§1994. Maximum amounts for loans authorized; long-term cost projections
(a) Maximum aggregate principal amounts for loans authorized
Effective October 1, 1979, the aggregate principal amount of loans under the programs authorized under each subchapter of this chapter during each three-year period thereafter shall not exceed such amounts as may be authorized by law after August 4, 1978. There shall be two amounts so established for each of such programs and for any maximum levels provided in appropriation Acts for the programs authorized under this chapter, one against which direct and insured loans shall be charged and the other against which guaranteed loans shall be charged, with or without authority for the Secretary to transfer amounts between such categories within a given program for more effective administration.
(b) Maximum amounts for loans under Agricultural Credit Insurance Fund for fiscal years 1991 through 1995
(1) For each of the fiscal years 1991 through 1995, real estate and operating loans may be insured, made to be sold and insured, or guaranteed in accordance with subchapters I and II of this chapter, respectively, from the Agricultural Credit Insurance Fund established under section 1929 of this title in amounts equal to the following levels:
(A) For fiscal year 1991, $4,175,000,000, of which not less than $827,000,000 shall be for farm ownership loans under subchapter I of this chapter.
(B) For fiscal year 1992, $4,343,000,000, of which not less than $861,000,000 shall be for farm ownership loans under subchapter I of this chapter.
(C) For fiscal year 1993, $4,516,000,000, of which not less than $895,000,000 shall be for farm ownership loans under subchapter I of this chapter.
(D) For fiscal year 1994, $4,697,000,000, of which not less than $931,000,000 shall be for farm ownership loans under subchapter I of this chapter.
(E) For fiscal year 1995, $4,885,000,000, of which not less than $968,000,000 shall be for farm ownership loans under subchapter I of this chapter.
(2) Subject to paragraph (3), such amounts set forth in paragraph (1) shall be apportioned as follows:
(A) For fiscal year 1991-
(i) $1,019,000,000 for insured loans, of which not less than $83,000,000 shall be for farm ownership loans; and
(ii) $3,156,000,000 for guaranteed loans, of which not less than $744,000,000 shall be for guarantees of farm ownership loans.
(B) For fiscal year 1992-
(i) $1,060,000,000 for insured loans, of which not less than $87,000,000 shall be for farm ownership loans; and
(ii) $3,283,000,000 for guaranteed loans, of which not less than $774,000,000 shall be for guarantees of farm ownership loans.
(C) For fiscal year 1993-
(i) $1,102,000,000 for insured loans, of which not less than $90,000,000 shall be for farm ownership loans; and
(ii) $3,414,000,000 for guaranteed loans, of which not less than $805,000,000 shall be for guarantees of farm ownership loans.
(D) For fiscal year 1994-
(i) $1,147,000,000 for insured loans, of which not less than $94,000,000 shall be for farm ownership loans; and
(ii) $3,550,000,000 for guaranteed loans, of which not less than $837,000,000 shall be for guarantees of farm ownership loans.
(E) For fiscal year 1995-
(i) $1,192,000,000 for insured loans, of which not less than $97,000,000 shall be for farm ownership loans; and
(ii) $3,693,000,000 for guaranteed loans, of which not less than $871,000,000 shall be for guarantees of farm ownership loans.
Not less than 25 percent of the amounts appropriated for guarantees of farm ownership loans for each of the fiscal years 1994, 1995, 1996, and 1997 shall be reserved by the Secretary during the first 6 months of the respective fiscal year for guarantees of farm ownership loans to beginning farmers or ranchers.
(3) Notwithstanding any other provision of law:
(A) The Secretary shall-
(i) reduce the amounts otherwise made available for insured loans by-
(I) $482,000,000, for fiscal year 1991;
(II) $614,000,000, for fiscal year 1992;
(III) $760,000,000, for fiscal year 1993;
(IV) $859,000,000, for fiscal year 1994; and
(V) $907,000,000, for fiscal year 1995; and
(ii) use the funds made available from such reductions in each fiscal year to guarantee loans under section 1999 of this title.
(B) The total amount of insured loans shall bear the same ratio to the amount of insured farm ownership loans as the dollar amount specified in paragraph (2)(A)(i) for insured loans bears to the dollar amount specified therein for insured farm ownership loans.
(C) If more than 70 percent of the number of loans guaranteed under section 1999 of this title in a fiscal year have been guaranteed to persons to whom the Secretary had not previously made an insured loan under this chapter, in lieu of the dollar amounts specified in subparagraph (A) for the immediately succeeding fiscal year, the dollar amounts which shall apply shall each be the product obtained by multiplying-
(i) such dollar amount; by
(ii) the quotient of-
(I) the number of persons provided with guaranteed loans under section 1999 of this title in the fiscal year to whom the Secretary had not previously made an insured or a guaranteed loan under this chapter; divided by
(II) the total number of persons provided with guaranteed loans under section 1999 of this title in the fiscal year.
(D) To the extent that it is not inconsistent with an exercise of authority under section 2003 of this title, in expending funds available for insured farm ownership loans-
(i) during fiscal year 1994, the Secretary shall reserve not less than 55 percent of the funds available for the fiscal year to make insured farm ownership loans to qualified beginning farmers or ranchers;
(ii) during fiscal year 1995, the Secretary shall reserve not more than 65 percent of the funds available for the fiscal year to make insured farm ownership loans to qualified beginning farmers or ranchers; and
(iii) during each of fiscal years 1996 and thereafter, the Secretary may reserve not less than 65 percent and not more than 70 percent of the funds available for the fiscal year to make insured farm ownership loans to qualified beginning farmers or ranchers.
(E) To the extent that it is not inconsistent with an exercise of authority under section 2003 of this title, the Secretary shall reserve not less than 60 percent of the amounts reserved for qualified beginning farmers or ranchers under subparagraph (D) for any fiscal year for down payment loans under section 1935 of this title.
(F) To the extent that it is not inconsistent with an exercise of authority under section 2003 of this title, to the maximum extent practicable, any funds reserved for down payment loans under section 1935 of this title for a fiscal year by reason of subparagraph (E) that are not obligated by the end of the second quarter of the fiscal year shall be available during the third quarter of the fiscal year for any type of insured farm ownership loans to beginning farmers and ranchers.
(G) Not less than 40 percent of the amounts available for the interest rate reduction program under section 1999 of this title shall be reserved for the first 6 months of each fiscal year for assistance to beginning farmers or ranchers.
(4) Notwithstanding subsection (a) of this section, the Secretary shall, as soon as practicable after November 5, 1990, make, insure, or guarantee loans at the levels authorized by this subsection for each of the fiscal years 1991 through 1995.
(5)(A) In expending funds available for insured operating loans under subchapter II of this chapter, including loans made under section 1948 of this title-
(i) during the first 6 months of fiscal year 1994, the Secretary shall reserve not less than 30 percent of the funds available for the fiscal year to make insured operating loans to qualified beginning farmers or ranchers;
(ii) during the first 6 months of each of fiscal years 1995 and 1996, the Secretary shall reserve not less than 40 percent of the funds available for the fiscal year to make insured operating loans to qualified beginning farmers or ranchers; and
(iii) during the first 6 months of each of fiscal years 1997 and thereafter, the Secretary may reserve not more than 50 percent of the funds available for the fiscal year to make insured operating loans to qualified beginning farmers or ranchers.
(B) In each fiscal year described in subparagraph (A), with regard to the funds not reserved under subparagraph (A), a qualified beginning farmer or rancher may apply for insured operating loans, but shall not receive any preference as a result of status as a qualified beginning farmer or rancher.
(6) Notwithstanding any other provision of this chapter, at the end of the third quarter of each fiscal year, the Secretary shall transfer, and use to carry out section 1935 of this title, 75 percent of the amount that would otherwise be available for guaranteed operating loans.
(c) Development of long-term cost projections for loan program authorizations
The Secretary shall develop long-term cost projections for loan program authorizations required under subsection (a) of this section. Each such projection shall include analyses of (1) the long-term costs of the lending levels that the Secretary requests to be authorized under subsection (a) of this section and (2) the long-term costs for increases in lending levels beyond those requested to be authorized, based on increments of $10,000,000 or such other levels as the Secretary deems appropriate. Long-term cost projections for the three-year period beginning with fiscal year 1983 and each three-year period thereafter shall be submitted to the House Committee on Agriculture, the House Committee on Appropriations, the Senate Committee on Agriculture, Nutrition, and Forestry, and the Senate Committee on Appropriations at the time the requests for authorizations for those periods are submitted to Congress. Not later than fifteen days after October 13, 1980, the Secretary shall submit to such committees long-term cost projections covering authorized lending levels for the loan programs for fiscal years 1981 and 1982.
(d) Low-income, limited-resource borrowers
(1) Notwithstanding any other provision of law, not less than 25 per centum of the loans for farm ownership purposes under subchapter I of this chapter, and not less than 25 per centum of the loans for farm operating purposes under subchapter II of this chapter, authorized to be insured, or made to be sold and insured, from the Agricultural Credit Insurance Fund during each fiscal year shall be for low-income, limited-resource borrowers.
(2) The Secretary shall provide notification to farm borrowers under this chapter, as soon as practicable after April 10, 1984, and in the normal course of loan making and loan servicing operations, of the provisions of this chapter relating to low-income, limited-resource borrowers and the procedures by which persons may apply for loans under the low-income, limited-resource borrower program.
(Pub. L. 87 128, title III, §346, as added Pub. L. 95 334, title I, §125, Aug. 4, 1978,
References in Text
For definition of "this chapter", referred to in subsecs. (a), (b)(3)(C), (6), and (d)(2), see note set out under section 1921 of this title.
Codification
November 5, 1990, referred to in subsec. (b)(4), was in the original "the date of enactment of this subsection", which was translated as meaning the date of enactment of Pub. L. 101 508, which amended subsec. (b) generally, to reflect the probable intent of Congress.
Amendments
1992-Subsec. (b)(2). Pub. L. 102 554, §20(b), inserted sentence at end.
Subsec. (b)(3)(D) to (G). Pub. L. 102 554, §20(c), (d), added subpars. (D) to (G).
Subsec. (b)(5), (6). Pub. L. 102 554, §20(a), (e), added pars. (5) and (6).
1991-Subsec. (b). Pub. L. 102 237, §702(i), repealed Pub. L. 101 624, §2388(i). See 1990 Amendment note below.
Subsec. (b)(3)(C). Pub. L. 102 237, §701(h)(1)(F), substituted "this chapter" for "this Act" in two places.
1990-Subsec. (b). Pub. L. 101 624, §2388(i), which amended subsec. (b), in par. (1)(B), by striking "subparagraph (C)" and inserting "paragraph (3)"; in par. (1)(C), by striking "subparagraph (A)" and inserting "paragraph (1)"; by redesignating pars. (1)(A), (B), (C), (D)(i), and (E) as (1), (2), (3), (4), and (5), respectively; in par. (2), by redesignating cls. (i), (ii), and (iii) as subpars. (A), (B), and (C), respectively; in subpars. (A) to (C) of par. (2), by redesignating subcls. (I) and (II) as cls. (i) and (ii), respectively; and in par. (5), by redesignating cls. (i), (ii), and (iii) as subpars. (A), (B), and (C), respectively, was repealed by Pub. L. 102 237, §702(i). See Construction of 1990 Amendment note below.
Pub. L. 101 508, §1202(a), amended subsec. (b) generally, substituting present provisions for provisions relating to maximum amounts for loans under the Agricultural Credit Insurance Fund and the Rural Development Insurance Fund for fiscal years 1986 through 1988.
1985-Subsec. (b). Pub. L. 99 198, §1317(a), amended subsec. (b) generally, substituting provisions setting maximum amounts for loans under the Agricultural Credit Insurance Fund and the Rural Development Insurance Fund for each of fiscal years ending September 30, 1986, through September 30, 1988, for provisions setting such amounts for each of fiscal years 1980, 1981, and 1982.
Subsecs. (d), (e). Pub. L. 99 198, §1317, struck out subsec. (d) which authorized special amounts for fiscal year 1982, redesignated subsec. (e) as (d), and in par. (1) substituted "25 per centum" for "20 per centum" wherever appearing and "each fiscal year" for "fiscal year 1984".
1984-Subsec. (e). Pub. L. 98 258 added subsec. (e).
1981-Subsec. (d). Pub. L. 97 35 added subsec. (d).
1980-Pub. L. 96 438 designated existing provisions as subsec. (a) and added subsecs. (b) and (c).
Effective Date of 1991 Amendment
Amendment by section 701(h)(1)(F) of Pub. L. 102 237 to any provision specified therein effective as if included in act that added provision so specified at the time such act became law, and amendment by section 702(i) of 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)(7), (c) of Pub. L. 102 237, set out as a note under section 1421 of this title.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101 508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101 508, set out as a note under section 511r of this title.
Construction of 1990 Amendment
Section 702(i) of Pub. L. 102 237 provided that: "Subsection (i) of section 2388 of the Food, Agriculture, Conservation, and Trade Act of 1990 (