7 U.S. Code § 1999 - Interest rate reduction program
The Secretary shall establish and carry out in accordance with this section an interest rate reduction program for loans guaranteed under this chapter.
In return for a contract entered into by a lender under subsection (b) for the reduction of the interest rate paid on a loan, the Secretary shall make payments to the lender in an amount equal to not more than 100 percent of the cost of reducing the annual rate of interest payable on such loan, except that such payments may not exceed the cost of reducing such rate by more than 4 percent.
The term of a contract entered into under this section to reduce the interest rate on a guaranteed loan may not exceed the outstanding term of such loan.
The Secretary shall make available to farmers, on request, a list of lenders in the area that participate in guaranteed farm loan programs and other lenders in the area that express a desire to participate in such programs and that request inclusion in the list.
Notwithstanding any other provision of law, each contract of guarantee on a farm loan entered into under this chapter after January 6, 1988, shall contain a condition that the lender of the guaranteed loan may not initiate foreclosure action on the loan until 60 days after a determination is made with respect to the eligibility of the borrower thereof to participate in the program under this section.
For definition of “this chapter”, referred to in subsecs. (a)(1), (e)(1), and (g), see note set out under section 1921 of this title.
2002—Subsec. (a). Pub. L. 107–171, § 5313(1), struck out par. (1) designation and heading and struck out heading and text of par. (2). Text read as follows: “The authority provided by this subsection shall terminate on September 30, 2002.”
Subsec. (e)(2). Pub. L. 107–171, § 5313(2), added par. (2) and struck out former par. (2) which read as follows: “The total amount of funds used by the Secretary to carry out this section may not exceed $490,000,000.”
1996—Subsec. (a). Pub. L. 104–105 inserted heading, designated existing provisions as par. (1) and inserted heading, and added par. (2).
Subsec. (f). Pub. L. 104–127, § 643(a)(1), substituted “The Secretary” for “Each Farmers Home Administration county supervisor” and “list of lenders” for “list of approved lenders” and struck out “the Farmers Home Administration” before “guaranteed farm loan programs”.
Subsec. (h). Pub. L. 104–127, § 643(a)(2), struck out subsec. (h) which established a demonstration project during 4-year period beginning Jan. 6, 1988, for purchase of Farm Credit System land.
1990—Subsec. (c). Pub. L. 101–508, § 1202(b)(1)(A), substituted “100 percent” for “50 percent” and “4 percent” for “2 percent”.
Subsec. (d). Pub. L. 101–508, § 1202(b)(1)(B), struck out “, or 3 years, whichever is less” after “term of such loan”.
Subsec. (h)(1). Pub. L. 101–508, § 1202(c), substituted “4-year” for “3-year”.
1988—Subsec. (b)(1)(C). Pub. L. 100–233, § 613(b)(1), substituted “24-month” for “12-month”.
Subsecs. (f), (g). Pub. L. 100–233, § 613(b)(2), added subsecs. (f) and (g).
Subsec. (h). Pub. L. 100–233, § 613(c), added subsec. (h).
That part of section 1320 of Pub. L. 99–198, as amended by Pub. L. 100–233, title VI, § 613(a), Jan. 6, 1988, 101 Stat. 1674; Pub. L. 101–508, title I, § 1202(b)(2), Nov. 5, 1990, 104 Stat. 1388–11, which provided that this section was effective only for the period beginning Dec. 23, 1985, and ending Sept. 30, 1995, was repealed by Pub. L. 104–127, title VI, § 643(b), Apr. 4, 1996, 110 Stat. 1103.
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