7 U.S.C. § 912 : US Code - Section 912: Extension of time for repayment of loans

Search 7 U.S.C. § 912 : US Code - Section 912: Extension of time for repayment of loans

(a) The Secretary is authorized and empowered to extend the time
of payment of interest or principal of any loans made by the
Secretary pursuant to this chapter, except that, with respect to
any loan made under section 904 or 922 of this title, the payment
of interest or principal shall not be extended more than five years
after such payment shall have become due.
(b)(1) Subject to limitations established in appropriations Acts,
the Secretary shall permit any borrower to defer the payment of
principal and interest on any insured or direct loan made under
this chapter under circumstances described in this subsection,
notwithstanding any limitation contained in subsection (a) of this
section, except that such deferment shall not be permitted based on
the determination of the Secretary of the financial hardship of the
borrower.
(2)(A) In the case of deferments made to enable the borrower to
provide financing to local businesses, the deferment shall be
repaid in equal installments, without the accrual of interest, over
the 60-month period beginning on the date of the deferment, and the
total amount of such payments shall be equal to the amount of the
payment deferred.
(B) In the case of deferments made to enable the borrower to
provide community development assistance, technical assistance to
businesses, and for other community, business, or economic
development projects not included under subparagraph (A), the
deferment shall be repaid in equal installments, without the
accrual of interest, over the 120-month period beginning on the
date of the deferment, and the total amount of such payments shall
be equal to the amount of the payment deferred.
(3)(A) A borrower may defer its debt service payments only in an
amount equal to an investment made by such borrower as described in
paragraph (2).
(B) The amount of the deferment shall not exceed 50 percent of
the total cost of a community or economic development project for
which a deferment is provided under this subsection.
(C) The total amount of deferments under this subsection during
each of the fiscal years 1990 through 1993 shall not exceed 3
percent of the total payments due during such fiscal year from all
borrowers on direct and insured loans made under this chapter and
shall not exceed 5 percent of such total payments due in each
subsequent fiscal year.
(D) At the time of a deferment, the borrower shall make a payment
to a cushion of credit account established and maintained pursuant
to section 940c of this title in an amount equal to the amount of
the payment deferred. The balance of such account shall not be
reduced by the borrower below the level of the unpaid balance of
the payment deferred. Subject to limitations established in annual
appropriations Acts, such cushion of credit amounts and any other
cushion of credit and advance payments of any borrower shall be
included in the interest differential calculation under section
940c(b)(2)(A) of this title.
(4) The Secretary shall undertake all reasonable efforts to
permit the full amount of deferments authorized by this subsection
during each fiscal year.