Farm Credit Partnership Act

Summary

Title I: Short Title - Farm Credit Partnership Act. Title II: Definitions - Defines "borrower" for the purposes of this Act as being any individual, family corporation, or family partnership that makes at least 50 percent of its gross income from farming and holds an agricultural loan. Limits assistance for any borrower to $400,000 for an individual, and $600,000 for a family corporation or partnership. Lists the qualifications a borrower must demonstrate to receive such assistance. Directs the Secretary of Agriculture to establish a cooperative Federal- State-Lender Agricultural Loan Interest Subsidy Program. Allows a borrower to apply to a lender for an interest rate subsidy with respect to any agriculture loan outstanding on October 1, 1985. Provides that the interest rate for such loans shall be fixed for a period of three years at a rate equal to the rate of the borrower's loan as of December 1, 1985, less up to five percent subsidy. Provides that two percent of the subsidy shall be paid by the Federal government, one to two percent by the State, and one percent by the lender. Requires participating States to submit a plan by June 1, 1986, and March 1 of each year thereafter, which: (1) designates a single agency to run the program; (2) assesses the interest subsidy needs of borrowers in the State; (3) describes the program for the provision of interest subsidies; and (4) estimates the amount of expenditures necessary. Requires the Secretary to review and rule on such plans by July 15, 1986, and April 15, in subsequent years. Provides for disapproval and sanctions of noncompliant plans. Title III: Agricultural Loan Principal Reduction - Allows a participating lender to write down the outstanding principal balance on a loan by such amount as will permit a borrower to qualify for assistance. Declares that the borrower shall not be liable for any of the written-down portion of the loan or the accrued interest attributable. Amends the Consolidated Farm and Rural Development Act to direct the Secretary to establish and carry out a guaranteed loan program pursuant to the Agricultural Loan Cancellation Program. Lists the qualifications and conditions for such guarantees. Title IV: Miscellaneous Provisions - Directs the Federal Deposit Insurance Corporation (FDIC), the Comptroller of the Currency (CCC), and the Federal Reserve System to develop an Inter-Agency Agricultural Task Force. Describes the responsibilities of such task force. Sets forth criminal penalties for anyone who embezzles, misapplies, steals, or obtains by fraud, false statement, or forgery, any funds, assets, or property provided under this Act. Authorizes appropriations.

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1 official file

• Introduced in Senate

  summary · EN · 5 December 1985

  Open at official source

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