7 USC 1961 - Eligibility for loans

U.S Code last checked for updates: May 02, 2024

§ 1961.

Eligibility for loans

(a)

Persons eligible

(b)

Hazard insurance requirement

(1)

In general

(2)

Determination

(3)

Loans to poultry farmers

(A)

Inability to obtain insurance

(i)

In general

Notwithstanding any other provision of this subchapter, the Secretary may make a loan to a poultry farmer under this subchapter to cover the loss of a chicken house for which the farmer did not have hazard insurance at the time of the loss, if the farmer—

(I)

applied for, but was unable, to obtain hazard insurance for the chicken house;

(II)

uses the loan to rebuild the chicken house in accordance with industry standards in effect on the date the farmer submits an application for the loan (referred to in this paragraph as “current industry standards”);

(III)

obtains, for the term of the loan, hazard insurance for the full market value of the chicken house; and

(IV)

meets the other requirements for the loan under this subchapter.

(ii)

Amount

(B)

Loans to comply with current industry standards

(i)

In general

Notwithstanding any other provision of this subchapter, the Secretary may make a loan to a poultry farmer under this subchapter to cover the loss of a chicken house for which the farmer had hazard insurance at the time of the loss, if—

(I)

the amount of the hazard insurance is less than the cost of rebuilding the chicken house in accordance with current industry standards;

(II)

the farmer uses the loan to rebuild the chicken house in accordance with current industry standards;

(III)

the farmer obtains, for the term of the loan, hazard insurance for the full market value of the chicken house; and

(IV)

the farmer meets the other requirements for the loan under this subchapter.

(ii)

Amount

Subject to the limitation contained in section 1964(a)(2) of this title, the amount of a loan made to a poultry farmer under clause (i) shall be the difference between—

(I)

the amount of the hazard insurance obtained by the farmer; and

(II)

the cost of rebuilding the chicken house in accordance with current industry standards.

(c)

Family farm system

(d)

Definitions

For the purposes of this subchapter—

(1)

“aquaculture” means the husbandry of aquatic organisms under a controlled or selected environment; and

(2)

“able to obtain sufficient credit elsewhere” means able to obtain sufficient credit elsewhere to finance the applicant’s actual needs at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time.

(Pub. L. 87–128, title III, § 321, Aug. 8, 1961, 75 Stat. 311; Pub. L. 87–832, Oct. 15, 1962, 76 Stat. 958; Pub. L. 93–24, §§ 2, 3, 6, Apr. 20, 1973, 87 Stat. 24, 25; Pub. L. 93–237, § 10(a), (d), Jan. 2, 1974, 87 Stat. 1025; Pub. L. 94–68, §§ 2, 3, Aug. 5, 1975, 89 Stat. 381; Pub. L. 95–334, title I, § 118, Aug. 4, 1978, 92 Stat. 426; Pub. L. 96–302, title I, § 120(a), July 2, 1980, 94 Stat. 841; Pub. L. 96–438, § 3(a), (b)(1), Oct. 13, 1980, 94 Stat. 1872; Pub. L. 97–35, title I, § 161, Aug. 13, 1981, 95 Stat. 378; Pub. L. 98–258, title VI, § 602(a), Apr. 10, 1984, 98 Stat. 138; Pub. L. 99–198, title XIII, § 1308(a), (b)(1), Dec. 23, 1985, 99 Stat. 1522; Pub. L. 100–707, title I, § 109(c)(1), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 104–127, title VI, § 621(a), Apr. 4, 1996, 110 Stat. 1091; Pub. L. 106–387, § 1(a) [title VIII, § 833], Oct. 28, 2000, 114 Stat. 1549, 1549A–61; Pub. L. 107–171, title V, §§ 5201(a), 5302, 5501(a), May 13, 2002, 116 Stat. 344, 351; Pub. L. 110–234, title V, § 5201, May 22, 2008, 122 Stat. 1146; Pub. L. 110–246, § 4(a), title V, § 5201, June 18, 2008, 122 Stat. 1664, 1908; Pub. L. 113–79, title V, § 5201, Feb. 7, 2014, 128 Stat. 838; Pub. L. 115–334, title V, § 5401(a)(1), Dec. 20, 2018, 132 Stat. 4674.)

cite as: 7 USC 1961