
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1922]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                     SUBCHAPTER I--REAL ESTATE LOANS
 
Sec. 1922. Persons eligible for loans


(a) Authorization and conditions

    The Secretary is authorized to make and insure loans under this 
subchapter to farmers and ranchers in the United States, and to farm 
cooperatives and private domestic corporations, partnerships, and joint 
operations that are controlled by farmers and ranchers and engaged 
primarily and directly in farming or ranching in the United States, 
subject to the conditions specified in this section. To be eligible for 
such loans, applicants who are individuals, or, in the case of 
cooperatives, corporations, partnerships, and joint operations, 
individuals holding a majority interest in such entity, must (1) be 
citizens of the United States, (2) for direct loans only, have either 
training or farming experience that the Secretary determines is 
sufficient to assure reasonable prospects of success in the proposed 
farming operations, (3) be or will become owner-operators of not larger 
than family farms (or in the case of cooperatives, corporations, 
partnerships, and joint operations in which a majority interest is held 
by individuals who are related by blood or marriage, as defined by the 
Secretary, such individuals must be or will become either owners or 
operators of not larger than a family farm and at least one such 
individual must be or will become an operator of not larger than a 
family farm or, in the case of holders of the entire interest who are 
related by blood or marriage and all of whom are or will become farm 
operators, the ownership interest of each such holder separately 
constitutes not larger than a family farm, even if their interests 
collectively constitute larger than a family farm, as defined by the 
Secretary), and (4) be unable to obtain sufficient credit elsewhere to 
finance their actual needs at reasonable rates and terms, taking into 
consideration prevailing private and cooperative rates and terms in the 
community in or near which the applicant resides for loans for similar 
purposes and periods of time. In addition to the foregoing requirements 
of this section, in the case of corporations, partnerships, and joint 
operations, the family farm requirement of clause (3) of the preceding 
sentence shall apply as well to the farm or farms in which the entity 
has an ownership and operator interest and the requirement of clause (4) 
of the preceding sentence shall apply as well to the entity in the case 
of cooperatives, corporations, partnerships, and joint operations.

(b) Direct loans

                           (1) In general

        Subject to paragraph (3), the Secretary may make a direct loan 
    under this subchapter only to a farmer or rancher who has operated a 
    farm or ranch for not less than 3 years and--
            (A) is a qualified beginning farmer or rancher;
            (B) has not received a previous direct farm ownership loan 
        made under this subchapter; or
            (C) has not received a direct farm ownership loan under this 
        subchapter more than 10 years before the date the new loan would 
        be made.

                           (2) Youth loans

        The operation of an enterprise by a youth under section 1941(b) 
    of this title shall not be considered the operation of a farm or 
    ranch for purposes of paragraph (1).

                         (3) Transition rule

        (A) In general

            Subject to subparagraphs (B) and (C), the Secretary may make 
        a direct loan under this subchapter to a farmer or rancher who 
        has a direct loan outstanding under this subchapter on April 4, 
        1996.

        (B) Less than 5 years

            If, as of April 4, 1996, a farmer or rancher has had a 
        direct loan outstanding under this subchapter for less than 5 
        years, the Secretary shall not make a loan to the farmer or 
        rancher under subparagraph (A) after the date that is 10 years 
        after April 4, 1996.

        (C) 5 years or more

            If, as of April 4, 1996, a farmer or rancher has had a 
        direct loan outstanding under this subchapter for 5 years or 
        more, the Secretary shall not make a loan to the farmer or 
        rancher under subparagraph (A) after the date that is 5 years 
        after April 4, 1996.

        (D) Notice

            Beginning with fiscal year 2000 not later than 12 months 
        before a borrower will become ineligible for direct loans under 
        this subchapter by reason of this paragraph, the Secretary shall 
        notify the borrower of such impending ineligibility.

(Pub. L. 87-128, title III, Sec. 302, Aug. 8, 1961, 75 Stat. 307; Pub. 
L. 91-620, Sec. 2, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 95-334, title 
I, Sec. 101, Aug. 4, 1978, 92 Stat. 420; Pub. L. 97-98, title XVI, 
Sec. 1601(a), Dec. 22, 1981, 95 Stat. 1346; Pub. L. 99-198, title XIII, 
Secs. 1301(a), 1302(a), 1303, Dec. 23, 1985, 99 Stat. 1518, 1519; Pub. 
L. 104-127, title VI, Sec. 601, Apr. 4, 1996, 110 Stat. 1084; Pub. L. 
105-277, div. A, Sec. 101(a) [title VIII, Secs. 804, 805(1)], Oct. 21, 
1998, 112 Stat. 2681, 2681-39.)


                               Amendments

    1998--Subsec. (a). Pub. L. 105-277, Sec. 101(a) [title VIII, 
Sec. 805(1)], inserted ``for direct loans only,'' before ``have either'' 
in cl. (2).
    Subsec. (b)(3)(D). Pub. L. 105-277, Sec. 101(a) [title VIII, 
Sec. 804], added subpar. (D).
    1996--Subsec. (b). Pub. L. 104-127 added subsec. (b) and struck out 
former subsec. (b) which read as follows: ``The Secretary may not 
restrict eligibility for loans made or insured under this subchapter for 
purposes set forth in section 1923 of this title solely to borrowers of 
loans that are outstanding on December 23, 1985.''
    1985--Subsec. (a). Pub. L. 99-198, Secs. 1301(a), 1302(a)(1), 
designated existing provisions as subsec. (a) and substituted--
        (1) ``, partnerships, and joint operations'' for ``and 
    partnerships'' wherever appearing after ``corporations'';
        (2) ``, partnerships, and joint operations'' for ``, and 
    partnerships'' wherever appearing after ``corporations''; and
        (3) ``individuals'' for ``members, stockholders, or partners, as 
    applicable,'' wherever appearing.
    Pub. L. 99-198, Sec. 1303, in cl. (3) parenthetical, inserted 
provision treating blood or marriage related owner-operators of the 
entire farm interest as separate interest holders of not larger than 
family farms though collective ownership constitutes a larger than a 
family farm.
    Subsec. (b). Pub. L. 99-198, Sec. 1302(a)(2), added subsec. (b).
    1981--Pub. L. 97-98 substituted ``corporations and partnerships, the 
family farm'' for ``cooperatives, corporations, and partnerships, the 
family farm'', and inserted ``in the case of cooperatives, corporations, 
and partnerships'' at end.
    1978--Pub. L. 95-334 substituted provisions setting forth 
eligibility criteria for loans to farmers and ranchers in the United 
States, and to farm cooperatives and private domestic corporations and 
partnerships controlled by farmers and ranchers and engaged primarily 
and directly in farming or ranching in the United States, for provisions 
setting forth eligibility criteria for loans to farmers and ranchers in 
the United States, Puerto Rico, and the Virgin Islands.
    1970--Pub. L. 91-620 provided that with respect to veterans as 
defined in section 1983(e) of this title, a farm background shall not be 
required as a condition precedent to obtaining any loan.


                    Effective Date of 1996 Amendment

    Section 663 of title VI of Pub. L. 104-127 provided that:
    ``(a) In General.--Except as provided in subsection (b), the 
amendments made by this title [enacting sections 2008g to 2008i of this 
title, amending this section and sections 1631, 1923, 1924, 1927, 1928, 
1929, 1929a, 1932, 1934, 1941, 1942, 1946, 1949, 1961 to 1964, 1981, 
1981d, 1983, 1983a, 1985, 1991, 1992, 1994, 1997, 1999, 2000, 2001, 
2002, and 2003 of this title, repealing sections 1936, 1945, 1947, 1948, 
and 1968 of this title, and repealing provisions set out as a note under 
section 1999 of this title] shall become effective on the date of 
enactment of this Act [Apr. 4, 1996].
    ``(b) Delayed Effective Dates.--The amendments made by sections 601, 
606, 611, 612, 622, 623, 625, 633, 640(1), 642, 645(1), 648(a), and 649 
[enacting sections 2008g and 2008i of this title and amending this 
section and sections 1929, 1941, 1942, 1962, 1963, 1964, 1981d, 1991, 
1997, and 2001 of this title] shall become effective 90 days after the 
date of enactment of this Act [Apr. 4, 1996].
    ``(c) Transition Provision.--The amendments made by sections 638 and 
644 [amending sections 1985 and 2000 of this title] shall not apply with 
respect to a complete application to acquire inventory property 
submitted prior to the date of enactment of this Act [Apr. 4, 1996].
    ``(d) Regulations.--Notwithstanding any other provision of law, 
regulations to implement the amendments made by this title shall be 
published as interim final rules with request for comments and may be 
made effective immediately on publication.''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section 1801 
of Pub. L. 97-98, set out as an Effective Date note under section 4301 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1925, 1934, 1983, 1994, 
2006a of this title.
