Page:United States Statutes at Large Volume 99 Part 2.djvu/413

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1523

damage to an annual crop planted or harvested before the end of 1986. (3) Section 324(b)(l) of such Act (7 U.S.C. 1964(b)(l)) is amended by striking out "but (A)" and all that follows through "Secretary" and inserting in lieu thereof "but not in excess of 8 percent per annum". (c) Subsection (a) of section 324 of such Act (7 U.S.C. 1964(a)) is amended to read as follows: "(a) No loan made or insured under this subtitle may exceed the amount of the actual loss caused by the disaster or $500,000, whichever is less, for each disaster.". (d) Section 330 of such Act (7 U.S.C. 1971) is repealed.

Prohibition.

Repeal.

SETTLEMENT OF CLAIMS

SEC. 1309. Subsection (d) of the second paragraph of section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(d)) is amended to read as follows: "(d) compromise, adjust, reduce, or charge-off claims, and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farmers Home Administration under any of its programs, as circumstances may require, to carry out this title. The Secretary may release borrowers or others obligated on a debt incurred under this title from personal liability with or without payment of any consideration at the time of the compromise, adjustment, reduction, or charge-off of any claim, except that no compromise, adjustment, reduction, or charge-off of any claim may be made or carried out— "(1) on terms more favorable than those recommended by the appropriate county committee utilized pursuant to section 332; or "(2) after the claim has been referred to the Attorney General, unless the Attorney General approves;".

Securities. Contracts.

Post, p. 1524.

OIL AND GAS ROYALTIES

SEC. 1310. (a) Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 33IB the following new section: "SEC. 331C. (a) The Secretary shall permit a borrower of a loan made or insured under this title to make a prospective payment on such loan with proceeds from— "(1) the leasing of oil, gas, or other mineral rights to real property used to secure such loan; or "(2) the sale of oil, gas, or other minerals removed from real property used to secure such loan, if the value of the rights to such oil, gas, or other minerals has not been used to secure such loan. "(b) Subsection (a) shall not apply to a borrower of a loan made or insured under this title with respect to which a liquidation or foreclosure proceeding is pending on the date of enactment of the Food Security Act of 1985.'\ (b) Section 204 of the Emergency Agricultural Credit Adjustment Act of 1978 (7 U.S.C. 1947 note) is amended by adding at the end thereof the following new subsection: "(e)(1) The Secretary shall permit a borrower of a loan made or insured under this title to make a prospective payment on such loan with proceeds from—

Loans. 7 USC 1981c. Real property.

Prohibition. Loans.

7 USC note precl 1961. Loans.

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