Page:United States Statutes at Large Volume 103 Part 1.djvu/611

 PUBLIC LAW 101-82-AUG. 14, 1989 loans under subtitle C of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1961 et seq.) to meet the needs resulting from natural disasters, except that funds available from such Fund first shall be used to satisfy the level of assistance estimated by the Secretary to meet the needs of persons eligible for emergency disaster loans. SEC. 303. FmHA LOANS MADE TO INDIAN TRIBES. The Act entitled "An Act to provide for loans to Indian tribes and tribal corporations, and for other purposes" (25 U.S.C. 488 et seq.) is amended by adding at the end thereof the following new section: "SEC. 6. REDUCTION OF UNPAID PRINCIPAL. "(a) IN GENERAL.— The Secretary of Agriculture may, on the application of the borrower of a loan or loans made under this Act, reduce the unpaid principal balance of such loan or loans to the current fair market value of the land purchased with the proceeds of the loan or loans if— "(1) the fair market value of the land has declined by at least 25 percent since such land was purchased by the borrower; "(2) the land has been held by the borrower for a period of at least 5 years; and "(3) the Secretary of the Interior finds that the borrower has insufficient income to both repay the loan or loans and provide normal tribal governmental services. "(b) FAIR MARKET VALUE.— "(1) APPRAISAL.—Current fair market value under subsection (a) shall be determined through an appraisal by an independent qualified fee appraiser, selected by mutual agreement between the borrower and the Secretary of Agriculture. "(2) COSTS. — The cost of appraisals undertaken under para- graph (1) shall be paid by the borrower. "(c) APPEALS.—Decisions of the Secretary of Agriculture under this section shall be appealable in accordance with the provisions of section 333B of the Consolidated Farm and Rural Development Act (1 U.S.C. 1983b). "(d) FUTURE APPLICATIONS.— A borrower that had a loan or loans reduced under this section shall not submit an application for another reduction on such loan or loans for a period of 5 years after the initial reduction.". TITLE IV—RURAL BUSINESSES 103 STAT. 583 25 USC 493. SEC. 401. DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES. 7 USC 1929a note. (a) LOAN GUARANTEES.—The Secretary of Agriculture shall guarantee loans made in rural areas to— (1) public, private, or cooperative organizations, to Indian Indians, tribes on Federal and State reservations or other federally recognized Indian tribal groups, or to any other business enti- ties to assist such organizations, tribes, or entities in alleviating the distress caused to such organizations, tribes, or entities, directly or indirectly, by the drought, freeze, storm, excessive moisture, or related condition in 1988 or 1989; and (2) such organizations, tribes, or entities that refinance or restructure debt as a result of losses incurred, directly or in- directly, because of such natural disasters in 1988 or 1989.

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