Page:United States Statutes at Large Volume 86.djvu/708

 666

PUBLIC LAW 92-419-AUG. 30, 1972

Report to P r e s i d e n t, transmittal to Congress.

Fidelity b o n d s.

Ante,

p. 202.

Interest payments.

[86 STAT.

following: ". and until January 1, 1975, make contracts for services incident to making, insuring, collecting, and servicing loans and property as determined by the Secretary to be necessary foi" carrying out the purposes of this title; (and the Secretary shall prior to June 80, 1974, report to the Congress through the President on the experience in using such contracts, together with recommendations for- such legislation as he may see fit)*'; and (2) by changing the period at the end of any lettered paragraph thereof to a semicolon and adding at the end of such section the following additional paragraphs: " (g) Obtain fidelity bonds protecting the Government against fraud and dishonesty of officers and employees of the Farmers Home Administration in lieu of faithful performance of duties bonds under section 14, title 6, United States Code, and regulations issued pursuant thereto, but otherwise in accordance with the provisions thereof; " (h) Not require borrowers to pay interest accrued after* December 81, 1972, on interest which is not more than 90 days.overdue on any loan held or insured by the Farmers Home Administration; "'(i) Consent to the transfer of property securing any loan or financed by any loan or grant made, insured, or held by the Secretary under this title, or the provisions of any other law administered by the F'armers Home Administration, upon such terms as he deems necessary to carry out the purpose of the loan or grant or to protect the financial interest of the Government."' SEC. 125. CREDIT ELSEWHERE DETERMINATION.—Paragraph (a)

75 Stat. 314. 7 USC 1983.

of

section 888 is amended by inserting after ""in writing'' the following: ", and the Secretary shall determine,". SEC. 126. REPEAL OF COUNTY COMMITTEE APPROVAL REQUIREMENT

7 USC 1961.

FOR Associ.vTioN AND DISTRICT LoANS.—Section 388(b) of the Consolidated Farmers Home Administration Act of 1961 is amended by striking out the words "said sections'' and inserting "section 821(b)(2)". SEC. 127. DISPOSITION or REAL PROPERTY.—Section 385(c) of

7 USC 1985.

Definitions. 76 Stat. 632; 80 Stat. 809. 7 USC 1991.

75 Stat. 308. 7 USC 1927. 7 USC 1921 note.

the

Consolidated Farmers Home Administration Act of 1961 is amended by— (1) striking out "subtitle A" in the first sentence and inserting in lieu thereof "the provisions of any law administered by the Farmers Home Administration"; (2) striking out "the provisions of subtitle A " in the second sentence and inserting in lieu thereof "such provisions"; (8) striking out in the fourth sentence "of at least 20 per centum" and "not more than five annual"; and (4) adding at the end of the fourth sentence before the period the following: ", but not in any event at rates and terms more favorable than those legally permissible for eligible borrowers". SEC. 128. (a) GUARANTEE OF LOANS.—Section 348 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting at the end thereof before the period the following: ", and (4) the word 'insure' as used in this title includes guarantee, which means to guarantee the payment of a loan originated, held, and serviced by a private financial agency or other lender approved by the Secretary, and (5) the term 'contract of insurance' includes a contract of guarantee". (b) Section 807(b) of the Consolidated Farmers Home Administration Act of 1961 is amended by changing "shall" to "may" in the second sentence. SEC. 129. ORDER OF PREFERENCE, EXTENT OF GUARANTY.—The Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof the following new section:

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