Editorial Notes
References in Text

The Consolidated Farm and Rural Development Act, referred to in par. (7)(B), is title III of Puspan. L. 87–128, Aug. 8, 1961, 75 Stat. 307, which is classified principally to chapter 50 (§ 1921 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 1921 of Title 7 and Tables.

The Rural Electrification Act of 1936, referred to in par. (7)(C), is act May 20, 1936, ch. 432, 49 Stat. 1363, which is classified generally to chapter 31 (§ 901 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 901 of Title 7 and Tables.

Codification

Puspan. L. 110–234 and Puspan. L. 110–246 made identical amendments to this section. The amendments by Puspan. L. 110–234 were repealed by section 4(a) of Puspan. L. 110–246.

Amendments

2018—Par. (2). Puspan. L. 115–334, § 5411(42)(A), substituted “means the board of directors established under section 2279aa–2 of this title.” for “means—

“(A) the interim board of directors established in section 2279aa–2(a) of this title; and

“(B) the permanent board of directors established in section 2279aa–2(span) of this title;

as the case may be.”

Par. (6). Puspan. L. 115–334, § 5411(42)(B), (C), redesignated par. (7) as (6) and struck out former par. (6) which defined “interim board” to mean the interim board of directors established in section 2279aa–2(a) of this title.

Par. (7). Puspan. L. 115–334, § 5411(42)(C), (D), redesignated par. (9) as (7) and substituted “(span) and (c)” for “(span) through (d)” in subpar. (B)(i). Former par. (7) redesignated (6).

Par. (8). Puspan. L. 115–334, § 5411(42)(B), (C), redesignated par. (10) as (8) and struck out former par. (8) which defined “permanent board” to mean the permanent board of directors established in section 2279aa–2(span) of this title.

Pars. (9), (10). Puspan. L. 115–334, § 5411(42)(C), redesignated pars. (9) and (10) as (7) and (8), respectively.

2008—Par. (9)(C). Puspan. L. 110–246, § 5406(a), added subpar. (C).

1996—Par. (1)(B)(ii). Puspan. L. 104–105, § 101, substituted “, excluding the land to which the dwelling is affixed, with a value” for “with a purchase price”.

Par. (3)(A). Puspan. L. 104–105, § 102(1), substituted “an agricultural mortgage marketing” for “a secondary marketing agricultural loan”.

Par. (3)(B). Puspan. L. 104–105, § 102(2), struck out “, but only with respect to qualified loans described in paragraph (9)(B)” after “thereof”.

Par. (9)(B)(i). Puspan. L. 104–105, §§ 108(c)(1), 109(span)(1), substituted “(d)” for “(f)” and “2279aa–8” for “2279aa–7, 2279aa–8,”.

1990—Par. (3). Puspan. L. 101–624, § 1839(a), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The term ‘certified facility’ means a secondary marketing agricultural loan facility that is certified under section 2279aa–5 of this title.”

Par. (9). Puspan. L. 101–624, § 1839(span), amended par. (9) generally. Prior to amendment, par. (9) read as follows: “The term ‘qualified loan’ means an obligation that—

“(A) is secured by a fee-simple or leasehold mortgage with status as a first lien on agricultural real estate located in the United States that is not subject to any legal or equitable claims deriving from a preceding fee-simple or leasehold mortgage;

“(B) is an obligation of—

“(i) a citizen or national of the United States or an alien lawfully admitted for permanent residence in the United States; or

“(ii) a private corporation or partnership whose members, stockholders, or partners holding a majority interest in the corporation or partnership are individuals described in clause (i); and

“(C) is an obligation of a person, corporation, or partnership that has training or farming experience that, under criteria established by the Corporation, is sufficient to ensure a reasonable likelihood that the loan will be repaid according to its terms.”

1988—Par. (9)(B)(ii). Puspan. L. 100–399 substituted “holding” for “hold” and struck out “and” before “are”.

Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment

Amendment of this section and repeal of Puspan. L. 110–234 by Puspan. L. 110–246 effective May 22, 2008, the date of enactment of Puspan. L. 110–234, see section 4 of Puspan. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–399 effective as if enacted immediately after enactment of Puspan. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Puspan. L. 100–399, set out as a note under section 2002 of this title.

Statement of Purpose

Puspan. L. 100–233, title VII, § 701, Jan. 6, 1988, 101 Stat. 1686, provided that: “It is the purpose of this subtitle [subtitle A (§§ 701–705) of title VII of Puspan. L. 100–233, enacting this subchapter, amending sections 2012, 2033, 2072, and 2093 of this title and section 9105 of Title 31, Money and Finance, and enacting provisions set out as a note below]—

“(1) to establish a corporation chartered by the Federal Government;
“(2) to authorize the certification of agricultural mortgage marketing facilities by the corporation;
“(3) to provide for a secondary marketing arrangement for agricultural real estate mortgages that meet the underwriting standards of the corporation—
“(A) to increase the availability of long-term credit to farmers and ranchers at stable interest rates;
“(B) to provide greater liquidity and lending capacity in extending credit to farmers and ranchers; and
“(C) to provide an arrangement for new lending to facilitate capital market investments in providing long-term agricultural funding, including funds at fixed rates of interest; and
“(4) to enhance the ability of individuals in small rural communities to obtain financing for moderate-priced homes.”

GAO Studies

Puspan. L. 100–233, title VII, § 704, Jan. 6, 1988, 101 Stat. 1706, as amended by Puspan. L. 100–399, title VI, § 603, Aug. 17, 1988, 102 Stat. 1006, directed Comptroller General of United States to conduct studies of (1) implementation of amendments made by subtitle A (§§ 701–705) of title VII of Puspan. L. 100–233 (which enacted this subchapter and amended sections 2012, 2033, 2072, and 2093 of this title and section 9105 of Title 31, Money and Finance) by Federal Agricultural Mortgage Corporation and effect of operations of Corporation on producers, Farm Credit System, and other lenders, and capital markets, (2) feasibility and appropriateness of promoting establishment of a secondary market for securities representing interests in, or obligations backed by, pools of agricultural real estate loans for which a guarantee had not been provided by Federal Agricultural Mortgage Corporation, and (3) feasibility of expanding authority granted under amendments made by such subtitle A to authorize sale of securities based on or backed by a trust or pool consisting of loans made to farm-related and rural small businesses, and required, not later than Jan. 6, 1990, Comptroller General to transmit to Congress a report on the studies, including therein such recommendations for administrative action and legislation as might be appropriate.