Contracts with lenders
Under such program, the Secretary shall enter into a contract with, and make payments to, a legally organized institution to reduce during the term of such contract the interest rate paid by a borrower on a guaranteed loan made by such institution if—
is unable to obtain sufficient credit elsewhere to finance the actual needs of the borrower at reasonable rates and terms, taking into consideration private and cooperative rates and terms for a loan for a similar purpose and period of time in the community in or near which the borrower resides;
is otherwise unable to make payments on such loan in a timely manner; and
has a total estimated cash income during the 24-month period beginning on the date such contract is entered into (including all farm and nonfarm income) that will equal or exceed the total estimated cash expenses to be incurred by the borrower during such period (including all farm and nonfarm expenses); and
the lender reduces during the term of such contract the annual rate of interest payable on such loan by a minimum percentage specified in such contract.
List of lender participants in guaranteed loan program
The Secretary shall make available to farmers, on request, a list of lenders in the area that participate in guaranteed farm loan programs and other lenders in the area that express a desire to participate in such programs and that request inclusion in the list.
Foreclosure action provision in farm loan guarantees
Notwithstanding any other provision of law, each contract of guarantee on a farm loan entered into under this chapter after January 6, 1988, shall contain a condition that the lender of the guaranteed loan may not initiate foreclosure action on the loan until 60 days after a determination is made with respect to the eligibility of the borrower thereof to participate in the program under this section.
[Pub. L. 87–128, title III, § 351], as added [Pub. L. 99–198, title XIII, § 1320], Dec. 23, 1985, [99 Stat. 1532]; amended [Pub. L. 100–233, title VI, § 613(b)], (c), Jan. 6, 1988, [101 Stat. 1674]; [Pub. L. 101–508, title I, § 1202(b)(1)], (c), Nov. 5, 1990, [104 Stat. 1388–10], 1388–11; [Pub. L. 104–105, title II, § 220], Feb. 10, 1996, [110 Stat. 184]; [Pub. L. 104–127, title VI, § 643(a)], Apr. 4, 1996, [110 Stat. 1102]; [Pub. L. 107–171, title V, § 5313], May 13, 2002, [116 Stat. 347]; [Pub. L. 115–334, title XII, § 12306(d)], Dec. 20, 2018, [132 Stat. 4970].)