Page:United States Statutes at Large Volume 116 Part 1.djvu/368

 116 STAT. 342 PUBLIC LAW 107-171—MAY 13, 2002 "(ii) funds for direct farm ownership loans under section 346(b) were not available at the time at which the application was approved.". SEC. 5003. AMOUNT OF GUARANTEE OF LOANS FOR FARM OPERATIONS ON TRIBAL LANDS. Section 309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)) is amended— (1) in paragraph (4), by striking "paragraphs (5) and (6)" and inserting "paragraphs (5), (6), and (7)"; and (2) by adding at the end the following: "(7) AMOUNT OF GUARANTEE OF LOANS FOR FARM OPER- ATIONS ON TRIBAL LANDS. —In the case of an operating loan made to a farmer or rancher whose farm or ranch land is subject to the jurisdiction of an Indian tribe and whose loan is secured by 1 or more security instruments that are subject to the jurisdiction of an Indian tribe, the Secretary shall guarantee 95 percent of the loan.". SEC. 5004. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS. Section 309 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929) is amended by adding at the end the following: "0") GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS. — The Secretary may guarantee under this title a loan made under a State beginning farmer or rancher program, including a loan financed by the net proceeds of a qualified small issue agricultural bond for land or property described in section 144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.". SEC. 5005. DOWN PAYMENT LOAN PROGRAM. Section 310E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935) is amended— (1) in subsection (b)— (A) in paragraph (1), by striking "30 percent" and inserting "40 percent"; and (B) in paragraph (3), by striking "10 years" ^nd inserting "15 years"; and (2) in subsection (c)(3)(B), by striking "10-year" and inserting "15-year". SEC. 5006. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM. Subtitle A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the following: 7 USC 1936. "SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM. "(a) IN GENERAL. — If the Secretary makes a determination that the risk is comparable under subsection (b), the Secretary shall carry out a pilot program in not fewer than 5 States, as determined by the Secretary, to guarantee up to 5 loans per State in each of fiscal years 2003 through 2007 made by a private seller of a farm or ranch to a qualified beginning farmer or rancher on a contract land sale basis, if the loan meets applicable underwriting

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