasible and appropriate, the Trust Territory of
the Pacific Islands.
(7) The term ``joint operation'' means a joint farming operation
in which two or more farmers work together sharing equally or
unequally land, labor, equipment, expenses, and income.
(8) The term ``beginning farmer or rancher'' means such term as
defined by the Secretary.
(9) The term ``direct loan'' means a loan made or insured from
funds in the account created by section 1929 of this title.
(10) The term ``farmer program loan'' means a farm ownership
loan (FO) under section 1923 of this title, operating loan (OL)
under section 1942 of this title, soil and water loan (SW) under
section 1924 of this title, emergency loan (EM) under section 1961
of this title, economic emergency loan (EE) under section 202 of the
Emergency Agricultural Credit Adjustment Act (title II of Public Law
95-334), economic opportunity loan (EO) under the Economic
Opportunity Act of 1961 (42 U.S.C. 2942), softwood timber loan (ST)
under section 1254 of the Food Security Act of 1985, or rural
housing loan for farm service buildings (RHF) under section 1472 of
title 42.
(11) The term ``qualified beginning farmer or rancher'' means an
applicant, regardless of whether the applicant is participating in a
program under section 1935 of this title--
(A) who is eligible for assistance under this chapter;
(B) who has not operated a farm or ranch, or who has
operated a farm or ranch for not more than 10 years;
(C) in the case of a cooperative, corporation, partnership,
or joint operation, who has members, stockholders, partners, or
joint operators who are all related to one another by blood or
marriage;
(D)(i) in the case of an owner and operator of a farm or
ranch, who--
(I) in the case of a loan made to an individual,
individually or with the immediate family of the applicant--
(aa) materially and substantially participates in
the operation of the farm or ranch; and
(bb) provides substantial day-to-day labor and
management of the farm or ranch, consistent with the
practices in the State or county in which the farm or
ranch is located; or
(II)(aa) in the case of a loan made to a cooperative,
corporation, partnership, or joint operation, has members,
stockholders, partners, or joint operators, materially and
substantially participate in the operation of the farm or
ranch; and
(bb) in the case of a loan made to a corporation, has
stockholders, all of whom are qualified beginning farmers or
ranchers; and
(ii) in the case of an applicant seeking to own and operate
a farm or ranch, who--
(I) in the case of a loan made to an individual,
individually or with the immediate family of the applicant,
will--
(aa) materially and substantially participate in the
operation of the farm or ranch; and
(bb) provide substantial day-to-day labor and
management of the farm or ranch, consistent with the
practices in the State or county in which the farm or
ranch is located; or
(II)(aa) in the case of a loan made to a cooperative,
corporation, partnership, or joint operation, will have
members, stockholders, partners, or joint operators,
materially and substantially participate in the operation of
the farm or ranch; and
(bb) in the case of a loan made to a corporation, has
stockholders, all of whom are qualified beginning farmers or
ranchers;
(E) who agrees to participate in such loan assessment,
borrower training, and financial management programs as the
Secretary may require;
(F) who does not own land or who, directly or through
interests in family farm corporations, owns land, the aggregate
acreage of which does not exceed 30 percent of the median
acreage of the farms or ranches, as the case may be, in the
county in which the farm or ranch operations of the applicant
are located, as reported in the most recent census of
agriculture, except that this subparagraph shall not apply to a
loan made or guaranteed under subchapter II of this chapter; and
(G) who demonstrates that the available resources of the
applicant and spouse (if any) of the applicant are not
sufficient to enable the applicant to continue farming or
ranching on a viable scale.
(12) Debt forgiveness.--
(A) In general.--Except as provided in subparagraph (B), the
term ``debt forgiveness'' means reducing or terminating a farmer
program loan made or guaranteed under this chapter, in a manner
that results in a loss to the Secretary, through--
(i) writing down or writing off a loan under section
2001 of this title;
(ii) compromising, adjusting, reducing, or charging-off
a debt or claim under section 1981 of this title;
(iii) paying a loss on a guaranteed loan under section
2005 of this title; or
(iv) discharging a debt as a result of bankruptcy.
(B) Exceptions.--The term ``debt forgiveness'' does not
include--
(i) consolidation, rescheduling, reamortization, or
deferral of a loan; or
(ii) any write-down provided as part of a resolution of
a discrimination complaint against the Secretary.
(13) Rural and rural area.--
(A) In general.--Except as otherwise provided in this
paragraph, the terms ``rural'' and ``rural area'' mean any area
other than--
(i) a city or town that has a population of greater than
50,000 inhabitants; and
(ii) the urbanized area contiguous and adjacent to such
a city or town.
(B) Water and waste disposal grants and direct and
guaranteed loans.--For the purpose of water and waste disposal
grants and direct and guaranteed loans provided under paragraphs
(1), (2), and (24) of section 1926(a) of this title, the terms
``rural'' and ``rural area'' mean a city, town, or
unincorporated area that has a population of no more than 10,000
inhabitants.
(C) Community facility loans and grants.--For the purpose of
community facility direct and guaranteed loans and grants under
paragraphs (1), (19), (20), (21), and (24) of section 1926(a) of
this title, the terms ``rural'' and ``rural area'' mean a city,
town, or unincorporated area that has a population of not more
than 20,000 inhabitants.
(D) Multijurisdictional regional planning organizations;
national rural development partnership.--In sections 1926(a)(23)
and 2008m of this title, the term ``rural area'' means--
(i) all the territory of a State that is not within the
boundary of any standard metropolitan statistical area; and
(ii) all territory within any standard metropolitan
statistical area within a census tract having a population
density of less than 20 persons per square mile, as
determined by the Secretary according to the most recent
census of the United States as of any date.
(E) Rural business investment program.--In subchapter VIII
of this chapter, the term ``rural area'' means an area that is
located--
(i) outside a standard metropolitan statistical area; or
(ii) within a community that has a population of 50,000
inhabitants or less.
(b) As used in sections 1927(e), 1981d, 1985(e) and (f), 1988(b),
2000(b) and (c), 2001, and 2005 of this title:
(1) The term ``borrower'' means any farm borrower who has
outstanding obligations to the Secretary under any farmer program
loan, without regard to whether the loan has been accelerated, but
does not include any farm borrower all of whose loans and accounts
have been foreclosed on or liquidated, voluntarily or otherwise.
(2) The term ``loan service program'' means, with respect to a
farmer program borrower, a primary loan service program or a
preservation loan service program.
(3) The term ``primary loan service program'' means--
(A) loan consolidation, rescheduling, or reamortization;
(B) interest rate reduction, including the use of the
limited resource program;
(C) loan restructuring, including deferral, set aside, or
writing down of the principal or accumulated interest charges,
or both, of the loan; or
(D) any combination of actions described in subparagraphs
(A), (B), and (C).
(4) Preservation loan service program.--The term ``preservation
loan service program'' means homestead retention as authorized under
section 2000 of this title.
(Pub. L. 87-128, title III, Sec. 343, as added Pub. L. 87-703, title IV,
Sec. 401(5), Sept. 27, 1962, 76 Stat. 632; amended Pub. L. 89-586, Sept.
19, 1966, 80 Stat. 809; Pub. L. 92-419, title I, Sec. 128(a), Aug. 30,
1972, 86 Stat. 666; Pub. L. 95-334, title I, Sec. 124, Aug. 4, 1978, 92
Stat. 428; Pub. L. 96-438, Sec. 2(2), Oct. 13, 1980, 94 Stat. 1872; Pub.
L. 99-198, title XIII, Sec. 1301(b), Dec. 23, 1985, 99 Stat. 1519; Pub.
L. 100-233, title VI, Sec. 602, Jan. 6, 1988, 101 Stat. 1665; Pub. L.
101-624, title XVIII, Sec. 1814, title XXIII, Sec. 2388(h), Nov. 28,
1990, 104 Stat. 3824, 4053; Pub. L. 102-237, title VII, Sec. 702(h)(1),
Dec. 13, 1991, 105 Stat. 1880; Pub. L. 102-554, Sec. 19, Oct. 28, 1992,
106 Stat. 4158; Pub. L. 104-127, title VI, Secs. 640, 661(h), title VII,
Sec. 749(b)(2), Apr. 4, 1996, 110 Stat. 1098, 1107, 1129; Pub. L. 105-
113, Sec. 3(c), Nov. 21, 1997, 111 Stat. 2275; Pub. L. 107-171, title V,
Sec. 5310, title VI, Sec. 6020(a), May 13, 2002, 116 Stat. 346, 362.)
References in Text
For definition of ``this chapter'', referred to in subsec. (a), see
note set out under section 1921 of this title.
Section 202 of the Emergency Agricultural Credit Adjustment Act,
referred to in subsec. (a)(10), is section 202 of Pub. L. 95-334, title
II, Aug. 4, 1978, 92 Stat. 429, as amended, which was set out in a note
preceding section 1961 of this title prior to repeal by Pub. L. 101-624,
title XVIII, Sec. 1851, Nov. 28, 1990, 104 Stat. 3837.
The Economic Opportunity Act of 1961, referred to in subsec.
(a)(10), probably means the Economic Opportunity Act of 1964, Pub. L.
88-452, Aug. 20, 1964, 78 Stat. 508, as amended, which was classified
generally to chapter 34 (Sec. 2701 et seq.) of Title 42, The Public
Health and Welfare, prior to repeal, except for titles VIII and X, by
Pub. L. 97-35, title VI, Sec. 683(a), Aug. 13, 1981, 95 Stat. 519.
Titles VIII and X of the Act are classified generally to subchapters
VIII (Sec. 2991 et seq.) and X (Sec. 2996 et seq.) of chapter 34 of
Title 42. For complete classification of this Act to the Code, see
Tables.
Section 1254 of the Food Security Act of 1985, referred to in
subsec. (a)(10), is section 1254 of Pub. L. 99-198, title XII, Dec. 23,
1985, 99 Stat. 1517, which amended Pub. L. 98-258, Sec. 608, set out as
a note under section 1981 of this title.
Amendments
2002--Subsec. (a)(11)(F). Pub. L. 107-171, Sec. 5310(a), substituted
``30 percent'' for ``25 percent''.
Subsec. (a)(12)(B). Pub. L. 107-171, Sec. 5310(b), amended heading
and text of subpar. (B) generally. Prior to amendment, text read as
follows: ``The term `debt forgiveness' does not include consolidation,
rescheduling, reamortization, or deferral.''
Subsec. (a)(13). Pub. L. 107-171, Sec. 6020(a), added par. (13).
1997--Subsec. (a)(11)(F). Pub. L. 105-113 struck out ``taken under
section 142 of title 13'' after ``census of agriculture''.
1996--Subsec. (a)(10). Pub. L. 104-127, Sec. 661(h)(1), struck out
``recreation loan (RL) under section 1924 of this title,'' before
``emergency loan (EM)''.
Subsec. (a)(11). Pub. L. 104-127, Sec. 640(1)(A), in introductory
provisions, substituted ``applicant, regardless of whether the applicant
is participating in a program under section 1935 of this title'' for
``applicant''.
Subsec. (a)(11)(F). Pub. L. 104-127, Sec. 640(1)(B), substituted
``25 percent'' for ``15 percent'' and inserted before semicolon at end
``, except that this subparagraph shall not apply to a loan made or
guaranteed under subchapter II of this chapter''.
Subsec. (a)(12). Pub. L. 104-127, Sec. 640(2), added par. (12).
Subsec. (b). Pub. L. 104-127, Secs. 661(h)(2)(A), 749(b)(2), in
introductory provisions, substituted ``1988(b), 2000(b) and (c)'' for
``1988(f), 1999(h), 2000(b) and (c)''.
Subsec. (b)(4). Pub. L. 104-127, Sec. 661(h)(2)(B), added par. (4)
and struck out former par. (4) which read as follows: ``The term
`preservation loan service program' means--
``(A) homestead retention as authorized under section 2000 of
this title; and
``(B) a leaseback or buyback of farmland authorized under
section 1985 of this title.''
1992--Subsec. (a). Pub. L. 102-554 substituted ``this chapter:'' and
par. (1) for ``this chapter (1) the term `farmers' shall be deemed to
include persons who are engaged in, or who, with assistance afforded
under this chapter, intend to engage in, fish farming,'', in pars. (2)
to (8), realigned margins and substituted ``The'' for ``the'' first
place appearing in each par. and a period for a comma at end of each
par., in par. (9), realigned margin and substituted ``The'' for ``the''
first place appearing and a period for ``, and'' at end, in par. (10),
realigned margin and substituted ``The'' for ``the'' first place
appearing, and added par. (11).
1991--Subsec. (a)(1), (3). Pub. L. 102-237, Sec. 702(h)(1)(A), (B),
made technical amendment to directory language of Pub. L. 101-624,
Sec. 2388(h)(1), (2). See 1990 Amendment note below.
Subsec. (a)(5). Pub. L. 102-237, Sec. 702(h)(1)(C), repealed Pub. L.
101-624, Sec. 2388(h)(3). See 1990 Amendment note below.
1990--Subsec. (a)(1), (3). Pub. L. 101-624, Sec. 2388(h)(1), (2), as
amended by Pub. L. 102-237, Sec. 702(h)(1)(A), (B), struck out ``and''
after ``fish farming,'' in par. (1), and ``and'' after ``such loan,'' in
par. (3).
Subsec. (a)(5). Pub. L. 101-624, Sec. 2388(h)(3), which directed
substitution of `` `contract of insurance' '' for ``contract of
insurance'', was repealed by Pub. L. 102-237, Sec. 702(h)(1)(C). See
Construction of 1990 Amendment note below.
Subsec. (a)(8) to (10). Pub. L. 101-624, Sec. 1814, added pars. (8)
to (10).
1988--Pub. L. 100-233 designated existing provisions as subsec. (a)
and added subsec. (b).
1985--Pub. L. 99-198 added cl. (7).
1980--Pub. L. 96-438 added cl. (3). For termination of former cl.
(3) as added by Pub. L. 89-586, see Effective and Termination Date of
1966 Amendment note below.
1978--Pub. L. 95-334 added cl. (6).
1972--Pub. L. 92-419 added cls. (4) and (5).
1966--Pub. L. 89-586 struck out ``and'' before ``(2)'' and inserted
cl. (3) defining ``owner-operator''. See Effective and Termination Date
of 1966 Amendment note below.
Effective Date of 1997 Amendment
Section 3(d) of Pub. L. 104-113 provided that: ``This section
[amending this section and repealing section 142 of Title 13, Census]
and the amendments made by this section shall take effect October 1,
1998.''
Effective Date of 1996 Amendment
Amendment by section 640(1) of Pub. L. 104-127 effective 90 days
after Apr. 4, 1996, and amendment by sections 640(2) and 661(h) of Pub.
L. 104-127 effective Apr. 4, 1996, see section 663(a), (b) of Pub. L.
104-127, set out as a note under section 1922 of this title.
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)(7)
of Pub. L. 102-237, set out as a note under section 1421 of this title.
Effective and Termination Date of 1966 Amendment
Pub. L. 89-586, as amended by Pub. L. 90-426, July 26, 1968, 82
Stat. 445, provided in part that the amendment made by Pub. L. 89-586 is
effective only for the period of time commencing with Sept. 19, 1966,
and ending on June 30, 1970.
Construction of 1990 Amendment
Section 702(h)(2) of Pub. L. 102-237, as amended by Pub. L. 102-552,
title V, Sec. 516(k), Oct. 28, 1992, 106 Stat. 4139, provided that:
``The Consolidated Farm and Rural Development Act [see Short Title note
set out under section 1921 of this title] shall be applied and
administered as if the amendment made by section 2388(h)(3) of the Food,
Agriculture, Conservation, and Trade Act of 1990 [Pub. L. 101-624,
amending this section] had never been enacted.''
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note
set out preceding section 1681 of Title 48, Territories and Insular
Possessions.
Section Referred to in Other Sections
This section is referred to in section 2001 of this title; title 25
section 492.
