Page:United States Statutes at Large Volume 110 Part 1.djvu/1117

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 1093 SEC. 634. CLARIFICATION OF WRITTEN STATEMENT REQUIRED OF BORROWERS. Section 333(1)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983(1)(B)) is amended by striking "a written statement showing the applicant's net worth" and inserting "an appropriate written financial statement". SEC. 635. ANNUAL REVIEW OF THE CREDIT HISTORY, BUSINESS OPER- ATION, AND CONTINUED ELIGIBILITY OF A BORROWER. (a) IN GENERAL.—Section 333 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983) is amended— (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; and (2) by inserting after paragraph (1) the following: "(2) except with respect to a loan under section 306, 310B, or 314, the county or area committee established under section 8(b)(5)(B) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)) to certify in writing— "(A) that an annual review of the credit history and business operation of the borrower has been conducted; and "(B) that a review of the continued eligibility of the borrower for the loan has been conducted;". (b) CONFORMING AMENDMENT. —The third sentence of section 310B(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)) is amended by striking "(3) of and inserting "(4) of. SEC. 636. EXTENSION OF VETERANS PREFERENCE. Section 333 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983) (as amended by section 635(a)) is amended by striking paragraph (5) and inserting the following: "(5) the application of a person who is a veteran of any war, as defined in section 101(12) of title 38, United States Code, for a loan under subtitle A or B to be given preference over a similar application from a person who is not a veteran of any war, if the applications are on file in a county or area office at the same time.". SEC. 637. VERIFICATION OF THE CREDIT ELSEWHERE TEST. Section 333A(f)(4) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983a(f)(4)) is amended— (1) by striking "(4) With" and all that follows through "seasoned" and inserting the following: " (4) VERIFICATION.— "(A) IN GENERAL.— The Secretary shall provide a prospectus of a seasoned"; and (2) by striking "If the Secretary" and inserting the following: "(B) NOTIFICATION.— The Secretary shall notify each borrower of a loan that a prospectus has been provided to a lender under subparagraph (A). "(C) CREDIT EXTENDED.— I f the Secretary". SEC. 638. SALE OF PROPERTY. Section 335 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985) is amended—

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