Page:United States Statutes at Large Volume 110 Part 1.djvu/1113

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 1089 the Occupational Safety and Health Act of 1970 (29 U.S.C. 655) or a standard adopted by a State under a plan approved under section 18 of the Act (29 U.S.C. 667), if the Secretary determines that without assistance under this paragraph the farmer or rancher is likely to suffer substantial economic injury due to compliance with the standard; "(8) training a borrower under section 359; or "(9) providing other farm, ranch, or home needs, including family subsistence. " (c) HAZARD INSURANCE REQUIREMENT.— "(1) IN GENERAL.— After the Secretary makes the determination required by paragraph (2), the Secretary may not make a loan to a farmer or rancher under this subtitle unless the farmer or rancher has, or agrees to obtain, hazard insurance on the property to be acquired with the loan. "(2) DETERMINATION.—Not later than 180 days after the date of enactment of this paragraph, the Secretary shall determine the appropriate level of insurance to be required by paragraph (1). " (d) PRIVATE RESERVE.— "(1) IN GENERAL. — Notwithstanding any other provision of this title, the Secretary may reserve a portion of any loan made under this subtitle to be placed in an unsupervised bank account that may be used at the discretion of the borrower for the basic family needs of the borrower and the immediate family of the borrower. "(2) LIMIT ON SIZE OF THE RESERVE. —The size of the reserve shall not exceed the least of— "(A) 10 percent of the loan; "(B) $5,000; or "(C) the amount needed to provide for the basic family needs of the borrower and the borrower's immediate family for 3 calendar months.", (b) TRANSITIONAL PROVISION.— Section 312(c)(1) of the ConsoH- 7 USC 1942 note. dated Farm and Rural Development Act shall not apply until the Secretary of Agriculture makes the determination required by section 312(c)(2) of the Act. SEC. 613. PARTICIPATION IN LOANS. ^ Section 315 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1945) is repealed. SEC. 614. LINE-OF-CREDIT LOANS. Section 316 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946) is amended by adding at the end the following: "(c) LINE-OF-CREDIT LOANS.— "(1) IN GENERAL. —^A loan made or guaranteed by the Secretary under this subtitle may be in the form of a line-of- credit loan. "(2) TERM.— ^A line-of-credit loan under paragraph (1) shall terminate not later than 5 years after the date that the loan is made or guaranteed. "(3) ELIGIBILITY.— For purposes of determining eligibility for a farm operating loan under this subtitle, each year during which a farmer or rancher takes an advance or draws on a line-of-credit loan the farmer or rancher shall be considered to have received an operating loan for 1 year.

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