Collapse to view only § 1961. Eligibility for loans
- § 1961. Eligibility for loans
- § 1962. Loan determination factors; written credit declinations
- § 1963. Purpose and extent of loans
- § 1964. Terms of loans
- § 1965. Repealed.
- § 1966. Emergency Credit Revolving Fund utilization
- § 1967. Addition to Emergency Credit Revolving Fund of sums from liquidation of loans; authorization of appropriations
- § 1968. Repealed.
- § 1969. Repealed.
- § 1970. Eligibility for assistance based on production loss
- § 1971. Repealed.
§ 1961. Eligibility for loans
(a) Persons eligible
(b) Hazard insurance requirement
(1) In general
(2) Determination
(3) Loans to poultry farmers
(A) Inability to obtain insurance
(i) In general
Notwithstanding any other provision of this subchapter, the Secretary may make a loan to a poultry farmer under this subchapter to cover the loss of a chicken house for which the farmer did not have hazard insurance at the time of the loss, if the farmer—
(I) applied for, but was unable, to obtain hazard insurance for the chicken house;(II) uses the loan to rebuild the chicken house in accordance with industry standards in effect on the date the farmer submits an application for the loan (referred to in this paragraph as “current industry standards”);(III) obtains, for the term of the loan, hazard insurance for the full market value of the chicken house; and(IV) meets the other requirements for the loan under this subchapter.(ii) Amount
(B) Loans to comply with current industry standards
(i) In general
Notwithstanding any other provision of this subchapter, the Secretary may make a loan to a poultry farmer under this subchapter to cover the loss of a chicken house for which the farmer had hazard insurance at the time of the loss, if—
(I) the amount of the hazard insurance is less than the cost of rebuilding the chicken house in accordance with current industry standards;(II) the farmer uses the loan to rebuild the chicken house in accordance with current industry standards;(III) the farmer obtains, for the term of the loan, hazard insurance for the full market value of the chicken house; and(IV) the farmer meets the other requirements for the loan under this subchapter.(ii) Amount
Subject to the limitation contained in section 1964(a)(2) of this title, the amount of a loan made to a poultry farmer under clause (i) shall be the difference between—
(I) the amount of the hazard insurance obtained by the farmer; and(II) the cost of rebuilding the chicken house in accordance with current industry standards.(c) Family farm system
(d) Definitions
For the purposes of this subchapter—
(1) “aquaculture” means the husbandry of aquatic organisms under a controlled or selected environment; and
(2) “able to obtain sufficient credit elsewhere” means able to obtain sufficient credit elsewhere to finance the applicant’s 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.
(Pub. L. 87–128, title III, § 321, Aug. 8, 1961, 75 Stat. 311; Pub. L. 87–832, Oct. 15, 1962, 76 Stat. 958; Pub. L. 93–24, §§ 2, 3, 6, Apr. 20, 1973, 87 Stat. 24, 25; Pub. L. 93–237, § 10(a), (d), Jan. 2, 1974, 87 Stat. 1025; Pub. L. 94–68, §§ 2, 3, Aug. 5, 1975, 89 Stat. 381; Pub. L. 95–334, title I, § 118, Aug. 4, 1978, 92 Stat. 426; Pub. L. 96–302, title I, § 120(a), July 2, 1980, 94 Stat. 841; Pub. L. 96–438, § 3(a), (b)(1), Oct. 13, 1980, 94 Stat. 1872; Pub. L. 97–35, title I, § 161, Aug. 13, 1981, 95 Stat. 378; Pub. L. 98–258, title VI, § 602(a), Apr. 10, 1984, 98 Stat. 138; Pub. L. 99–198, title XIII, § 1308(a), (b)(1), Dec. 23, 1985, 99 Stat. 1522; Pub. L. 100–707, title I, § 109(c)(1), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 104–127, title VI, § 621(a), Apr. 4, 1996, 110 Stat. 1091; Pub. L. 106–387, § 1(a) [title VIII, § 833], Oct. 28, 2000, 114 Stat. 1549, 1549A–61; Pub. L. 107–171, title V, §§ 5201(a), 5302, 5501(a), May 13, 2002, 116 Stat. 344, 351; Pub. L. 110–234, title V, § 5201, May 22, 2008, 122 Stat. 1146; Pub. L. 110–246, § 4(a), title V, § 5201, June 18, 2008, 122 Stat. 1664, 1908; Pub. L. 113–79, title V, § 5201, Feb. 7, 2014, 128 Stat. 838; Pub. L. 115–334, title V, § 5401(a)(1), Dec. 20, 2018, 132 Stat. 4674.)
§ 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, § 322, Aug. 8, 1961, 75 Stat. 311; Pub. L. 94–68, § 4, Aug. 5, 1975, 89 Stat. 381; Pub. L. 96–438, § 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L. 104–127, title VI, § 622, Apr. 4, 1996, 110 Stat. 1091.)
§ 1963. Purpose and extent of loans
Loans may be made or insured under this subchapter for any purpose authorized for loans under subchapter I or II of this chapter and for crop or livestock changes that are necessitated by a quarantine, natural disaster, major disaster, or emergency and that are deemed desirable by the applicant, subject to the limitations on the amounts of loans provided in section 1964(a) of this title.
(Pub. L. 87–128, title III, § 323, Aug. 8, 1961, 75 Stat. 311; Pub. L. 96–438, § 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L. 104–127, title VI, § 623, Apr. 4, 1996, 110 Stat. 1091; Pub. L. 107–171, title V, § 5201(b), May 13, 2002, 116 Stat. 344.)
§ 1964. Terms of loans
(a) Maximum amount of loan
The Secretary may not make a loan under this subchapter to a borrower who has suffered a loss in an amount that—
(1) exceeds the actual loss caused by a disaster; or
(2) would cause the total indebtedness of the borrower under this subchapter to exceed $500,000.
(b) Interest rates
Loans under this subchapter shall be at rates of interest as follows:
(1) For loans or portions of loans up to the amount of the applicant’s actual loss caused by the disaster, as limited under subsection (a)(1) of this section, the interest shall be at rates prescribed by the Secretary, but not in excess of 8 percent per annum; and
(2) For loans or portions of loans in excess of the amount of the applicant’s actual loss caused by the disaster, as limited under subsection (a)(1) of this section, (A) the interest for insured loans shall be at rates prevailing in the private market for similar loans, as determined by the Secretary, and (B) the interest for guaranteed loans shall be at rates agreed on by the borrower and lender, but not in excess of such rates as may be determined by the Secretary.
(c) Interest subsidies
(d) Repayment
(1) In general
(2) No basis for denial of loan
(A) In general
(B) Refusal to pledge available collateral
(e) Grant eligibility
(Pub. L. 87–128, title III, § 324, Aug. 8, 1961, 75 Stat. 311; Pub. L. 93–24, § 4, Apr. 20, 1973, 87 Stat. 25; Pub. L. 94–68, § 5, Aug. 5, 1975, 89 Stat. 381; Pub. L. 95–89, title IV, § 406, Aug. 4, 1977, 91 Stat. 561; Pub. L. 95–334, title I, § 119, Aug. 4, 1978, 92 Stat. 427; Pub. L. 96–302, title I, § 120(b), July 2, 1980, 94 Stat. 841; Pub. L. 96–438, § 3(a), (b)(1), Oct. 13, 1980, 94 Stat. 1872, 1873; Pub. L. 97–35, title I, § 162(a), Aug. 13, 1981, 95 Stat. 378; Pub. L. 98–258, title VI, § 602(b), Apr. 10, 1984, 98 Stat. 138; Pub. L. 99–198, title XIII, § 1308(b)(3), (c), Dec. 23, 1985, 99 Stat. 1523; Pub. L. 100–707, title I, § 109(c)(2), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 104–127, title VI, §§ 624, 625, Apr. 4, 1996, 110 Stat. 1091; Pub. L. 105–277, div. A, § 101(a) [title VIII, § 802], Oct. 21, 1998, 112 Stat. 2681, 2681–38.)
§ 1965. Repealed. Pub. L. 95–334, title I, § 120, Aug. 4, 1978, 92 Stat. 427
§ 1966. Emergency Credit Revolving Fund utilization
The Secretary is authorized to utilize the revolving fund created by section 1148a 1
1 See References in Text note below.
of title 12 (hereinafter in this subchapter referred to as the “Emergency Credit Revolving Fund”) for carrying out the purposes of this subchapter.(Pub. L. 87–128, title III, § 326, Aug. 8, 1961, 75 Stat. 312.)
§ 1967. Addition to Emergency Credit Revolving Fund of sums from liquidation of loans; authorization of appropriations
(a) All sums received by the Secretary from the liquidation of loans made under the provisions of this subchapter or under the Act of April 6, 1949, as amended, or the Act of August 31, 1954, and from the liquidation of any other assets acquired with money from the Emergency Credit Revolving Fund shall be added to and become a part of such fund.
(b) There are authorized to be appropriated to the Emergency Credit Revolving Fund such additional sums as the Congress shall from time to time determine to be necessary.
(Pub. L. 87–128, title III, § 327, Aug. 8, 1961, 75 Stat. 312.)
§ 1968. Repealed. Pub. L. 104–127, title VI, § 626, Apr. 4, 1996, 110 Stat. 1092
§ 1969. Repealed. Pub. L. 93–24, § 1, Apr. 20, 1973, 87 Stat. 24
§ 1970. Eligibility for assistance based on production loss
The Secretary shall make financial assistance under this subchapter available to any applicant seeking assistance based on production losses if the applicant shows that a single enterprise which constitutes a basic part of the applicant’s farming, ranching, or aquaculture operation has sustained at least a 30 per centum loss of normal per acre or per animal production, or such lesser per centum of loss as the Secretary may determine, as a result of the disaster based upon the average monthly price in effect for the previous year and the applicant otherwise meets the conditions of eligibility prescribed under this subchapter. Such loans shall be made available based upon 80 per centum, or such greater per centum as the Secretary may determine, of the total calculated actual production loss sustained by the applicant.
(Pub. L. 87–128, title III, § 329, as added Pub. L. 94–68, § 7, Aug. 5, 1975, 89 Stat. 382; amended Pub. L. 97–35, title I, § 163, Aug. 13, 1981, 95 Stat. 378.)
§ 1971. Repealed. Pub. L. 99–198, title XIII, § 1308(d), Dec. 23, 1985, 99 Stat. 1523