§1006b — Title 7 Agriculture | U.S. Code

Summary

If a borrower breaks the loan terms for land bought under these laws, the Secretary of the Interior or the Secretary of Agriculture can cancel the purchase or claim. After cancellation or if the person gives up the claim, land with a mortgage lien can only be offered again to people who qualify for an original entry or loan. Any new entry or sale must cover the unpaid amount the United States is owed, or the part the Secretaries decide the buyer can afford based on the land’s long‑term earning power. If no one buys or enters the land within one year after cancellation or giving up the claim, the Secretary of Agriculture will sell the land under section 1017 to pay the mortgage and other federal charges, and the buyer will get a patent or deed after paying those charges.

Title 7, §1006b

Agriculture — Source: USLM XML via OLRC

Any entry or purchase contract land with respect to which a loan is made under the authority of this section and section 1006a of this title shall be subject to cancellation by the Secretary of the Interior as provided by existing law or upon request of the Secretary of Agriculture whenever default occurs in the terms, conditions, covenants, or obligations contained in the mortgage. After cancellation or relinquishment of an entry or purchase contract, land on which there is a mortgage lien, pursuant to the provisions of said sections, shall thereafter, except as hereinafter provided, only be open to entry or resale to persons eligible for both an original entry or purchase contract and an original loan. Such entry or resale shall be subject to the outstanding balance of any amounts due the United States with respect to such land or such portion thereof as may be determined by the Secretary of Agriculture and the Secretary of the Interior, or their delegates, to be within the entryman’s or purchaser’s ability to pay on the basis of the long-time earning capacity of the land. If no entry or purchase is made within one year after the cancellation or relinquishment of a prior entry or purchase of land on which there is such a mortgage lien, the land shall be disposed of by the Secretary of Agriculture on terms consistent with the provisions of section 1017 11 See References in Text note below. of this title, for the satisfaction of the indebtedness secured by the mortgage, subject, however, to other outstanding charges on the land due the United States, and the purchaser of such land shall be entitled to the issuance of patent or deed upon the completion of all requirements with respect to the payment of such charges.

Editorial Notes

References in Text

section 1017 of this title, referred to in text, was repealed by Pub. L. 87–128, title III, § 341(a), Aug. 8, 1961, 75 Stat. 318. Codification Section was not enacted as part of the Bankhead-Jones Farm Tenant Act, which constitutes a major part of this chapter.

§1006b Cancellation of entry or purchase upon loan default; entry or resale; conditions; satisfaction of indebtedness

Summary

Title 7, §1006b

Notes & Related Subsidiaries

Editorial Notes

References in Text

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