Page:United States Statutes at Large Volume 112 Part 4.djvu/68

 112 STAT. 2681-39 PUBLIC LAW 105-277—OCT. 21, 1998 "(B) EXCEPTION.— Subparagraph (A) shall not apply to emergency loans under subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.).". SEC. 804. Section 302 of the Consolidated Fsirm and Rural Development Act (7 U.S.C. 1922) is amended by adding at the end the following: "(D) NOTICE. — Beginning with fiscal year 2000 not later than 12 months before a borrower will become ineligible for direct loans under this subtitle by reason of this paragraph, the Secretary shall notify the borrower of such impending ineligibility.". SEC. 805. The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended— (1) in section 302(a)(2) (7 U.S.C. 1922(a)(2)), by inserting "for direct loans only," before "have either"; (2) in section 311(a)(2) (7 U.S.C. 1941(a)(2)), by inserting "for direct loans only," before "have either"; and (3) in section 359 (7 U.S.C. 2006a)— (A) in subsection (a), by striking "and guaranteed"; and (B) in subsection (c), by striking "or guarsinteed" each place it appears. SEC. 806. (a) Section 305 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1925) is amended— (1) by striking "Sec. 305. The Secretary" and inserting the following: <«EC. 305. LIMITATIONS ON AMOUNT OF FARM OWNERSHIP LOANS. "(a) IN GENERAL.— The Secretary'; (2) by striking "$300,000 " and inserting "$700,000 (increased, beginning with fiscal year 2000, by the inflation percentage applicable to the fiscal year in which the loan is guaranteed and reduced by the amount of any unpaid indebtedness of the borrower on loans under subtitle B that are guaranteed by the Secretary)"; (3) by striking "In determining" and inserting the following: "(b) DETERMINATION OF VALUE. — In determining"; and (4) by adding at the end the following: "(c) INFLATIONftjRCENTAGE.— Forpurposes of this section, the inflation percentage applicable to a fiscal year is the percentage (if any) by which— "(1) the average of the Prices Paid By Farmers Index (as compiled by the National Agricultural Statistics Service of the Department of Agriculture) for the 12-month period ending on August 31 of the immediately preceding fiscal year; exceeds "(2) the average of such index (as so defined) for the 12- month period ending on August 31, 1996.", (b) Section 313 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1943) is amended— (1) by striking "Sec. 313. The Secretary" and inserting the following: "SEC. 313. LIMITATIONS ON AMOUNT OF OPERATING LOANS. "(a) IN GENERAL. — The Secretary"; (2) by striking "this subtitle (1) that would cause" and inserting "this subtitle— '- "(1) that would cause"; ,;

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