§1929b — Title 7 Agriculture | U.S. Code

Summary

Secretary may buy the guaranteed part of loans but must not pay more than the unpaid principal balance and accrued interest. Purchases use the Rural Development Insurance Fund for rural development loans (see section 1929a(a)) or the Agricultural Credit Insurance Fund, and can happen only if the Secretary finds no adequate secondary market in the private sector.

Title 7, §1929b

Agriculture — Source: USLM XML via OLRC

The Secretary may purchase, on such terms and conditions as the Secretary deems appropriate, the guaranteed portion of any loan guaranteed under this chapter: Provided, That the Secretary may not pay for any such guaranteed portion of a loan in excess of an amount equal to the unpaid principal balance and accrued interest on the guaranteed portion of the loan. The Secretary may use for such purchases funds from the Rural Development Insurance Fund with respect to rural development loans as defined in section 1929a(a) of this title and funds from the Agricultural Credit Insurance Fund with respect to all other loans under this chapter. This authority may be exercised only if the Secretary determines that an adequate secondary market is not available in the private sector.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, 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.

§1929b Purchase of Guaranteed Portions of Loans; Terms and Conditions; Exercise of Authorities