Page:United States Statutes at Large Volume 106 Part 5.djvu/518

 106 STAT. 4156 PUBLIC LAW 102-554—OCT. 28, 1992 adequate if the income is equal to or greater than the income necessary— (1) to make principal and interest payments on all debt obligations of the borrower, in a timely manner; "(2) to cover the necessary Uving expenses of the family of the borrower; and "(3) to pay all other obligations and expenses of the borrower not financed through debt obligations referred to in paragraph (1), including expenses of replacing capital items (determined aiier taking into account depreciation of the items). "(c) CERTIFIED LENDERS PROGRAM. — under which the Secretary shall guarantee loans for any purpose specified in subtitle B that are made by lending institutions certified by the Secretary. certify a lending institution that meets such criteria as the Secretary may prescribe in regulations, including the ability of the institution to properly make, service, and liquidate the loans of the institution. "(3) CONDITION OF CERTIFICATION.— AS a condition of the certification, the Secretary shall require the institution to undertake to service the loans guaranteed by the Secretary under this subsection, using standards that are not less stringent than generedly accepted banking standards concerning loan servicing employed by prudent commercial or cooperative lenders. The Secretary shall, at least annually, monitor the performance of each certified lender to ensure that the conditions of the certification are being met. " (4) EFFECT OF CERTIFICATION. —Notwithstanding any other provision of law: "(A) The Secretary shall guarantee 80 percent of a loan made under this subsection by a certified lending institution as described in paragraph (1), subiect to county committee certification that the Dorrower of the loan meets the eligibility requirements and such other criteria as may be applicable to loans guaranteed by the Secretary under other provisions of this title. "(B) With respect to loans to be guaranteed by the Secretary under this subsection, the Secretary shall permit certified lending institutions to make appropriate certifications (as provided by regulations issued by the Secretary)— "(i) relating to issues such as creditworthiness, repayment ability, adequacy of collateral, and feasibilysr ity of farm operation; and "(ii) that the borrower is in compliance with all requirements of law, including regulations issued by the Secretary. "(C) The Secretary shall approve or disapprove a guarantee not later than 14 calendar days after the date that the lending institution applied to the Secretary for the guarantee. If the Secretary rejects the loan application within the 14-day period, the Secretary shall state, in writing, all of the reasons the application was rejected. "(5) RELATIONSfflP TO OTHER REQUIREMENTS. —Neither this subsection nor subsection (d) shall affect the responsibility of
 * (1) IN GENERAL.— The Secretary shall establish a program
 * (2) CERTIFICATION REQUIREMENTS.— The Secretary shall

�