[See main edition for text of (A) and (B), (3)] (As amended Pub. L. 101-624, title XXIII, § 2388(d)(2), Nov. 28, 1990, 104 Stat. 4053.) AMENDMENTS 1990-Subsec. (b)(1), (2). Pub. L. 101-624 substituted "1981(b)(4)" for "1981(d)". § 2006a. Borrower training (a) In general The Secretary shall enter into contracts to provide educational training to all borrowers of farmer program direct and guaranteed loans made under this chapter in financial and farm management concepts associated with commercial farming. (b) Contract (1) In general The Secretary may contract with State or private providers of farm management and credit counseling services (including a community college, the extension service of a State, a State department of agriculture, or a nonprofit organization) to carry out this section. (2) Consultation The Secretary may consult with the chief executive officer of a State concerning the identity of the contracting organization and the process for contracting. (c) Eligibility for loans (1) In general Subject to paragraph (2), to be eligible to obtain a direct or guaranteed loan under this chapter, a borrower must obtain management assistance under this section, appropriate to the management ability of the borrower (as determined by the appropriate county committee established pursuant to section 1982 of this title, during the determination of eligibility for the loan). (2) Loan conditions The need of a borrower who satisfies the criteria set out in section 1922(a)(2) or 1941(a)(2) of this title for management assistance under this section shall not be cause for denial of eligibility of the borrower for a direct or guaranteed loan under this chapter. (d) Guidelines and curriculum The Secretary shall issue regulations establishing guidelines and curriculum for the borrower training program established under this section. (e) Payment A borrower shall pay for training received under this section, and may use funds from operating loans made under subchapter II of this chapter to pay for the training. (f) Waivers The Secretary may waive the requirements of this section for an individual borrower on a determination by the county committee that the borrower demonstrates adequate knowledge in areas described in this section. (Pub. L. 87-128, title III, § 359, as added Pub. L. 101-624, title XVIII, § 1818(a), Nov. 28, 1990, 104 Stat. 3829.) REFERENCES IN TEXT For definition of "this chapter", referred to in subsecs. (a) and (c), see note set out under section 1921 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1942, 1948, 1949, 1981, 2006b of this title. § 2006b. Loan assessments (a) In general 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 shall evaluate, in accordance with regulations issued by the Secretary, the farming plan and financial situation of each qualified farmer or rancher applicant. (b) Determinations 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. (c) Contract 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 biannual 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. (2) Contracts 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. (e) Guidelines The Secretary shall issue regulations providing guidelines for loan assessments conducted under this section. (Pub. L. 87-128, title III, § 360, as added Pub. L. 101-624, title XVIII, § 1819, Nov. 28, 1990, 104 Stat. 3830.) REFERENCES IN TEXT 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. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1935, 1948, 1949, 1983a of this title. § 2006c. Supervised credit The Secretary shall provide adequate training to employees of the Farmers Home Administration on credit analysis and financial and farm management to (1) better acquaint the employees with what constitutes adequate financial data on which to base a direct or guaranteed loan approval decision; and (2) ensure proper supervision of farmer program loans. (Pub. L. 87-128, title III, § 361, as added Pub. L. 101-624, title XVIII, § 1820, Nov. 28, 1990, 104 Stat. 3830.) SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1948, 1949 of this title. § 2006d. Market placement The Secretary shall establish a market placement program for qualified beginning farmers and ranchers and other borrowers of farmer program loans that the Secretary believes have a reasonable chance of qualifying for commercial credit with a guarantee provided under this chapter. (Pub. L. 87-128, title III, § 362, as added Pub. L. 101-624, title XVIII, § 1821, Nov. 28, 1990, 104 Stat. 3831.) REFERENCES IN TEXT For definition of "this chapter", referred to in text, see note set out under section 1921 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1948, 1949, 1983a of this title. § 2006e. Prohibition on use of loans for certain purposes The Secretary shall not approve any loan under this chapter to drain, dredge, fill, level, or otherwise manipulate a wetland (as defined in section 3801(a)(16) of title 16), or to engage in any activity that results in impairing or reducing the flow, circulation, or reach of water, except in the case of activity related to the maintenance of previously converted wetlands, or in the case of such activity that is already commenced before November 28, 1990. (Pub. L. 87-128, title III, § 363, as added Pub. L. 101-624, title XVIII, § 1824, Nov. 28, 1990, 104 Stat. 3831; amended Pub. L. 102-237, title V, § 501(i), Dec. 13, 1991, 105 Stat. 1868.) REFERENCES IN TEXT For definition of "this chapter", referred to in text, see note set out under section 1921 of this title. AMENDMENTS 1991-Pub. L. 102-237 inserted a closing parenthesis after "3801(a)(16) of title 16" and substituted "before November 28, 1990" for "prior to the date of enactment of this section". EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102-237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, see section 1101(b)(3) of Pub. L. 102-237, set out as a note under section 1421 of this title. § 2006f. Rural Development Administration (a) Establishment There is established in the Department of Agriculture the Rural Development Administration, which shall be headed by an Administrator appointed by the Secretary. (b) Administration Except as provided in subsection (c) of this section, or as otherwise provided in this section, the Secretary shall carry out this Act through the Farmers Home Administration. (c) Exceptions The Secretary shall carry out section 1923 of this title (in the case of loans made for purposes specified in paragraphs (2) and (3) of section 1923(a) of this title), section 1924(b) of this title, section 1926(a) of this title, section 1926b of this title, section 1931 of this title, section 1932 of this title, section 1942(a) of this title (in the case of loans made for the purposes specified in paragraphs (5) and (6) of section 1942(a) of this title), section 1323 of the Food Security Act of 1985 (7 U.S.C. 1932 note), title VI of the Rural Development Act of 1972, and such other rural development programs as the Secretary determines appropriate through the Rural Development Administration. (d) References Any reference in any law, regulation, or order in effect immediately before November 28, 1990, to the Farmers Home Administration or to the Administrator of the Farmers Home Administration or of the Farmers Home Administration relating to any function, power, or duty that is, on or after such date, a function, power, or duty of the Rural Development Administration or the Administrator of the Rural Development Administration, shall be deemed to be a reference to the Rural Development Administration or to the Administrator of the Rural Development Administration, as the case may be. (e) Effect on pending proceedings and parties to such VII, §701(d), Dec. 13, 1991, 105 Stat. 1879; Pub. proceedings (1) Nonabatement of actions This section does not abate any proceeding commenced (A) by or against any entity any function of which is transferred by this section; or (B) by or against any officer of any entity referred to in subparagraph (A) in the official capacity of such individual as such an officer. (2) Effect on parties If an officer of the Farmers Home Administration, in the official capacity of such officer, is a party to a proceeding pending on November 28, 1990, and under this section the officer or any function of the officer is transferred to the Rural Development Administration, Department of Agriculture, then such action shall be continued with the Secretary or the Administrator, Rural Development Administration, or other appropriate officer of the Department substituted or added as a party. (3) Transfer of certain rights of Farmers Home Administration to Rural Development Administration The rights, interests, obligations, and duties of the Farmers Home Administration arising before November 28, 1990, from any loan made, insured, or guaranteed, or any grant or contract made, by the Farmers Home Administration in the exercise of its functions shall (A) with respect to any function to be exercised on or after such date by the Farmers Home Administration under subsection (b) of this section, continue to be vested in the Farmers Home Administration; and (B) with respect to any function to be exercised on or after such date by the Rural Development Administration under subsection (c) of this section, be vested in the Rural Development Administration. (f) Compensation of Administrator The Administrator of the Rural Development Administration shall be compensated in accordance with subchapter VIII of chapter 53 of title 5. (g) Rural economic development (1) In general A borrower of a loan or loan guarantee under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) shall be eligible for assistance under all programs administered by the Rural Development Administration. (2) Participation The Administrator of the Rural Development Administration shall encourage and facilitate the full and equal participation of all entities to participate in programs administered by the Rural Development Administration. (Pub. L. 87-128, title III, § 364, as added Pub. L. 101-624, title XXIII, § 2302(a)(1), Nov. 28, 1990, 104 Stat. 3979; amended Pub. L. 102-237, title L. 103-129, § 4, Nov. 1, 1993, 107 Stat. 1366.) REFERENCES IN TEXT This Act, referred to in subsec. (b), refers to the Agricultural Act of 1961, Pub. L. 87-128, Aug. 8, 1961, 75 Stat. 294, as amended. For classification of this Act to the Code, see Short Title note set out under section 1911 of this title and Tables. However, the reference was probably intended to be "this title" meaning the Consolidated Farm and Rural Development Act, title III of Pub. L. 87-128, as amended, which is classified principally to this chapter. For classification of this title to the Code, see Short Title note set out under section 1921 of this title and Tables. Section 1323 of the Food Security Act of 1985 [Pub. L. 99-198], referred to in subsec. (c), is set out as a note under section 1932 of this title. The Rural Development Act of 1972, referred to in subsec. (c), is Pub. L. 92-419, Aug. 30, 1972, 86 Stat. 657, as amended. Title VI of the Act enacted sections 2204a and 2212a of this title, amended sections 1006a, 2201, 2204, 2204b of this title, section 5315 of Title 5, Government Organization and Employees, sections 590g, 590h, and 5900 of Title 16, Conservation, and section 3122 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title of 1972 Amendment note set out under section 1921 of this title and Tables. The Rural Electrification Act of 1936, referred to in subsec. (g)(1), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which is classified generally to chapter 31 (§ 901 et seq.) of this title. For complete classification of this Act to the Code, see section 901 of this title and Tables. AMENDMENTS 1993-Subsec. (g). Pub. L. 103-129 added subsec. (g). 1991-Subsec. (e) (2). Pub. L. 102-237, § 701(d)(1), substituted "November 28, 1990" for "the date of enactment of this section". Subsec. (e)(3). Pub. L. 102-237, § 701(d)(2), substituted "November 28, 1990," for "the date of enactment of this section". EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102-237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, see section 1101(b)(6) of Pub. L. 102-237, set out as a note under section 1421 of this title. REGULATIONS Except as provided in sections 902(b) and 2008e of this title, not later than 45 days after Nov. 1, 1993, interim final regulations to be issued by Rural Development Administration to carry out amendments made by Pub. L. 103-129 to programs administered by Administrator, and by Secretary of Agriculture to carry out amendments made by Pub. L. 103-129 to programs administered by Farmers Home Administration, see section 6 of Pub. L. 103-129, set out as a note under section 901 of this title. TRANSFER OF FUNCTIONS Section 2302(b) of Pub. L. 101-624, as amended by Pub. L. 102-237, title VII, § 702(a), Dec. 13, 1991, 105 Stat. 1880, provided that: "(1) Notwithstanding the provisions of section 331 of the Consolidated Farm and Rural Development Act [7 U.S.C. 1981], as soon as practicable, but in no case later than 180 days after November 28, 1990, the Secretary shall transfer to the Rural Development Administration the powers, duties, and assets of the agencies, offices, and other entities in the Department of Agriculture, or elements thereof, related to the per formance of rural development functions, including, "(2) INCIDENTAL TRANSFERS.-The Secretary shall "(3) EFFECTIVE AND EFFICIENT TRANSFER OF AUTHOR- OPERATION OF REGIONAL OFFICES AFTER APRIL 1, 1994 Pub. L. 103-111, title VII, § 722, Oct. 21, 1993, 107 ESTABLISHMENT OF RURAL DEVELOPMENT Pub. L. 102-237, title X, § 1010, Dec. 13, 1991, 105 § 2007. General provisions (a) Application for participation If a State desires to participate in the pro- (b) Selection of States (1) Rural investment partnerships The Secretary shall select not more than 5 (2) Rural economic development review panels The Secretary shall select not more than 5 (c) Duration of projects (1) Rural investment partnerships Sections 2007a to 2007e of this title shall (2) Rural economic development review panels Chapter 3 shall apply to any State selected (d) Effective date Sections 2007a to 2007e of this title and sec- (Pub. L. 101-624, title XXIII, § 2310, Nov. 28, REFERENCES IN TEXT Chapter 3, referred to in subsec. (c) (2), is chapter 3 CODIFICATION Section was enacted as part of the Rural Economic PRESERVATION OF ELIGIBILITY FOR CREDIT ASSISTANCE Section 2395 of title XXIII of Pub. L. 101-624 pro- REGULATIONS Section 2396 of title XXIII of Pub. L. 101-624 pro- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2007a, 2007c, (II) the agency of each State that is primarily responsible for rural economic development programs within the State; (III) the governing body of a county or other political subdivision of a State; (IV) the governing body of a town or township within a State; or (V) an incorporated public organization or a nonprofit private community development corporation, or similar nonprofit private organization, that is chartered or otherwise organized under State law for the purpose of promoting economic development; or (ii) an Indian tribe (as defined in section 450b(e) of title 25), an Indian organization or entity chartered under the Act of June 18, 1934 [25 U.S.C. 461 et seq.], commonly known as the "Indian Reorganization Act", or any tribal organization (as defined in section 450b(l) of title 25); and (B) that (i) possesses the powers reasonably necessary to perform the functions and activities described in sections 2007a to 2007e of this title; (ii) has a professional staff and management ability (including adequate accounting, legal, and business servicing abilities or experience); and (iii) meets any other requirements established by the Board to carry out sections 2007a to 2007e of this title. apart from records and accounts not related to that business concern; and (ii) is independently or cooperatively (not including borrowers under the Rural Electrification Act of 1936 [7 U.S.C. 901 et seq.]) owned and operated as defined by the Board; or (B) an individual who plans to organize and operate an entity of the type described in subparagraph (A), that meets any additional requirements that are established by the Board to carry out the intent of sections 2007a to 2007e of this title. (5) Rural area The term "rural area" means all territory of a State that is not within the outer boundary of any city or town having a population of 20,000 or more based on the latest decennial census of the United States, and any neighboring urbanized area as defined by the Board. (6) Rural Fund The terms "Rural Fund" and "Fund" mean the Rural Business Investment Fund established under section 2007c(a) of this title. (7) Secretary The term "Secretary" means the Secretary of Agriculture, unless otherwise specified in sections 2007a to 2007e of this title. (8) State The term "State" means any State to which the Secretary has made sections 2007a to 2007e of this title applicable under section 2007(b)(1) of this title. (Pub. L. 101-624, title XXIII, § 2311, Nov. 28, 1990, 104 Stat. 3982; Pub. L. 102-237, title VII, $702(b), Dec. 13, 1991, 105 Stat. 1880.) REFERENCES IN TEXT Act of June 18, 1934, referred to in par. (2)(A)(ii), is act June 18, 1934, ch. 576, 48 Stat. 984, as amended, popularly known as the Indian Reorganization Act, which enacted sections 461, 462, 463, 464, 465, 466 to 470, 471, 472, 473, 474, 475, 476 to 478, and 479 of Title 25, Indians. For complete classification of this Act to the Code, see Short Title note set out under section 461 of Title 25 and Tables. The Rural Electrification Act of 1936, referred to in par. (4)(A)(ii), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which is classified generally to chapter 31 ($901 et seq.) of this title. For complete classification of this Act to the Code, see section 901 of this title and Tables. CODIFICATION Section was enacted as part of the Rural Economic Development Act of 1990, and also as part of the Food, Agriculture, Conservation, and Trade Act of 1990, and not as part of the Consolidated Farm and Rural Development Act which comprises this chapter. AMENDMENTS 1991-Par. (2)(A)(ii). Pub. L. 102-237, § 702(b)(1), substituted "section 450b(e) of title 25" for "section 450b(b) of title 25" and "section 450b(l) of title 25" for "the section 450b(c) of title 25". Par. (4). Pub. L. 102-237, § 702(b)(2), substituted "sections 2007a to 2007e of this title" for "this Act" in concluding provisions. |