Title 7, Cp 50, Agricultural Credit

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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1926]

TITLE 7--AGRICULTURE

CHAPTER 50--AGRICULTURAL CREDIT

SUBCHAPTER I--REAL ESTATE LOANS

Sec. 1926. Water and waste facility loans and grants

(a) In general

(1) The Secretary is also authorized to make or insure loans to
associations, including corporations not operated for profit, Indian
tribes on Federal and State reservations and other federally recognized
Indian tribes, and public and quasi-public agencies to provide for the
application or establishment of soil conservation practices, shifts in
land use, the conservation, development, use, and control of water, and
the installation or improvement of drainage or waste disposal
facilities, recreational developments, and essential community
facilities including necessary related equipment, all primarily serving
farmers, ranchers, farm tenants, farm laborers, rural businesses, and
other rural residents, and to furnish financial assistance or other aid
in planning projects for such purposes. The Secretary may also make or
insure loans to communities that have been designated as rural
empowerment zones or rural enterprise communities pursuant to part I of
subchapter U of chapter 1 of title 26, or as rural enterprise
communities pursuant to section 766 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681, 2681-37),
to provide for the installation or improvement of essential community
facilities including necessary related equipment, and to furnish
financial assistance or other aid in planning projects for such
purposes. The Secretary may also make loans to any borrower to whom a
loan has been made under the Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.), for the conservation, development, use, and control of
water, and the installation of drainage or waste disposal facilities,
primarily serving farmers, ranchers, farm tenants, farm laborers, rural
businesses, and other rural residents. When any loan made for a purpose
specified in this paragraph is sold out of the Agricultural Credit
Insurance Fund as an insured loan, the interest or other income thereon
paid to an insured holder shall be included in gross income for purposes
of chapter 1 of title 26. With respect to loans of less than $500,000
made or insured under this paragraph that are evidenced by notes and
mortgages, as distinguished from bond issues, borrowers shall not be
required to appoint bond counsel to review the legal validity of the
loan whenever the Secretary has available legal counsel to perform such
review.
(2) Water, waste disposal, and wastewater facility grants.--
(A) Authority.--
(i) In general.--The Secretary is authorized to make grants
to such associations to finance specific projects for works for
the development, storage, treatment, purification, or
distribution of water or the collection, treatment, or disposal
of waste in rural areas.
(ii) Amount.--The amount of any grant made under the
authority of this subparagraph shall not exceed 75 per centum of
the development cost of the project to serve the area which the
association determines can be feasibly served by the facility
and to adequately serve the reasonably foreseeable growth needs
of the area.
(iii) Grant rate.--The Secretary shall fix the grant rate
for each project in conformity with regulations issued by the
Secretary that shall provide for a graduated scale of grant
rates establishing higher rates for projects in communities that
have lower community population and income levels.
(B) Revolving funds for financing water and wastewater
projects.--
(i) In general.--The Secretary may make grants to qualified
private, nonprofit entities to capitalize revolving funds for
the purpose of providing financing to eligible entities for--
(I) predevelopment costs associated with proposed water
and wastewater projects or with existing water and
wastewater systems; and
(II) short-term costs incurred for replacement
equipment, small-scale extension services, or other small
capital projects that are not part of the regular operations
and maintenance activities of existing water and wastewater
systems.

(ii) Eligible entities.--To be eligible to obtain financing
from a revolving fund under clause (i), an eligible entity must
be eligible to obtain a loan, loan guarantee, or grant under
paragraph (1) or this paragraph.
(iii) Maximum amount of financing.--The amount of financing
made to an eligible entity under this subparagraph shall not
exceed--
(I) $100,000 for costs described in clause (i)(I); and
(II) $100,000 for costs described in clause (i)(II).

(iv) Term.--The term of financing provided to an eligible
entity under this subparagraph shall not exceed 10 years.
(v) Administration.--The Secretary shall limit the amount of
grant funds that may be used by a grant recipient for
administrative costs incurred under this subparagraph.
(vi) Annual report.--A nonprofit entity receiving a grant
under this subparagraph shall submit to the Secretary an annual
report that describes the number and size of communities served
and the type of financing provided.
(vii) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subparagraph $30,000,000
for each of fiscal years 2002 through 2007.
(3) No grant shall be made under paragraph (2) of this subsection in
connection with any project unless the Secretary determines that the
project (i) will serve a rural area which, if such project is carried
out, is not likely to decline in population below that for which the
project was designed, (ii) is designed and constructed so that adequate
capacity will or can be made available to serve the present population
of the area to the extent feasible and to serve the reasonably
foreseeable growth needs of the area, and (iii) is necessary for an
orderly community development consistent with a comprehensive community
water, waste disposal, or other development plan of the rural area.
(4)(A) The term ``development cost'' means the cost of construction
of a facility and the land, easements, and rights-of-way, and water
rights necessary to the construction and operation of the facility.
(B) The term ``project'' shall include facilities providing central
service or facilities serving individual properties, or both.
(5) Application requirements.--Not earlier than 60 days before a
preliminary application is filed for a loan under paragraph (1) or a
grant under paragraph (2) for a water or waste disposal purpose, a
notice of the intent of the applicant to apply for the loan or grant
shall be published in a general circulation newspaper. The selection of
engineers for a project design shall be done by a request for proposals
by the applicant.
(6) The Secretary may make grants aggregating not to exceed
$30,000,000 in any fiscal year to public bodies or such other agencies
as the Secretary may determine having authority to prepare comprehensive
plans for the development of water or waste disposal systems in rural
areas which do not have funds available for immediate undertaking of the
preparation of such plan.
(7) Repealed. Pub. L. 107-171, title VI, Sec. 6020(b)(1), May 13,
2002, 116 Stat. 363.
(8) In each instance where the Secretary receives two or more
applications for financial assistance for projects that would serve
substantially the same group of residents within a single rural area,
and one such application is submitted by a city, town, county or other
unit of general local government, he shall, in the absence of
substantial reasons to the contrary, provide such assistance to such
city, town, county or other unit of general local government.
(9) Conformity with state drinking water standards.--No Federal
funds shall be made available under this section for a water system
unless the Secretary determines that the water system will make
significant progress toward meeting the standards established under
title XIV of the Public Health Service Act (commonly known as the ``Safe
Drinking Water Act'') (42 U.S.C. 300f et seq.).
(10) Conformity with federal and state water pollution control
standards.--No Federal funds shall be made available under this section
for a water treatment discharge or waste disposal system unless the
Secretary determines that the effluent from the system conforms with
applicable Federal and State water pollution control standards.
(11) Rural business opportunity grants.--
(A) In general.--The Secretary may make grants, not to exceed
$1,500,000 annually, to public bodies, private nonprofit community
development corporations or entities, or such other agencies as the
Secretary may select to enable the recipients--
(i) to identify and analyze business opportunities,
including opportunities in export markets, that will use local
rural economic and human resources;
(ii) to identify, train, and provide technical assistance to
existing or prospective rural entrepreneurs and managers;
(iii) to establish business support centers and otherwise
assist in the creation of new rural businesses, the development
of methods of financing local businesses, and the enhancement of
the capacity of local individuals and entities to engage in
sound economic activities;
(iv) to conduct regional, community, and local economic
development planning and coordination, and leadership
development; and
(v) to establish centers for training, technology, and trade
that will provide training to rural businesses in the
utilization of interactive communications technologies to
develop international trade opportunities and markets.

(B) Criteria.--In awarding the grants, the Secretary shall
consider, among other criteria to be established by the Secretary--
(i) the extent to which the applicant provides development
services in the rural service area of the applicant; and
(ii) the capability of the applicant to accomplish the
activities described in the relevant clauses of subparagraph
(A).

(C) Coordination.--The Secretary shall ensure, to the maximum
extent practicable, that assistance provided under this paragraph is
coordinated with and delivered in cooperation with similar services
or assistance provided to rural residents by the Cooperative State
Research, Education, and Extension Service or other Federal
agencies.
(D) Authorization of appropriations.--There are authorized to be
appropriated to carry out this paragraph $15,000,000 for each of
fiscal years 1996 through 2007.

(12)(A) The Secretary shall, in cooperation with institutions
eligible to receive funds under the Act of July 2, 1862 (12 Stat. 503-
505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of August
30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328),
including the Tuskegee Institute and State, substate, and regional
planning bodies, establish a system for the dissemination of information
and technical assistance on federally sponsored or funded programs. The
system shall be for the use of institutions eligible to receive funds
under the Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C.
301-305, 307, and 308), or the Act of August 30, 1890 (26 Stat. 417-419,
as amended; 7 U.S.C. 321-326 and 328), including the Tuskegee Institute
and State, substate, and regional planning bodies, and other persons
concerned with rural development.
(B) The informational system developed under this paragraph shall
contain all pertinent information, including, but not limited to,
information contained in the Federal Procurement Data System, Federal
Assistance Program Retrieval System, Catalogue of Federal Domestic
Assistance, Geographic Distribution of Federal Funds, United States
Census, and Code of Federal Regulations.
(C) The Secretary shall obtain from all other Federal departments
and agencies comprehensive, relevant, and applicable information on
programs under their jurisdiction that are operated in rural areas.
(D) Of the sums authorized to be appropriated to carry out the
provisions of this chapter, not more than $1,000,000 per year may be
expended to carry out the provisions of this paragraph.
(13) In the making of loans and grants for community waste disposal
and water facilities under paragraphs (1) and (2) of this subsection the
Secretary shall accord highest priority to the application of any
municipality or other public agency (including an Indian tribe on a
Federal or State reservation or other federally recognized Indian tribal
group) in a rural community having a population not in excess of five
thousand five hundred and which, in the case of water facility loans,
has a community water supply system, where the Secretary determines that
due to unanticipated diminution or deterioration of its water supply,
immediate action is needed, or in the case of waste disposal, has a
community waste disposal system, where the Secretary determines that due
to unanticipated occurrences the system is not adequate to the needs of
the community. The Secretary shall utilize the Soil Conservation Service
in rendering technical assistance to applicants under this paragraph to
the extent he deems appropriate.
(14) Rural water and wastewater technical assistance and training
programs.--
(A) In general.--The Secretary may make grants to private
nonprofit organizations for the purpose of enabling them to provide
to associations described in paragraph (1) of this subsection
technical assistance and training to--
(i) identify, and evaluate alternative solutions to,
problems relating to the obtaining, storage, treatment,
purification, or distribution of water or the collection,
treatment, or disposal of waste in rural areas;
(ii) prepare applications to receive financial assistance
for any purpose specified in paragraph (2) of this subsection
from any public or private source; and
(iii) improve the operation and maintenance practices at any
existing works for the storage, treatment, purification, or
distribution of water or the collection, treatment, or disposal
of waste in rural areas.

(B) Selection priority.--In selecting recipients of grants to be
made under subparagraph (A), the Secretary shall give priority to
private nonprofit organizations that have experience in providing
the technical assistance and training described in subparagraph (A)
to associations serving rural areas in which residents have low
income and in which water supply systems or waste facilities are
unhealthful.
(C) Funding.--Not less than 1 nor more than 3 percent of any
funds appropriated to carry out paragraph (2) of this subsection for
any fiscal year shall be reserved for grants under subparagraph (A)
unless the applications, qualifying for grants, received by the
Secretary from eligible nonprofit organizations for the fiscal year
total less than 1 per centum of those funds.

(15) In the case of water and waste disposal facility projects
serving more than one separate rural community, the Secretary shall use
the median population level and the community income level of all the
separate communities to be served in applying the standards specified in
paragraph (2) of this subsection and section 1927(a)(3)(A) of this
title.
(16) Grants under paragraph (2) of this subsection may be used to
pay the local share requirements of another Federal grant-in-aid program
to the extent permitted under the law providing for such grant-in-aid
program.
(17)(A) In the approval and administration of a loan made under
paragraph (1) for a water or waste disposal facility, the Secretary
shall consider fully any recommendation made by the loan applicant or
borrower concerning the technical design and choice of materials to be
used for such facility.
(B) If the Secretary determines that a design or materials, other
than those that were recommended, should be used in the water or waste
disposal facility, the Secretary shall provide such applicant or
borrower with a comprehensive justification for such determination.
(18) In making or insuring loans or making grants under this
subsection, the Secretary may not condition approval of such loans or
grants upon any requirement, condition or certification other than those
specified under this chapter.
(19) Community facilities grant program.--
(A) In general.--The Secretary may make grants, in a total
amount not to exceed $10,000,000 for any fiscal year, to
associations, units of general local government, nonprofit
corporations, Indian tribes (as such term is defined under section
450b(e) of title 25),\1\ and federally recognized Indian tribes to
provide the Federal share of the cost of developing specific
essential community facilities in rural areas.
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\1\ So in original.
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(B) Federal share.--
(i) In general.--Except as provided in clauses (ii) and
(iii), the Secretary shall, by regulation, establish the amount
of the Federal share of the cost of the facility under this
paragraph.
(ii) Maximum amount.--The amount of a grant provided under
this paragraph for a facility shall not exceed 75 percent of the
cost of developing the facility.
(iii) Graduated scale.--The Secretary shall provide for a
graduated scale for the amount of the Federal share provided
under this paragraph, with higher Federal shares for facilities
in communities that have lower community population and income
levels, as determined by the Secretary.

(C) Reservation of funds for child day care facilities.--
(i) In general.--For each fiscal year, not less than 10
percent of the funds made available to carry out this paragraph
shall be reserved for grants to pay the Federal share of the
cost of developing and constructing day care facilities for
children in rural areas.
(ii) Release.--Funds reserved under clause (i) for a fiscal
year shall be reserved only until April 1 of the fiscal year.

(20) Community facilities grant program for rural communities with
extreme unemployment and severe economic depression.--
(A) Definition of not employed rate.--In this paragraph, the
term ``not employed rate'', with respect to a community, means the
percentage of individuals over the age of 18 who reside within the
community and who are ready, willing, and able to be employed but
are unable to find employment, as determined by the department of
labor of the State in which the community is located.
(B) Grant authority.--The Secretary may make grants to
associations, units of general local government, nonprofit
corporations, and Indian tribes (as defined in section 450b of title
25) in a State to provide the Federal share of the cost of
developing specific essential community facilities in rural
communities with respect to which the not employed rate is greater
than the lesser of--
(i) 500 percent of the average national unemployment rate on
November 9, 2000, as determined by the Bureau of Labor
Statistics; or
(ii) 200 percent of the average national unemployment rate
during the Great Depression, as determined by the Bureau of
Labor Statistics.

(C) Federal share.--Paragraph (19)(B) shall apply to a grant
made under this paragraph.
(D) Authorization of appropriations.--There are authorized to be
appropriated to carry out this paragraph $50,000,000 for fiscal year
2001 and such sums as are necessary for each subsequent fiscal year,
of which not more than 5 percent of the amount made available for a
fiscal year shall be available for community planning and
implementation.
(E) Rural broadband.--Notwithstanding subparagraph (C), the
Secretary may make grants to state \2\ agencies for use by
regulatory commissions in states \2\ with rural communities without
local dial-up Internet access or broadband service to establish a
competitively, technologically neutral grant program to
telecommunications carriers or cable operators that establish common
carrier facilities and services which, in the commission's
determination, will result in the long-term availability to such
communities of affordable broadband services which are used for the
provision of high speed Internet access.
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\2\ So in original. Probably should be capitalized.

(21) Community facilities grant program for rural communities with
high levels of out-migration or loss of population.--
(A) Grant authority.--The Secretary may make grants to
associations, units of general local government, nonprofit
corporations, and Indian tribes (as defined in section 450b of title
25) in a State to provide the Federal share of the cost of
developing specific essential community facilities in any geographic
area--
(i) that is represented by--
(I) any political subdivision of a State;
(II) an Indian tribe on a Federal or State reservation;
or
(III) other federally recognized Indian tribal group;

(ii) that is located in a rural area (as defined in section
2009 \3\ of this title);
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\3\ See References in Text note below.
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(iii) with respect to which, during the most recent 5-year
period, the net out-migration of inhabitants, or other
population loss, from the area equals or exceeds 5 percent of
the population of the area; and
(iv) that has a median household income that is less than
the nonmetropolitan median household income of the United
States.

(B) Federal share.--Paragraph (19)(B) shall apply to a grant
made under this paragraph.
(C) Authorization of appropriations.--There are authorized to be
appropriated to carry out this paragraph $50,000,000 for fiscal year
2001 and such sums as are necessary for each subsequent fiscal year,
of which not more than 5 percent of the amount made available for a
fiscal year shall be available for community planning and
implementation.

(22) Rural water and wastewater circuit rider program.--
(A) In general.--The Secretary shall establish a national rural
water and wastewater circuit rider program that is based on the
rural water circuit rider program of the National Rural Water
Association that (as of May 13, 2002) receives funding from the
Secretary, acting through the Rural Utilities Service.
(B) Relationship to existing program.--The program established
under subparagraph (A) shall not affect the authority of the
Secretary to carry out the circuit rider program for which funds are
made available under the heading ``rural community advancement
program'' in title III of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act,
2002 (115 Stat. 719).
(C) Authorization of appropriations.--There is authorized to be
appropriated to carry out this paragraph $15,000,000 for fiscal year
2003 and each fiscal year thereafter.

(23) Multijurisdictional regional planning organizations.--
(A) Grants.--The Secretary shall provide grants to
multijurisdictional regional planning and development organizations
to pay the Federal share of the cost of providing assistance to
local governments to improve the infrastructure, services, and
business development capabilities of local governments and local
economic development organizations.
(B) Priority.--In determining which organizations will receive a
grant under this paragraph, the Secretary shall give priority to an
organization that--
(i) serves a rural area that, during the most recent 5-year
period--
(I) had a net out-migration of inhabitants, or other
population loss, from the rural area that equals or exceeds
5 percent of the population of the rural area; or
(II) had a median household income that is less than the
nonmetropolitan median household income of the applicable
State; and

(ii) has a history of providing substantive assistance to
local governments and economic development organizations.

(C) Federal share.--A grant provided under this paragraph shall
be for not more than 75 percent of the cost of providing assistance
described in subparagraph (A).
(D) Maximum amount of grants.--The amount of a grant provided to
an organization under this paragraph shall not exceed $100,000.
(E) Authorization of appropriations.--There is authorized to be
appropriated to carry out this paragraph $30,000,000 for each of
fiscal years 2003 through 2007.

(24) Loan guarantees for water, wastewater, and essential community
facilities loans.--
(A) In general.--The Secretary may guarantee a loan made to
finance a community facility or water or waste facility project in a
rural area, including a loan financed by the net proceeds of a bond
described in section 142(a) of title 26.
(B) Requirements.--To be eligible for a loan guarantee under
subparagraph (A), an individual or entity offering to purchase the
loan shall demonstrate to the Secretary that the person has--
(i) the capabilities and resources necessary to service the
loan in a manner that ensures the continued performance of the
loan, as determined by the Secretary; and
(ii) the ability to generate capital to provide borrowers of
the loan with the additional credit necessary to properly
service the loan.

(25) Tribal college and university essential community facilities.--
(A) In general.--The Secretary may make grants to tribal
colleges and universities (as defined in section 1059c of title 20)
to provide the Federal share of the cost of developing specific
tribal college or university essential community facilities in rural
areas.
(B) Federal share.--
(i) In general.--Except as provided in clauses (ii) and
(iii), the Secretary shall, by regulation, establish the maximum
percentage of the cost of the facility that may be covered by a
grant under this paragraph.
(ii) Maximum amount.--The amount of a grant provided under
this paragraph for a facility shall not exceed 75 percent of the
cost of developing the facility.
(iii) Graduated scale.--The Secretary shall provide for a
graduated scale of the percentages of the cost covered by a
grant made under this paragraph that provides higher percentages
for facilities in communities that have lower community
population and income levels, as determined by the Secretary.

(C) Authorization of appropriations.--There is authorized to be
appropriated to carry out this paragraph $10,000,000 for each of
fiscal years 2003 through 2007.

(b) Curtailment or limitation of service prohibited

The service provided or made available through any such association
shall not be curtailed or limited by inclusion of the area served by
such association within the boundaries of any municipal corporation or
other public body, or by the granting of any private franchise for
similar service within such area during the term of such loan; nor shall
the happening of any such event be the basis of requiring such
association to secure any franchise, license, or permit as a condition
to continuing to serve the area served by the association at the time of
the occurrence of such event.

(c) Repealed. Pub. L. 91-606, title III, Sec. 302(2), Dec. 31, 1970, 84
Stat. 1759

(d) Carryover of unused authorizations for appropriations

Any amounts appropriated under this section shall remain available
until expended, and any amounts authorized for any fiscal year under
this section but not appropriated may be appropriated for any succeeding
fiscal year.

(Pub. L. 87-128, title III, Sec. 306, Aug. 8, 1961, 75 Stat. 308; Pub.
L. 87-703, title IV, Sec. 401(2), Sept. 27, 1962, 76 Stat. 632; Pub. L.
89-240, Sec. 1, Oct. 7, 1965, 79 Stat. 931; Pub. L. 89-769, Sec. 6(b),
Nov. 6, 1966, 80 Stat. 1318; Pub. L. 90-488, Secs. 3-5, Aug. 15, 1968,
82 Stat. 770; Pub. L. 91-524, title VIII, Sec. 806(a), Nov. 30, 1970, 84
Stat. 1383; Pub. L. 91-606, title III, Sec. 302(2), Dec. 31, 1970, 84
Stat. 1759; Pub. L. 91-617, Sec. 1(a), Dec. 31, 1970, 84 Stat. 1855;
Pub. L. 92-419, title I, Secs. 104-112, Aug. 30, 1972, 86 Stat. 658,
659; Pub. L. 91-524, title VIII, Sec. 816(c), as added Pub. L. 93-86,
Sec. 1(27)(B), Aug. 10, 1973, 87 Stat. 240; Pub. L. 95-334, title I,
Secs. 104-107(a), Aug. 4, 1978, 92 Stat. 421, 422; Pub. L. 96-355,
Sec. 7, Sept. 24, 1980, 94 Stat. 1174; Pub. L. 96-438, Sec. 2(1), Oct.
13, 1980, 94 Stat. 1871; Pub. L. 97-35, title I, Sec. 121, Aug. 13,
1981, 95 Stat. 368; Pub. L. 99-198, title XIII, Sec. 1304(a), Dec. 23,
1985, 99 Stat. 1519; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.
2095; Pub. L. 101-624, title XXIII, Secs. 2316(b), 2321, 2328, 2329,
2341, 2342, 2393, Nov. 28, 1990, 104 Stat. 4008, 4010, 4017, 4026, 4027,
4057; Pub. L. 102-237, title VII, Sec. 701(a), (h)(1)(A), (B), Dec. 13,
1991, 105 Stat. 1879, 1880; Pub. L. 103-129, Sec. 3, Nov. 1, 1993, 107
Stat. 1366; Pub. L. 103-354, title II, Sec. 235(b)(5), Oct. 13, 1994,
108 Stat. 3222; Pub. L. 104-127, title VII, Secs. 741(a), 758, 763, Apr.
4, 1996, 110 Stat. 1122, 1132, 1148; Pub. L. 106-387, Sec. 1(a) [title
VII, Sec. 773], Oct. 28, 2000, 114 Stat. 1549, 1549A-45; Pub. L. 106-
472, title III, Secs. 304(a), 305(a), Nov. 9, 2000, 114 Stat. 2070,
2071; Pub. L. 107-76, title VII, Sec. 762, Nov. 28, 2001, 115 Stat. 743;
Pub. L. 107-171, title VI, Secs. 6001-6007(a), 6008, 6020(b)(1), May 13,
2002, 116 Stat. 352-355, 363.)

References in Text

Section 766 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999, referred
to in subsec. (a)(1), is Pub. L. 105-277, div. A, Sec. 101(a)[title VII,
Sec. 766], Oct. 21, 1998, 112 Stat. 2681, 2681-37, which is not
classified to the Code.
The Rural Electrification Act of 1936, referred to in subsec.
(a)(1), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which
is classified generally to chapter 31 (Sec. 901 et seq.) of this title.
For complete classification of this Act to the Code, see section 901 of
this title and Tables.
The Public Health Service Act, referred to in subsec. (a)(9), is act
July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title XIV of the Act,
known as the Safe Drinking Water Act, is classified principally to
subchapter XII (Sec. 300f et seq.) of chapter 6A of Title 42, The Public
Health and Welfare. For complete classification of these Acts to the
Code, see Short Title note and Short Title of 1974 Amendments note set
out under section 201 of Title 42 and Tables.
Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C. 301-305,
307 and 308), referred to in subsec. (a)(12)(A), is act July 2, 1862,
ch. 130, 12 Stat. 503, as amended, popularly known as the Morrill Act
and also as the First Morrill Act, which is classified generally to
subchapter I (Sec. 301 et seq.) of chapter 13 of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 301 of this title and Tables.
Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-
326 and 328), referred to in subsec. (a)(12)(A), is act Aug. 30, 1890,
ch. 841, 26 Stat. 417, as amended, popularly known as the Agricultural
College Act of 1890 and also as the Second Morrill Act, which is
classified generally to subchapter II (Sec. 321 et seq.) of chapter 13
of this title. For complete classification of this Act to the Code, see
Short Title note set out under section 321 of this title and Tables.
For definition of ``this chapter'', referred to in subsec.
(a)(12)(D), (18), see note set out under section 1921 of this title.
Section 2009 of this title, referred to in subsec. (a)(21)(A)(ii),
was subsequently amended, and no longer defines the term ``rural area''.
The Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2002, referred to in subsec.
(a)(22)(B), is Pub. L. 107-76, Nov. 28, 2001, 115 Stat. 704. Provisions
under the heading ``rural community advancement program'' in title III
of the Act appear at 115 Stat. 719 and are not classified to the Code.

Amendments

2002--Subsec. (a)(1). Pub. L. 107-171, Sec. 6001, inserted after
first sentence ``The Secretary may also make or insure loans to
communities that have been designated as rural empowerment zones or
rural enterprise communities pursuant to part I of subchapter U of
chapter 1 of title 26, or as rural enterprise communities pursuant to
section 766 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999 (Public
Law 105-277; 112 Stat. 2681, 2681-37), to provide for the installation
or improvement of essential community facilities including necessary
related equipment, and to furnish financial assistance or other aid in
planning projects for such purposes.''
Subsec. (a)(2). Pub. L. 107-171, Sec. 6002, inserted heading,
designated existing provisions as subpar. (A) and inserted heading,
designated first sentence of subpar. (A) as cl. (i), inserted heading,
and struck out ``aggregating not to exceed $590,000,000 in any fiscal
year'' after ``authorized to make grants'', designated second sentence
of subpar. (A) as cl. (ii), inserted heading, and substituted
``subparagraph'' for ``paragraph'', designated third sentence of subpar.
(A) as cl. (iii) and inserted heading, and added subpar. (B).
Subsec. (a)(7). Pub. L. 107-171, Sec. 6020(b)(1), struck out heading
and text of par. (7). Text read as follows: ``For the purpose of water
and waste disposal grants and direct and guaranteed loans provided under
paragraphs (1) and (2), the terms `rural' and `rural area' mean a city,
town, or unincorporated area that has a population of no more than
10,000 inhabitants.''
Subsec. (a)(11)(D). Pub. L. 107-171, Sec. 6003, substituted
``$15,000,000'' for ``$7,500,000'' and ``2007'' for ``2002''.
Subsec. (a)(19)(C). Pub. L. 107-171, Sec. 6004, added subpar. (C).
Subsec. (a)(22) to (25). Pub. L. 107-171, Secs. 6005-6007(a), 6008,
added pars. (22) to (25).
2001--Subsec. (a)(20)(E). Pub. L. 107-76 added subpar. (E).
2000--Subsec. (a)(19)(A). Pub. L. 106-387, which directed amendment
of section 306(a)(19)(A) of the Consolidated Farmers Home Administration
Act of 1961 by inserting ``, Indian tribes (as such term is defined
under section 450b(e) of title 25),'' after ``nonprofit corporations'',
was executed to this section, which is section 306(a)(19)(A) of the
Consolidated Farm and Rural Development Act, to reflect the probable
intent of Congress.
Subsec. (a)(20). Pub. L. 106-472, Sec. 304(a), added par. (20).
Subsec. (a)(21). Pub. L. 106-472, Sec. 305(a), added par. (21).
1996--Subsec. (a)(2). Pub. L. 104-127, Sec. 741(a)(1), substituted
``$590,000,000'' for ``$500,000,000''.
Subsec. (a)(5). Pub. L. 104-127, Sec. 758, added par. (5).
Subsec. (a)(7). Pub. L. 104-127, Sec. 741(a)(2), added par. (7) and
struck out former par. (7) which read as follows: ``As used in this
chapter, the terms `rural' and `rural area' shall not include any area
in any city or town which has a population in excess of ten thousand
inhabitants, except that (A) for the purpose of loans for essential
community facilities under subsection (a)(1) of this section, the terms
`rural' and `rural area' may include any area in any city or town that
has a population not in excess of twenty thousand inhabitants; and (B)
for purposes of loans and grants for private business enterprises under
sections 1924(b), 1932 and 1942(b), (c), and (d) of this title the terms
`rural' and `rural area' may include all territory of a State that is
not within the outer boundary of any city having a population of fifty
thousand or more and its immediately adjacent urbanized and urbanizing
areas with a population density of more than one hundred persons per
square mile, as determined by the Secretary of Agriculture according to
the latest decennial census of the United States: Provided, That special
consideration for such loans and grants shall be given to areas other
than cities having a population of more than twenty-five thousand.''
Subsec. (a)(9), (10). Pub. L. 104-127, Sec. 741(a)(3), added pars.
(9) and (10) and struck out former pars. (9) and (10) which read as
follows:
``(9) No Federal funds shall be authorized for use unless it be
certified by the appropriate State water pollution control agency that
the water supply system authorized will not result in pollution of
waters of the State in excess of standards established by that agency.
``(10) In the case of sewers and waste disposal systems, no Federal
funds shall be advanced hereunder unless the appropriate State water
pollution control agency shall certify that the effluent therefrom shall
conform with appropriate State and Federal water pollution control
standards when and where established.''
Subsec. (a)(11). Pub. L. 104-127, Sec. 741(a)(3), added par. (11)
and struck out former par. (11) which authorized grants to public
bodies, private nonprofit community development corporations or
entities, or other agencies to enable such recipients to (1) identify
and analyze business opportunities, including opportunities in export
markets, that would use local rural economic and human resources, (2)
identify, train, and provide technical assistance to existing or
prospective rural entrepreneurs and managers, (3) establish business
support centers and otherwise assist in creation of new rural
businesses, development of methods of financing local businesses, and
enhancing capacity of local individuals and entities to engage in sound
economic activities, and (4) conduct regional, community, and local
economic development planning and coordination, and leadership
development.
Subsec. (a)(14). Pub. L. 104-127, Sec. 741(a)(6)(A)-(D)(i), inserted
par. heading and headings for subpars. (A) to (C), and realigned margins
of subpars. and cls. (i) to (iii) of subpar. (A).
Pub. L. 104-127, Sec. 741(a)(4), (5), redesignated par. (16) as (14)
and struck out former par. (14) which read as follows:
``(14)(A) The Secretary, under such reasonable rules and conditions
as he shall establish, shall make grants to eligible volunteer fire
departments for up to 50 per centum of the cost of firefighting
equipment needed by such departments but which such departments are
unable to purchase through the resources otherwise available to them,
and for the cost of the training necessary to enable such departments to
use such equipment efficiently.
``(B) For the purposes of this subsection, the term `eligible
volunteer fire department' means any established volunteer fire
department in a rural town, village, or unincorporated area where the
population is less than two thousand but greater than two hundred, as
reasonably determined by the Secretary.''
Subsec. (a)(14)(C). Pub. L. 104-127, Sec. 741(a)(6)(D)(ii), which
directed substitution of ``3 percent of any funds appropriated'' for ``2
per centum of any funds provided in appropriations Acts'', was executed
by making the substitution for ``2 per centum of any funds provided in
Appropriations Acts'', to reflect the probable intent of Congress.
Subsec. (a)(15). Pub. L. 104-127, Sec. 741(a)(4), (5), redesignated
par. (17) as (15) and struck out former par. (15) which authorized
making or insuring of loans to associations, including corporations not
operated for profit, Indian tribes on Federal and State reservations and
other federally recognized Indian tribes, and public and quasi-public
agencies, for purpose of financing construction, acquisition, and
operation of transmission facilities for any electric system owned and
operated by a public body located in a rural area which was, as of
October 1, 1976, receiving bulk power from designated agencies of
Department of the Interior.
Subsec. (a)(16) to (18). Pub. L. 104-127, Sec. 741(a)(5),
redesignated pars. (18) to (20) as (16) to (18), respectively. Former
pars. (16) to (18) redesignated (14) to (16), respectively.
Subsec. (a)(19). Pub. L. 104-127, Sec. 763, added par. (19).
Pub. L. 104-127, Sec. 741(a)(5), redesignated par. (19) as (17).
Subsec. (a)(20). Pub. L. 104-127, Sec. 741(a)(5), redesignated par.
(20) as (18).
1994--Subsec. (a)(15)(C), (D). Pub. L. 103-354 redesignated subpar.
(D) as (C) and struck out former subpar. (C) which read as follows:
``The Administrator of the Rural Electrification Administration shall
administer loans made or insured under this paragraph.''
1993--Subsec. (a)(1). Pub. L. 103-129 inserted after first sentence
``The Secretary may also make loans to any borrower to whom a loan has
been made under the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.), for the conservation, development, use, and control of water, and
the installation of drainage or waste disposal facilities, primarily
serving farmers, ranchers, farm tenants, farm laborers, rural
businesses, and other rural residents.''
1991--Subsec. (a)(11)(B)(ii). Pub. L. 102-237, Sec. 701(a)(1), in
subcl. (I) inserted ``and'' after semicolon and in subcl. (II)
substituted a period for ``; and''.
Subsec. (a)(12)(D), (20). Pub. L. 102-237, Sec. 701(h)(1)(A), (B),
substituted ``this chapter'' for ``this Act''.
Subsec. (a)(21). Pub. L. 102-237, Sec. 701(a)(2), struck out par.
(21) which was identical to par. (20).
1990--Subsec. (a)(1). Pub. L. 101-624, Sec. 2328, inserted ``rural
businesses,'' after ``farm laborers,''.
Subsec. (a)(2). Pub. L. 101-624, Sec. 2321, struck out ``: Provided,
That for fiscal years commencing after September 30, 1981, such grants
may not exceed $154,900,000 in any fiscal year'' after ``in rural
areas''.
Subsec. (a)(3). Pub. L. 101-624, Sec. 2316(b), struck out ``and not
inconsistent with any planned development provided in any State,
multijurisdictional, county, or municipal plan approved by competent
authority for the area in which the rural community is located, and the
Secretary shall require the submission of all applications for financial
assistance under this section to the multijurisdictional substate
areawide general purpose planning and development agency that has been
officially designated as a clearinghouse agency under Office of
Management and Budget Circular A-95 and to the county or municipal
government having jurisdiction over the area in which the proposed
project is to be located for review and comment within a designated
period of time not to exceed 30 days concerning among other
considerations, the effect of the project upon the areawide goals and
plans of such agency or government. No loan under this section shall be
made that is inconsistent with any multijurisdictional planning and
development district areawide plan of such agency. The Secretary is
authorized to reimburse such agency or government for the cost of making
the required review. Until October 1, 1973, the Secretary may make
grants prior to the completion of the comprehensive plan, if the
preparation of such plan has been undertaken for the area'' after ``of
the rural area''.
Subsec. (a)(11). Pub. L. 101-624, Secs. 2341, 2342, amended par.
(11) generally. Prior to amendment, par. (11) read as follows: ``The
Secretary may make grants, not to exceed $15,000,000 annually, to public
bodies or such other agencies as the Secretary may select to provide
rural development technical assistance, rural community leadership
development, and community and areawide rural development planning.''
Subsec. (a)(20). Pub. L. 101-624, Sec. 2329, added par. (20).
Subsec. (a)(21). Pub. L. 101-624, Sec. 2393, added par. (21).
1986--Subsec. (a)(1), (15)(B). Pub. L. 99-514 substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for
purposes of codification was translated as ``title 26'' thus requiring
no change in text.
1985--Subsec. (a)(2). Pub. L. 99-198 provided for graduated scale of
grant rates for each project and higher rates in communities having
lower community population and income levels.
Subsec. (a)(16) to (19). Pub. L. 99-198 added pars. (16) to (19).
1981--Subsec. (a)(2). Pub. L. 97-35 inserted provisions limiting
grants for fiscal years after Sept. 30, 1981.
1980--Subsec. (a)(7). Pub. L. 96-438 provided that for the purpose
of loans for essential community facilities under subsection (a)(1) of
this section, terms ``rural'' and ``rural area'' may include any area in
any city or town with a population not in excess of twenty thousand.
Subsec. (a)(11) to (15). Pub. L. 96-355 in par. (11) substituted
provisions authorizing annual grants not to exceed $15,000,000 for rural
development technical assistance, rural community leadership
development, etc., for provisions authorizing annual grants not to
exceed $10,000,000 for preparation of comprehensive plans for rural
development or designated aspects of such rural development, added par.
(12), and redesignated former pars. (12) to (14) as (13) to (15),
respectively.
1978--Subsec. (a)(1). Pub. L. 95-334, Sec. 104, inserted provisions
respecting bond counsel requirements for loans under $500,000.
Subsec. (a)(2). Pub. L. 95-334, Sec. 105, substituted
``$500,000,000'' for ``$300,000,000'' and ``75'' for ``50''.
Subsec. (a)(7). Pub. L. 95-334, Sec. 106, struck out references to
the Commonwealth of Puerto Rico and the Virgin Islands.
Subsec. (a)(14). Pub. L. 95-334, Sec. 107(a), added par. (14).
1973--Subsec. (a)(13). Pub. L. 91-524, title VIII, Sec. 816(c), as
added by Pub. L. 93-86 added par. (13).
1972--Subsec. (a)(1). Pub. L. 92-419, Sec. 104(1), (2), authorized
loans to Indian tribes on Federal and State reservations and other
federally recognized Indian tribes and included as an allowable use
provision for essential community facilities including necessary related
equipment, respectively.
Subsec. (a)(2). Pub. L. 92-419, Sec. 105, substituted
``$300,000,000'' for ``$100,000,000''.
Subsec. (a)(3). Pub. L. 92-419, Secs. 106, 107, substituted
``project'' for ``facility'' where first appearing; in item (i),
substituted ``project'' for ``facility'' and inserted in such text ``,
if such project is carried out,''; in item (ii), substituted ``will or
can be'' for ``will be or can be''; substituted ``and (iii)'' for ``or
(iii)'' and in such item (iii), substituted ``an orderly community
development consistent with a comprehensive community water, waste
disposal, or other development plan'' and ``development provided in any
State, multijurisdictional, county, or municipal plan approved by
competent authority'' for ``orderly community development consistent
with a comprehensive community water or sewer development plan'' and
``development under State, county, or municipal plans approved as
official plans by competent authority'', substituted ``Secretary shall
require the submission of all applications for financial assistance
under this section to the multijurisdictional substate areawide general
purpose planning and development agency that has been officially
designated as a clearinghouse agency under Office of Management and
Budget Circular A-95 and to the county or municipal government having
jurisdiction over the area in which the proposed project is to be
located for review and comment within a designated period of time not to
exceed 30 days concerning among other considerations, the effect of the
project upon the areawide goals and plans of such agency or government''
for ``Secretary shall establish regulations requiring the submission of
all applications for financial assistance under this chapter to the
county or municipal government in which the proposed project is to be
located for review and comment by such agency within a designated period
of time''; prohibited loans inconsistent with multijurisdictional
planning and development district areawide plan of the agency;
authorized agency or government reimbursement for cost of making the
review; and extended authority for making grants prior to completion of
the comprehensive plan from Oct. 1, 1971 to Oct. 1, 1973.
Subsec. (a)(5). Pub. L. 92-419, Sec. 110, struck out provisions of
former par. (5) which prohibited any loan or grant under subsec. (a) of
this section which would cause the unpaid principal indebtedness of any
association under this chapter and Act Aug. 28, 1937, as amended
(superseded by this chapter), together with amount of any assistance in
the form of a grant to exceed $4,000,000 at any one time.
Subsec. (a)(6). Pub. L. 92-419, Sec. 108, substituted
``$30,000,000'' for ``$15,000,000'', struck out ``official'' before
``comprehensive plans'', and substituted ``waste disposal systems'' for
``sewer systems''.
Subsec. (a)(7). Pub. L. 92-419, Sec. 109, substituted definition of
``rural'' and ``rural area'' as excluding an area in a city or town with
a population in excess of ten thousand inhabitants for prior provision
for rural areas for purposes of water and waste disposal projects
excluding an area in a city or town with a population in excess of 5,500
inhabitants, provided exception provision and special consideration for
loans and grants to areas other than cities having a population of more
than twenty-five thousand.
Subsec. (a)(11), (12). Pub. L. 92-419, Secs. 111, 112, added pars.
(11) and (12).
1970--Subsec. (a)(1). Pub. L. 91-617 required inclusion in gross
income of the interest or other income paid to an insured holder when
any loan made for a purpose specified in subsec. (a)(1) is sold out of
the Agricultural Credit Insurance Fund as an insured loan.
Subsec. (c). Pub. L. 91-606 repealed subsec. (c), added by Pub. L.
89-769, Sec. 6(b), Nov. 6, 1966, 80 Stat. 1318, which related to loans
to associations in areas suffering major disasters. See section 4401 et
seq. of Title 42, The Public Health and Welfare.
Subsec. (d). Pub. L. 91-524 added subsec. (d).
1968--Subsec. (a). Pub. L. 90-488 substituted ``$100,000,000'' for
``$50,000,000'' in par. (2), ``1971'' for ``1968'' in par. (3), and
``$15,000,000'' for ``$5,000,000'' in par. (6), respectively.
1966--Subsec. (c). Pub. L. 89-769 added subsec. (c).
1965--Subsec. (a). Pub. L. 89-240 designated existing provisions as
par. (1), struck out ``including the development of recreational
facilities'' after ``shifts in land use'', substituted ``drainage or
waste disposal facilities'' for ``drainage facilities'', inserted ``and
recreational developments'', deleted provisions which prohibited loans
which would cause an association's unpaid principal indebtedness to
exceed $500,000, in the case of direct loans and $1,000,000 in the case
of insured loans at any one time, and added pars. (2) to (10).
1962--Subsec. (a). Pub. L. 87-703 authorized loans to be made or
insured to provide for the application or establishment of shifts in
land use including the development of recreational facilities.

Effective Date of 1991 Amendment

Amendment by section 701(a) of Pub. L. 102-237 effective as if
included in the provision of the Food, Agriculture, Conservation, and
Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, and
amendment by section 701(h)(1)(A), (B) of Pub. L. 102-237 to any
provision specified therein effective as if included in act that added
provision so specified at the time such act became law, see section
1101(b)(6), (c) of Pub. L. 102-237, set out as a note under section 1421
of this title.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96-355 effective Oct. 1, 1980, see section 10
of Pub. L. 96-355, set out as an Effective Date note under section 2204b
of this title.

Effective Date of 1978 Amendment

Section 105 of Pub. L. 95-334 provided that the amendment made by
that section is effective Oct. 1, 1978.

Effective Date of 1970 Amendments

Section 1(b) of Pub. L. 91-617 provided that: ``The amendment made
by subsection (a) [amending this section] shall apply to the insured
loans sold out of the Agricultural Credit Insurance Fund after the date
of the enactment of this Act [Dec. 31, 1970].''
Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section 304
of Pub. L. 91-606, set out as a note under section 165 of Title 26,
Internal Revenue Code.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89-769 applicable with respect to any major
disaster occurring after Oct. 3, 1964, see section 14 of Pub. L. 89-769.

Transfer of Functions

Powers, duties, and assets of agencies, offices, and other entities
within Department of Agriculture relating to rural development functions
transferred to Rural Development Administration by section 2302(b) of
Pub. L. 101-624.

Assistance in Rural Alaska

Pub. L. 106-387, Sec. 1(a) [title VII, Sec. 736], Oct. 28, 2000, 114
Stat. 1549, 1549A-33, provided that:``Notwithstanding any other
provision of law, for any fiscal year, in the case of a high cost,
isolated rural area of the State of Alaska that is not connected to a
road system--
``(1) in the case of assistance provided by the Rural Housing
Service for single family housing under title V of the Housing Act
of 1949 (7 [42] U.S.C. 1471 et seq.), the maximum income level for
the assistance shall be 150 percent of the average income level in
metropolitan areas of the State;
``(2) in the case of community facility loans and grants
provided under paragraphs (1) and (19), respectively, of section
306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1926(a)) and assistance provided under programs carried out by the
Rural Utilities Service, the maximum income level for the loans,
grants, and assistance shall be 150 percent of the average income
level in nonmetropolitan areas of the State;
``(3) in the case of a business and industry guaranteed loan
made under section 310B(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1932(a)(1)), to the extent permitted under
that Act, the Secretary of Agriculture shall--
``(A) guarantee the repayment of 90 percent of the principal
and interest due on the loan; and
``(B) charge a loan origination and servicing fee in an
amount not to exceed 1 percent of the amount of the loan; and
``(4) in the case of assistance provided under the Rural
Community Development Initiative for fiscal year 2001 carried out
under the rural community advancement program established under
subtitle E of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009 et seq.), the median household income level, and the not
employed rate, with respect to applicants for assistance under the
Initiative shall be scored on a community-by-community basis.''

Temporary Expanded Eligibility of Certain Timber-Dependent Communities
in Pacific Northwest for Loans and Grants From Rural Development
Administration

Pub. L. 103-427, Oct. 31, 1994, 108 Stat. 4373, provided that:
``(a) Findings.--Congress finds the following:
``(1) Timber-dependent communities in the Pacific Northwest have
contributed significantly to the economic needs of the United States
and have helped ensure an adequate national supply of timber and
timber products.
``(2) A significant portion of the timber traditionally
harvested in the Pacific Northwest is derived from Federal forest
lands, and these forests have played an important role in sustaining
local economies.
``(b) Expanded Eligibility.--During the period beginning on the date
of the enactment of this Act [Oct. 31, 1994] and ending on September 30,
1998, the terms `rural' and `rural area', as used in the Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.), shall include
any town, city, or municipality--
``(1) part or all of which lies within 100 miles of the boundary
of a national forest covered by the Federal document entitled
`Forest Plan for a Sustainable Economy and a Sustainable
Environment', dated July 1, 1993;
``(2) that is located in a county in which at least 15 percent
of the total primary and secondary labor and proprietor income is
derived from forestry, wood products, or forest-related industries
such as recreation and tourism; and
``(3) that has a population of not more than 25,000 inhabitants.
``(c) Effect on State Allotments of Funds.--This section shall not
be taken into consideration in allotting funds to the various States for
purposes of the Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.), or otherwise affect or alter the manner under which such
funds were allotted to States before the date of the enactment of this
Act [Oct. 31, 1994].''

Rural Wastewater Treatment Circuit Rider Program

Section 2324 of Pub. L. 101-624 directed Secretary to establish
national rural wastewater circuit rider grant program that was to be
modeled after existing National Rural Water Association Rural Water
Circuit Rider Program that received funding from Farmers Home
Administration and authorized $4,000,000 for each fiscal year to carry
out such program, prior to repeal by Pub. L. 104-127, title VII,
Sec. 703, Apr. 4, 1996, 110 Stat. 1108.

Interest Rate Restructuring for Certain Borrowers

Pub. L. 100-233, title VI, Sec. 615(b)(2), Jan. 6, 1988, 101 Stat.
1682, provided that: ``Effective July 29, 1987, the interest rate
charged on any loan of $2,000,000 or more made on such date under
section 306 [7 U.S.C. 1926] to any nonprofit corporation shall be the
interest rate quoted to such nonprofit corporation by the Farmers Home
Administration on June 22, 1987, in the request for obligation of funds
made with respect to the loan.''

Lease of Certain Acquired Property

Pub. L. 100-233, title VI, Sec. 620, Jan. 6, 1988, 101 Stat. 1684,
provided that: ``Notwithstanding any other provision of law, the
Secretary of Agriculture may lease to public or private nonprofit
organizations, for a nominal rent, any facilities acquired in connection
with the disposition of a loan made by the Secretary under section 306
[7 U.S.C. 1926]. Any such lease shall be for such reasonable period of
time as the Secretary determines is appropriate.''

Section Referred to in Other Sections

This section is referred to in sections 917, 1926a, 1927, 1929,
1929a, 1932, 1983, 1983a, 1991, 1992, 2001a, 2009d, 2204b, 2204b-1,
6613, 6942, 6944 of this title; title 16 section 2106; title 42 section
5153.