Page:United States Statutes at Large Volume 92 Part 1.djvu/486

 92 STAT. 432

PUBLIC LAW 95-334—AUG. 4, 1978 FUNDING;

LIMITATION

ON OUTSTANDING

LOANS

7 USC prec.1961 SEC. 207. (a) The fund created in section 309 of the Consolidated 7**ff<5r 1Q90 F a r m and R u r a l Development Act shall be used by the Secretary for 7 UbC 1929. YiQ operation of the loan program, and for the discharge of the obligations incurred by the Secretary, under this title. The Secretary may use such fund to (1) pay administrative expenses of the Secretary necessary to insure, guarantee, and service loans, and otherwise carry out the provisions of this title, and (2) purchase, on such terms and conditions as the Secretary may deem appropriate, all or any portion of any loan insured or guaranteed under this title, or to defer payments of principal and interest with respect to such loan and pay expenses and fees incident to such purchase or deferral. There shall be reimbursed to such fund by appropriations annually an amount equal to the costs incurred in the operation and administration of the program created by this title.

7 USC 1922, 1941.

(b) The total principal balance outstanding at any time on loans insured or guaranteed under this title for any borrower shall not exceed $400,000: Provided, That no loan may be insured or guaranteed under this title to a borrower who has any loans outstanding under subtitle A or B of the Consolidated Farm and Rural Development Act that would cause the total outstanding principal indebtedness under this title and subtitles A and B of the Consolidated Farm and Rural Development Act to exceed $650,000, and no loan may be made, insured, or guaranteed under subtitle A or B of the Consolidated Farm and Rural Development Act to any borrower who has any loans outstanding under this title that would cause the total outstanding principal indebtedness under subtitles A and B of the Consolidated Farm and Rural Development Act and this title to exceed $650,000. (c) The total principal balance outstanding at any time on loans insured or guaranteed under this title shall not exceed $4,000,000,000. F U L L F A I T H AND CREDIT

7 USC prec. 1961 SEC. 208. Any contract of guarantee or insurance executed by the °otSecretary under this title shall be an obligation supported by the full faith and credit of the United States and incontestable except for fraud or misrepresentation of which the holder has actual knowledge at the time it becomes a holder. ISSUANCE OF C E R T I F I C A ' I ' E S OF BENEFICIAL O W N E R S H I P; CONTRACTS OF GUARANTEE ASSIGNABLE; REGULATIONS

7 USC prec. 1961 SEC. 209. (a) The provisions of section 310B(6) of the Consolidated note. Farm and Rural Development Act shall apply to loans insured or 7 USC 1932. guaranteed under this title. The Secretary is authorized to handle loans guaranteed jmder this title in the same manner as loans guar7 USC 1921 note, anteed under the Consolidated Farm and Rural Development Act. (b) Contracts of guarantee executed pursuant to the provisions of this title shall be fully assignable. (c) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out this title. Final regulations shall be issued as soon as possible, but in no event later than thirty days after the date of enactment of this title. Insofar as practicable, the Secretary shall complete action on each loan application within thirty days after its receipt.

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