PRIA, Government Policy, Made Personal

Summary

The Secretary must send a certified-mail notice to any borrower who is at least 90 days behind on a loan. The notice must explain available loan help programs (primary, preservation, and debt settlement) and appeal steps, who can qualify, and the main terms. It must tell how to apply, list filing rules and deadlines, include any needed forms, say that the official rules are available on request, and be written so a borrower can understand it. The official rules must include these notices. The notice must also be given when someone applies, if the borrower asks in writing, and before any collection steps like liquidation, taking secured property, accelerating the loan, repossession, foreclosure, or other collection actions. If the borrower asks in writing within 60 days after getting the notice (or later only in rare cases approved by the State director), the Secretary must consider that borrower for all loan help programs. The highest goal must be keeping the borrower’s farming operation going.

Title 7, §1981d

Agriculture, Source: USLM XML via OLRC

(a)Requirement

The Secretary shall provide notice by certified mail to each borrower who is at least 90 days past due on the payment of principal or interest on a loan made or insured under this chapter.

(b)Contents

The notice required under subsection (a) shall—

(1)include a summary of all primary loan service programs, preservation loan service programs, debt settlement programs, and appeal procedures, including the eligibility criteria, and terms and conditions of such programs and procedures;

(2)include a summary of the manner in which the borrower may apply, and be considered, for all such programs, except that the Secretary shall not require the borrower to select among such programs or waive any right in order to be considered for any program carried out by the Secretary;

(3)advise the borrower regarding all filing requirements and any deadlines that must be met for requesting loan servicing;

(4)provide any relevant forms, including applicable response forms;

(5)advise the borrower that a copy of regulations is available on request; and

(6)be designed to be readable and understandable by the borrower.

(c)Contained in regulations

All notices required by this section shall be contained in the regulations implementing this chapter.

(d)Timing

The notice described in subsection (b) shall be provided—

(1)at the time an application is made for participation in a loan service program;

(2)on written request of the borrower; and

(3)before the earliest of—

(A)initiating any liquidation;

(B)requesting the conveyance of security property;

(C)accelerating the loan;

(D)repossessing property;

(E)foreclosing on property; or

(F)taking any other collection action.

(e)Consideration of borrowers for loan service programs

The Secretary shall consider a farmer program borrower for all loan service programs if, within 60 days after receipt of the notice required in this section or, in extraordinary circumstances as determined by the applicable State director, after the 60-day period, the borrower requests such consideration in writing. In considering a borrower for loan service programs, the Secretary shall place the highest priority on the preservation of the borrower’s farming operations.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) and (c), 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

2018—Subsec. (e). Pub. L. 115–334 inserted “or, in extraordinary circumstances as determined by the applicable State director, after the 60-day period” after “within 60 days after receipt of the notice required in this section”. 1996—Subsec. (a). Pub. L. 104–127 substituted “90 days past due on” for “180 days delinquent in”. 1992—Subsec. (e). Pub. L. 102–554, which directed the insertion of “or, in extraordinary circumstances as determined by the applicable State director, after the 60-day period” after “not later than 60 days after receipt of the notice required in this section”, could not be executed because the phrase “not later than 60 days after receipt of the notice required in this section” did not appear in text. Corrected amendment was made by Pub. L. 115–334, effective as if included in Pub. L. 102–554. See 2018 Amendment note above and

Effective Date

of 2018 Amendment note below. 1990—Subsec. (b)(1). Pub. L. 101–624, § 1807(1), inserted “debt settlement programs,” after “preservation loan service programs”. Subsec. (e). Pub. L. 101–624, § 1807(2), substituted “60 days” for “45 days”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 Amendment Pub. L. 115–334, title V, § 5401(b)(2), Dec. 20, 2018, 132 Stat. 4674, provided that: “The amendment made by this subsection [amending this section] shall take effect as if included in the enactment of section 10 of the Agricultural Credit Improvement Act of 1992 (Public Law 102–554).”

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–127 effective 90 days after Apr. 4, 1996, see section 663(b) of Pub. L. 104–127, set out as a note under section 1922 of this title.

Effective Date

of 1990 AmendmentAmendment by section 1807(1) of Pub. L. 101–624 effective 120 days after Nov. 28, 1990, see section 1861(b) of Pub. L. 101–624, set out as a note under section 2001 of this title.

§1981d Notice of Loan Service Programs

Summary

Title 7, §1981d

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Amendments

Effective Date

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata