The Secretary shall make or insure no loan under sections
1935 of this title that would cause the unpaid indebtedness under such sections of any one borrower to exceed the smaller of
(1) the value of the farm or other security, or
(2) in the case of a loan other than a loan guaranteed by the Secretary, $300,000, or, in the case of a loan guaranteed by the Secretary, $700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II of this chapter that are guaranteed by the Secretary).
(b) Determination of value
In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.
(c) Inflation percentage
For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—
(1)the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds
(2)the average of such index (as so defined) for the 12-month period ending on August 31, 1996.
2008—Subsec. (a)(2). Pub. L. 110–246, § 5003, substituted “$300,000” for “$200,000”.
1998—Pub. L. 105–277inserted section catchline, designated first sentence as subsec. (a), inserted heading, and substituted “$700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II of this chapter that are guaranteed by the Secretary)” for “$300,000”, designated second sentence as subsec. (b) and inserted heading, and added subsec. (c).
1978—Pub. L. 95–334substituted provisions setting forth requirements for loans under sections
1934 of this title for provisions setting forth requirements for loans under sections
1924 of this title.
1973—Pub. L. 91–524, § 807, as added by Pub. L. 93–86, substituted “$225,000” for “$100,000” in cl. (a), added cl. (b), and redesignated former cl. (b) as (c).
1972—Pub. L. 92–419struck out “normal” before “value” in first and second sentences and before “market value” in last sentence.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Statutes at Large
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