7 U.S.C. § 1935
Section 1935 · Down payment loan program
Current version, with additions and removals from the May 13, 2002 version.
(1) Establishment
(1) Establishment
(2) Administration
(2) Administration
The Secretary shall be the primary coordinator of credit supervision for the down payment loan program established under this section, in consultation with the commercial or cooperative lender and, if applicable, the contracting credit counseling service selected under section 2006b(c) of this title.
The Secretary shall be the primary coordinator of credit supervision for the down payment loan program established under this section, in consultation with the commercial or cooperative lender and, if applicable, the contracting credit counseling service selected under section 2006b(c) of this title.
(1) Principal
(1) Principal
(A) the purchase price of the farm or ranch to be acquired;
(B) the appraised value of the farm or ranch to be acquired; or
(C) $667,000.
(2) Interest rate
(2) Interest rate
(A) the difference obtained by subtracting 4 percent from the interest rate for farm ownership loans under this subchapter; or
(B) 1.5 percent.
(3) Duration
(3) Duration
(4) Repayment
(4) Repayment
Each borrower of a loan under this section shall repay the loan to the Secretary in equal annual installments.
Each borrower of a loan under this section shall repay the loan to the Secretary in equal annual installments.
(5) Nature of retained security interest
(5) Nature of retained security interest
The Secretary shall retain an interest in each farm or ranch acquired with a loan made under this section that shall—
The Secretary shall retain an interest in each farm or ranch acquired with a loan made under this section that shall—
(A) be secured by the farm or ranch;
(A) be secured by the farm or ranch;
(B) be junior only to such interests in the farm or ranch as may be conveyed at the time of acquisition to the person (including a lender) from whom the borrower obtained a loan used to acquire the farm or ranch; and
(B) be junior only to such interests in the farm or ranch as may be conveyed at the time of acquisition to the person (including a lender) from whom the borrower obtained a loan used to acquire the farm or ranch; and
(C) require the borrower to obtain the permission of the Secretary before the borrower may grant an additional security interest in the farm or ranch.
(C) require the borrower to obtain the permission of the Secretary before the borrower may grant an additional security interest in the farm or ranch.
(1) Borrowers required to make minimum down payment
(1) Borrowers required to make minimum down payment
(2) Maximum price of property to be acquired
The Secretary shall not make a loan under this section with respect to a farm or ranch for which the purchase price or appraisal value, whichever is lower, exceeds $250,000.
The Secretary shall not make a loan under this section with respect to a farm or ranch if the farm or ranch is to be acquired with other financing that contains any of the following conditions:
The Secretary shall not make a loan under this section with respect to a farm or ranch if the farm or ranch is to be acquired with other financing that contains any of the following conditions:
(A) The financing is to be amortized over a period of less than 30 years.
(A) The financing is to be amortized over a period of less than 30 years.
In carrying out this section, the Secretary shall, to the maximum extent practicable—
In carrying out this section, the Secretary shall, to the maximum extent practicable—
(1) facilitate the transfer of farms and ranches from retiring farmers and ranchers to persons eligible for insured loans under this subchapter;
(1) facilitate the transfer of farms and ranches from retiring farmers and ranchers to persons eligible for insured loans under this subchapter;
(2) make efforts to widely publicize the availability of loans under this section among—
(2) make efforts to widely publicize the availability of loans under this section among—
(B) retiring farmers and ranchers; and
(B) retiring farmers and ranchers; and
(C) applicants for farm ownership loans under this subchapter;
(C) applicants for farm ownership loans under this subchapter;
(A) beginning farmers or ranchers;
(B) socially disadvantaged farmers or ranchers, as defined in section 2003(e) of this title; or
(C) veteran farmers or ranchers, as defined in section 2279(a) of this title; and; and 1
(5) establish annual performance goals to promote the use of the down payment loan program and other joint financing arrangements as the preferred choice for direct real estate loans made by any lender to an eligible farmer or rancher.
In this section, the term "eligible farmer or rancher" means—
(1) a qualified beginning farmer or rancher;
(2) a socially disadvantaged farmer or rancher, as defined in section 2003(e) of this title; and
(3) a veteran farmer or rancher, as defined in section 2279(a) of this title.