§ 2006b. — Loan assessments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2006b]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 2006b. Loan assessments
(a) In general
The Secretary shall evaluate, in accordance with regulations issued
by the Secretary, the farming plan and financial situation of each
qualified farmer or rancher applicant.
(b) Determinations
In evaluating the farming plan and financial situation of an
applicant under this section, the Secretary shall determine--
(1) the amount that the applicant will need to borrow to carry
out the proposed farming plan;
(2) the rate of interest that the applicant would need to be
able to cover expenses and build an adequate equity base;
(3) the goals of the proposed farming plan of the applicant;
(4) the financial viability of the plan and any changes that are
necessary to make the plan viable; and
(5) whether assistance is necessary under this chapter and, if
so, the amount of the assistance.
(c) Contract
The Secretary may contract with a third party (including those
entities eligible to provide borrower training under section 2006a(b) of
this title) to conduct loan assessments under this section.
(d) Review of loans
(1) In general
Loan assessments conducted under this section shall include
annual review of direct loans, and periodic review (as determined
necessary by the Secretary) of guaranteed loans, made under this
chapter to assess the progress of a borrower in meeting the goals
for the farm or ranch operation.
(2) Contracts
The Secretary may contract with an entity that is eligible to
provide borrower training under section 2006a(b) of this title to
conduct loan reviews under paragraph (1).
(3) Problem assessments
If a borrower is delinquent in payments on a direct or
guaranteed loan made under this chapter, the Secretary or the
contracting entity shall determine the cause of, and action
necessary to correct, the delinquency.
(e) Guidelines
The Secretary shall issue regulations providing guidelines for loan
assessments conducted under this section.
(Pub. L. 87-128, title III, Sec. 360, as added Pub. L. 101-624, title
XVIII, Sec. 1819, Nov. 28, 1990, 104 Stat. 3830; amended Pub. L. 107-
171, title V, Secs. 5317, 5318, May 13, 2002, 116 Stat. 348.)
References in Text
For definition of ``this chapter'', referred to in subsecs. (a),
(b)(5), and (d)(1), (3), see note set out under section 1921 of this
title.
Amendments
2002--Subsec. (a). Pub. L. 107-171, Sec. 5317, substituted ``The
Secretary'' for ``After an applicant is determined eligible for
assistance under this chapter by the appropriate county committee
established pursuant to section 1982 of this title, the Secretary''.
Subsec. (d)(1). Pub. L. 107-171, Sec. 5318, substituted ``annual
review'' for ``biannual review''.
Section Referred to in Other Sections
This section is referred to in sections 1935, 1949, 1983a of this
title.
