[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1810.2]

[Page 1168-1169]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                               AGRICULTURE
 
PART 1810--INTEREST RATES, TERMS, CONDITIONS, AND APPROVAL AUTHORITY--Table of Contents
 
 Subpart A--Interest Rates, Amortization, Guarantee Fee, Annual Charge, 
                            and Fixed Period
 
Sec. 1810.2  Adjustment of interest rates for certain loans involving use of or construction on prime or unique farmland.

    (a) For essential community facility loans, insured farm ownership 
loans for recreation or non-farm enterprises, insured farm operating 
loans for recreation enterprises, soil and water loans for recreation 
purposes, individual recreation loans, and insured business and industry 
loans, the interest rate will be increased by two per centum per annum 
if the project being financed will involve the use of, or construction 
on, prime or unique farmland. Prime or unique farmland is as defined in 
Sec. 657.5 (a) and (b) of title 7, Code of Federal Regulations (1980).
    (b) The two per centum interest rate increase will not apply if the 
applicant/borrower is a public body or Indian tribe and has demonstrated 
to FmHA or its successor agency under Public Law 103-354 that there are 
no suitable options for locating the proposed essential community 
facility project on land that is not prime or unique farmland.
    (c) For each essential community facility loan and insured business 
and industry loan the District Director, after consultation with the 
Soil Conservation Service (SCS), will determine whether the proposed 
project will involve the use of, or construction on, prime or unique 
farmland. For each insured farm ownership loan for a recreation or non-
farm enterprise, insured farm operating loan for a recreation 
enterprise, soil and water loan for a recreational purpose, or 
individual recreation loan, the County Supervisor, after consultation 
with SCS, will determine whether the proposed

[[Page 1169]]

project will involve the use of, or construction on, prime or unique 
farmland. The determination will be documented by FmHA or its successor 
agency under Public Law 103-354 and made a part of the official case 
file.

[46 FR 47763, Sept. 30, 1981, as amended at 56 FR 11503, Mar. 19, 1991]

Subpart B [Reserved]

[[Page 1170]]