Forestry Loan Act of 1981

Summary

Forestry Loan Act of 1981 - Directs the Secretary of Agriculture to conduct a five-year pilot program of financial assistance to nonindustrial owners of private forest land which shall provide for the guaranteeing of loans under which periodic loan disbursements shall be made to eligible landowners. Limits the cumulative total of principal and interest on such loans to $50,000,000. Declares eligible for such program any private individual, group, Indian Tribe or other native group, association, partnership, corporation or other legal entity which owns forest land capable of producing crops of industrial wood, if such person: (1) owns less than 1,000 acres of land capable of producing industrial wood (except in specified circumstances); (2) is not principally engaged in the manufacture of wood products; and (3) certifies in writing that such person is unable to obtain sufficient credit elsewhere at comparable rates and terms. Authorizes the Secretary to guarantee 90 percent of that portion of the overall loan obligation which exceeds the market value of the assets securing such loan. Bases the amount of the periodic loan disbursement upon the projected market value of the timber securing such loan, limiting the total principal and interest obligation to 80 percent of such value. Allows for adjustment of loan terms, as agreed by both landowner and lender, following periodic reviews of individual loan agreements and forest management plans. Entitles borrowers to prepayment of all or any part of an outstanding loan obligation without penalty. Allows the interest rate to be set by the lender and borrower, but not in excess of a rate determined by the Secretary. Directs the Secretary to appoint a program development and evaluation committee. Requires funding for the program to be drawn from the Rural Development Insurance Fund. Requires annual reports to Congress on the progress of the pilot program. Authorizes necessary appropriations for administrative expenses.

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1 official file

• Introduced in House

  summary · EN · 12 March 1981

  Open at official source

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