
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1473]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
       CHAPTER 8A--SLUM CLEARANCE, URBAN RENEWAL, AND FARM HOUSING
 
                      SUBCHAPTER III--FARM HOUSING
 
Sec. 1473. Loans for housing and buildings on potentially 
        adequate farms; conditions and terms
        
    If the Secretary determines (a) that, because of the inadequacy of 
the income of an eligible applicant from the farm to be improved and 
from other sources, said applicant may not reasonably be expected to 
make annual repayments of principal and interest in an amount sufficient 
to repay the loan in full within the period of time prescribed by the 
Secretary as authorized in this subchapter; (b) that the income of the 
applicant may be sufficiently increased within a period of not to exceed 
five years by improvement or enlargement of the farm or an adjustment of 
the farm practices or methods; and (c) that the applicant has adopted 
and may reasonably be expected to put into effect a plan of farm 
improvement, enlargement, or adjusted practices or production which, in 
the opinion of the Secretary, will increase the applicant's income from 
said farm within a period of not to exceed five years to the extent that 
the applicant may be expected thereafter to make annual repayments of 
principal and interest sufficient to repay the balance of the 
indebtedness less payments in cash and credits for the contributions to 
be made by the Secretary as hereinafter provided, the Secretary may make 
a loan in an amount necessary to provide adequate farm dwellings and 
buildings on said farm under the terms and conditions prescribed in 
section 1472 of this title. In addition, the Secretary may agree with 
the borrower to make annual contributions during the said five-year 
period in the form of credits on the borrower's indebtedness in an 
amount not to exceed the annual installment of interest and 50 per 
centum of the principal payments accruing during any installment year up 
to and including the fifth installment year, subject to the conditions 
that the borrower's income is, in fact, insufficient to enable the 
borrower to make payments in accordance with the plan or schedule 
prescribed by the Secretary and that the borrower pursues his plan of 
farm reorganization and improvements or enlargement with due diligence.
    Except as provided in title 11, this agreement with respect to 
credits or principal and interest upon the borrower's indebtedness shall 
not be assignable nor accrue to the benefit of any third party without 
the written consent of the Secretary and the Secretary shall have the 
right, at his option, to cancel the agreement upon the sale of the farm 
or the execution or creation of any lien thereon subsequent to the lien 
given to the Secretary, or to refuse to release the lien given to the 
Secretary except upon payment in cash of the entire original principal 
plus accrued interest thereon less actual cash payments of principal and 
interest when the Secretary determines that the release of the lien 
would permit the benefits of this section to accrue to a person not 
eligible to receive such benefits.

(July 15, 1949, ch. 338, title V, Sec. 503, 63 Stat. 434; Pub. L. 95-
598, title III, Sec. 329, Nov. 6, 1978, 92 Stat. 2679.)


                               Amendments

    1978--Pub. L. 95-598 inserted introductory phrase ``Except as 
provided in title 11''.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-598 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.


                            Cross References

    Assignments of claims, see section 3727 of Title 31, Money and 
Finance.

                  Section Referred to in Other Sections

    This section is referred to in sections 1471, 1474, 1477, 1483 of 
this title.
