Page:United States Statutes at Large Volume 95.djvu/405

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 379

INSURED LOAN LIMITS

SEC. 164. Section 346 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994) is amended by adding at the end thereof a new subsection (d) as follows: "(d) Notwithstanding any contrary provisions of subsection (b) of this section, for fiscal year 1982, loans are authorized to be insured, or made to be sold and insured, as follows: "(1) From the Agricultural Credit Insurance Fund— "(A) insured real estate loans for farm ownership purposes, $700,000,000, and "(B) insured operating loans, $1,325,000,000. Not less than 20 per centum of the insured loans authorized for farm ownership purposes and not less that 20 per centum of the insured loans authorized for farm operating purposes shall be for low-income, limited-resource applicants. "(2) From the Rural Development Insurance Fund— "(A) insured water and waste disposal loans, $300,000,000, and "(B) insured community facility loans, $130,000,000.". PART 4—RURAL ELECTRIFICATION ADMINISTRATION PROGRAMS RURAL ELECTRIFICATION ACT AMENDMENTS

SEC. 165. (a) Section 305(b) of the Rural Electrification Act of 1936 (7 U.S.C. 935(b)) is amended to read as follows: "(b) Insured loans made under this title shall bear interest at 5 per insured loans, centum per annum, except that the Administrator may make insured interest rates. loans to electric or telephone borrowers at a lesser interest rate, but not less than 2 per centum per annum, if, in the Administrator's sole discretion, the Administrator finds that the borrower— "(1) has experienced extreme financial hardship; or "(2) cannot, in accordance with generally accepted management and accounting principles and without charging rates to its customers or subscribers so high as to create a substantial disparity between such rates and the rates charged for similar service in the same or nearby areas by other suppliers, provide service consistent with the objectives of this Act.". (b) Section 306 of the Rural Electrification Act of 1936 (7 U.S.C. 936) is amended by— (1) inserting immediately after the second sentence the following: "With respect to guarantees issued by the Administrator under this section, on the request of the borrower of any such loan so guaranteed, the loan shall be made by the Federal Fiuancing Bank and at a rate of interest that is not more than the rate of interest applicable to other similar loans then being made or purchsised by the Bank."; and (2) striking our "a loan insured at the standard rate" in the fourth sentence and inserting in lieu thereof "an insured loan". (c) Section 307 of the Rural Electrification Act of 1936 (7 U.S.C. 937) is amended by striking out "a loan insured at the standard rate" and inserting in lieu thereof "an insured loan". (d) The amendments made by subsection (a) of this section shall 7 USC 935 note apply to loans the applications for which are received by the Rural Electrification Administration after July 24, 1981.

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