§ 1994. — Maximum amounts for loans authorized; longterm cost projections.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1994]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 1994. Maximum amounts for loans authorized; long-term cost
projections
(a) Maximum aggregate principal amounts for loans authorized
Effective October 1, 1979, the aggregate principal amount of loans
under the programs authorized under each subchapter of this chapter
during each three-year period thereafter shall not exceed such amounts
as may be authorized by law after August 4, 1978. There shall be two
amounts so established for each of such programs and for any maximum
levels provided in appropriation Acts for the programs authorized under
this chapter, one against which direct and insured loans shall be
charged and the other against which guaranteed loans shall be
charged,.\1\
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\1\ So in original.
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(b) Authorization for loans
(1) In general
The Secretary may make or guarantee loans under subchapters I
and II of this chapter from the Agricultural Credit Insurance Fund
provided for in section 1929 of this title for not more than
$3,796,000,000 for each of fiscal years 2003 through 2007, of which,
for each fiscal year--
(A) $770,000,000 shall be for direct loans, of which--
(i) $205,000,000 shall be for farm ownership loans under
subchapter I of this chapter; and
(ii) $565,000,000 shall be for operating loans under
subchapter II of this chapter; and
(B) $3,026,000,000 shall be for guaranteed loans, of which--
(i) $1,000,000,000 shall be for guarantees of farm
ownership loans under subchapter I of this chapter; and
(ii) $2,026,000,000 shall be for guarantees of operating
loans under subchapter II of this chapter.
(2) Beginning farmers and ranchers
(A) Direct loans
(i) Farm ownership loans
(I) In general
Of the amounts made available under paragraph (1)
for direct farm ownership loans, the Secretary shall
reserve 70 percent for qualified beginning farmers and
ranchers.
(II) Down payment loans
Of the amounts reserved for a fiscal year under
subclause (I), the Secretary shall reserve 60 percent
for the down payment loan program under section 1935 of
this title until April 1 of the fiscal year.
(ii) Operating loans
Of the amounts made available under paragraph (1) for
direct operating loans, the Secretary shall reserve for
qualified beginning farmers and ranchers--
(I) for each of fiscal years 1996 through 1998, 25
percent;
(II) for fiscal year 1999, 30 percent; and
(III) for each of fiscal years 2003 through 2007, 35
percent.
(iii) Funds reserved until September 1
Except as provided in clause (i)(II), funds reserved for
qualified beginning farmers or ranchers under this
subparagraph for a fiscal year shall be reserved only until
September 1 of the fiscal year.
(B) Guaranteed loans
(i) Farm ownership loans
Of the amounts made available under paragraph (1) for
guarantees of farm ownership loans, the Secretary shall
reserve 25 percent for qualified beginning farmers and
ranchers.
(ii) Operating loans
Of the amounts made available under paragraph (1) for
guarantees of operating loans, the Secretary shall reserve
40 percent for qualified beginning farmers and ranchers.
(iii) Funds reserved until April 1
Funds reserved for qualified beginning farmers or
ranchers under this subparagraph for a fiscal year shall be
reserved only until April 1 of the fiscal year.
(C) Reserved funds for all qualified beginning farmers and
ranchers
If a qualified beginning farmer or rancher meets the
eligibility criteria for receiving a direct or guaranteed loan
under section 1922, 1935, or 1941 of this title, the Secretary
shall make or guarantee the loan if sufficient funds reserved
under this paragraph are available to make or guarantee the
loan.
(3) Transfer for down payment loans
(A) In general
Notwithstanding subsection (a) of this section, subject to
subparagraph (B)--
(i) beginning on August 1 of each fiscal year, the
Secretary shall use available unsubsidized guaranteed farm
operating loan funds to provide direct farm ownership loans
approved by the Secretary to qualified beginning farmers and
ranchers under the down payment loan program established
under section 1935 of this title, if sufficient direct farm
ownership loan funds are not otherwise available; and
(ii) beginning on September 1 of each fiscal year, the
Secretary shall use available unsubsidized guaranteed farm
operating loan funds to provide direct farm ownership loans
approved by the Secretary to qualified beginning farmers and
ranchers, if sufficient direct farm ownership loan funds are
not otherwise available.
(B) Limitation
The Secretary shall limit the transfer of funds under
subparagraph (A) so that all guaranteed farm operating loans
that have been approved, or will be approved, by the Secretary
during the fiscal year will be made to the extent of available
amounts.
(4) Transfer for credit sales of farm inventory property
(A) In general
Notwithstanding subsection (a) of this section, subject to
subparagraphs (B) and (C), beginning on September 1 of each
fiscal year, the Secretary may use available funds made
available under subchapter III of this chapter for the fiscal
year to fund the credit sale of farm real estate in the
inventory of the Secretary.
(B) Supplemental appropriations
The transfer authority provided under subparagraph (A) shall
not apply to any funds made available to the Secretary for any
fiscal year under an Act making supplemental appropriations.
(C) Limitation
The Secretary shall limit the transfer of funds under
subparagraph (A) so that all emergency disaster loans that have
been approved, or will be approved, by the Secretary during the
fiscal year will be made to the extent of available amounts.
(c) Development of long-term cost projections for loan program
authorizations
The Secretary shall develop long-term cost projections for loan
program authorizations required under subsection (a) of this section.
Each such projection shall include analyses of (1) the long-term costs
of the lending levels that the Secretary requests to be authorized under
subsection (a) of this section and (2) the long-term costs for increases
in lending levels beyond those requested to be authorized, based on
increments of $10,000,000 or such other levels as the Secretary deems
appropriate. Long-term cost projections for the three-year period
beginning with fiscal year 1983 and each three-year period thereafter
shall be submitted to the House Committee on Agriculture, the House
Committee on Appropriations, the Senate Committee on Agriculture,
Nutrition, and Forestry, and the Senate Committee on Appropriations at
the time the requests for authorizations for those periods are submitted
to Congress. Not later than fifteen days after October 13, 1980, the
Secretary shall submit to such committees long-term cost projections
covering authorized lending levels for the loan programs for fiscal
years 1981 and 1982.
(d) Low-income, limited-resource borrowers
(1) Notwithstanding any other provision of law, not less than 25 per
centum of the loans for farm ownership purposes under subchapter I of
this chapter, and not less than 25 per centum of the loans for farm
operating purposes under subchapter II of this chapter, authorized to be
insured, or made to be sold and insured, from the Agricultural Credit
Insurance Fund during each fiscal year shall be for low-income, limited-
resource borrowers.
(2) The Secretary shall provide notification to farm borrowers under
this chapter, as soon as practicable after April 10, 1984, and in the
normal course of loan making and loan servicing operations, of the
provisions of this chapter relating to low-income, limited-resource
borrowers and the procedures by which persons may apply for loans under
the low-income, limited-resource borrower program.
(Pub. L. 87-128, title III, Sec. 346, as added Pub. L. 95-334, title I,
Sec. 125, Aug. 4, 1978, 92 Stat. 428; amended Pub. L. 96-438, Sec. 4,
Oct. 13, 1980, 94 Stat. 1876; Pub. L. 97-35, title I, Sec. 164, Aug. 13,
1981, 95 Stat. 379; Pub. L. 98-258, title VI, Sec. 607, Apr. 10, 1984,
98 Stat. 140; Pub. L. 99-198, title XIII, Sec. 1317, Dec. 23, 1985, 99
Stat. 1529; Pub. L. 101-508, title I, Sec. 1202(a), Nov. 5, 1990, 104
Stat. 1388-9; Pub. L. 101-624, title XXIII, Sec. 2388(i), Nov. 28, 1990,
104 Stat. 4053; Pub. L. 102-237, title VII, Secs. 701(h)(1)(F), 702(i),
Dec. 13, 1991, 105 Stat. 1880, 1881; Pub. L. 102-554, Sec. 20, Oct. 28,
1992, 106 Stat. 4159; Pub. L. 104-127, title VI, Sec. 641, Apr. 4, 1996,
110 Stat. 1098; Pub. L. 107-171, title V, Secs. 5311, 5312, May 13,
2002, 116 Stat. 346, 347.)
References in Text
For definition of ``this chapter'', referred to in subsecs. (a) and
(d)(2), see note set out under section 1921 of this title.
Amendments
2002--Subsec. (b)(1). Pub. L. 107-171, Sec. 5311, reenacted heading
without change and amended text generally. Prior to amendment, text
related to guaranteed loans under subchapters I and II of this chapter
from the Agricultural Credit Insurance Fund provided for in section 1929
of this title for fiscal years 1996 to 2002.
Subsec. (b)(2)(A)(ii)(III). Pub. L. 107-171, Sec. 5312, substituted
``2003 through 2007'' for ``2000 through 2002''.
1996--Subsec. (a). Pub. L. 104-127, Sec. 641(1), in second sentence,
struck out ``with or without authority for the Secretary to transfer
amounts between such categories within a given program for more
effective administration'' before period at end.
Subsec. (b). Pub. L. 104-127, Sec. 641(2), added subsec. (b) and
struck out former subsec. (b), which set forth maximum amounts for
direct and guaranteed loans under the Agricultural Credit Insurance Fund
for fiscal years 1991 to 1995.
1992--Subsec. (b)(2). Pub. L. 102-554, Sec. 20(b), inserted sentence
at end.
Subsec. (b)(3)(D) to (G). Pub. L. 102-554, Sec. 20(c), (d), added
subpars. (D) to (G).
Subsec. (b)(5), (6). Pub. L. 102-554, Sec. 20(a), (e), added pars.
(5) and (6).
1991--Subsec. (b). Pub. L. 102-237, Sec. 702(i), repealed Pub. L.
101-624, Sec. 2388(i). See 1990 Amendment note below.
Subsec. (b)(3)(C). Pub. L. 102-237, Sec. 701(h)(1)(F), substituted
``this chapter'' for ``this Act'' in two places.
1990--Subsec. (b). Pub. L. 101-624, Sec. 2388(i), which amended
subsec. (b), in par. (1)(B), by striking ``subparagraph (C)'' and
inserting ``paragraph (3)''; in par. (1)(C), by striking ``subparagraph
(A)'' and inserting ``paragraph (1)''; by redesignating pars. (1)(A),
(B), (C), (D)(i), and (E) as (1), (2), (3), (4), and (5), respectively;
in par. (2), by redesignating cls. (i), (ii), and (iii) as subpars. (A),
(B), and (C), respectively; in subpars. (A) to (C) of par. (2), by
redesignating subcls. (I) and (II) as cls. (i) and (ii), respectively;
and in par. (5), by redesignating cls. (i), (ii), and (iii) as subpars.
(A), (B), and (C), respectively, was repealed by Pub. L. 102-237,
Sec. 702(i). See Construction of 1990 Amendment note below.
Pub. L. 101-508, Sec. 1202(a), amended subsec. (b) generally,
substituting present provisions for provisions relating to maximum
amounts for loans under the Agricultural Credit Insurance Fund and the
Rural Development Insurance Fund for fiscal years 1986 through 1988.
1985--Subsec. (b). Pub. L. 99-198, Sec. 1317(a), amended subsec. (b)
generally, substituting provisions setting maximum amounts for loans
under the Agricultural Credit Insurance Fund and the Rural Development
Insurance Fund for each of fiscal years ending September 30, 1986,
through September 30, 1988, for provisions setting such amounts for each
of fiscal years 1980, 1981, and 1982.
Subsecs. (d), (e). Pub. L. 99-198, Sec. 1317, struck out subsec. (d)
which authorized special amounts for fiscal year 1982, redesignated
subsec. (e) as (d), and in par. (1) substituted ``25 per centum'' for
``20 per centum'' wherever appearing and ``each fiscal year'' for
``fiscal year 1984''.
1984--Subsec. (e). Pub. L. 98-258 added subsec. (e).
1981--Subsec. (d). Pub. L. 97-35 added subsec. (d).
1980--Pub. L. 96-438 designated existing provisions as subsec. (a)
and added subsecs. (b) and (c).
Effective Date of 1991 Amendment
Amendment by section 701(h)(1)(F) of Pub. L. 102-237 to any
provision specified therein effective as if included in act that added
provision so specified at the time such act became law, and amendment by
section 702(i) of 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),
(c) of Pub. L. 102-237, set out as a note under section 1421 of this
title.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-508 effective Nov. 29, 1990, see section
1301 of Pub. L. 101-508, set out as a note under section 511r of this
title.
Construction of 1990 Amendment
Section 702(i) of Pub. L. 102-237 provided that: ``Subsection (i) of
section 2388 of the Food, Agriculture, Conservation, and Trade Act of
1990 (104 Stat. 4053) [Pub. L. 101-624, amending this section] is hereby
repealed and 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 amendments made by such subsection had never
been enacted.''
Nullification of Reservation of Funds During Fiscal Year 1999 for
Guaranteed Loans for Qualified Beginning Farmers and Ranchers
Pub. L. 106-2, Sec. 1, Mar. 15, 1999, 113 Stat. 5, provided that:
``Amounts shall be made available pursuant to section 346(b)(1)(D) of
the Consolidated Farm and Rural Development Act [7 U.S.C. 1994(b)(1)(D)]
for guaranteed loans, without regard to any reservation under section
346(b)(2)(B) of such Act.''
Section Referred to in Other Sections
This section is referred to in section 1923 of this title.
