Laws: Cases and Codes : U.S. Code : Title 12 : Section 1150


   
U.S. Code as of: 01/19/04
Section 1150. Compromise, adjustment, and cancellation of farm loans; conditions; delegation of powers and duties by Secretary of Agriculture

      The Secretary of Agriculture, hereinafter referred to as the
    Secretary, is authorized and directed to compromise, adjust, or
    cancel indebtedness arising from loans and payments made or credit
    extended to farmers under the provisions of the several Acts of
    Congress or programs enumerated in section 1150a of this title:
    Provided, That the Secretary finds, after such investigation as he
    deems sufficient to establish the facts, that (1) said indebtedness
    has been due and payable for five years or more; (2) the debtor is
    unable to pay said indebtedness in full and has no reasonable
    prospect of being able to do so; (3) the debtor has acted in good
    faith in an effort to meet his obligation; and (4) the principal
    amount of said indebtedness is not in excess of $1,000. The
    Secretary is further authorized at his discretion to cancel and
    discharge indebtedness arising under said Acts of Congress or
    programs when the amount of said indebtedness is less than $10, or
    the debtor is deceased and there is no reasonable prospect of
    recovering from his estate, or his whereabouts has remained unknown
    for two years and there is no reasonable prospect of obtaining
    collection, or he has been discharged of the indebtedness in any
    proceeding under the Bankruptcy Act or under title 11. The
    compromises, adjustments, or cancelations (!1) authorized by this
    section shall be effected through such agencies, upon such terms
    and conditions, and subject to such regulations, as the Secretary
    may prescribe, and the Secretary may delegate the exercise of any
    such powers and functions to such officers or employees of the
    Department of Agriculture as he may designate.




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