§1992 — Title 7 Agriculture | U.S. Code

Summary

The Secretary must not make loans under sections 1926(a)(1), 1932, or 1942(c) to be sold as insured loans or otherwise unless the Secretary first finds that no other lender will make the loan and agree to take 10% of any loss. Loans to public bodies or nonprofit groups (including Indian tribes on Federal and State reservations or other federally recognized tribes) for community facilities, or loans of the kind allowed by section 1926(a)(1) before it was changed by the Rural Development Act of 1972, are exceptions. A guarantee to another lender cannot require the Secretary to cover more than 90% of the loan’s principal and interest.

Title 7, §1992

Agriculture — Source: USLM XML via OLRC

No loan (other than one to a public body or nonprofit association (including Indian tribes on Federal and State reservations or other federally recognized Indian tribal groups) for community facilities or one of a type authorized by section 1926(a)(1) of this title prior to its amendment by the Rural Development Act of 1972) shall be made by the Secretary either for sale as an insured loan or otherwise under section 1926(a)(1), 1932, or 1942(c) of this title unless the Secretary shall have determined that no other lender is willing to make such loan and assume 10 per centum of any loss sustained thereon. No contract guaranteeing any such loan by such other lender shall require the Secretary to guarantee more than 90 per centum of the principal and interest on such loan.

Notes & Related Subsidiaries

Editorial Notes

References in Text

For statutory changes to section 1926(a)(1) of this title by the Rural Development Act of 1972, referred to in text, see 1972 Amendment note for section 104 of Pub. L. 92–419, set out under section 1926 of this title. For complete classification of Rural Development Act of 1972 to the Code, see

Short Title

of 1972 Amendment note set out under section 1921 of this title and Tables.

Amendments

1996—Pub. L. 104–127 substituted “1926(a)(1), 1932, or 1942(c) of this title” for “1924(b), 1926(a)(1), 1932, 1942(b), or 1942(c) of this title”. 1975—Pub. L. 94–35 substituted “guaranteed more than 90 per centum of the principal and interest on such loan” for “participate in more than 90 per centum of any loss sustained thereon”.

§1992 Loan Limitations