Forestry Loan Act of 1979

Summary

Forestry Loan Act of 1979 - Directs the Secretary of Agriculture to conduct a five-year pilot program of financial assistance to owners of nonindustrial private forest land which shall include, but not be limited to: (1) the insuring and guaranteeing of loans providing periodic loan disbursements; (2) the consolidation for resale in private capital markets of the loan obligations of individual landowners; and (3) the loaning of funds to lending institutions in order to make such guaranteed loans. 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; provided, the applicant is unable to obtain sufficient credit elsewhere. Requires borrowers to prepare, keep current, and adhere to an individual forest management plan, developed in cooperation with and approved by the State forester (or equivalent official). Limits the maximum amount of any insured or guaranteed loan to any one landowner to $50,000 annually. Authorizes the Secretary to guarantee up to 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 future expected 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. Sets a repayment term of up to 40 years. Allows the interest rate to be set by the lender and borrower. Directs the Secretary to appoint a program development and evaluation committee to advise him regarding the financial assistance program. 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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2 official files

• Reported to House with amendment(s)

  summary · EN · 23 January 1980

  Open at official source

• Introduced in House

  summary · EN · 10 July 1979

  Open at official source

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