Page:United States Statutes at Large Volume 95.djvu/403

 PUBLIC LAW 97-35—AUG. 13, 1981 for outstdnding municipal obligations with remaining periods to maturity comparable to the average maturity for such loans, and adjusted to the nearest one-eighth of 1 per centum; and not in excess of 5 per centum per annum for any such loans which are for the upgrading of existing facilities or construction of new facilities as required to meet applicable health or sanitary standards in areas where the median family income of the persons to be served by such facility is below the poverty line prescribed by the Office of Management and Budget as adjusted under section 624 of the Economic Opportunity Act of 1964 (42 U.S.C 2971d) and in other areas as the Secretary may designate where a significant percentage of the persons to be served by such facilities are of low income, as determined by the Secretary. "(B) Except as provided in paragraph (6), the interest rates on loans (other than guaranteed loans) under section 310D of this title shall be as determined by the Secretary, but not in excess of one-half 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, nor less than 5 per centum per annum."; and (4) adding at the end thereof a new paragraph (6) as follows: "(6)(A) Notwithstanding any other provision of this section, in the case of loans (other than guaranteed loans) made or insured under the authorities of this Act specified in subparagraph (B) for activities that involve the use of prime farmland as defined in subparagraph (C), the interest rates shall be the interest rates otherwise applicable under this section increased by 2 per centum per annum. Wherever practicable, construction by a State, municipality, or other political subdivision of local government that is supported by loans described in the preceding sentence shall be placed on land that is not prime farmland, in order to preserve the maximum practicable amount of prime farmlands for production of food and fiber. Where other options exist for the siting of such construction and where the governmental authority still desires to carry out such construction on prime farmland, the 2 per centum interest rate incregise provided by this clause shall apply, but such increased interest rate shall not apply where such other options do not exist. "(B) The authorities referred to in subparagraph (A) are— "(i) clauses (2) and (3) of section 303(a), "(ii) the provisions of section 304(a) relating to the financing of outdoor recreational enterprises or the conversion of farming or rsmching operations to recreational uses, "(iii) section 304(b), "(iv) the provisions of section 306(a)(l) relating to loans for recreational developments and essential community facilities, "(v) section 306(a)(15), "(vi) clause (1) of section 310B(a), "(vii) subsections (d) and (e) of section 310B, and "(viii) section 310D(a) as it relates to the making or insuring of loans under clauses (2) and (3) of section 303(a). "(C) For purposes of this paragraph, the term 'prime farmland' means prime farmlands and unique farmland as those terms are defined in sections 657.5 (a) and (b) of title 7, Code of Federal Regulations (1980).". (b) Section 316(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1946(a)) is amended by— (1) inserting "(1)" after "(a)";

95 STAT. 377

'7 USC 1934.

7 USC 1923. '^ use 1924.

'^ use 1926. 7 USC 1932. 7 USC 1934. "Prime farmland."

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