Page:United States Statutes at Large Volume 101 Part 3.djvu/402

 101 STAT. 1700

PUBLIC LAW 100-233—JAN. 6, 1988 "(1) the establishment of reserves and the retention of subordinated participation interests under this section; and "(2) the manner in which such reserves or interests shall be available to make payments of interest on, and repayments of principal of, securities for which the Corporation has provided guarantees, as the Board determines to be necessary or appropriate to carry out the purposes of this title.

12 USC 2279aa-8

"SEC. 8.8. STANDARDS FOR QUALIFIED LOANS.

"(a) STANDARDS.—Not later than 120 days after the appointment and election of the Board, the Corporation, in consultation with originators, shall establish uniform underwriting, security appraisal, and repa}mient standards for qualified loans. In establishing standards for qualified loans, the Corporation shall confine corporate operations, so far as practicable, to mortgage loans that are deemed by the Board to be of such quality so as to meet, substantially and generally, the purchase standards imposed by private institutional mortgage investors. "(b) MINIMUM QUTERIA.—To further the purpose of this title to provide a new source of long-term fixed rate financing to assist farmers and ranchers to purchase agricultural real estate, the standards established by the Board pursuant to subsection (a) shall, at a minimum— "(1) provide that no agricultural mortgage loan with a loan-tovalue ratio in excess of 80 percent may be treated as a qualified loan;. "(2) require each borrower to demonstrate sufficient cash-flow to adequately service the agricultural mortgage loan; "(3) contain sufficient documentation standards; "(4) contain adequate standards to protect the integfrity of the appraisal process with respect to any agricultural mortgage loans; "(5) contain adequate standards to ensure that the borrower is or will be actively engaged in agricultural production, and require the borrower to certify to the originator that the borrower intends to continue agricultural production on the site involved; "(6) minimize speculation in agricultural real estate for nonagricultural purposes; and "(7) in establishing the value of agricultural real estate, consider the purpose for which the real estate is taxed. "(c) LOAN AMOUNT LIMITATION.—

"(1) IN GENERAL.—A loan may not be treated as a qualified loan if the principal amount of such loan exceeds $2,500,000, adjusted for inflation, except as provided in paragraph (2). "(2) ACREAGE EXCEPTION.—Paragraph (1) shall not apply with respect to any agricultural mortgage loan described in such paragraph if such loan is secured by agricultural real estate that, in the aggregate, comprises not more than 1,000 acres. "(d) CONGRESSIONAL REVIEW.—No standard prescribed under subsection (a) shall take effect before the later of— "(1) the end of a period consisting of 30 legislative days and be^nning on the date such standards are submitted to the Congress; or "(2) the end of a period consisting of 90 calendar days and beginning on such date. .., ^<- v,..,. = -r, -:....«. - ....

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