(a) In general
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, $600,000, or, in the case of a loan guaranteed by the Secretary, $1,750,000 (increased, beginning with fiscal year 2019, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary).
(b) Determination of value
In determining the value of the farm, the Secretary shall consider appraisals made by competent appraisers under rules established by the Secretary.
(c) Inflation percentage
For purposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which—
(1) the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on July 31 of the immediately preceding fiscal year; exceeds
(2) the average of such index (as so defined) for the 12-month period that immediately precedes the 12-month period described in paragraph (1).
Codification
Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
Amendments
2018—Subsec. (a)(2). Pub. L. 115–334, §5103(1), substituted "$600,000" for "$300,000", "$1,750,000" for "$700,000", and "2019" for "2000".
Subsec. (c)(1). Pub. L. 115–334, §5103(2)(A), substituted "July" for "August".
Subsec. (c)(2). Pub. L. 115–334, §5103(2)(B), substituted "that immediately precedes the 12-month period described in paragraph (1)" for "ending on August 31, 1996".
2008—Subsec. (a)(2). Pub. L. 110–246, §5003, substituted "$300,000" for "$200,000".
1998—Pub. L. 105–277 inserted section catchline, designated first sentence as subsec. (a), inserted heading, and substituted "$700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subchapter II that are guaranteed by the Secretary)" for "$300,000", designated second sentence as subsec. (b) and inserted heading, and added subsec. (c).
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".
Effective Date of 2008 Amendment
Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.
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