The Secretary shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant.
In evaluating the farming plan and financial situation of an applicant under this section, the Secretary shall determine—
(1)the amount that the applicant will need to borrow to carry out the proposed farming plan;
(2)the rate of interest that the applicant would need to be able to cover expenses and build an adequate equity base;
(3)the goals of the proposed farming plan of the applicant;
(4)the financial viability of the plan and any changes that are necessary to make the plan viable; and
(5)whether assistance is necessary under this chapter and, if so, the amount of the assistance.
The Secretary may contract with a third party (including those entities eligible to provide borrower training under section
2006a(b) of this title) to conduct loan assessments under this section.
(d) Review of loans
(1) In general
Loan assessments conducted under this section shall include annual review of direct loans, and periodic review (as determined necessary by the Secretary) of guaranteed loans, made under this chapter to assess the progress of a borrower in meeting the goals for the farm or ranch operation.
The Secretary may contract with an entity that is eligible to provide borrower training under section
2006a(b) of this title to conduct loan reviews under paragraph (1).
(3) Problem assessments
If a borrower is delinquent in payments on a direct or guaranteed loan made under this chapter, the Secretary or the contracting entity shall determine the cause of, and action necessary to correct, the delinquency.
The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section.
For definition of “this chapter”, referred to in subsecs. (a), (b)(5), and (d)(1), (3), see note set out under section
1921 of this title.
2002—Subsec. (a). Pub. L. 107–171, § 5317, substituted “The Secretary” for “After an applicant is determined eligible for assistance under this chapter by the appropriate county committee established pursuant to section
1982 of this title, the Secretary”.
Subsec. (d)(1). Pub. L. 107–171, § 5318, substituted “annual review” for “biannual review”.
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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