§ 2006f. — Rural development certified lenders program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2006f]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 2006f. Rural development certified lenders program
(a) Certified lenders program
(1) In general
The Secretary may establish a program under which the Secretary
may guarantee a loan for any rural development program that is made
by a lender certified by the Secretary.
(2) Certification requirements
The Secretary may certify a lender if the lender meets such
criteria as the Secretary may prescribe in regulations, including
the ability of the lender to properly make, service, and liquidate
the guaranteed loans of the lender.
(3) Condition of certification
As a condition of certification, the Secretary may require the
lender to undertake to service the guaranteed loan using standards
that are not less stringent than generally accepted banking
standards concerning loan servicing that are used by prudent
commercial or cooperative lenders.
(4) Guarantee
Notwithstanding any other provision of law, the Secretary may
guarantee not more than 80 percent of a loan made by a certified
lender described in paragraph (1), if the borrower of the loan meets
the eligibility requirements and such other criteria for the loan
guarantee that are established by the Secretary.
(5) Certifications
With respect to loans to be guaranteed, the Secretary may permit
a certified lender to make appropriate certifications (as provided
in regulations issued by the Secretary)--
(A) relating to issues such as creditworthiness, repayment
ability, adequacy of collateral, and feasibility of the
operation; and
(B) that the borrower is in compliance with all requirements
of law, including regulations issued by the Secretary.
(6) Relationship to other requirements
This subsection shall not affect the responsibility of the
Secretary to determine eligibility, review financial information,
and otherwise assess an application.
(b) Preferred certified lenders program
(1) In general
The Secretary may establish a preferred certified lenders
program for lenders who establish their--
(A) knowledge of, and experience under, the program
established under subsection (a) of this section;
(B) knowledge of the regulations concerning the particular
guaranteed loan program; and
(C) proficiency related to the certified lender program
requirements.
(2) Additional lending institutions
The Secretary may certify any lending institution as a preferred
certified lender if the institution meets such additional criteria
as the Secretary may prescribe by regulation.
(3) Revocation of designation
The designation of a lender as a preferred certified lender
shall be revoked if the Secretary determines that the lender is not
adhering to the rules and regulations applicable to the program or
if the loss experiences of the preferred certified lender are
greater than other preferred certified lenders, except that the
suspension or revocation shall not affect any outstanding guarantee.
(4) Condition of certification
As a condition of the preferred certification, the Secretary
shall require the lender to undertake to service the loan guaranteed
by the Secretary under this subsection using generally accepted
banking standards concerning loan servicing employed by prudent
commercial or cooperative lenders. The Secretary shall, at least
annually, monitor the performance of each preferred certified lender
to ensure that the conditions of the certification are being met.
(5) Effect of preferred lender certification
Notwithstanding any other provision of law, the Secretary may--
(A) guarantee not more than 80 percent of any approved loan
made by a preferred certified lender as described in this
subsection, if the borrower meets the eligibility requirements
and such other criteria as may be applicable to loans guaranteed
by the Secretary; and
(B) permit preferred certified lenders to make all
decisions, with respect to loans to be guaranteed by the
Secretary under this subsection relating to creditworthiness,
the closing, monitoring, collection, and liquidation of loans,
and to accept appropriate certifications, as provided in
regulations issued by the Secretary, that the borrower is in
compliance with all requirements of law and regulations issued
by the Secretary.
(Pub. L. 87-128, title III, Sec. 364, as added Pub. L. 104-127, title
VII, Sec. 752, Apr. 4, 1996, 110 Stat. 1129.)
Prior Provisions
A prior section 2006f, Pub. L. 87-128, title III, Sec. 364, as added
Pub. L. 101-624, title XXIII, Sec. 2302(a)(1), Nov. 28, 1990, 104 Stat.
3979; amended Pub. L. 102-237, title VII, Sec. 701(d), Dec. 13, 1991,
105 Stat. 1879; Pub. L. 103-129, Sec. 4, Nov. 1, 1993, 107 Stat. 1366,
established Rural Development Administration in Department of
Agriculture and provided for the performance of specified functions,
prior to repeal by Pub. L. 103-354, title II, Sec. 231(f)(3), Oct. 13,
1994, 108 Stat. 3219. See section 6911 et seq. of this title.
