A bill revising repayment schedules and eligibility requirements for emergency loans.

Summary

Amends the Consolidated Farm and Rural Development Act with respect to emergency and disaster loans to define the "reasonable rates" of sufficient credit which loan applicants cannot find locally, as rates which, at the time of application, do not exceed by more than two percent the average discount rate in effect at Federal Reserve banks. Sets the interest rate for the portion of a loan in excess of the amount of actual disaster loss at the average annual interest rate on all interest-bearing obligations of the United States then forming a part of the public debt as computed as of a certain date and adjusted according to a specified formula. Sets the repayment term for such a loan at no more than 30 years. Provides for an initial five-year suspension of principal payments by the borrower of an insured loan. Requires the Secretary of Agriculture to make such payments on behalf of the borrower during such suspension period, and requires the borrower, without charge of interest, to reimburse the Secretary for such payments at any time within the 30-year repayment period. Declares the sense of Congress that, in carrying out the provisions of such Act, the Secretary shall insure: (1) that only officers and employees of the Department of Agriculture who are adequately prepared to understand the particular needs and problems of farmers in an area be assigned to such area; and (2) that a high priority is placed on keeping existing farm operations operating.

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1 official file

• Introduced in House

  summary · EN · 30 June 1977

  Open at official source

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