7-U.S.C.-1928
§1928 – Full Faith and Credit
Pathway
Title 7 > Chapter 50 > Subchapter I > Section 1928
Details
- Reference: Section 1928
- Legend: §1928 – Full Faith and Credit
- USCode Year: 2013
Provision Content
(a) In general
A contract of insurance or guarantee executed by the Secretary under this chapter shall be an obligation supported by the full faith and credit of the United States.
(b) Contestability
A contract of insurance or guarantee executed by the Secretary under this chapter shall be incontestable except for fraud or misrepresentation that the lender or any holder—
(1) has actual knowledge of at the time the contract or guarantee is executed; or
(2) participates in or condones.
(Pub. L. 87–128, title III, §308, Aug. 8, 1961, 75 Stat. 308; Pub. L. 87–798, Oct. 11, 1962, 76 Stat. 908; Pub. L. 89–240, §2(a), Oct. 7, 1965, 79 Stat. 932; Pub. L. 90–488, §6, Aug. 15, 1968, 82 Stat. 770; Pub. L. 92–133, Oct. 5, 1971, 85 Stat. 364; Pub. L. 101–624, title XXIII, §2388(a), Nov. 28, 1990, 104 Stat. 4052; Pub. L. 104–127, title VI, §605, Apr. 4, 1996, 110 Stat. 1086.)
References in Text
For definition of this chapter”, referred to in text, see note set out under section 1921 of this title.
Amendments
1996—Pub. L. 104–127 amended section generally. Prior to amendment, section read as follows: Loans under this subchapter may be insured by the Secretary whenever funds are advanced or a loan is purchased by a lender other than the United States. In connection with insurance of loans, the Secretary—
(1) is authorized to make agreements with respect to the servicing of loans insured hereunder and to purchase such loans on such terms and conditions as he may prescribe; and
(2) may retain out of payments by the borrower a charge at a rate specified in the insurance agreement applicable to the loan.
Any contract of insurance executed by the Secretary under this subchapter shall be an obligation supported by the full faith and credit of the United States and incontestable except for fraud or misrepresentation of which the holder has actual knowledge.”
1990—Pub. L. 101–624 redesignated pars. (a) and (b) as pars. (1) and (2), respectively, and in par. (1), substituted prescribe;” for prescribe,;”.
1971—Pub. L. 92–133 eliminated October 1, 1971, as time limitation for insurance of loans.
1968—Pub. L. 90–488 authorized insurance of loans until Oct. 1, 1971, without the $450,000,000 limitation on aggregate amount in any one year.
1965—Pub. L. 89–240 substituted $450,000,000” for $200,000,000”, may retain” for shall retain”, and specified in the insurance agreement applicable to the loan” for determined by the Secretary from time to time equivalent to not less than one-half of 1 per centum per annum on the principal unpaid balance of the loan”, and struck out except that no agreement shall provide for purchase by the Secretary at a date sooner than three years from the date of the note” after he may prescribe”.
1962—Pub. L. 87–798 increased aggregate amount of loans that may be insured in any one year from $150,000,000 to $200,000,000.
U.S. Encyclopedia of Law Coverage
7-U.S.C.-1922 in the Legal Encyclopedia: Agriculture
In this entry about 7-U.S.C.-1922, find legal reference material, bibliographies and premiere content related to agriculture in the American Encyclopedia of Law, presenting a comprehensive view of the United States agriculture-specific issues, written by authorities in the field.
7-U.S.C.-1308-4 in the Legal Encyclopedia: Loans
In this entry about 7-U.S.C.-1308-4, find legal reference material, bibliographies and premiere content related to loans in the American Encyclopedia of Law, presenting a comprehensive view of the United States loans-specific issues, written by authorities in the field.
Title 7 – Agriculture in the Legal Encyclopedia: Agricultural Credit
In this entry about Title 7 – Agriculture, find legal reference material, bibliographies and premiere content related to agricultural credit in the American Encyclopedia of Law, presenting a comprehensive view of the United States agricultural credit-specific issues, written by authorities in the field.
Leave a Reply