
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: 7USC1962]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                     SUBCHAPTER III--EMERGENCY LOANS
 
Sec. 1962. Loan determination factors; written credit 
        declinations
        
    (a) For the purpose of determining whether to make or insure any 
loan under this subchapter, the Secretary shall take into consideration 
the net worth of the applicant involved, including all the assets and 
liabilities of the applicant.
    (b) For the purpose of determining whether an applicant under this 
subchapter is not able to obtain sufficient credit elsewhere, the 
Secretary shall require at least one written indication of declination 
of credit, from a legally organized lending institution within 
reasonable proximity to the applicant, that specifies the reasons for 
the declination: Provided, That for loans in excess of $300,000, the 
Secretary shall require at least two such written declinations: Provided 
further, That for loans of $100,000 or less, the Secretary may waive the 
requirement of this subsection if the Secretary determines that it would 
impose an undue burden on the applicant.

(Pub. L. 87-128, title III, Sec. 322, Aug. 8, 1961, 75 Stat. 311; Pub. 
L. 94-68, Sec. 4, Aug. 5, 1975, 89 Stat. 381; Pub. L. 96-438, 
Sec. 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L. 104-127, title VI, 
Sec. 622, Apr. 4, 1996, 110 Stat. 1091.)


                               Amendments

    1996--Subsec. (b). Pub. L. 104-127 substituted ``loans of $100,000 
or less'' for ``loans of $300,000 or less''.
    1980--Pub. L. 96-438 substituted provisions prescribing factors to 
be considered in determining whether to make or insure a loan and 
relating to the need for applicants unable to obtain sufficient credit 
elsewhere to provide written credit declinations for provisions relating 
to the purpose and extent of loans under this subchapter.
    1975--Pub. L. 94-68 extended authority to finance crop or livestock 
changes deemed desirable as a result of changes in market demand, and to 
make emergency loans in excess of the actual loss sustained as a result 
of the natural disaster.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-127 effective 90 days after Apr. 4, 1996, 
see section 663(b) of Pub. L. 104-127, set out as a note under section 
1922 of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-438 effective with respect to loans approved 
after Oct. 13, 1980, except for certain subsequent emergency loans, see 
section 3(d) of Pub. L. 96-438, set out as a note under section 1961 of 
this title.
