§1925. Limitation on amount of loan

The Secretary shall make or insure no loan under sections 1922, 1923, 1924, 1934, and 1935 of this title that would cause the unpaid indebtedness under such sections of any one borrower to exceed the smaller of (1) the value of the farm or other security, or (2) in the case of a loan other than a loan guaranteed by the Secretary, $200,000, or, in the case of a loan guaranteed by the Secretary, $300,000. In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.

(Pub. L. 87 128, title III, §305, Aug. 8, 1961, 75 Stat. 308; Pub. L. 91 620, §1, Dec. 31, 1970, 84 Stat. 1862; Pub. L. 92 419, title I, §103, Aug. 30, 1972, 86 Stat. 658; Pub. L. 91 524, title VIII, §807, as added Pub. L. 93 86, §1(27)(B), Aug. 10, 1973, 87 Stat. 237; Pub. L. 95 334, title I, §103, Aug. 4, 1978, 92 Stat. 421; Pub. L. 102 554, §3, Oct. 28, 1992, 106 Stat. 4142.)

Amendments

1992-Pub. L. 102 554 inserted reference to section 1935 of this title.

1978-Pub. L. 95 334 substituted provisions setting forth requirements for loans under sections 1922, 1923, 1924, and 1934 of this title for provisions setting forth requirements for loans under sections 1922, 1923, and 1924 of this title.

1973-Pub. L. 91 524, §807, as added by Pub. L. 93 86, substituted "$225,000" for "$100,000" in cl. (a), added cl. (b), and redesignated former cl. (b) as (c).

1972-Pub. L. 92 419 struck out "normal" before "value" in first and second sentences and before "market value" in last sentence.

1970-Pub. L. 91 620 substituted "$100,000" for "$60,000".

Section Referred to in Other Sections

This section is referred to in section 1985 of this title.