Page:United States Statutes at Large Volume 110 Part 1.djvu/1115

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 1091 Subtitle C—Emergency Loans SEC. 621. HAZARD INSURANCE REQUIREMENT. (a) IN GENERAL. —Section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended by striking subsection (b) and inserting the following: "(b) 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 to cover a property loss unless the farmer or rancher had hazard insurance that insured the property at the time of the loss. " (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 under paragraph (1).". (b) TRANSITIONAL PROVISION.— Section 321(b)(1) of the Consoli- 7 USC i96i note, dated Farm and Rural Development Act shall not apply until the Secretary of Agriculture makes the determination required by section 321(b)(2) of the Act. SEC. 622. NARROWING OF AUTHORITY TO WAIVE APPLICATION OF THE CREDIT ELSEWHERE TEST. The second proviso of section 322(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1962(b)) is amended by striking "$300,000 or less" and inserting "$100,000 or less". SEC. 623. LINKING OF EMERGENCY LOANS FOR CROP OR LIVESTOCK CHANGES TO NATURAL DISASTERS. Section 323 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1963) is amended by inserting "that are necessitated by a natural disaster, major disaster, or emergency and that are" after "livestock changes". SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS. Section 324 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964) is amended by striking "SEC. 324. (a) No loan" and all that follows through the end of subsection (a) and inserting the following: "SEC. 324. TERMS OF LOANS. "(a) MAXIMUM AMOUNT OF LOAN.—The Secretary may not make a loan under this subtitle to a borrower who has suffered a loss in an amount that— "(1) exceeds the actual loss caused by a disaster; or "(2) would cause the total indebtedness of the borrower under this subtitle to exceed $500,000.". SEC. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION. The last sentence of section 324(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964(d)) is amended by striking "value the assets" and all that follows through the period and inserting "establish the value of the assets as of the day before the occurrence of the natural disaster, major disaster, or emergency that is the basis for a request for assistance under

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