Page:United States Statutes at Large Volume 99 Part 2.djvu/424

 99 STAT. 1534

PUBLIC LAW 99-198—DEC. 23, 1985

"(8) agree to such other terms and conditions as are prescribed by the Secretary or the Administrator in order to facilitate the administration of this subsection. "(d) At the end of the period of occupancy described in subsection (c), the Secretary or the Administrator shall grant to the borrower a first right of refusal to reacquire the homestead property on such terms and conditions (which may include pa3anent of principal in installments) as the Secretary or the Administrator shall determine. "(e) At the time any reacquisition agreement is entered into, the Secretary or the Administrator may not demand a total payment of principal that is in excess of the value of the homestead property as established under subsection (b)(2).". EXTENSION OF CREDIT TO ALL RURAL UTILITIES THAT PARTICIPATE IN THE PROGRAM ADMINISTERED BY THE RURAL ELECTRIFICATION ADMINISTRATION Loans. Banks and banking.

SEC. 1322. Section 3.8 of the Farm Credit Act of 1971 (12 U.S.C. 2129) is amended by— (1) inserting "(1)" immediately before "Any association"; and (2) adding at the end thereof a new subsection (2) as follows: "(2) Notwithstanding any other provision of this title, cooperatives and other entities that have received a loan, loan commitment, or loan guarantee from the Rural Electrification Administration, or a loan or loan commitment from the Rural Telephone Bank, or that have been certified by the Administrator of the Rural Electrification Administration to be eligible for such a loan, loan commitment, or loan guarantee, and subsidiaries of such cooperatives or other entities, shall also be eligible to borrow from a bank for cooperatives.". NONPROFIT NATIONAL RURAL DEVELOPMENT AND FINANCE CORPORATIONS

Loans. SEC. 1323. (a)(1) For the fiscal year ending September 30, 1986, the 7 USC 1932 note. Secretary of Agriculture (hereafter in this section referred to as the "Secretary") shall guarantee loans made by public agencies or private organizations (including loans made by financial institutions such as insurance companies) to nonprofit national rural development and finance corporations that establish similar and affiliated statewide rural development and finance programs for the purpose of providing loans, guarantees, and other financial assistance to profit or nonprofit local businesses to improve business, industry, and employment opportunities in a rural area (as determined by the Secretary). (2) To be eligible to obtain a loan guarantee under this subsection, a corporation must— (A) demonstrate to the Secretary the ability of the corporation to administer a national revolving rural development loan program; (B) be prepared to commit financial resources under the control of the corporation to the establishment of affiliated statewide rural development and finance programs; and (C) have secured commitments of significant financial support from public agencies and private organizations for such affiliated statewide programs. (3) A national rural development and finance corporation receiving a loan guarantee under this subsection shall base a determina-

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