---
kind: "section"
citation: "7 U.S.C. § 1962"
title: "7"
title_heading: "Agriculture"
number: "1962"
heading: "Loan determination factors; written credit declinations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/1962"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter III — Emergency Loans"
---

# §1962. Loan determination factors; written credit declinations

- (a) For the purpose of determining whether to make or insure any loan under this subchapter, the [Secretary](/usc/7/499a.md?p=b-2) shall take into consideration the net worth of the applicant involved, including all the assets and liabilities of the applicant.
- (b) For the purpose of determining whether an applicant under this subchapter is not able to obtain sufficient credit elsewhere, the [Secretary](/usc/7/499a.md?p=b-2) shall require at least one written indication of declination of credit, from a legally organized lending institution within reasonable proximity to the applicant, that specifies the reasons for the declination: Provided, That for loans in excess of $300,000, the [Secretary](/usc/7/499a.md?p=b-2) shall require at least two such written declinations: Provided further, That for loans of $100,000 or less, the [Secretary](/usc/7/499a.md?p=b-2) may waive the requirement of this subsection if the [Secretary](/usc/7/499a.md?p=b-2) determines that it would impose an undue burden on the applicant.

## Source credit

(Pub. L. 87–128, title III, § 322, Aug. 8, 1961, 75 Stat. 311; Pub. L. 94–68, § 4, Aug. 5, 1975, 89 Stat. 381; Pub. L. 96–438, § 3(b)(1), Oct. 13, 1980, 94 Stat. 1873; Pub. L. 104–127, title VI, § 622, Apr. 4, 1996, 110 Stat. 1091.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (b). Pub. L. 104–127 substituted “loans of $100,000 or less” for “loans of $300,000 or less”.

1980—Pub. L. 96–438 substituted provisions prescribing factors to be considered in determining whether to make or insure a loan and relating to the need for applicants unable to obtain sufficient credit elsewhere to provide written credit declinations for provisions relating to the purpose and extent of loans under this subchapter.

1975—Pub. L. 94–68 extended authority to finance crop or livestock changes deemed desirable as a result of changes in market demand, and to make emergency loans in excess of the actual loss sustained as a result of the natural disaster.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–127 effective 90 days after Apr. 4, 1996, see section 663(b) of Pub. L. 104–127, set out as a note under section 1922 of this title.

### Effective Date of 1980 Amendment

Amendment by Pub. L. 96–438 effective with respect to loans approved after Oct. 13, 1980, except for certain subsequent emergency loans, see section 3(d) of Pub. L. 96–438, set out as a note under section 1961 of this title.