(d) No fees or charges shall be assessed by the Secretary for any loan insured or for any guarantee provided under this title. LOAN CERTIFICATIONS AND CONDITIONS SEC. 205. (a) As a condition of the Secretary's guaranteeing any 7 USC prec. loan under this title, the lender shall certify that— (1) the lender is unwilling to provide credit to, or continue with, the loan applicant in the absence of the guarantee authorized by this title; (2) the loan applicant is directly and in good faith engaged in agricultural production; and (3) the financing to be furnished the loan applicant is to be used for one or more of the purposes set forth in section 203 of this title. (b) As a condition of the Secretary's insuring any loan under this title, the loan applicant shall certify that— (1) the loan applicant will be unable to obtain financing in the absence of the assistance authorized by this title; (2) the loan applicant is directly and in good faith engaged in agricultural production; and (3) the financing to be furnished the loan applicant is to be used for one or more of the purposes set forth in section 203 of this title. (c) As a condition of insuring or guaranteeing any loan under this title, the Secretary must find that there is reasonable probability of accomplishing the objectives of this title and repayment of the loan. (d) The Secretary shall require— note. 1961 (1) the county committee authorized under section 332 of the Consolidated Farm and Rural Development Act to certify in 7 USC 1982. writing that the applicant for a loan under this title meets the eligibility requirements for the loan, has the character, industry, and ability to carry out the proposed operations, and will, in the opinion of the committee, honestly endeavor to carry out the applicant's undertakings and obligations; and (2) except for guaranteed loans, an agreement by the applicant for a loan under this title that if at any time it shall appear to the Secretary that the applicant may be able to obtain a loan from a production credit association, a Federal land bank, or other responsible cooperative or private credit source, at reasonable rates and terms for loans for similar purposes and periods of time, the applicant will, upon request by the Secretary, apply for and accept such loan in an amount sufficient to repay the Secretary or the insured lender, or both, and pay for any stock in a cooperative lending agency that must be purchased in connection with such loan. LOAN SECURITY note. SEC. 206. Loans shall be insured or guaranteed under this title upon 7 USC prec. 1961 the full personal liability of the borrower secured by such collateral as is available that, together with the confidence of the Secretary, and, for guaranteed loans, the confidence of the lender, in the repayment ability of the loan applicant, is deemed by the Secretary adequate to protect the Government's interest. The collateral may be subject to a prior lien or may be collateral that has depreciated in value owing to temporary economic conditions. 7 USC 1929. 7 USC 1922, 1941. 7 USC prec. 1961 note. 7 USC prec. 1961 note. 7 USC 1932. FUNDING; LIMITATION ON OUTSTANDING LOANS SEC. 207. (a) The fund created in section 309 of the Consolidated Farm and Rural Development Act shall be used by the Secretary for the operation of the loan program, and for the discharge of the obligations incurred by the Secretary, under this title. The Secretary may use such fund to (1) pay administrative expenses of the Secretary necessary to insure, guarantee, and service loans, and otherwise carry out the provisions of this title, and (2) purchase, on such terms and conditions as the Secretary may deem appropriate, all or any portion of any loan insured or guaranteed under this title, or to defer payments of principal and interest with respect to such loan and pay expenses and fees incident to such purchase or deferral. There shall be reimbursed to such fund by appropriations annually an amount equal to the costs incurred in the operation and administration of the program created by this title. (b) The total principal balance outstanding at any time on loans insured or guaranteed under this title for any borrower shall not exceed $400,000: Provided, That no loan may be insured or guaranteed under this title to a borrower who has any loans outstanding under subtitle A or B of the Consolidated Farm and Rural Development Act that would cause the total outstanding principal indebtedness under this title and subtitles A and B of the Consolidated Farm and Rural Development Act to exceed $650,000, and no loan may be made, insured, or guaranteed under subtitle A or B of the Consolidated Farm and Rural Development Act to any borrower who has any loans outstanding under this title that would cause the total outstanding principal indebtedness under subtitles A and B of the Consolidated Farm and Rural Development Act and this title to exceed $650,000. (c) The total principal balance outstanding at any time on loans insured or guaranteed under this title shall not exceed $4,000,000,000. FULL FAITH AND CREDIT SEC. 208. Any contract of guarantee or insurance executed by the Secretary under this title shall be an obligation supported by the full faith and credit of the United States and incontestable except for fraud or misrepresentation of which the holder has actual knowledge at the time it becomes a holder. ISSUANCE OF CERTIFICATES OF BENEFICIAL OWNERSHIP; CONTRACTS OF SEC. 209. (a) The provisions of section 310B (6) of the Consolidated Farm and Rural Development Act shall apply to loans insured or guaranteed under this title. The Secretary is authorized to handle loans guaranteed under this title in the same manner as loans guar7 USC prec. 1921 anteed under the Consolidated Farm and Rural Development Act. (b) Contracts of guarantee executed pursuant to the provisions of this title shall be fully assignable. note. (c) The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out this title. Final regulations shall be issued as soon as possible, but in no event later than thirty days after the date of enactment of this title. Insofar as practicable, the Secretary shall complete action on each loan application within thirty days after its receipt. AVAILABILITY OF THE PROGRAM SEC. 210. Financial assistance may be made available under this title throughout the "United States" as that term is defined in section 343 of the Consolidated Farm and Rural Development Act. EFFECTIVE PERIOD SEC. 211. The provisions of this title shall become effective upon enactment, and the authority to make new contracts of insurance or guarantee under this title shall terminate May 15, 1980. TITLE III-EXTENSION AND AMENDMENT OF THE EMERGENCY LIVESTOCK CREDIT ACT OF 1974 7 USC prec. 1961 note. 7 USC 1991. 7 USC prec. 1961 note. SEC. 301. The Emergency Livestock Credit Act of 1974 is amended 7 USC prec. 1961 by (1) in section 2, inserting after the words "bona fide farmers and ranchers" the following: ". including bona fide farmers or ranchers owning livestock that are fed in custom feedyards,”; (2) amending section 8 to read as follows: "SEC. 8. The provisions of this Act shall become effective upon enactment, and the authority to make new guarantees shall expire September 30. 1979, except that, with respect to any loan for a line of credit guaranteed under this Act, if the lender advances loan funds within the line of credit at any time during the remaining term or authorized renewal period of the loan after September 30, 1979, the guarantee of such advances shall not be considered new guarantees.": (3) in section 11. amending the first sentence to read as follows: "The Secretary shall, not later than December 15 of each year, report to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry on the effectiveness of this Act."; and (4) adding at the end thereof a new section 12 as follows: "SEC. 12. Financial assistance may be made available under this Act throughout the United States' as that term is defined in section 343 of the Consolidated Farm and Rural Development Act.". BEEF RESEARCH AND INFORMATION ACT note. Effective date. Report to congressional committees. 7 USC 1991. SEC. 302. Section 9 of the Beef Research and Information Act (7 7 USC 2908. U.S.C. 2908) is amended by striking out in the third sentence the words "not less than two-thirds" and inserting in lieu thereof “a majority". TITLE IV-EMERGENCY CONSERVATION PROGRAM SEC. 401. The Secretary of Agriculture is authorized to make payments to agricultural producers who carry out emergency measures to control wind erosion on farmlands or to rehabilitate farmlands damaged by wind erosion, floods, hurricanes, or other natural disasters when, as a result of the foregoing, new conservation problems have been created that (1) if not treated, will impair or endanger the land, (2) materially affect the productive capacity of the land, (3) represent 16 USC 2201. 16 USC 2202. 16 USC 2203. Appropriation authorization. 16 USC 2204. Regulations. 16 USC 2205. Effective date. 16 USC 2201. note. 7 USC 1309. Effective date. 7 USC 1309 note. 7 USC 1281 note. 7 USC 1309. damage that is unusual in character and, except for wind erosion, is not the type that would recur frequently in the same area, and (4) will be so costly to rehabilitate that Federal assistance is or will be required to return the land to productive agricultural use. SEC. 402. The Secretary of Agriculture is authorized to make payments to agricultural producers who carry out emergency water conservation or water enhancing measures during periods of severe drought as determined by the Secretary. SEC. 403. The Secretary of Agriculture is authorized to undertake emergency measures for runoff retardation and soil-erosion prevention, in cooperation with landowners and land users, as the Secretary deems necessary to safeguard lives and property from floods, drought, and the products of erosion on any watershed whenever fire, flood, or any other natural occurrence is causing or has caused a sudden impairment of that watershed. SEC. 404. There are authorized to be appropriated such funds as may be necessary to carry out the purposes of this title. Such funds shall remain available until expended. In implementing the provisions of this title, the Secretary of Agriculture may use the facilities, services, and authorities of the Commodity Credit Corporation. The Corporation shall not make any expenditures to carry out the provisions of this title unless funds specifically appropriated for such purpose have been transferred to it. SEC. 405. The Secretary of Agriculture is authorized to prescribe such regulations as the Secretary determines necessary to carry out the provisions of this title. SEC. 406. The provisions of this title shall become effective October 1, 1978. TITLE V-PRICE SUPPORT FOR PRODUCERS OF RICE SEC. 501. (a) Section 1001 (b) of the Food and Agriculture Act of 1977 is amended by striking out "and upland cotton" and inserting in lieu thereof "upland cotton, and rice". (b) This section shall become effective October 1, 1978, and any producers who, prior to such date, receive payments on the 1978 crop of rice as computed under the Agricultural Act of 1949, as amended by the Food and Agriculture Act of 1977, may elect after September 30, 1978, to receive payments as computed under section 1001 (b) of the Food and Agriculture Act of 1977, as amended by this section. Approved August 4, 1978. LEGISLATIVE HISTORY: HOUSE REPORTS:|No. 95-986 (Comm. on Agriculture) and No. 95-1344 (Comm. of SENATE REPORT No. 95-752 accompanying S. 2146 (Comm. on Agriculture, Nutri- CONGRESSIONAL RECORD, Vol. 124 (1978): Apr. 24, considered and passed House. May 1, 2, S. 2146 considered in Senate. May 2, considered and passed Senate, amended, in lieu of S. 2146. July 19, House agreed to conference report. July 20, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 31: Aug. 4, Presidential statement. Oct. 10, 1978 [S. 3045] Farm credit extension. To amend the Farm Credit Act of 1971 to extend the term for production credit association loans to producers or harvesters of aquatic products. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Farm loans, repayment, Credit Act of 1971 is amended by inserting in the first sentence of section 2.4, after the words "seven years", the following: "(fifteen years if made to producers or harvesters of aquatic products)". Approved October 10, 1978. 12 USC 2075. LEGISLATIVE HISTORY: HOUSE REPORT No. 95-1550 accompanying H.R. 11079 (Comm. on Agriculture). May 22, considered and passed Senate. Sept. 26, H.R. 11079 considered and passed House; passage vacated and S. 3045 passed in lieu. |