Page:United States Statutes at Large Volume 99 Part 2.djvu/430

 99 STAT. 1540

Regulations.

Effective date.

PUBLIC LAW 99-198—DEC. 23, 1985

sold by such seller as being subject to an effective financing statement or notice; and (ii) does not secure a waiver or release of the security interest specified in such effective financing statement or notice from the secured party by performing any payment obligation or otherwise. (3) What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides. (h)(1) A security agreement in which a person engaged in farming operations creates a security interest in a farm product may require the person to furnish to the secured party a list of the buyers, commission merchants, and selling agents to or through whom the person engaged in farming operations may sell such farm product. (2) If a security agreement contains a provision described in paragraph (1) and such person engaged in farming operations sells the farm product collateral to a buyer or through a commission merchant or selling agent not included on such list, the person engaged in farming operations shall be subject to paragraph (3) unless the person— (A) has notified the secured party in writing of the identity of the buyer, commission merchant, or selling agent at least 7 days prior to such sale; or (B) has accounted to the secured party for the proceeds of such sale not later than 10 days after such sale. (3) A person violating paragraph (2) shall be fined $5,000 or 15 per centum of the value or benefit received for such farm product described in the security agreement, whichever is greater. (i) The Secretary of Agriculture shall prescribe regulations not later than 90 days after the date of enactment of this Act to aid States in the implementation and management of a central filing system. (j) This section shall become effective 12 months after the date of enactment of this Act. PROHIBITING COORDINATED FINANCIAL STATEMENT

Regulations. Loans. 7 USC 1989 note.

SEC. 1325. The Secretary of Agriculture shall not use or require the submission of the coordinated financial statement referred to in the proposed regulations of the Farmers Home Administration published in the Federal Register of November 8, 1983 (48 F.R. 5131251317) in connection with an application submitted on or after the date of the enactment of this Act for any loan under any program of the Department of Agriculture carried out by the Farmers Home Administration. REGULATORY RESTRAINT

12 USC 2254 note.

Loans. Banks and banking.

SEC. 1326. (a) Congress finds and declares that— (1) high production costs and low commodity prices have combing to reduce farm income to the lowest levels since the depths of the Depression in the 1930's, to subject many agricultural producers, through no fault of their own, to severe economic hardship, and in many cases temporarily but seriously to impair producers' ability to meet loan repayment schedules in a timely fashion; and (2) a policy of adverse classification of agricultural loans by bank examiners under these circumstances will trigger a wave of foreclosures and similar actions on the part of banks, thereby

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