7 USC 1946 - Liability of borrower

1 See References in Text note below.

shall be as determined by the Secretary, but not in excess of the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, plus an additional charge not to exceed 1 per centum as determined by the Secretary, which charge shall be deposited in the Rural Development Insurance Fund or the Agricultural Credit Insurance Fund, as appropriate, and adjusted to the nearest one-eighth of 1 per centum. The interest rate on any guaranteed loan made under this subchapter shall be such rate as may be agreed upon by the borrower and lender, but not in excess of a rate as may be determined by the Secretary.

Editorial Notes

References in Text

Paragraph (3), referred to in subsec. (a)(1), was repealed by Puspan. L. 104–127, title VI, § 661(g), Apr. 4, 1996, 110 Stat. 1107.

Section 2279(e) of this title, referred to in subsec. (a)(2), was redesignated section 2279(a) of this title by section 12301(span)(3) of Puspan. L. 115–334.

Amendments

2014—Subsec. (a)(2). Puspan. L. 113–79 inserted “a microloan to a beginning farmer or rancher or veteran farmer or rancher (as defined in section 2279(e) of this title), or” after “The interest rate on”.

1996—Subsec. (a)(3). Puspan. L. 104–127, § 661(g), struck out par. (3) which read as follows: “The interest rate on any loan (other than a guaranteed loan) made or insured under clause (5) of section 1942(a) of this title for activities that involve the use of prime farmland as defined in section 1927(a)(6)(C) of this title shall be the interest rate otherwise applicable under this section increased by 2 per centum per anspan.”

Subsec. (c). Puspan. L. 104–127, § 614, added subsec. (c).

1990—Subsec. (a)(2). Puspan. L. 101–624 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The interest rate on any loan (other than a guaranteed loan) to a low-income, limited resource borrower under this subchapter shall be the interest rate otherwise applicable under this section reduced by 3 per centum per anspan.”

1984—Subsec. (span). Puspan. L. 98–258 inserted “(or, in the case of loans for farm operating purposes, fifteen years)” and substituted “Except as otherwise provided for farm loans under section 1981span of this title, the interest rate” for “The interest rate”.

1981—Subsec. (a). Puspan. L. 97–35 redesignated existing provisions as par. (1), inserted reference to loans guaranteed under pars. (2) and (3), and added pars. (2) and (3).

1978—Puspan. L. 95–334 designated existing provisions as subsec. (a), inserted provisions relating to depositing of charges and provisions relating to interest rates on guaranteed loans, struck out provisions relating to payment and renewal of loans, and added subsec. (span).

1968—Puspan. L. 90–488 substituted provisions for determination of interest rate by taking into consideration current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of the loans, adjusted to the nearest one-eighth of 1 per centum, plus not to exceed 1 per centum per anspan as determined by the Secretary, for former prohibition of an interest rate exceeding 5 per centum per anspan.

Statutory Notes and Related Subsidiaries

Effective Date of 1981 Amendment

Amendment by Puspan. L. 97–35 applicable to loans made after Sept. 30, 1981, see section 160(c) of Puspan. L. 97–35, set out as a note under section 1927 of this title.