§1923. Purposes of loans

(a) Preferences

Loans may be made or insured under this subchapter for (1) acquiring, enlarging, or improving farms, including farm buildings, land and water development, use and conservation, (2) recreational uses and facilities, (3) enterprises needed to supplement farm income, (4) refinancing existing indebtedness, and (5) loan closing costs. In making or insuring loans for farm purchase, the Secretary shall give preference to persons who have dependent families and, wherever practicable, to persons who are able to make initial downpayments, or who are owners of livestock and farm implements necessary successfully to carry on farming operations.

(b) Definitions

For purposes of this subchapter-

(1) the term "improving farms" includes, but is not limited to, the acquisition, installation, and modification of any qualified nonfossil energy system located on a family farm; and

(2) the term "qualified non-fossil energy system" means any system that utilizes technologies to generate fuel, energy, or energy intensive products from products other than fossil fuels as included in the Federal Non-Nuclear¹ Energy Research and Development Act of 1974, as amended [42 U.S.C. 5901 et seq.], which meets such standards as may be prescribed by the Secretary, taking into consideration appropriate and available standards prescribed by the Secretary of Housing and Urban Development.

(Pub. L. 87 128, title III, §303, Aug. 8, 1961, 75 Stat. 307; Pub. L. 87 703, title IV, §401(1), Sept. 27, 1962, 76 Stat. 631; Pub. L. 90 488, §1, Aug. 15, 1968, 82 Stat. 770; Pub. L. 95 113, title XIV, §1448(a), Sept. 29, 1977, 91 Stat. 1011; Pub. L. 96 438, §1(1), Oct. 13, 1980, 94 Stat. 1871; Pub. L. 97 98, title XVI, §1602, Dec. 22, 1981, 95 Stat. 1346.)

References in Text

The Federal Nonnuclear Research and Development Act of 1974, as amended, referred to in subsec. (b)(2), is Pub. L. 93 577, Dec. 31, 1974, 88 Stat. 1878, as amended, which is classified generally to chapter 74 (§5901 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 5901 of Title 42 and Tables.

Amendments

1981-Subsec. (a). Pub. L. 97 98 substituted "who have dependent families" for "who are married or have dependent families".

1980-Subsec. (b)(1). Pub. L. 96 438 substituted "the acquisition, installation, and modification" for "the acquisition and installation" and struck out "in any residential structure" after "energy system".

1977-Pub. L. 95 113 designated existing provisions as subsec. (a) and added subsec. (b).

1968-Pub. L. 90 488 designated existing provisions as cls. (1), (2), (4), (5), and added cl. (3).

1962-Pub. L. 87 703 authorized loans to be made or insured for recreational uses and facilities.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97 98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97 98, set out as an Effective Date note under section 4301 of this title.

Effective Date of 1977 Amendment

Amendment by Pub. L. 95 113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95 113, set out as a note under section 1307 of this title.

Transfer of Functions

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.

Section Referred to in Other Sections

This section is referred to in sections 1922, 1925, 1927, 1934, 1985, 1991, 2008f of this title.

¹So in original. Probably should be "Nonnuclear".