Page:United States Statutes at Large Volume 105 Part 2.djvu/897

 PUBLIC LAW 102-237—DEC. 13, 1991 105 STAT. 1849 "(5) PROGRAM.— The term 'program' means the farmland preservation program established under this chapter to be known as the 'Agricultural Resource Conservation Demonstration Program'. "(6) SECRETARY. —The term 'Secretary' means the Secretary of Agriculture. "(7) STATE.— The term 'State' means any State of the United States, the Commonwealth of Puerto Rico, and the Virgin Islands of the United States. "(8) STATE TRUST FUND.— The term 'State trust fund' means any trust fund or an account established by an eligible State, or other public instrumentality of the eligible State, where such eligible State is approved to participate by the Secretary in the program under application procedures set forth in section 1466(j) or 1468. "SEC. 1466. ESTABLISHMENT OF PROGRAM. Loans. "(a) IN GENERAL.— "(1) PURPOSE.—The Secretary shall establish and implement a program, to be known as the 'Agricultural Resource Conservation Demonstration Program', to provide Federal guarantees and interest assistance for eligible loans described in section 1465(c)(2) made to, or issued for the benefit of, State trust funds. "(2) ASSISTANCE.— Under the program the Secretary shall guarantee for a period of 10 years the timely payment of the principal amount and interest due on each eligible loan described in section 1465(c)(2) made to, or issued for the benefit of. State trust funds and shall for each such 10-year period subsidize the interest on such eligible loans at the allowable interest rate for the first 5 years after the loan is made, or issued, and at no less than 3 percentage points for the second 5 years under procedures described in subsection (b). " (b) MANDATORY ASSISTANCE TO EACH STATE TRUST FUND.— The Secretary shall— "(1) fully guarantee with the full faith and credit of the United States each eligible loan described in section 1465(c)(2) made to, or issued for the benefit of, each State trust fund under procedures established by the Secretary; "(2) annually pay to each State trust fund an amount calculated by applying the allowable interest rate to the amount of each loan described in section 1465(c)(2) made to, or issued for the benefit of, each State trust fund during each of the first 5 years after the date on which each such loan was made or issued; and "(3) annually pay to each State trust fund, for each year during the second 5-year period after each such eligible loan is made to, or issued for the benefit of, the State trust fund, an amount calculated by applying the interest rate difference, between the rate of interest charged to borrowers of direct loans as described in section 316(a)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)(2)) and the allowable interest rate, to the amount of each such loan made to, or issued for the benefit of, the State trust fund, as determined under procedures established by the Secretary. "(c) FUNDING.— "(1) ISSUANCE OF STOCK.— The Secretary of Agriculture shall make and issue stock, in the same manner as notes are issued

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