§2006b — Title 7 Agriculture | U.S. Code

Summary

The Secretary must review each qualified farmer’s or rancher’s farm plan and finances under rules the Secretary makes. The review must figure out five things: how much the applicant needs to borrow; what interest rate they would need to cover costs and build equity; the goals of the farm plan; whether the plan is financially workable and what changes are needed; and whether help under this chapter is needed and how much. The Secretary can hire outside groups, including those allowed to give borrower training, to do these assessments. Reviews must include yearly checks of direct loans and occasional checks of guaranteed loans to see if the borrower is meeting farm goals. If a borrower falls behind on payments, the Secretary or the hired group must find the cause and say what must be done. The Secretary must issue rules that guide these assessments.

Title 7, §2006b

Agriculture — Source: USLM XML via OLRC

(a)The Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant.

(b)In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine—

(1)the amount that the applicant will need to borrow to carry out the proposed farming plan;

(2)the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base;

(3)the goals of the proposed farming plan of the applicant;

(4)the financial viability of the plan and any changes that are necessary to make the plan viable; and

(5)whether assistance is necessary under this chapter and, if so, the amount of the assistance.

(c)The Secretary may contract with a third party (including those entities eligible to provide borrower training under section 2006a(b) of this title) to conduct loan assessments under this section.

(d)(1)Loan assessments conducted under this section shall include annual review of direct loans, and periodic review (as determined necessary by the Secretary) of guaranteed loans, made under this chapter to assess the progress of a borrower in meeting the goals for the farm or ranch operation.

(2)The Secretary may contract with an entity that is eligible to provide borrower training under section 2006a(b) of this title to conduct loan reviews under paragraph (1).

(3)If a borrower is delinquent in payments on a direct or guaranteed loan made under this chapter, the Secretary or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency.

(e)The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a), (b)(5), and (d)(1), (3), was in the original “this title”, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see

Short Title

note set out under section 1921 of this title and Tables.

Amendments

2002—Subsec. (a). Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section 1982 of this title, the Secretary”. Subsec. (d)(1). Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”.

§2006b Loan assessments