Page:United States Statutes at Large Volume 110 Part 1.djvu/1153

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 1129 Service, Rural Housing Service, Rural Business-Cooperative Service, or a successor agency, or"; and (3) by inserting after "activities under the Housing Act Notification. of 1949." the following: "In the case of a security instrument entered into under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify the Attorney General of the intent of the Secretary to exercise the authority of the Secretary under this paragraph.". SEC. 749. AUTHORIZATION OF APPROPRIATIONS. (a) IN GENERAL.—Section 338 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1988) is amended— (1) by striking subsections (b), (c), (d), and (e); and (2) by redesignating subsection (f) as subsection (b). (b) CONFORMING AMENDMENTS.— (1) The first sentence of section 309(g)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(g)(1)) is amended by inserting after "section 338(c)" the following: "(before the amendment made by section 749(a)(1) of the Federal Agriculture Improvement and Reform Act of 1996)". (2) Section 343(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(b)) is amended by striking " 338(f)," and inserting "338(b),". SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES. Section 345 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1993) is repealed. SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES. Section 363 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006e) is amended by adding at the end the following: "This section shall not apply to a loan made or guaranteed under this title for a utility line.". SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM. The Consolidated Farm and Rural Development Act is amended by inserting after section 363 (7 U.S.C. 2006e) the following: "SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM. 7 USC 2006f. " (a) CERTIFIED LENDERS PROGRAM.— "(1) IN GENERAL. — The Secretary may establish a program under which the Secretary may guarantee a loan for any rural development program that is made by a lender certified by the Secretary. "(2) CERTIFICATION REQUIREMENTS.— The Secretary may certify a lender if the lender meets such criteria as the Secretary may prescribe in regulations, including the ability of the lender to properly make, service, and liquidate the guaranteed loans of the lender. "(3) CONDITION OF CERTIFICATION.— As a condition of certification, the Secretary may require the lender to undertake to service the guaranteed loan using standards that are not less stringent than generally accepted banking standards concerning loan servicing that are used by prudent commercial or cooperative lenders. "(4) GUARANTEE. — Notwithstanding any other provision of law, the Secretary may guarantee not more than 80 percent of a loan made by a certified lender described in paragraph 29-194O-96 -37:QL3Part1

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