§ 1150. — Compromise, adjustment, and cancellation of farm loans; conditions; delegation of powers and duties by Secretary of Agriculture.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1150]
TITLE 12--BANKS AND BANKING
CHAPTER 8--ADJUSTMENT AND CANCELLATION OF FARM LOANS
Sec. 1150. Compromise, adjustment, and cancellation of farm
loans; conditions; delegation of powers and duties by Secretary
of Agriculture
The Secretary of Agriculture, hereinafter referred to as the
Secretary, is authorized and directed to compromise, adjust, or cancel
indebtedness arising from loans and payments made or credit extended to
farmers under the provisions of the several Acts of Congress or programs
enumerated in section 1150a of this title: Provided, That the Secretary
finds, after such investigation as he deems sufficient to establish the
facts, that (1) said indebtedness has been due and payable for five
years or more; (2) the debtor is unable to pay said indebtedness in full
and has no reasonable prospect of being able to do so; (3) the debtor
has acted in good faith in an effort to meet his obligation; and (4) the
principal amount of said indebtedness is not in excess of $1,000. The
Secretary is further authorized at his discretion to cancel and
discharge indebtedness arising under said Acts of Congress or programs
when the amount of said indebtedness is less than $10, or the debtor is
deceased and there is no reasonable prospect of recovering from his
estate, or his whereabouts has remained unknown for two years and there
is no reasonable prospect of obtaining collection, or he has been
discharged of the indebtedness in any proceeding under the Bankruptcy
Act or under title 11. The compromises, adjustments, or cancelations \1\
authorized by this section shall be effected through such agencies, upon
such terms and conditions, and subject to such regulations, as the
Secretary may prescribe, and the Secretary may delegate the exercise of
any such powers and functions to such officers or employees of the
Department of Agriculture as he may designate.
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\1\ So in original. Probably should be ``cancellations''.
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(Dec. 20, 1944, ch. 623, Sec. 1, 58 Stat. 836; Pub. L. 95-598, title
III, Sec. 305, Nov. 6, 1978, 92 Stat. 2674.)
References in Text
The Bankruptcy Act, referred to in text, is act July 1, 1898, ch.
541, 30 Stat. 544, as amended, which was classified generally to Title
11, Bankruptcy. The Act was repealed effective Oct. 1, 1979, by Pub. L.
95-598, Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101
of which enacted revised Title 11.
Amendments
1978--Pub. L. 95-598 substituted ``Bankruptcy Act or under title
11'' for ``Act entitled `An Act to establish a uniform system of
bankruptcy throughout the United States' ''.
Effective Date of 1978 Amendment
Amendment effective Oct. 1, 1979, see section 402(a) of Pub. L. 95-
598, set out as an Effective Date note preceding section 101 of Title
11, Bankruptcy.
Transfer of Functions
All functions of all officers, agencies, and employees of the
Department of Agriculture were transferred, with certain exceptions, to
the Secretary of Agriculture by Reorg. Plan No. 2 of 1953, Sec. 1, eff.
June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out in the Appendix to
Title 5, Government Organization and Employees.
Exceptions From Transfer of Functions
Functions of Corporations of Department of Agriculture, boards of
directors and officers of such corporations, Advisory Board of Commodity
Credit Corporation, and Farm Credit Administration or any agency,
officer, or entity of, under, or subject to supervision of said
Administration excepted from functions of officers, agencies, and
employees transferred to Secretary of Agriculture by Reorg. Plan No. 2
of 1953, Sec. 1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out
in the Appendix to Title 5, Government Organization and Employees.
Section Referred to in Other Sections
This section is referred to in title 18 sections 217, 1026.
