Family Farm Credit Act

Summary

Family Farm Credit Act - Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to make real estate and operating loans available to private domestic corporations, partnerships, and other business entities engaged primarily and directly in farming or ranching, where: (1) in the case of a partnership each member of the partnership is a member of the family and a United States citizen; and (2) in the case of a corporation or other business entity, each person who owns any share or interest in the business entity is a member of the family and a United States citizen. Increases the maximum allowable total principal indebtedness for real estate loans which may be outstanding to any one borrower from $225,000 to $450,000 of the value of the farm or other security. Increases the maximum amount of any loan from $100,000 to $255,000, or in the case of a guaranteed loan, sets such maximum at $300,000. Authorizes operating loans for the purpose of repairing, improving, or constructing any farm facility or building. Increases the amount of indebtedness which may be outstanding for operating loans under such Act for an individual from $50,000 to $100,000, or in the case of a guaranteed loan, sets such maximum at $225,000. States that the interest rates on guaranteed loans shall be the rate agreed upon by the borrower and lender. Authorizes the Secretary to purchase the guaranteed portion of any rural development loan using funds from the Rural Development Insurance Fund and the guaranteed portion of all other loans with funds from the Agricultural Credit Insurance Fund. Allows for the consolidating of operating loans and for the insurance of such consolidated loans. Authorizes the Secretary to provide a procedure for appeal and review of determinations by a county committee that a loan applicant is able to obtain sufficient credit elsewhere to finance his actual needs at reasonable rates and terms. Authorizes the Secretary, when he is required to foreclose on a loan, to withhold such foreclosure action, under specified circumstances, and permit the borrower to rent or lease the farm or ranch to a third person for a temporary period of time not to exceed 36 months. Amends the Emergency Livestock Credit Act of 1974: (1) to remove the September 30, 1978, expiration date for such Act; and (2) to permit certified loans equal to the amount necessary to permit continuation of livestock operations at a level equal to its highest level during the five-year period immediately preceding the date of the loan application in the case of loans made after the enactment of this Act. Increases the maximum amount of a guaranteed emergency livestock loan from $350,000 to $500,000.

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1 official file

• Introduced in Senate

  summary · EN · 22 September 1977

  Open at official source

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