7 U.S.C. § 1981c — Oil and gas royalty payments on loans
submitted 41 years ago by Pub. L. 87-128 to r/title-7-AGRICULTURE · 119 words · no verdicts yet
This section governs oil and gas royalty payments connected with loans. It states how those payments are to be handled under the farmer-loan programs.
(a) The Secretary must permit a borrower of a loan made or insured under this chapter to make a prospective payment on that loan with proceeds from— (1) the leasing of oil, gas, or other mineral rights to real property used to secure that loan; or (2) the sale of oil, gas, or other minerals removed from real property used to secure that loan, if the value of the rights to that oil, gas, or other minerals has not been used to secure that loan. (b) Subsection (a) must not apply to a borrower of a loan made or insured under this chapter with respect to which a liquidation or foreclosure proceeding is pending on December 23, 1985.
The Secretary shall permit a borrower of a loan made or insured under this chapter to make a prospective payment on such loan with proceeds from—
the leasing of oil, gas, or other mineral rights to real property used to secure such loan; or
the sale of oil, gas, or other minerals removed from real property used to secure such loan, if the value of the rights to such oil, gas, or other minerals has not been used to secure such loan.
Subsection (a) shall not apply to a borrower of a loan made or insured under this chapter with respect to which a liquidation or foreclosure proceeding is pending on December 23, 1985.
Source credit: (Pub. L. 87–128, title III, § 331C, as added Pub. L. 99–198, title XIII, § 1310(a), Dec. 23, 1985, 99 Stat. 1523.)
- 1985Enacted · Pub. L. 87-128 · 99 Stat. 1523
A history note hasn’t been published yet. The record shows enactment by Pub. L. 87-128 on 1985-12-23.
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