A bill to amend the Consolidated Farm and Rural Development Act to establish a loan insurance program for producers of livestock and poultry.

Summary

Directs the Secretary of Agriculture to insure loans made by a lender other than the United States, or made by the Secretary and sold to such lender, to a borrower in the United States who: (1) is a citizen of the United States engaged solely or primarily in agricultural production; (2) is or has been engaged in livestock and poultry producing operations to an extent and in a manner determined by the Secretary as necessary to assure reasonable prospects of success in livestock and poultry producing endeavors financed by loans insured under this subtitle; (3) is unable to obtain sufficient credit to finance his actual needs in the livestock and poultry producing business at reasonable rates and terms, as determined by the Secretary after considering prevailing private and cooperative rates and terms in the community in or near which the applicant resides for loans for similar purposes and periods of time; and (4) has, if he has received previously a loan insured under this subtitle, performed successfully the terms of such loan. Sets forth requirements pertaining to the issuance of loans and to the rate of interest payments to be made. Establishes the Livestock and Poultry Producer's Insurance Fund, which shall be used by the Secretary as a revolving fund for the discharge of obligations of the Secretary under the provisions of this Act. Directs the Secretary to utilize the fund: (1) to make loans which can be insured under this Act whenever he has reasonable assurance that they can be sold without undue delay, and he may sell and insure such loans; (2) to pay to the holder of insured notes any defaulted installment, or upon assignment of the note to the Secretary at the Secretary's request, the entire balance due on the loan; (3) to purchase notes in accordance with contracts of insurance entered into by the Secretary; (4) to make payments in compliance with the Secretary's obligation under contracts of insurance entered into by him; (5) to pay taxes, insurance, prior liens, and expenses necessary to make fiscal adjustments in connection with the application and transmittal of collections or necessary to obtain credit reports on applicants or borrowers, plus expenses for necessary services, including commercial appraisals and loan servicing and consulting fees, and other expenses and advances authorized by this Act; and (6) to perform any other act authorized by this Act. Stipulates that the aggregate amount of the obligations insured under this Act and outstanding at any one time shall not exceed $3,500,000,000.

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Documents

1 official file

• Introduced in House

  summary · EN · 18 June 1974

  Open at official source

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