Page:United States Statutes at Large Volume 92 Part 1.djvu/480

 92 STAT. 426

PUBLIC LAW 9 5 - 3 3 4 — A U G. 4, 1978 LIMITATIONS ON FARM OPERATING LOANS

7 USC 1943.

SEC. 116. Section 313 of the Consolidated F a r m and R u r a l Development Act is amended to read as follows: " SEC. 313. The Secretary shall make or insure no loan under this subtitle (1) that would cause the total principal indebtedness outstanding at any one time for loans made under this subtitle to any one borrower to exceed, in the case of a loan other than a loan guaranteed by the Secretary, $100,000, or, in the case of a loan guaranteed by the Secretary, $200,000; or (2) for the purchasing or leasing of land other than for cash rent, or for carrying on any land leasing or land purchasing program.". FARM OPERATING LOAN INTEREST RATES; CONSOLIDATION AND RESCHEDULING OF LOANS

7 USC 1946.

SEC. 117. Section 816 of the Consolidated F a r m and R u r a l Development Act is amended to read as follows: " SEC. 316. (a) The Secretary shall make all loans under this subtitle upon the full personal liability of the borrower and upon such security as the Secretary may prescribe. The interest rates on such loans, except for guaranteed loans, shall be as determined by the Secretary, but not in excess of 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, plus an additional charge not to exceed 1 per centum as determined by the Secretary, which charge shall be deposited in the R u r a l Development Insurance F u n d or the Agricultural Credit Insurance F u n d, as appropriate, and adjusted to the nearest one-eighth of 1 per centum. The interest rate on any guaranteed loan made under this subtitle shall be such rate as may be agreed upon by the borrower and lender, but not in excess of a rate as may be determined by the Secretary. " (b) Loans made under this subtitle shall be payable in not to exceed seven years. The Secretary may consolidate or reschedule outstandingloans for payment over a period not to exceed seven years from the date of such consolidation or rescheduling, and the amount of unpaid principal and interest of the prior loans so consolidated or rescheduled shall not create a new charge against any loan levels authorized by law. A new loan may be included in a consolidation. Such new loan shall be charged against any loan level authorized by law. The interest rate on such consolidated or rescheduled loans, other than guaranteed loans, may be changed by the Secretary to a rate not to exceed the rate, being charged for loans made under this subtitle a t the time of the consolidation or rescheduling. The interest rate on any guaranteed loan under this subtitle that may be consolidated or rescheduled for payment 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.". EMERGENCY

7 USC 1961.

LOAN

ELIGIBILITY

SEC. 118. Section 321 of the Consolidated F a r m and R u r a l Development Act is amended to read as follows: " SEC. 321. The Secretary shall make and insure loans under this subtitle to (1) established farmers, ranchers, or persons engaged in aquaculture, who are citizens of the United States, and (2) to farm cooperatives or private domestic corporations or partnerships in which a majority interest is held by members, stockholders, or part n e r s who

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