Page:United States Statutes at Large Volume 92 Part 1.djvu/477

 PUBLIC LAW 95-334—AUG. 4, 1978

92 STAT. 423

nized Indian tribal groups) for water and waste disposal facilities and essential community facilities shall be as determined by the Secretary, but not in excess of 5 per centum per annum. "(4) The interest rates on loans under sections 304(b), 306(a)(1), and 310B of this title (other than guaranteed loans and loans as 7 USC 1924, described in paragraph (3) of this subsection) shall be as determined 1926, 1932. by the Secretary, but not less than such rates as determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted in the judgment of the Secretary of the Treasury to provide for rates 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 administration, which charge shall be deposited in the Rural Development Insurance Fund, and further adjusted to the nearest one-eighth of 1 per centum. "(5) The interest rate on any loan made under this subtitle as a guaranteed loan shall be such rate as may be agreed upon by the borrower and the lender, but not in excess of a rate as may be determined by the Secretary."; (2) redesignating subsection (b) as subsection (c); and (3) inserting a new subsection (b) as follows: "(b) The borrower shall pay such fees and other charges as the Secretary may require, and borrowers under this title shall prepay to the Secretary such taxes and insurance as the Secretary may require, on such terms and conditions as the Secretary may prescribe.". REPEAL OF LIMITATION ON AMOUNT OF OUTSTANDING LOANS UNDER THE AGRICULTURAL CREDIT INSURANCE F U N D; USE OF THE AGRICULTURAL CREDIT INSURANCE FUND FOR P A Y M E N T OF COSTS OF ADMINISTRATION

SEC. 109. (a) Section 309(f) of the Consolidated Farm and Rural Development Act is amended by— (1) in paragraph (1), changing the period at the end of the first sentence to a semicolon and striking out the second sentence therein which reads: "The aggregate of the principal of such loans made and not disposed of shall not exceed $500,000,000 at any one time;"; (2) striking out "and" at the end of paragraph (4), and changing the period at the end of paragraph (5) to a semicolon; and (3) adding at the end thereof new paragraph (6) as follows: "(6) to pay the Secretary's costs of administration necessary to insure, make grants, service, and otherwise carry out the programs under this title not specifically covered by the Rural Development Insurance Fund of section 309A, including costs of the Secretary incidental to guaranteeing loans under this title, either directly from the Fund or by transfers from the Fund to, and merger w ith, any appropriations for administrative expenses.". (b) Section 328 of the Consolidated Farm and Rural Development Act is amended by striking out ": Provided, That loans made under this section shall not be included in applying the $500,000,000 limitation in section 309(f)(1) ".

7 USC 1929.

7 USC 1929a.

7 USC 1968. 7 USC 1929.

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