Page:United States Statutes at Large Volume 106 Part 5.djvu/505

 PUBLIC LAW 102-554—OCT. 28, 1992 106 STAT. 4143 SEC. 4. INTEREST RATE FOR LOANS SOLD INTO SECONDARY MARKET; GUARANTEED LOAN FEES. Section 309(h) (7 U.S.C. 1929(h)) is amended— (1) by inserting "(1)" after "(h)"; and (2) by adding at the end the following new paragraphs: "(2) The interest rate payable by a borrower on the portion of a guaranteed loan that is sold by a lender to the secondary market under this title may be lower than the interest rate charged on the portion retained by the lender, but shall not exceed the average interest rate charged by the lender on loans made to farm and ranch borrowers. "(3) With regard to any loan guarantee on a loan made by a commercial or cooperative lender related to a loan made by the Secretary under section 310E— "(A) the Secretary shall not charge a fee to any person (including a lender); and "(B) a lender may charge a loan origination and servicing fee in an amount not to exceed 1 percent of the amount of the loan.". SEC. 5. FEDERAL -STATE BEGINNING FARMER PARTNERSHIP. Inter- (a) COORDINATION OF ASSISTANCE FOR QUALIFIED BEGINNING relations^" ^ FARMERS AND RANCHERS.— Section 309 (7 U.S.C. 1929) is amended by adding at the end the following new subsection: "(i)(l) Not later than 60 days after any State expresses to the Secretary, in writing, a desire to coordinate the provision of financial assistance to qualified beginning farmers and ranchers in the State, the Secretary and the State shall conclude a joint memorandum of understanding that shall govern the coordination of the provision of the financial assistance by the State and the Secretary. "(2) The memorandum of understanding shall provide that if a State beginning farmer program makes a commitment to provide a qualified beginning farmer or rancher with financing to establish or maintain a viable farming or ranching operation, the Secretary shall, subject to applicable law, normal loan approval criteria, and the availability of funds provide the farmer or rancher with a down payment loan under section 310E or a guarantee of the financing provided by the State program, or both. "(3) The Secretary shall not charge any person (including a lender) any fee with respect to the provision of any guarantee under this subsection. "(4) The Secretary shall notify each State of the provisions of this subsection. "(5) As used in paragraph (1), the term 'State beginning farmer program' means any program that is— "(A) carried out by, or under contract with, a State; and "(B) designed to assist persons in obtaining the financial assistance necessary to enter agriculture and establish viable farming or ranching operations.". (b) ADVISORY COMMITTEE. — 7 USC 1921 note. (1) ESTABLISHMENT; PURPOSE. —Not later than 18 months after the date of enactment of this Act, the Secretary of Agriculture shall establish an advisory committee, to be known as the "Advisory Committee on Beginning Farmers and Ranchers", which shall provide advice to the Secretary on—

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