Page:United States Statutes at Large Volume 92 Part 1.djvu/485

 PUBLIC LAW 95-334—AUG. 4, 1978

92 STAT. 431

(d) No fees or charges shall be assessed by the Secretary for any loan insured or for any guarantee provided under this title. LOAX CERTIFICATIONS AND CONDITIONS

SEC. 205. (a) As a condition of the Secretary's guaranteeing any 7 USC prec. 1961 loan under this title, the lender shall certify that— note. (1) the lender is unwilling to provide credit to, or continue with, the loan applicant in the absence of the guarantee authorized by this title; (2) the loan applicant is directly and in good faith engaged in agricultural production; and (3) the financing to be furnished the loan applicant is to be used for one or more of the purposes set forth in section 203 of this title. (b) As a condition of the Secretary's insuring any loan under this title, the loan applicant shall certify that— (1) the loan applicant will be unable to obtain financing in the absence of the assistance authorized by this title; (2) the loan applicant is directly and in good faith engaged in agricultural production; and (3) the financing to be furnished the loan applicant is to be used for one or more of the purposes set forth in section 203 of this title. (c) As a condition of insuring or guaranteeing any loan under this title, the Secretary must find that there is reasonable probability of accomplishing the objectives of this title and repayment of the loan. (d) The Secretary shall require— (1) the county committee authorized under section 332 of the Consolidated Farm and Rural Development Act to certify in 7 USC 1982. writing that the applicant for a loan under this title meets the eligibility requirements for the loan, has the character, industry, and ability to carry out the proposed operations, and will, in the opinion of the committee, honestly endeavor to carry out the applicant's undertakings and obligations; and (2) except for guaranteed loans, an agreement by the applicant for a loan under this title that if at any time it shall appear to the Secretary that the applicant may be able to obtain a loan from a production credit association, a Federal land bank, or other responsible cooperative or private credit source, at reasonable rates and terms for loans for similar purposes and periods of time, the applicant will, upon request by the Secretary, apply for and accept such loan in an amount sufficient to repay the Secretary or the insured lender, or both, and pay for any stock in a cooperative lending agency that must be purchased in connection with such loan. LOAN

SECURITY

SEC 206. Ix)ans shall be insured or guaranteed under this title upon 7 USC prec. 1961 the full personal liability of the borrower secured by such collateral note, as is available that, together with the confidence of the Secretary, and, for guaranteed loans, the confidence of the lender, in the repayment ability of the loan applicant, is deemed by the Secretary adequate to protect the Government's interest. The collateral may be subject to a prior lien or may be collateral that has depreciated in value owing to temporary economic conditions.

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