Page:United States Statutes at Large Volume 99 Part 2.djvu/425

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1535

tion to establish an affiliated statewide program in large part on the willingness of States and private organizations to sponsor and make funds available to such program. (4) Notwithstanding any other provision of law, for the fiscal year ending September 30, 1986, of the amounts available to guarantee loans in accordance with section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) from the Rural Development Insurance Fund, $20,000,000 shall be used by the Secretary to guarantee loans under the national rural development and finance program established under this subsection, to remain available until expended. (b)(1) For the fiscal year ending September 30, 1986, the Secretary shall make grants, from funds transferred under paragraph (2), to national rural development and finance corporations for the purpose of establishing a rural development program to provide financial and technical assistance to compliment the loan guarantees made to such corporations under subsection (a). (2) All funds authorized under the Rural Development Loan Fund, including those on deposit and available upon date of enactment, under sections 623 and 633 of the Community EJconomic Development Act of 1981 (42 U.S.C. 9801 et seq.) shall be transferred to the Secretary provided that— (A) all funds on deposit and available on date of enactment shall be used for the purpose of making grants under paragraph (1) and shall remain available until expended; and (B) notwithstanding any other provision of law, all loans to intermediary borrowers made prior to date of enactment, shall upon date of enactment, for the life of such loan, bear a rate of interest not to exceed that in effect upon the date of issuance of such loans.

Grants,

42 USC 9812, 9822.

Grants

PROTECTION FOR PURCHASERS OF FARM PRODUCTS

SEC. 1324. (a) Congress finds that— 7 USC 1631. (1) certain State laws permit a secured lender to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lender's security interest in the products, lacks any practical method for discovering the existence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender; (2) these laws subject the purchaser of farm products to double payment for the products, once at the time of purchase, and again when the seller fails to repay the lender; (3) the exposure of purchasers of farm products to double payment inhibits free competition in the market for farm products; and (4) this exposure constitutes a burden on and an obstruction eommerce and trade. to interstate commerce in farm products. (b) The purpose of this section is to remove such burden on and obstruction to interstate commerce in farm products. (c) For the purposes of this section— (1) The term "buyer in the ordinary course of business" means a person who, in the ordinary course of business, buys farm products from a person engaged in farming operations who is in the business of selling farm products.

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