Page:United States Statutes at Large Volume 86.djvu/702

 PUBLIC LAW 92-419-AUG. 30, 1972

[86 STAT.

loans, has a community water supply system, where the Secretary determines that due to unanticipated diminution or deterioration of its water supply, immediate action is needed, or in the case of waste disposal, has a community waste disposal system, where the Secretary determines that due to unanticipated occurrences the system is not adequate to the needs of the community. The Secretary shall utilize the Soil Conservation Service in rendering technical assistance to applicants under this paragraph to the extent he deems appropriate." SEC. 113. INTEREST RATES ON RURAL DEVELOPMENT LOANS.—Section 75 Stat. 308. 7 USC 1927.

658"'^' ^^* ^ " ' Post, p. 663.

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307(a) of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting before the period at the end of the second sentence thereof the following: "; except that loans (other than loans to public bodies or nonprofit associations (including Indian tribes on Federal and State reservations and other federally recognized Indian tribal groups) for community facilities, or loans of a type authorized by section 306(a)(1) prior to its amendment by the Rural Develop"lent Act of 1972) made or insured under section 304(b), 306(a)(1), "T- 310B shall— (1) when made other than as guaranteed loans, bear interest at a rate, prescribed by the Secretary, not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States comparable to the average maturities of such loans, adjusted in the judgment of the Secretary of the Treasury to provide for a rate comparable to the rates prevailing in the private market for similar loans and considering the Secretary's insurance of the loans, plus an additional charge, prescribed by the Secretary, to cover the Secretary's losses and cost of «i administration, which charge shall be deposited in the Rural m Development Insurance F u n d: Provided, That the rate so prescribed shall be adjusted to the nearest one-eighth of 1 per centum; and (2) when made as guaranteed loans, bear interest at such rate as may be agreed upon by the borrower and the lender". SEC. 114. ESCROW PAYMENTS.—Section 307(a) of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting before the period at the end the following:", and borrowers under this title shall prepay to the Secretary as escrow agent such taxes and insurance as he may require, on such terms and conditions as he may prescribe". SEC. 115. AGRICULTURAL CREDIT INSURANCE F U N D AMENDMENTS.—

82lta?V7f ^' 7 USC 1929.

(a) Section 309(f) of the Consolidated Farmers Home Administration Act of 1961 is amended by— (1) changing "$100,000,000" to "$500,000,000" in paragraph (1); (2) changing paragraph (2) by— (A) striking out "the interest" and inserting in lieu thereof "amounts"; (B) changing "prepayments" to "payments" in all three places; and (C) inserting after "until due" the following: "or until the next agreed annual or semiannual remittance date". (3) striking out "section 335(a) in connection with insured loans." in paragraph (5) and inserting in lieu thereof "connection with insured loans, including the difference between interest payable by borrowers and interest to which insured lenders or insured holders are entitled vmder agreements with the Secretary included in contracts of insurance.". (4) inserting in paragraph (5) after "to pay" the following: "for contract services,".

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