Page:United States Statutes at Large Volume 88 Part 1.djvu/435

 88 STAT. ]

PUBLIC LAW 93-357-JULY 25, 1974

391

Public Law 93-357 AN ACT To provide temporary emergency livestock financing through the establishment of a guaranteed loan program. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Emergency Livestock Credit Act of 1974". SEC. 2. (a) The Secretary of Agriculture is authorized and directed to provide financial assistance to bona fide farmers and ranchers who are primarily and directly engaged in agricultural production for the purpose of breeding, raising, fattening, or marketing livestock. In the case of corporations or partnerships, such financial assistance shall be extended only when a majority interest in such corporations or partnerships is held by stockholders or partners who themselves are primarily and directly engaged in such agricultural production. For purposes of this Act, the term "livestock" shall mean beef cattle, dairy cattle, swine, sheep, goats, chickens, and turkeys. (b) The Secretary shall guarantee loans, including both principal and interest, made by any legally organized lending agency which otherwise meet the purposes and conditions of this Act, As used herein, a guaranteed loan is one which is made, held, and serviced by a legally organized lending agency and which is guaranteed by the Secretary hereunder: Provided, That the term "legally organized lending agency" shall not be deemed to include the Federal Financing Bank. (c) No contract guaranteeing any such loan by a lender shall require the Secretary to participate in more than 80 per centum of any loss sustained thereon. (d) No fees or charges shall be assessed by the Secretary for any guarantee provided by him under this Act. (e) Loans guaranteed under this Act shall bear interest at a rate to be agreed upon by the lender and borrower. (f) Loans guaranteed under this Act shall be payable in not more than three years, but may be renewed for not more than two additional years. SEC. 3. As a condition of the Secretary's guaranteeing any loan under this Act— (a) The lender shall certify that— (1) the lender is unwilling to provide credit to the loan applicant in the absence of the guarantee authorized by this Act; (2) the loan applicant is directly and in good faith engaged in agricultural production, and the financing to be furnished the loan applicant is to be used for purposes related to the breeding, raising, fattening, or marketing of livestock; (3) the loan is for the purpose of maintaining the operations of the loan applicant, and the total loans made to the loan applicant do not exceed the amount necessary to permit the continuation of his livestock operations at a level equal to its highest level during the eighteen months immediately preceding the date of enactment of this Act: Provided, That the total loans guaranteed under this Act for any loan applicant shall not exceed $250,000; (4) in the case of any loan to refinance the livestock operations of a loan applicant (i) the loan and refinancing are absolutely essential in order for the loan applicant to remain in business, (ii) the lending agency would not refinance such loan in the absence of a guarantee, and (iii) the lending agency is not currently refinancing similar loans to others without such guarantees. (b) The loan applicant shall certify that he will be unable to obtain financing in the absence of the guarantee authorized by this Act.

July 25, 1974 [S.3679]

Emergency L i v e s to c k Credit Act of 1974. 7 USC prec. 1961 note.

'Livestock.'

Loan g u a r a n t e e.

" L e g a l l y organized lending agency."

Interest r a t e.

Loan certification. 7 USC prec, 1961 note.

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