§1981a. Loan moratorium and policy on foreclosures

In addition to any other authority that the Secretary may have to defer principal and interest and forego foreclosure, the Secretary may permit, at the request of the borrower, the deferral of principal and interest on any outstanding loan made, insured, or held by the Secretary under this chapter, or under the provisions of any other law administered by the Farmers Home Administration or by the Rural Development Administration, and may forego foreclosure of any such loan, for such period as the Secretary deems necessary upon a showing by the borrower that due to circumstances beyond the borrower's control, the borrower is temporarily unable to continue making payments of such principal and interest when due without unduly impairing the standard of living of the borrower. The Secretary may permit interest that accrues during the deferral period on any loan deferred under this section to bear no interest during or after such period: Provided, That if the security instrument securing such loan is foreclosed such interest as is included in the purchase price at such foreclosure shall become part of the principal and draw interest from the date of foreclosure at the rate prescribed by law.

(Pub. L. 87 128, title III, §331A, as added Pub. L. 95 334, title I, §122, Aug. 4, 1978, 92 Stat. 427; amended Pub. L. 101 624, title XXIII, §2303(b), Nov. 28, 1990, 104 Stat. 3981.)

References in Text

For definition of "this chapter", referred to in text, see note set out under section 1921 of this title.

Amendments

1990-Pub. L. 101 624 inserted "or by the Rural Development Administration" after "Farmers Home Administration".

Similar Provisions

Similar provisions were contained in the following appropriation acts:

Pub. L. 102 341, title III, Aug. 14, 1992, 106 Stat. 897.

Pub. L. 102 142, title III, Oct. 28, 1991, 105 Stat. 902.

Pub. L. 101 506, title II, Nov. 5, 1990, 104 Stat. 1333.

Pub. L. 101 161, title II, Nov. 21, 1989, 103 Stat. 969.

Pub. L. 100 460, title II, Oct. 1, 1988, 102 Stat. 2246.

Pub. L. 100 202, §101(k) [title II], Dec. 22, 1987, 101 Stat. 1329 322, 1329 340.

Pub. L. 99 500, §101(a) [title II], Oct. 18, 1986, 100 Stat. 1783, 1783 16, and Pub. L. 99 591, §101(a) [title II], Oct. 30, 1986, 100 Stat. 3341, 3341 16.

Pub. L. 99 190, §101(a) [H.R. 3037, title II], Dec. 19, 1985, 99 Stat. 1185.

Pub. L. 98 473, title I, §101(a) [H.R. 5743, title II], Oct. 12, 1984, 98 Stat. 1837.

Pub. L. 98 151, §101(d) [H.R. 3223, title II], Nov. 14, 1983, 97 Stat. 972.

Pub. L. 97 370, title II, Dec. 18, 1982, 96 Stat. 1800.

Forbearance and Restructuring for Farm Loans

Pub. L. 100 387, title III, §313(a), Aug. 11, 1988, 102 Stat. 949, provided that: "It is the sense of Congress that the Secretary of Agriculture should, with respect to farmers and ranchers who suffer major losses due to drought, hail, excessive moisture, or related condition in 1988-

"(1) exercise forbearance in the collection of interest and principal on direct farmer program loans under the Consolidated Farm and Rural Development Act [7 U.S.C. 1921 et seq.] outstanding for such farmers and ranchers;

"(2) expedite the use of credit restructuring and other credit relief mechanisms authorized under the Agricultural Credit Act of 1987 [Pub. L. 100 233, Jan. 6, 1988, 101 Stat. 1568, see Tables for classification] and similar provisions of law for such farmers and ranchers; and

"(3) encourage commercial lenders participating in guaranteed farmer lending programs under the Consolidated Farm and Rural Development Act to exercise forbearance before declaring loans to such farmers and ranchers under such programs in default."