Page:United States Statutes at Large Volume 103 Part 1.djvu/612

 103 STAT. 584 PUBLIC LAW 101-82—AUG. 14, 1989 (b) ELIGIBLE LOANS.— (1) IN GENERAL.—Loans guaranteed under this section shall be f loans made by any Federal or State chartered bank, savings and loan association, cooperative lending agency, insurance com- pany, or other legally organized lending agency. (2) PRODUCTION AGRICULTURE. — No application for a loan guarantee under this section shall be denied on the basis that such organization, tribe, or entity engages in whole or in part in production agriculture. (c) LOAN GUARANTEE LIMITS.— (1) PERCEI^AGE OF PRINCIPAL AND INTEREST. — No guarantee under this section shall exceed 90 percent of the principal and interest amount of the loan or $2,500,000, whichever is the lesser amount. (2) TOTAL AMOUNT.—The total amount of loan guarantee under this section shall not exceed $200,000,000. (d) USE OF THE RURAL DEVELOPMENT INSURANCE FUND. —The Sec- retary shall use the Rural Development Insurance Fund established under section 309A of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1929a) for the purposes of discharging the obligations of the Secretary under this section. TITLE V—WATER-RELATED ASSISTANCE SEC. 501. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO- GRAM. (a) ESTABLISHMENT OF PROGRAM. —Subtitle A of the Consolidated Farm and Rural Development Act is amended by inserting after section 306 (7 U.S.C. 1926) the following new section: 7 USC 1926a. "SEC. 306A. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO- GRAM. Rural areas. "(a) IN GENERAL.— The Secretary shall provide grants in accord- ance with this section to assist the residents of rural areas and small communities to secure adequate quantities of safe water— "(1) sifter a significant decline in the quantity or quality of water available from the water supplies of such rural areas and small communities; or "(2) when repairs, partial replacement, or significant mainte- nance efforts on established water systems would remedy— "(A) an acute shortage of quality water; or "(B) a significant decline in the quantity or quality of water that is available. "OJ) PRIORITY. — In carrying out subsection (a), the Secretary shall— "(1) give priority to projects described in subsection (a)(D; and "(2) provide at least 70 percent of all such grants to such projects. "(c) EuGiBiLiTY.—To be eligible to obtain a grant under this section, an applicant shall— "(1) be a public or private nonprofit entity; and "(2) in the case of a grant made under subsection (a)(D, demonstrate to the Secretary that the decline referred to in such subsection occurred within 2 years of the date the applica- tion was filed for such grant. " (d) USES. —

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