7 U.S. Code § 1942 - Purposes of loans
After the Secretary makes the determination required by paragraph (2), the Secretary may not make a loan to a farmer or rancher under this subchapter unless the farmer or rancher has, or agrees to obtain, hazard insurance on the property to be acquired with the loan.
Notwithstanding any other provision of this chapter, the Secretary may reserve a portion of any loan made under this subchapter to be placed in an unsupervised bank account that may be used at the discretion of the borrower for the basic family needs of the borrower and the immediate family of the borrower.
The Secretary shall develop ways to determine unit prices (or other appropriate forms of valuation) for crops and other agricultural products, the end use of which is intended to be in locally or regionally produced agricultural food products, to facilitate lending to local and regional food producers.
For definition of “this chapter”, referred to in subsecs. (a)(9)(B)(i) and (d)(1), see note set out under section 1921 of this title.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (a)(9)(B)(i), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, as amended, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
2014—Subsec. (a). Pub. L. 113–79, § 5106(b)(2), inserted “(including a microloan, as defined by the Secretary)” after “A direct loan” in introductory provisions.
Subsec. (e). Pub. L. 113–79, § 5105, added subsec. (e).
1996—Pub. L. 104–127 amended section generally, substituting present provisions for provisions outlining purposes of loans made under this subchapter, authorizing loans to rural area residents to operate small business enterprises, authorizing loans for pollution abatement and control projects in rural areas and providing for limitations on such loans, and authorizing creation, from loan funds, of nonsupervised bank accounts to be used at discretion of borrower for necessary family living expenses.
1991—Subsec. (a). Pub. L. 102–237, § 501(b), which directed the substitution of “systems (for purposes of this subchapter, the term ‘solar energy’ means energy derived from sources (other than fossil fuels) and technologies included in the Federal Nonnuclear Energy Research and Development Act of 1974) (42 U.S.C. 5901 et seq.), (12) training in maintaining records of farming and ranching operations for limited resource borrowers receiving loans under section 1934 of this title, and (13) borrower training under section 2006a of this title.” for “ ‘systems.’ and all that follows”, could not be executed because “systems.” does not appear in subsec. (a) was repealed by Pub. L. 102–552, § 516(f)(2). See Construction of 1991 Amendment note below.
1985—Subsec. (a). Pub. L. 99–198, § 1306, added cl. (12).
Subsec. (e). Pub. L. 99–198, § 1307, added subsec. (e).
1980—Subsec. (a). Pub. L. 96–438 added cl. (11).
1978—Subsec. (a). Pub. L. 95–334, struck out “individual” after “title, to”.
1977—Subsec. (a). Pub. L. 95–113 inserted parenthetical provision extending the section to include farm equipment which utilizes solar energy and inserted definition of “solar energy”.
1972—Subsec. (a). Pub. L. 92–419, §§ 120(b), 121(1), (2), substituted “section 1941(a) for “section 1941”, designated existing provisions as subsec. (a), and added cl. (10).
Subsecs. (b) to (d). Pub. L. 92–419, § 121(3), added subsecs. (b) to (d).
1968—Pub. L. 90–488 struck out from cl. (4) the concluding phrase, “including recreational uses and facilities”, added cls. (5) and (6), and redesignated former cls. (5) to (7) as (7) to (9), respectively.
1962—Pub. L. 87–703 authorized, in cl. (4), loans to be made for recreational uses and facilities.
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.
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