
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: 7USC1925]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                     SUBCHAPTER I--REAL ESTATE LOANS
 
Sec. 1925. Limitations on amount of farm ownership loans


(a) In general

    The Secretary shall make or insure no loan under sections 1922, 
1923, 1924, 1934, and 1935 of this title that would cause the unpaid 
indebtedness under such sections of any one borrower to exceed the 
smaller of (1) the value of the farm or other security, or (2) in the 
case of a loan other than a loan guaranteed by the Secretary, $200,000, 
or, in the case of a loan guaranteed by the Secretary, $700,000 
(increased, beginning with fiscal year 2000, by the inflation percentage 
applicable to the fiscal year in which the loan is guaranteed and 
reduced by the amount of any unpaid indebtedness of the borrower on 
loans under subchapter II of this chapter that are guaranteed by the 
Secretary).

(b) Determination of value

    In determining the value of the farm, the Secretary shall consider 
appraisals made by competent appraisers under rules established by the 
Secretary.

(c) Inflation percentage

    For purposes of this section, the inflation percentage applicable to 
a fiscal year is the percentage (if any) by which--
        (1) the average of the Prices Paid By Farmers Index (as compiled 
    by the National Agricultural Statistics Service of the Department of 
    Agriculture) for the 12-month period ending on August 31 of the 
    immediately preceding fiscal year; exceeds
        (2) the average of such index (as so defined) for the 12-month 
    period ending on August 31, 1996.

(Pub. L. 87-128, title III, Sec. 305, Aug. 8, 1961, 75 Stat. 308; Pub. 
L. 91-620, Sec. 1, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92-419, title 
I, Sec. 103, Aug. 30, 1972, 86 Stat. 658; Pub. L. 91-524, title VIII, 
Sec. 807, as added Pub. L. 93-86, Sec. 1(27)(B), Aug. 10, 1973, 87 Stat. 
237; Pub. L. 95-334, title I, Sec. 103, Aug. 4, 1978, 92 Stat. 421; Pub. 
L. 102-554, Sec. 3, Oct. 28, 1992, 106 Stat. 4142; Pub. L. 105-277, div. 
A, Sec. 101(a) [title VIII, Sec. 806(a)], Oct. 21, 1998, 112 Stat. 2681, 
2681-39.)


                               Amendments

    1998--Pub. L. 105-277 inserted section catchline, designated first 
sentence as subsec. (a), inserted heading, and substituted ``$700,000 
(increased, beginning with fiscal year 2000, by the inflation percentage 
applicable to the fiscal year in which the loan is guaranteed and 
reduced by the amount of any unpaid indebtedness of the borrower on 
loans under subchapter II of this chapter that are guaranteed by the 
Secretary)'' for ``$300,000'', designated second sentence as subsec. (b) 
and inserted heading, and added subsec. (c).
    1992--Pub. L. 102-554 inserted reference to section 1935 of this 
title.
    1978--Pub. L. 95-334 substituted provisions setting forth 
requirements for loans under sections 1922, 1923, 1924, and 1934 of this 
title for provisions setting forth requirements for loans under sections 
1922, 1923, and 1924 of this title.
    1973--Pub. L. 91-524, Sec. 807, as added by Pub. L. 93-86, 
substituted ``$225,000'' for ``$100,000'' in cl. (a), added cl. (b), and 
redesignated former cl. (b) as (c).
    1972--Pub. L. 92-419 struck out ``normal'' before ``value'' in first 
and second sentences and before ``market value'' in last sentence.
    1970--Pub. L. 91-620 substituted ``$100,000'' for ``$60,000''.

                  Section Referred to in Other Sections

    This section is referred to in section 1943 of this title.
