2 1 "$200,000, or, in the case of a loan guaranteed by the Secre 2 tary, $400,000". 3 (b) Section 346 of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1994) is amended by adding at the 5 end thereof the following new subsections: 6 "(e) Notwithstanding any other provision of law, there 7 are hereby authorized to be insured, or made to be sold and 8 insured, from the Agricultural Credit Insurance Fund during 9 fiscal year 1983, insured operating loans in an aggregate 10 amount of $1,660,000,000. Of that amount, $200,000,000 11 shall be for new borrowers. As used in the preceding sen12 tence, the phrase 'new borrowers' means agricultural produc13 ers who did not receive any farm operating credit from the 14 Farmers Home Administration during fiscal year 1982 or 15 that part of fiscal year 1983 ending on the date of enactment 16 of this subsection. 17 “(f)(1) Notwithstanding any other provision of law, not 18 less than 20 per centum of the loans for farmownership pur19 poses under subtitle A of this title, and not less than 20 per 20 centum of the loans for farm operating purposes under subti21 tle B of this title, authorized to be insured, or made to be sold 22 and insured, from the Agricultural Credit Insurance Fund 23 during fiscal year 1983 shall be for low-income, limited-re24 source farmers. HR 1190 IH 1 2 5 LOAN DEFERRALS SEC. 6. Section 331A of the Consolidated Farm and 3 Rural Development Act (7 U.S.C. 1981a) is amended by— 4 5 6 7 8 9 10 (1) inserting the designation “(a)” before the ex isting text thereof; (2) in the second sentence, striking out “section” and inserting in lieu thereof "subsection"; and (3) adding at the end thereof the following new subsections: "(b) During the period beginning with the date of enact11 ment of this subsection and ending September 30, 1984, the 12 Secretary shall permit, at the request of the borrower, the 13 deferral of principal and interest on any outstanding loan 14 made, insured, or held by the Secretary for farm ownership 15 purposes under subtitle A of this title, farm operating pur16 poses under subtitle B of this title, disaster emergency pur17 poses under subtitle C of this title, or economic emergency 18 purposes under the Emergency Agricultural Credit Adjust19 ment Act of 1978, and shall forgo foreclosure of any such 20 loan, in both cases on a showing by the borrower that the 21 borrower (1) has followed good management practices, (2) 22 due to circumstances beyond the borrower's control, is tem23 porarily unable to continue making payment on such princi24 pal and interest when due, and (3) has a reasonable chance of 25 repayment of the loan after the deferral of principal and in HR 1190 IH 4 1 bility of an applicant for assistance under this subtitle based 2 upon production losses shall be determined solely on the basis 3 of the factors designated in this section and shall not be af4 fected by the Secretary's designation of, or failure to desig5 nate, a county or counties for emergency loan purposes.". 6 EXTENSION OF TIME FOR ADDITIONAL EMERGENCY LOANS SEC. 5. (a) Notwithstanding the provisions of section 7 8 330 of the Consolidated Farm and Rural Development Act (7 9 U.S.C. 1971), subsequent loans to continue a farming, ranch10 ing, or aquaculture operation may be made under subtitle C 11 of such Act on an annual basis— 12 13 14 15 16 17 · 18 19 20 21 (1) in the case of borrowers who have outstanding loans approved by the Secretary of Agriculture under such subtitle after December 15, 1979, and before Oc tober 1, 1982, for not to exceed four additional years; and (2) in the case of borrowers who have outstanding loans approved by the Secretary of Agriculture under such subtitle after September 30, 1981, and before October 1, 1982, for not to exceed three additional years. (b) Subsequent loans made pursuant to the authority of 22 subsection (a) shall be subject to the limits on loans and rates 23 of interest established under section 324 of the Consolidated 24 Farm and Rural Development Act (7 U.S.C. 1964). HR 1190 IH 1 2 5 LOAN DEFERRALS SEC. 6. Section 331A of the Consolidated Farm and 3 Rural Development Act (7 U.S.C. 1981a) is amended by 4 5 6 7 8 9 10 (1) inserting the designation "(a)" before the existing text thereof; (2) in the second sentence, striking out "section" and inserting in lieu thereof "subsection"; and (3) adding at the end thereof the following new subsections: "(b) During the period beginning with the date of enact11 ment of this subsection and ending September 30, 1984, the 12 Secretary shall permit, at the request of the borrower, the 13 deferral of principal and interest on any outstanding loan 14 made, insured, or held by the Secretary for farm ownership 15 purposes under subtitle A of this title, farm operating pur16 poses under subtitle B of this title, disaster emergency pur17 poses under subtitle C of this title, or economic emergency 18 purposes under the Emergency Agricultural Credit Adjust19 ment Act of 1978, and shall forgo foreclosure of any such 20 loan, in both cases on a showing by the borrower that the 21 borrower (1) has followed good management practices, (2) 22 due to circumstances beyond the borrower's control, is tem23 porarily unable to continue making payment on such princi24 pal and interest when due, and (3) has a reasonable chance of 25 repayment of the loan after the deferral of principal and in HR 1190 IH 6 1 terest and forgoing of foreclosure. The Secretary shall waive 2 the payment of interest that accrues during the deferral 3 period on any loan deferred under the provisions of this sub4 section. The provisions of this subsection shall be applicable 5 only to borrowers who own or operate family-size farms, as 6 certified by the county committee. 7 "(c) Upon the expiration of any period of deferral of 8 payment of principal and interest and forgoing of foreclosure 9 by the Secretary under subsection (b) of this section, the Sec10 retary shall make available to the borrower, at the borrow11 er's request, procedures whereby the loan may be consoli12 dated, rescheduled, or reamortized to provide equitable re13 payment terms consistent with the borrower's farm and fi14 nancial situation, and any loan so consolidated, rescheduled, 15 or reamortized shall bear interest at rate not in excess of 16 the rate of interest on the original loan. 17 "(d) The Secretary shall promulgate regulations that 18 provide (1) for notification of all farm borrowers under this 19 title and the Emergency Agricultural Credit Adjustment Act 20 of 1978 of the provisions of this section and all other servic21 ing alternatives offered by the Secretary, (2) clear procedures 22 by which borrowers may petition the Secretary for relief 23 under such provisions and alternatives, and (3) for appeal 24 within the Department of Agriculture from a decision that 25 denies relief under such provisions and alternatives. HR 1190 IH |