42 USC 9812a – Interest rates payable on certain rural development loans; assignment of loan contracts
(a) Modification of interest rates
Notwithstanding any other provision of law—
(1) any outstanding loan made after December 31, 1982, by the Secretary of Health and Human Services; or
(2) any loan made after September 30, 1986;
with moneys from the Rural Development Loan Fund established by section 9812(c)(1) of this title or with funds available (before October 27, 1998) under section 9910(a) of this title (as in effect before October 27, 1998) to an intermediary borrower shall bear interest at a fixed rate equal to the rate of interest that was in effect on the date of issuance for loans made in 1980 with such moneys or such funds if the weighted average rate of interest for all loans made after December 31, 1982, by such intermediary borrower with such moneys or such funds does not exceed the sum of 6 percent and the rate of interest payable under this subsection by such intermediary borrower.
(b) Assignment of certain loan contracts
Terms Used In 42 USC 9812a
- Contract: A legal written agreement that becomes binding when signed.
- county: includes a parish, or any other equivalent subdivision of a State or Territory of the United States. See 1 USC 2
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
Any contract for a loan made during the period beginning on December 31, 1982, and ending on September 30, 1986, with—
(1) moneys from the Rural Development Loan Fund established by section 9812(c)(1) of this title; or
(2) funds available (before October 27, 1998) under section 9910(a) of this title (as in effect before October 27, 1998);
to an intermediary borrower that is a county government may be assigned by such borrower to an entity to which such loan could have been made for the purpose for which such contract was made. Any entity to which such contract is so assigned shall be substituted as a party to such contract and shall be obligated to carry out such contract and the purpose for which such contract was made.