
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: 7USC1981d]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
 
Sec. 1981d. Notice of loan service programs


(a) Requirement

    The Secretary shall provide notice by certified mail to each 
borrower who is at least 90 days past due on the payment of principal or 
interest on a loan made or insured under this chapter.

(b) Contents

    The notice required under subsection (a) of this section shall--
        (1) include a summary of all primary loan service programs, 
    preservation loan service programs, debt settlement programs, and 
    appeal procedures, including the eligibility criteria, and terms and 
    conditions of such programs and procedures;
        (2) include a summary of the manner in which the borrower may 
    apply, and be considered, for all such programs, except that the 
    Secretary shall not require the borrower to select among such 
    programs or waive any right in order to be considered for any 
    program carried out by the Secretary;
        (3) advise the borrower regarding all filing requirements and 
    any deadlines that must be met for requesting loan servicing;
        (4) provide any relevant forms, including applicable response 
    forms;
        (5) advise the borrower that a copy of regulations is available 
    on request; and
        (6) be designed to be readable and understandable by the 
    borrower.

(c) Contained in regulations

    All notices required by this section shall be contained in the 
regulations implementing this chapter.

(d) Timing

    The notice described in subsection (b) of this section shall be 
provided--
        (1) at the time an application is made for participation in a 
    loan service program;
        (2) on written request of the borrower; and
        (3) before the earliest of--
            (A) initiating any liquidation;
            (B) requesting the conveyance of security property;
            (C) accelerating the loan;
            (D) repossessing property;
            (E) foreclosing on property; or
            (F) taking any other collection action.

(e) Consideration of borrowers for loan service programs

    The Secretary shall consider a farmer program borrower for all loan 
service programs if, within 60 days after receipt of the notice required 
in this section or, in extraordinary circumstances as determined by the 
applicable State director, after the 60-day period, the borrower 
requests such consideration in writing. In considering a borrower for 
loan service programs, the Secretary shall place the highest priority on 
the preservation of the borrower's farming operations.

(Pub. L. 87-128, title III, Sec. 331D, as added Pub. L. 100-233, title 
VI, Sec. 605, Jan. 6, 1988, 101 Stat. 1666; amended Pub. L. 101-624, 
title XVIII, Sec. 1807, Nov. 28, 1990, 104 Stat. 3819; Pub. L. 102-554, 
Sec. 10, Oct. 28, 1992, 106 Stat. 4151; Pub. L. 104-127, title VI, 
Sec. 633, Apr. 4, 1996, 110 Stat. 1092.)

                       References in Text

    For definition of ``this chapter'', referred to in subsecs. (a) and 
(c), see note set out under section 1921 of this title.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127 substituted ``90 days past due 
on'' for ``180 days delinquent in''.
    1992--Subsec. (e). Pub. L. 102-554, which directed the insertion of 
``or, in extraordinary circumstances as determined by the applicable 
State director, after the 60-day period'' after ``not later than 60 days 
after receipt of the notice required in this section'', was executed by 
making the insertion after ``within 60 days after receipt of the notice 
required in this section'' to reflect the probable intent of Congress.
    1990--Subsec. (b)(1). Pub. L. 101-624, Sec. 1807(1), inserted ``debt 
settlement programs,'' after ``preservation loan service programs''.
    Subsec. (e). Pub. L. 101-624, Sec. 1807(2), substituted ``60 days'' 
for ``45 days''.


                    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 1990 Amendment

    Amendment by section 1807(1) of Pub. L. 101-624 effective 120 days 
after Nov. 28, 1990, see section 1861(b) of Pub. L. 101-624, set out as 
a note under section 2001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1991, 2008g of this title.
