102d CONGRESS
2d Session
H. R. 6129
AN ACT
To amend the Consolidated Farm and Rural Development Act to establish a
program to aid beginning farmers and ranchers and to improve the operation
of the Farmers Home Administration, and to amend the Farm Credit Act of 1971,
and for other purposes.
HR 6129 EH
102d CONGRESS
2d Session
H. R. 6129
AN ACT
To amend the Consolidated Farm and Rural Development Act to establish a
program to aid beginning farmers and ranchers and to improve the operation
of the Farmers Home Administration, and to amend the Farm Credit Act of 1971,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

d9c962e571bafad9621a8d344fae1a35e49123b8eddb22505268f26018acff1e

(a) SHORT TITLE- This Act may be cited as the `Agricultural Credit
Improvement Act of 1992'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

d3267f64504224867208cfaf5362c5cd2bacb23a763555b01de85650c1d22c16

a98dde31901875333516cbdee3f184fb2f64b9f62ad650b05784eb3d4915d386

dc6a54c858ab8ff69702d08bb67e5adca0227c3259edb78522b1f280e7eb95ea

consider applications for farm ownership and operating loans and guarantees
and beginning farmer plans.

642b369a0a21636601782a870a8df831feaaa15d03da3af124368d0c3c03f6e6

9a797e80b34258357fd7aeda67c44290f68f1a048e95836028e773a9261aa0fd

5305a71592d8233ec3f5758aa8d8274dde872cb8022045d909da72a4d02161d2

Wherever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.),
except to the extent otherwise specifically provided.

9a5428bf3e9612ad9b2d82ad426131522d5cbf5065397ff902214bdcab3393cb

Section 305 (7 U.S.C. 1925) is amended by striking `and 310D of this title'
and inserting `310D, and 310E'.

171de5d850b21c11b1e0981dd9b344fb2a68d15b9b5b36883db366251825c847

LOAN FEES.
Section 309(h) (7 U.S.C. 1929(h)) is amended--
(1) in inserting `(1)' after `(h)'; and
(2) by adding at the end the following new paragraphs:
`(2) The interest rate payable by a borrower on the portion of a guaranteed
loan that is sold by a lender to the secondary market under this title
may be lower than the interest rate charged on the portion retained by
the lender, but shall not exceed the average interest rate charged by the
lender on loans made to farm and ranch borrowers.
`(3) With regard to any loan guarantee on a loan made by a commercial or
cooperative lender related to a loan made by the Secretary under section
310E--
`(A) the Secretary shall not charge a fee to any person (including a
lender); and
`(B) a lender may charge a loan origination and servicing fee in an amount
not to exceed 1 percent of the amount of the loan.'.

b853c8637184da8c6dd1cd73fb62843de319dc1521fdffcd06a5d24eb8e0b904

(a) COORDINATION OF ASSISTANCE FOR QUALIFIED BEGINNING FARMERS AND RANCHERS-
Section 309 (7 U.S.C. 1929) is amended by adding at the end the following
new subsection:
`(i)(1) Not later than 60 days after any State expresses to the Secretary,
in writing, a desire to coordinate the provision of financial assistance to
qualified beginning farmers and ranchers in the State, the Secretary and
the State shall conclude a joint memorandum of understanding that shall
govern the coordination of the provision of the financial assistance by
the State and the Secretary.
`(2) The memorandum of understanding shall provide that if a State beginning
farmer program makes a commitment to provide a qualified beginning farmer
or rancher with financing to establish or maintain a viable farming or
ranching operation, the Secretary shall, subject to applicable law, normal
loan approval criteria, and the availability of funds provide the farmer
or rancher with a down payment loan under section 310E or a guarantee of
the financing provided by the State program, or both.
`(3) The Secretary shall not charge any person (including a lender) any
fee with respect to the provision of any guarantee under this subsection.
`(4) The Secretary shall notify each State of the provisions of this
subsection.
`(5) As used in paragraph (1), the term `State beginning farmer program'
means any program that is--
`(A) carried out by, or under contract with, a State; and
`(B) designed to assist persons in obtaining the financial assistance
necessary to enter agriculture and establish viable farming or ranching
operations.'.
(b) ADVISORY COMMITTEE-
(1) ESTABLISHMENT; PURPOSE- Not later than 18 months after the date of
enactment of this Act, the Secretary of Agriculture shall establish an
advisory committee, to be known as the `Advisory Committee on Beginning
Farmers and Ranchers', which shall provide advice to the Secretary on--
(A) the development of the program of coordinated assistance to qualified
beginning farmers and ranchers under section 309(i) of the Consolidated
Farm and Rural Development Act (as added by subsection (a) of this section);
(B) methods of maximizing the number of new farming and ranching
opportunities created through the program;
(C) methods of encouraging States to participate in the program;
(D) the administration of the program; and
(E) other methods of creating new farming or ranching opportunities.
(2) MEMBERSHIP- The Secretary shall appoint the members of the Advisory
Committee. The Advisory Committee shall include representatives from
the following:
(A) The Farmers Home Administration.
(B) State beginning farmer programs (as defined in section 309(i)(5) of
the Consolidated Farm and Rural Development Act (as added by subsection
(a) of this section)).
(C) Commercial lenders.
(D) Private nonprofit organizations with active beginning farmer or
rancher programs.
(E) The Cooperative Extension Service.
(F) Community colleges or other educational institutions with demonstrated
experience in training beginning farmers or ranchers.
(G) Other entities or persons providing lending or technical assistance
for qualified beginning farmers or ranchers.

fdd5959c6cd9a9b7d79933a37cf854041357e8742ec0ac0ed04338b96691a8cf

Section 310B(c) (7 U.S.C. 1932(c)) is amended--
(1) by inserting `(1)' after `(c)'; and
(2) by adding at the end the following new paragraph:
`(2) The Secretary may make grants to qualified nonprofit organizations for
the provision of technical assistance and training to rural communities
for the purpose of improving passenger transportation services or
facilities. Assistance provided under this paragraph may include on-site
technical assistance to local and regional governments, public transit
agencies, and related nonprofit and for-profit organizations in rural areas,
the development of training materials, and the provision of necessary
training assistance to local officials and agencies in rural areas.'.

f9bee125e221c666f4b11299711e1ae3dff8a9e13ba50beaf78cda85e231606f

(a) IN GENERAL- Subtitle A (7 U.S.C. 1922 et seq.) is amended by adding
at the end the following new section:
`SEC. 310E. DOWN PAYMENT LOAN PROGRAM.
`(a) IN GENERAL-
`(1) ESTABLISHMENT- Notwithstanding any other section of this subtitle,
the Secretary shall establish, within the farm ownership loan program
established under this subtitle, a program under which loans shall be made
under this section to qualified beginning farmers and ranchers for down
payments on farm ownership loans.
`(2) ADMINISTRATION- The Secretary shall be the primary coordinator of credit
supervision for the down payment loan program established under this section,
in consultation with the commercial or cooperative lender and, if applicable,
the contracting credit counseling service selected under section 360(c).
`(b) LOAN TERMS-
`(1) PRINCIPAL- Each loan made under this section shall be in an amount
equal to 30 percent of the purchase price or appraisal value, whichever is
lower, of the farm or ranch to be acquired, unless the borrower requests
a lesser amount.
`(2) INTEREST RATE- The interest rate on any loan made by the Secretary
under this section shall be 4 percent.
`(3) DURATION- Each loan under this section shall be made for a period of
10 years or less, at the option of the borrower.
`(4) REPAYMENT- Each borrower of a loan under this section shall repay
the loan to the Secretary in equal annual installments.
`(5) NATURE OF RETAINED SECURITY INTEREST- The Secretary shall retain
an interest in each farm or ranch acquired with a loan made under this
section that shall--
`(A) be secured by the farm or ranch;
`(B) be junior only to such interests in the farm or ranch as may be
conveyed at the time of acquisition to the person (including a lender)
from whom the borrower obtained a loan used to acquire the farm or ranch; and
`(C) require the borrower to obtain the permission of the Secretary before
the borrower may grant an additional security interest in the farm or ranch.
`(c) LIMITATIONS-
`(1) BORROWERS REQUIRED TO MAKE MINIMUM DOWN PAYMENT- The Secretary shall
not make a loan under this section to any borrower with respect to a farm
or ranch if the contribution of the borrower to the down payment on the
farm or ranch will be less than 10 percent of the purchase price of the
farm or ranch.
`(2) MAXIMUM PRICE OF PROPERTY TO BE ACQUIRED- The Secretary shall not
make a loan under this section with respect to a farm or ranch for which
the purchase price or appraisal value, whichever is lower, exceeds $250,000.
`(3) PROHIBITED TYPES OF FINANCING- The Secretary shall not make a loan under
this section with respect to a farm or ranch if the farm or ranch is to be
acquired with other financing that contains any of the following conditions:
`(A) The financing is to be amortized over a period of less than 30 years.
`(B) A balloon payment will be due on the financing during the 10-year
period beginning on the date the loan is to be made by the Secretary.
`(d) ADMINISTRATION- In carrying out this section, the Secretary shall,
to the maximum extent practicable--
`(1) facilitate the transfer of farms and ranches from retiring farmers
and ranchers to persons eligible for insured loans under this subtitle;
`(2) make efforts to widely publicize the availability of loans under this
section among--
`(A) potentially eligible recipients of the loans;
`(B) retiring farmers and ranchers; and
`(C) applicants for farm ownership loans under this subtitle;
`(3) encourage retiring farmers and ranchers to assist in the sale of
their farms and ranches to qualified beginning farmers and ranchers by
providing seller financing; and
`(4) coordinate the loan program established by this section with State
programs that provide farm ownership or operating loans for beginning
farmers and ranchers.'.
(b) AVAILABILITY OF FARM OWNERSHIP LOANS AND LOAN GUARANTEES FOR CERTAIN
BEGINNING FARMERS AND RANCHERS- Subtitle A (7 U.S.C. 1922 et seq.) (as
amended by subsection (a) of this section) is further amended by adding
at the end the following new section:
`SEC. 310F. AVAILABILITY OF FARM OWNERSHIP LOANS AND LOAN GUARANTEES FOR
CERTAIN QUALIFIED BEGINNING FARMERS AND RANCHERS.
`(a) ASSISTANCE PROHIBITED FOR A LIMITED PERIOD- Except as otherwise provided
in this section, if the Secretary approves the application of a qualified
beginning farmer or rancher (referred to in this section as the `applicant')
for assistance under section 318, the Secretary shall not make a loan under
this subtitle to the applicant or provide a guarantee under section 309(h)
with respect to any farm real estate loan made to the applicant.
`(b) AVAILABILITY OF DOWNPAYMENT LOANS- After the applicable period, the
Secretary may make an insured loan under this subtitle, or a downpayment
loan under section 310E, to an applicant if--
`(1) throughout the applicable period, the applicant conducted an operation
for which assistance is provided under section 318 in accordance with the
plan for special assistance; and
`(2) the applicant is otherwise eligible for the loan.
`(c) AVAILABILITY OF LOAN GUARANTEES- After the applicable period, the
Secretary may guarantee under section 309(h) the repayment of a commercial
or cooperative loan made to an applicant referred to in subsection (a) if--
`(1) throughout the applicable period, the applicant conducted the operation
for which assistance is provided under section 318 in accordance with the
plan for special assistance; and
`(2) the applicant is otherwise eligible for the loan guarantee.
`(d) APPLICABLE PERIOD DEFINED- As used in this section, the term `applicable
period' means the first 5 years for which an applicant has operated a farm
or ranch, including the period of time the applicant is provided assistance
under section 318.'.

8ae400b408207e6458c62ca50e43b57ed62e3465c55d03f8525d1f2a169a743c

Subtitle B (7 U.S.C. 1941 et seq.) is amended by adding at the end the
following new section:
`SEC. 318. SPECIAL ASSISTANCE TO CERTAIN QUALIFIED BEGINNING FARMERS AND
RANCHERS.
`(a) IN GENERAL- The Secretary shall provide special assistance in accordance
with this section to enable a qualified beginning farmer or rancher who
has not operated a farm or ranch, or who has operated a farm or ranch for
not more than 5 years (referred to in this section as the `applicant'),
to conduct viable farming or ranching operations.
`(b) SUBMISSION OF PLAN OF FARM OPERATION- An applicant who desires to
apply for special assistance under this section shall submit a plan,
in coordination with activities conducted under sections 359, 360, 361,
and 362, that--
`(1) describes, for each of the first 5 years for which assistance under
this section is sought for the operation--
`(A) how the operation is to be conducted;
`(B) the types and quantities of commodities to be produced by the operation;
`(C) the production methods and practices to be employed by the operation;
`(D) the conservation measures to be taken in the operation;
`(E) the equipment needed to conduct the operation (including any expected
replacements for the equipment) and, with respect to each item of needed
equipment, whether the applicant owns, leases, or otherwise has access to the
item, or proposes to purchase, lease, or otherwise gain access to the item;
`(F) the expected income and expenses of the operation;
`(G) the expected credit needs of the operation, including the types and
amounts of assistance to be sought under this section; and
`(H) the site or sites at which the operation is (or is to be) located; and
`(2) projects the financial status of the operation after assistance
under this section has been provided for a period of not more than 10
years, consistent with section 319, as is necessary for the operation to
become financially viable without further assistance from the Secretary,
including specific goals that the applicant projects to meet in order to
progress toward graduation as expeditiously as possible.
`(c) DETERMINATIONS BY THE COUNTY COMMITTEE; APPROVAL OF PLAN- The county
committee shall approve a plan submitted by an applicant in accordance
with subsection (b) if the county committee determines that--
`(1) the applicant has not operated a farm or ranch, or has operated a
farm or ranch for not more than 5 years;
`(2) during the 5-year period ending with the submission of the plan, the
applicant has had sufficient education and experience to indicate that the
applicant is able to conduct a successful farming or ranching operation,
as the case may be;
`(3) the applicant owns, leases, or has a commitment to have leased to
the applicant the site or sites of the operation;
`(4) there is, or will be, available to the applicant equipment sufficient
to conduct the operation in accordance with the plan;
`(5) the applicant agrees to participate in such loan assessment, borrower
training, and financial management programs as the Secretary may require; and
`(6) the applicant is otherwise eligible for assistance under this title.
`(d) DETERMINATION BY THE SECRETARY; APPROVAL OF APPLICATION FOR ASSISTANCE-
The Secretary shall approve an application for assistance under this section
for an operation described in a plan approved by a county committee under
this section if the Secretary determines that--
`(1) the operation would generate income sufficient to cover the expenses of
the operation, debt service, and adequate living expenses of the applicant,
to the extent that other income would not cover the living expenses, if
the operation received assistance under this section as provided for in
the plan; and
`(2) during the commitment period established in accordance with subsection
(e)(1), the operation will be financially viable without further assistance
from the Secretary and the identified goals are reasonable and practicable.
`(e) PROVISION OF ASSISTANCE-
`(1) DETERMINATION OF COMMITMENT PERIOD-
`(A) INITIAL DETERMINATION- In approving an application under subsection
(d), the Secretary shall, subject to subparagraph (C), determine the
period during which assistance under this section is to be provided for
the operation described in the application (referred to in this subsection
as the `commitment period').
`(B) AUTHORITY TO EXTEND PERIOD; NO AUTHORITY TO REDUCE PERIOD- At any
time, the Secretary may, subject to subparagraph (C) and subsections (f)
and (g), extend the duration of the commitment period. The Secretary shall
not reduce the duration of the commitment period.
`(C) LIMITATIONS-
`(i) IN GENERAL- The duration of any commitment period (including any
extensions of the period) shall not exceed 10 years and shall be consistent
with section 319.
`(ii) ELIGIBILITY FOR INSURED OPERATING LOANS- During the commitment period,
an applicant shall not be eligible to receive an insured operating loan
under this section after the date that is 8 years after the date on which
the applicant first receives assistance under this section.
`(2) OPERATING LOANS; LOAN GUARANTEES-
`(A) IN GENERAL- To the extent that an applicant whose application is
approved under subsection (d) is unable to obtain sufficient credit from
commercial or cooperative lenders to finance the operation described in
the application at reasonable rates and terms (taking into consideration
prevailing private and cooperative rates, and terms in the community in which
the operation is (or is to be) located, for loans for similar purposes and
periods of time), the Secretary shall, subject to the availability of funds
and to subsections (f) and (g) and consistent with sections 360 and 362,
make a conditional commitment to the applicant for each of the years of
the commitment period--
`(i) to provide to any commercial or cooperative lender who makes a loan to
the applicant that is within the credit needs of the operation (as specified
in the plan contained in the application) a guarantee under section 309(h)
for the repayment of 90 percent of the loan principal and interest;
`(ii)(I) to provide to any commercial or cooperative lender who makes a
loan to the applicant that is within the credit needs of the operation
(as specified in the plan contained in the application) a guarantee under
section 309(h) for the repayment of 90 percent of the loan principal and
interest and an interest subsidy payment in the amount necessary to ensure
that the applicant qualifies for such a loan but not more than the amount
of interest assistance allowed by section 351; or
`(II) if during any of the first 4 years for which assistance is provided
under this section the Secretary determines that the applicant will not
qualify for a loan described in subclause (I), an interest subsidy payment
sufficient to ensure that the effective rate of interest payable by the
applicant on the loan equals the rate of interest charged to low income,
limited resource borrowers on insured operating loans made under this
subtitle that are of comparable size and maturity; or
`(iii) to make an insured loan under this subtitle to the applicant,
in the amount specified in the plan contained in the application, at an
interest rate that is no higher than the interest rate charged to regular
borrowers and no lower than the interest rate charged to low income,
limited resource borrowers under this subtitle.
`(3) LOANS OR GUARANTEES FOR NEW OR IMPROVED EQUIPMENT- The Secretary shall
make a commitment to any applicant whose application is approved under
subsection (d) to provide the applicant with loans under this subtitle or
loan guarantees under section 309(h) to finance the acquisition, improvement,
or repair of equipment needed in the operation described in the application
if the plan contained in the application provides for the commitment, to
the extent that the applicant is unable to obtain sufficient credit from
commercial or cooperative lenders for such purposes at reasonable rates
and terms (taking into consideration prevailing private and cooperative
rates and terms in the community in which the operation is, or is to be,
located, for loans for similar purposes and periods of time).
`(4) PRIORITY IN PURCHASE OF INVENTORY EQUIPMENT; LOANS OR GUARANTEES
FOR THE PURCHASES IN CERTAIN CASES- During the commitment period, the
Secretary shall--
`(A) accord the applicant whose application is approved under subsection
(d) priority for the purchase of equipment in the inventory of the Farmers
Home Administration necessary for the success of the operation described
in the application; and
`(B) provide the applicant with loans under this subtitle or loan
guarantees under section 309(h) to finance the purchases if the plan
contained in the application provides for the assistance, to the extent
that the applicant is unable to obtain sufficient credit from commercial
or cooperative lenders for such purpose at reasonable rates and terms
(taking into consideration prevailing private and cooperative rates, and
terms in the community in which the operation is, or is to be, located,
for loans for similar purposes and periods of time).
`(5) OTHER KINDS OF ASSISTANCE- During the commitment period, the Farmers
Home Administration, the Extension Service, the Soil Conservation Service,
and the other entities of the Department of Agriculture shall provide the
applicant with such other assistance and information as may be needed in
developing and implementing the operation described in the application.
`(6) FEES-
`(A) SECRETARY- The Secretary shall not charge a fee to any person
(including a lender) in connection with any loan guarantee provided in
accordance with this section.
`(B) LENDER- A lender may charge a loan origination and servicing fee in
connection with a loan or loan guarantee provided in accordance with this
section in an amount not to exceed 1 percent of the amount of the loan.
`(f) ANNUAL PLAN REVISIONS REQUIRED AS CONDITION OF CONTINUED ASSISTANCE-
The Secretary shall not provide assistance under this section for an
operation for any particular year after the first year for which the
assistance is provided, unless--
`(1) not later than 60 days before the assistance is to be first provided
for the particular year, the plan describing the operation has been revised,
pursuant to section 360, based on the experience of the year preceding
the particular year, to provide the information required by subsection (b)
for the 5-year period beginning with the particular year (or, if shorter,
the period beginning with the particular year and ending with the year in
which the plan projects the operation as becoming financially viable); and
`(2) the Secretary has approved the revised plan.
`(g) EFFECTS OF AVOIDABLE FAILURE TO ACHIEVE GOALS-
`(1) TERMINATION OF COMMITMENTS- The Secretary shall revoke commitment
for assistance made to an applicant under this section if the operation of
the applicant fails, for 2 consecutive years, to meet the goals specified
in the plan, unless the failure has not materially reduced the likelihood
of the operation becoming financially viable and is due to circumstances
beyond the control of the applicant.
`(2) SUSPENSION OF ELIGIBILITY FOR ASSISTANCE- During the 3-year period
that begins with the date a commitment made to an applicant is revoked
under paragraph (1), the applicant shall not be eligible for assistance
under this section.'.

28ffd8557298767d1736f9ac2f47737b3511021f58ecef2a4725f88bd9a06ec9

COMMERCIAL CREDIT.
Subtitle B (7 U.S.C. 1941 et seq.) (as amended by section 8 of this Act)
is further amended by adding at the end the following new section:
`SEC. 319. GRADUATION OF BORROWERS WITH OPERATING LOANS OR GUARANTEES TO
PRIVATE COMMERCIAL CREDIT.
`(a) GRADUATION PLAN- The Secretary shall establish a plan, in coordination
with activities under sections 359, 360, 361, and 362, to encourage each
borrower with an outstanding loan under this subtitle or with respect to
whom there is an outstanding guarantee under this subtitle to graduate to
private commercial or other sources of credit.
`(b) LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR ASSISTANCE
UNDER THIS SUBTITLE- Notwithstanding any other provision of this subtitle:
`(1) GENERAL RULE- Except as provided in paragraph (2), the Secretary
shall not--
`(A) make a loan to a borrower under this subtitle for any year after the
10th year for which such a loan is made to the borrower; or
`(B) guarantee for any year a loan made to a borrower for a purpose specified
in this subtitle, after the 15th year for which loans under this subtitle
are made to, or such a guarantee is provided with respect to, the borrower.
`(2) TRANSITION RULE- If, as of the date of enactment of this section,
the Secretary has made a loan to a borrower under this subtitle for 5 or
more years, or has provided a guarantee for 10 or more years with respect
to one or more loans made to the borrower for a purpose specified in this
subtitle, the Secretary shall not make a loan to the borrower under this
subtitle, or provide such a guarantee with respect to a loan made to the
borrower for a purpose specified in this subtitle, after the 5th year
occurring after the date of enactment for which a loan is made under this
subtitle to, or such a guarantee is provided with respect to, the borrower.'.

fa3028607be16224d1454c471f40f05db423778092b77d747078da1063267fb3

The first sentence of section 331D(e) (7 U.S.C. 1981d(e)) is amended by
inserting after `not later than 60 days after receipt of the notice required
in this section' the following: `or, in extraordinary circumstances as
determined by the applicable State director, after the 60-day period'.

686c20ebc75b28e507e509a21fec60054c47ba0e95e9059b6a265b432175c5a1

CONSIDER APPLICATIONS FOR FARM OWNERSHIP AND OPERATING LOANS AND GUARANTEES
AND BEGINNING FARMER PLANS.
Section 332 (7 U.S.C. 1982) is amended--
(1) in subsection (c), by striking `The committee' and inserting `Subject
to subsection (e), the committee'; and
(2) by adding at the end the following new subsection:
`(e) The county committee shall meet to consider approval of an application
received by the committee for a loan under this title, a guarantee under
section 309(h), or a plan of farm operation under section 318, not later
than--
`(1) 5 days after receipt of the application if at the time of the receipt
there is at least one other such application or plan pending; or
`(2) 15 days after receipt of the application if at the time of the receipt
there are no other such applications or plans pending.'.

fd3843ab2d3545cc814dcfaf6765bf3cf8cdd766593863d620415a772511a41d

CERTIFICATION CONTINUES IN EFFECT.
Section 333(2)(A)(iii) (7 U.S.C. 1983(2)(A)(iii)) is amended by striking
`2 years' and inserting `5 years'.

abc17dd92406b8074a4ab39ca3e464614cc55d52a9e0d029c7087f6699257f00

Section 333A(a)(2) (7 U.S.C. 1983a(a)(2)) is amended--
(1) by inserting `(A)' after `(2)';
(2) by inserting `(other than under subtitle B)' after `under this title';
and
(3) by adding at the end the following new subparagraph:
`(B)(i) Not later than 10 calendar days after the Secretary receives an
application for an operating loan or loan guarantee under subtitle B, the
Secretary shall notify the applicant of any information required before
a decision may be made on the application. On receipt of an application,
the Secretary shall request from other parties such information as may be
needed in connection with the application.
`(ii) Not later than 15 calendar days after the date an agency of the
Department of Agriculture receives a request for information made pursuant
to clause (i), the agency shall provide the Secretary with the requested
information.
`(iii) If, not later than 20 calendar days after the date a request is
made pursuant to clause (i) with respect to an application, the Secretary
has not received the information requested, the Secretary shall notify
the applicant and the district office of the Farmers Home Administration,
in writing, of the outstanding information.
`(iv) A county office shall notify the district office of the Farmers Home
Administration of each application for an operating loan or loan guarantee
under subtitle B that is pending more than 45 days after receipt, and the
reasons the application is pending.
`(v) A district office that receives a notice provided under clause (iv)
with respect to an application shall immediately take steps to ensure that
final action is taken on the application not later than 15 days after the
date of the receipt of the notice.
`(vi) The district office shall report to the State office of the Farmers
Home Administration on each application for an operating loan or loan
guarantee under subtitle B that is pending more than 45 days after receipt
by the county committee, and the reasons the application is pending.
`(vii) Each month, the Secretary shall notify the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate, on a State-by-State basis, as to each application
for an operating loan or loan guarantee under subtitle B on which final
action had not been taken within 60 calendar days after receipt by the
Secretary, and the reasons final action had not been taken.'.

20d37565b2deeba81ad67cc8f559a0c40827aa9dd076d734385e10b2b6b2c9e1

PROGRAM.
Section 333A (7 U.S.C. 1983a) is amended by adding at the end the following
new subsection:
`(f)(1) As used in this subsection:
`(A) The term `approved lender' means a lender approved prior to the date
of enactment of this subsection by the Secretary under the approved lender
program established by exhibit A to subpart B of part 1980 of title 7,
Code of Federal Regulations (as in effect on January 1, 1991), or a lender
certified under section 114.
`(B) The term `seasoned direct loan borrower' means a borrower receiving
a direct loan under this title who has been classified as `commercial' or
`standard' under subpart W of part 2006 of the Instruction Manual (as in
effect on January 1, 1991).
`(2) The Secretary, or a contracting third party, shall annually review
under section 360 the loans of each seasoned loan borrower. If, based
on the review, it is determined that a borrower would be able to obtain
a loan, guaranteed by the Secretary, from a commercial or cooperative
lender at reasonable rates and terms for loans for similar purposes and
periods of time, the Secretary shall assist the borrower in applying for
the commercial or cooperative loan.
`(3) In accordance with section 362, the Secretary shall prepare a
prospectus on each seasoned direct loan borrower determined eligible to
obtain a guaranteed loan. The prospectus shall contain a description of
the amounts of loan guarantee and interest assistance that the Secretary
will provide to the seasoned direct loan borrower to enable the seasoned
direct loan borrower to carry out a financially viable farming plan if a
guaranteed loan is made.
`(4) With the approval of the borrower, the Secretary shall provide the
prospectus of the seasoned direct loan borrower to each approved lender whose
lending area includes the location of the seasoned direct loan borrower. If
the Secretary receives an offer from an approved lender to extend credit
to the seasoned direct loan borrower under terms and conditions contained
in the prospectus, the seasoned direct loan borrower shall not be eligible
for an insured loan from the Secretary under subtitle A or B, except as
otherwise provided in this subsection.
`(5) If the Secretary is unable to provide loan guarantees and, if
necessary, interest assistance to the seasoned direct loan borrower under
this subsection in amounts sufficient to enable the seasoned direct loan
borrower to borrow from commercial sources the amount required to carry out
a financially viable farming plan, or if the Secretary does not receive an
offer from an approved lender to extend credit to a seasoned direct loan
borrower under the terms and conditions contained in the prospectus, the
Secretary shall make an insured loan to the seasoned direct loan borrower
under subtitle A or B, whichever is applicable.
`(6) To the extent necessary for the borrower to obtain a loan, guaranteed
by the Secretary, from a commercial or cooperative lender, the Secretary
shall provide interest rate reductions as provided for under section 351.'.

47c811151b44f3082b749d663605a8058c2280c2e516e1b61d1160258331054f

Section 333A (7 U.S.C. 1983a) (as amended by section 14 of this Act)
is further amended by adding at the end the following new subsection:
`(g)(1) The Secretary shall provide to lenders a short, simplified
application form for guarantees under this title of loans the principal
amount of which is $50,000 or less.
`(2) In developing the application, the Secretary shall--
`(A) consult with commercial and cooperative lenders; and
`(B) ensure that--
`(i) the form can be completed manually or electronically, at the option
of the lender;
`(ii) the form minimizes the documentation required to accompany the form;
`(iii) the cost of completing and processing the form is minimal; and
`(iv) the form can be completed and processed in an expeditious manner.'.

4d1a01fd3b80179921c40cd235549e1c6f9d1b4b56103efddb9110b86df4d040

The fourth sentence of section 335(c)(1) (7 U.S.C. 1985(c)(1)) is amended--
(1) by inserting `(A)' after `shall be'; and
(2) by inserting before the period at the end the following: `or (B)
leased to persons eligible for assistance under the provisions of any law
administered by the Farmers Home Administration or the Rural Development
Administration under an annual lease or a lease with an option to purchase,
with a preference for sale'.

cda4169ed3a9fe7f157ba40076e898c9444758eabb6ed784d18a406132e4faf7

Section 335(e)(1) (7 U.S.C. 1985(e)(1)) is amended--
(1) in subparagraph (D)(i), by striking `If' and inserting `Except as
provided in subparagraph (G), if'; and
(2) by adding at the end the following new subparagraph:
`(G)(i) If--
`(I) the real property described in subparagraph (A)(i) is located within
an Indian reservation;
`(II) the borrower-owner is an Indian tribe that has jurisdiction over the
reservation in which the real property is located or the borrower-owner
is a member of an Indian tribe;
`(III) the borrower-owner has obtained a loan made, insured, or guaranteed
under this title; and
`(IV) the borrower-owner and the Secretary have exhausted all of the
procedures provided for in this title to permit a borrower-owner to retain
title to the real property, such that it is necessary for the borrower-owner
to relinquish title,
the Secretary shall dispose of or administer the property only as provided
in subparagraph (D), as modified by this subparagraph.
`(ii) The Secretary shall provide the borrower-owner of real property that
is described in clause (i) with written notice of--
`(I) the right of the borrower-owner to voluntarily convey the real property
to the Secretary; and
`(II) the fact that real property so conveyed will be placed in the
inventory of the Secretary.
`(iii) The Secretary shall provide the borrower-owner of the real property
with written notice of the rights and protections provided under this title
to the borrower-owner, and the Indian tribe that has jurisdiction over
the reservation in which the real property is located, from foreclosure
or liquidation of the real property, including written notice of--
`(I) the provisions of subparagraphs (C)(i), (C)(ii), and (D), this
subparagraph, and subsection (g)(6);
`(II) if the borrower-owner does not voluntarily convey the real property
to the Secretary, that--
`(aa) the Secretary may foreclose on the property;
`(bb) in the event of foreclosure, the property will be offered for sale;
`(cc) the Secretary must offer a bid for the property that is equal to
the fair market value of the property or the outstanding principal and
interest of the loan, whichever is higher;
`(dd) the property may be purchased by another party; and
`(ee) if the property is purchased by another party, the property will
not be placed in the inventory of the Secretary and the borrower-owner
will forfeit the rights and protections provided under this title; and
`(III) the opportunity of the borrower-owner to consult with the Indian tribe
that has jurisdiction over the reservation in which the real property is
located or counsel to determine if State or tribal law provides rights and
protections that are more beneficial than those provided the borrower-owner
under this title.
`(iv)(I) Except as provided in subclause (II), the Secretary shall accept
the voluntary conveyance of real property described in clause (i).
`(II) If a hazardous substance (as defined in section 101(14) of the
Comprehensive Environmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601(14)) is located on the property and the Secretary
takes remedial action to protect human health or the environment if the
property is taken into inventory, the Secretary shall accept the voluntary
conveyance of the property only if the Secretary determines that it is in
the best interests of the Federal Government.
`(v) If a borrower-owner does not voluntarily convey to the Secretary real
property described in clause (i), at least 30 days before a foreclosure
sale of the property, the Secretary shall provide written notice to the
Indian tribe that has jurisdiction over the reservation in which the real
property is located of--
`(I) the sale;
`(II) the fair market value of the property; and
`(III) the requirements of this subparagraph.
`(vi)(I) Except as provided in subclause (II), at a foreclosure sale of
real property described in clause (i), the Secretary shall offer a bid
for the property that is equal to the higher of--
`(aa) the fair market value of the property; or
`(bb) the outstanding principal and interest of the loan.
`(II) If a hazardous substance (as defined in section 101(14) of the
Comprehensive Environmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601(14)) is located on the property and the Secretary takes
remedial action to protect human health or the environment if the property
is taken into inventory, subclause (I) shall apply only if the Secretary
determines that it is in the best interests of the Federal Government.'.

69a8666efb859e7bb5e7912369697e78e62681af2cd63322708d8a637e80475e

Section 339 (7 U.S.C. 1989) is amended--
(1) by striking `SEC. 339. The' and inserting the following:
`SEC. 339. RULES AND REGULATIONS.
`(a) IN GENERAL- The'; and
(2) by adding at the end the following new subsections:
`(b) DEBT SERVICE MARGIN REQUIREMENTS- Notwithstanding subsection (a), in
providing farmer program loan guarantees under this title, the Secretary
shall consider the income of the borrower adequate if the income is equal
to or greater than the income necessary--
`(1) to make principal and interest payments on all debt obligations of
the borrower, in a timely manner;
`(2) to cover the necessary living expenses of the family of the borrower;
and
`(3) to pay all other obligations and expenses of the borrower not financed
through debt obligations referred to in paragraph (1), including expenses of
replacing capital items (determined after taking into account depreciation
of the items).
`(c) CERTIFIED LENDERS PROGRAM-
`(1) IN GENERAL- The Secretary shall establish a program under which the
Secretary shall guarantee loans for any purpose specified in subtitle B
that are made by lending institutions certified by the Secretary.
`(2) CERTIFICATION REQUIREMENTS- The Secretary shall certify a lending
institution that meets such criteria as the Secretary may prescribe in
regulations, including the ability of the institution to properly make,
service, and liquidate the loans of the institution.
`(3) CONDITION OF CERTIFICATION- As a condition of the certification, the
Secretary shall require the institution to undertake to service the loans
guaranteed by the Secretary under this subsection, using standards that
are not less stringent than generally accepted banking standards concerning
loan servicing employed by prudent commercial or cooperative lenders. The
Secretary shall, at least annually, monitor the performance of each certified
lender to ensure that the conditions of the certification are being met.
`(4) EFFECT OF CERTIFICATION- Notwithstanding any other provision of law:
`(A) The Secretary shall guarantee 80 percent of a loan made under this
subsection by a certified lending institution as described in paragraph (1),
subject to county committee certification that the borrower of the loan meets
the eligibility requirements and such other criteria as may be applicable
to loans guaranteed by the Secretary under other provisions of this title.
`(B) With respect to loans to be guaranteed by the Secretary under this
subsection, the Secretary shall permit certified lending institutions
to make appropriate certifications (as provided by regulations issued by
the Secretary)--
`(i) relating to issues such as creditworthiness, repayment ability,
adequacy of collateral, and feasibility of farm operation; and
`(ii) that the borrower is in compliance with all requirements of law,
including regulations issued by the Secretary.
`(C) The Secretary shall approve or disapprove a guarantee not later than
14 calendar days after the date that the lending institution applied to the
Secretary for the guarantee. If the Secretary rejects the loan application
within the 14-day period, the Secretary shall state, in writing, all of
the reasons the application was rejected.
`(5) RELATIONSHIP TO OTHER REQUIREMENTS- Neither this subsection nor
subsection (d) shall affect the responsibility of the Secretary to
certify eligibility, review financial information, and otherwise assess
an application.
`(d) Preferred Certified Lenders Program-
`(1) IN GENERAL- Commencing not later than two years after the date of
enactment of the Agricultural Credit Improvement Act of 1992, the Secretary
shall establish a Preferred Certified Lenders Program for lenders who
establish their--
`(A) knowledge of, and experience under, the program established under
subsection (c);
`(B) knowledge of the regulations concerning the guaranteed loan program;
and,
`(C) proficiency related to the certified lender program requirements.
The Secretary shall certify any lending institution as a Preferred Certified
Lender that meets such criteria as the Secretary may prescribe by regulation.
`(2) REVOCATION OF DESIGNATION- The designation of a lender as a Preferred
Certified Lender shall be revoked at any time that the Secretary determines
that such lender is not adhering to the rules and regulations applicable
to the program or if the loss experiences of a Preferred Certified Lender
is excessive as compared to other Preferred Certified Lenders, except that
such suspension or revocation shall not affect any outstanding guarantee.
`(3) CONDITION OF CERTIFICATION- As a condition of such preferred
certification, the Secretary shall require the institution to undertake to
service the loans guaranteed by the Secretary under this subsection using
generally accepted banking standards concerning loan servicing employed by
prudent commercial or cooperative lenders. The Secretary shall, at least
annually, monitor the performance of each preferred certified lender to
ensure that the conditions of such certification are being met.
`(4) EFFECT OF PREFERRED LENDER CERTIFICATION- Notwithstanding any other
provision of law, the Secretary shall--
`(A) guarantee 80 percent of an approved loan made by a certified lending
institution as described in this subsection, subject to county committee
certification that the borrower meets the eligibility requirements or such
other criteria as may be applicable to loans guaranteed by the Secretary
under other provisions of this title;
`(B) permit certified lending institutions to make all decisions, with
respect to loans to be guaranteed by the Secretary under this subsection
relating to credit worthiness, the closing, monitoring, collection and
liquidation of loans, and to accept appropriate certifications, as provided
by regulations issued by the Secretary, that the borrower is in compliance
with all requirements of law or regulations promulgated by the Secretary; and
`(C) be deemed to have guaranteed 80 percent of a loan made by a preferred
certified lending institution as described in paragraph (1), if the Secretary
fails to approve or reject the application of such institution within 14
calendar days after the date that the lending institution presented the
application to the Secretary. If the Secretary rejects the application
within the 14-day period, the Secretary shall state, in writing, the
reasons the application was rejected.'.

77933a442b776f83ab1e7e89c80b32145f2c9b5e8f533023cca282f5d6292649

Section 343(a) (7 U.S.C. 1991(a)) is amended--
(1) by striking `this title (1) the term' and all that follows through
`fish farming,' at the end of paragraph (1) and inserting `this title:
`(1) The term `farmer' includes a person who is engaged in, or who, with
assistance afforded under this title, intends to engage in, fish farming.';
(2) by indenting, and aligning the margins of, paragraphs (2) through (10)
so as to align with paragraph (1) (as amended by paragraph (1));
(3) by striking `the' the first place it appears in each of such paragraphs
and inserting `The';
(4) by striking the comma at the end of each of paragraphs (2) through
(8) and inserting a period;
(5) by striking `, and' at the end of paragraph (9) and inserting a
period; and
(6) by adding at the end the following new paragraph:
`(11) The term `qualified beginning farmer or rancher' means an applicant--
`(A) who is eligible for assistance under this title;
`(B) who has not operated a farm or ranch, or who has operated a farm or
ranch for not more than 10 years;
`(C) in the case of a cooperative, corporation, partnership, or joint
operation, who has members, stockholders, partners, or joint operators
who are all related to one another by blood or marriage;
`(D)(i) in the case of an owner and operator of a farm or ranch, who--
`(I) in the case of a loan made to an individual, individually or with
the immediate family of the applicant--
`(aa) materially and substantially participates in the operation of the
farm or ranch; and
`(bb) provides substantial day-to-day labor and management of the farm or
ranch, consistent with the practices in the State or county in which the
farm or ranch is located; or
`(II)(aa) in the case of a loan made to a cooperative, corporation,
partnership, or joint operation, has members, stockholders, partners, or
joint operators, materially and substantially participate in the operation
of the farm or ranch; and
`(bb) in the case of a loan made to a corporation, has stockholders,
all of whom are qualified beginning farmers or ranchers; and
`(ii) in the case of an applicant seeking to own and operate a farm or
ranch, who--
`(I) in the case of a loan made to an individual, individually or with
the immediate family of the applicant, will--
`(aa) materially and substantially participate in the operation of the
farm or ranch; and
`(bb) provide substantial day-to-day labor and management of the farm or
ranch, consistent with the practices in the State or county in which the
farm or ranch is located; or
`(II)(aa) in the case of a loan made to a cooperative, corporation,
partnership, or joint operation, will have members, stockholders, partners,
or joint operators, materially and substantially participate in the
operation of the farm or ranch; and
`(bb) in the case of a loan made to a corporation, has stockholders,
all of whom are qualified beginning farmers or ranchers;
`(E) who agrees to participate in such loan assessment, borrower training,
and financial management programs as the Secretary may require;
`(F) who does not own land or who, directly or through interests in family
farm corporations, owns land, the aggregate acreage of which does not exceed
15 percent of the median acreage of the farms or ranches, as the case may
be, in the county in which the farm or ranch operations of the applicant
are located, as reported in the most recent census of agriculture taken
under section 142 of title 13, United States Code; and
`(G) who demonstrates that the available resources of the applicant and
spouse (if any) of the applicant are not sufficient to enable the applicant
to continue farming or ranching on a viable scale.'.

9ed8a086783f5c106d987f2b69f5d03b76dbcd7690f1e58331130034267b96d2

(a) FARM OPERATING LOANS FOR BEGINNING FARMERS AND RANCHERS- Section
346(b) (7 U.S.C. 1994(b)) is amended by adding at the end the following
new paragraph:
`(5)(A) In expending funds available for insured operating loans under
subtitle B, including loans made under section 318--
`(i) during the first 6 months of fiscal year 1994, the Secretary shall
reserve not less than 30 percent of the funds available for the fiscal year
to make insured operating loans to qualified beginning farmers or ranchers;
`(ii) during the first 6 months of each of fiscal years 1995 and 1996,
the Secretary shall reserve not less than 40 percent of the funds available
for the fiscal year to make insured operating loans to qualified beginning
farmers or ranchers; and
`(iii) during the first 6 months of each of fiscal years 1997 and thereafter,
the Secretary may reserve not more than 50 percent of the funds available
for the fiscal year to make insured operating loans to qualified beginning
farmers or ranchers.
`(B) In each fiscal year described in subparagraph (A), with regard to the
funds not reserved under subparagraph (A), a qualified beginning farmer
or rancher may apply for insured operating loans, but shall not receive
any preference as a result of status as a qualified beginning farmer
or rancher.'.
(b) PORTIONS OF FARM OWNERSHIP LOAN GUARANTEE FUNDS TARGETED TO BEGINNING
FARMERS OR RANCHERS- Section 346(b)(2) (7 U.S.C. 1994(b)(2)) is amended
by adding at the end the following new sentence:
`Not less than 25 percent of the amounts appropriated for guarantees of farm
ownership loans for each of the fiscal years 1994, 1995, 1996, and 1997 shall
be reserved by the Secretary during the first 6 months of the respective fiscal
year for guarantees of farm ownership loans to beginning farmers or ranchers.'.
(c) FARM OWNERSHIP LOANS-
(1) PERCENTAGE OF INSURED FARM OWNERSHIP LOAN FUNDS RESERVED FOR BEGINNING
FARMERS OR RANCHERS- Section 346(b)(3) is amended by adding at the end
the following new subparagraph:
`(D) To the extent that it is not inconsistent with an exercise of authority
under section 355, in expending funds available for insured farm ownership
loans--
`(i) during fiscal year 1994, the Secretary shall reserve not less than
55 percent of the funds available for the fiscal year to make insured farm
ownership loans to qualified beginning farmers or ranchers;
`(ii) during fiscal year 1995, the Secretary shall reserve not more than
65 percent of the funds available for the fiscal year to make insured farm
ownership loans to qualified beginning farmers or ranchers; and
`(iii) during each of fiscal years 1996 and thereafter, the Secretary
may reserve not less than 65 percent and not more than 70 percent of the
funds available for the fiscal year to make insured farm ownership loans
to qualified beginning farmers or ranchers.'.
(2) FUNDS RESERVED FOR DOWN PAYMENT LOAN PROGRAM- Section 346(b)(3)
(as amended by paragraph (1) of this subsection) is further amended by
adding at the end the following new subparagraph:
`(E) To the extent that it is not inconsistent with an exercise of authority
under section 355, the Secretary shall reserve not less than 60 percent
of the amounts reserved for qualified beginning farmers or ranchers under
subparagraph (D) for any fiscal year for down payment loans under section
310E.'.
(3) CERTAIN UNOBLIGATED DOWNPAYMENT LOAN PROGRAM FUNDS AVAILABLE FOR ANY
TYPE OF INSURED FARM OWNERSHIP LOANS FOR BEGINNING FARMERS AND RANCHERS-
Section 346(b)(3) (as amended by paragraph (2) of this subsection) is
further amended by adding at the end the following new subparagraph:
`(F) To the extent that it is not inconsistent with an exercise of authority
under section 355, to the maximum extent practicable, any funds reserved
for downpayment loans under section 310E for a fiscal year by reason of
subparagraph (E) that are not obligated by the end of the second quarter of
the fiscal year shall be available during the third quarter of the fiscal
year for any type of insured farm ownership loans to beginning farmers
and ranchers.'.
(d) INTEREST RATE ASSISTANCE PROGRAM- Section 346(b)(3) (as amended by
subsection (c)(3) of this section) is further amended by adding at the
end the following new subparagraph:
`(G) Not less than 40 percent of the amounts available for the interest
rate reduction program under section 351 shall be reserved for the first 6
months of each fiscal year for assistance to beginning farmers or ranchers.'.
(e) DOWNPAYMENT LOAN PROGRAM- Section 346(b) (as amended by subsection
(a) of this section) is further amended by adding at the end the following
new paragraph:
`(6) Notwithstanding any other provision of this title, at the end of the
third quarter of each fiscal year, the Secretary shall transfer, and use
to carry out section 310E, 75 percent of the amount that would otherwise
be available for guaranteed operating loans.'.

6d9c82d5ac73f83d5edda695f771c8e98703aba7963afbb5054c0715a88d987a

(a) TARGET PARTICIPATION RATES- Section 355(a) (7 U.S.C. 2003(a))
is amended--
(1) in paragraph (2), by striking `In establishing' and inserting `Except
as provided in paragraph (3), in establishing'; and
(2) by adding at the end the following new paragraph:
`(3) GENDER- With respect to gender, target participation rates shall
take into consideration the number of current and potential socially
disadvantaged farmers and ranchers in a State in proportion to the total
number of farmers and ranchers in the State.'.
(b) TARGETING OF LOANS TO MEMBERS OF GROUPS WHOSE MEMBERS HAVE BEEN
SUBJECTED TO GENDER PREJUDICE- Section 355(e)(1) (7 U.S.C. 2003(e)(1))
is amended by striking `or ethnic' and inserting `, ethnic, or gender'.
(c) RECORDKEEPING OF LOANS BY BORROWER'S GENDER- Subtitle D (7 U.S.C. 1981
et seq.) is amended by adding at the end the following new section:
`SEC. 369. RECORDKEEPING OF LOANS BY BORROWER'S GENDER.
`The Secretary shall classify, by gender, records of applicants for loans
and loan guarantees under this title.'.

ba36e498923f8a1a2fe00eecc0a81dc0c307ab32476d493d4f9cf4e07a6a5768

Section 502 of the Agricultural Credit Act of 1987 (7 U.S.C. 5102)
is amended--
(1) in subsection (b)(1), by striking `50' and inserting `70'; and
(2) in subsection (c), by inserting `with respect to which the amount was
paid' before the period.

64d58222cace1353c190396e38273fe7d77b3c85a087d9fa0af4c6289f8b6d4a

(a) INTERIM REGULATIONS- Not later than 180 days after the date of
enactment of this Act, the Secretary of Agriculture shall issue such interim
regulations as are necessary to implement this Act and the amendments made
by this Act.
(b) FINAL REGULATIONS- Not later than October 1, 1993, the Secretary
of Agriculture shall issue such final regulations as are necessary to
implement this Act and the amendments made by this Act.

59c3cf3c6c947d87d304aeac98cee7c59bdcbb463f931be51ffdaa9b7451402f

Section 306C(a)(2) is amended to read as follows:
`(2) CERTAIN AREAS TARGETED-
`(A) IN GENERAL- Loans and grants under paragraph (1) shall be made only
if the loan or grant funds will be used primarily to provide water or
waste services, or both, to residents of a county--
`(i) the per capita income of the residents of which is not more than 70
percent of the national average per capita income, as determined by the
Department of Commerce; and
`(ii) the unemployment rate of the residents of which is not less than
125 percent of the national average unemployment rate, as determined by
the Bureau of Labor Statistics.
`(B) EXCEPTION- Notwithstanding subparagraph (A), loans and grants under
paragraph (1) may also be made if the loan or grant funds will be used
primarily to provide water or waste services, or both, to residents of a
rural area that was recognized as a colonia as of October 1, 1989.'.
Passed the House of Representatives October 4, 1992.
Attest:
Clerk.
HR 6129 EH----2
HR 6129 EH----3
HR 6129 EH----4

463062fd9e307e97301e7c5f4ee95a2174e60b60dee097f227c93072fb13bdc2

Agricultural Credit Improvement Act of 1992 — HR. 6129

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