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99 STAT. 1519

(3) striking out "members, stockholders, or partners, as applicable," each place it appears and inserting 'individuals" in lieu thereof, (b) Section 343 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991) is amended by CD striking out "and" before "(6)"; and (2) inserting before the period at the end thereof the following: ", and (7) the term 'joint operation' means a joint farming operation in which two or more farmers work together sharing equally or unequally land, labor, equipment, expenses, and income". ELIGIBILITY FOR REAL ESTATE AND OPERATING LOANS

SEC. 1302. (a) Section 302 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922) is amended by CD inserting "(a)" after the section designation; and (2) adding at the end thereof the following new subsection: "(b) The Secretary may not restrict eligibility for loans made or insured under this subtitle for purposes set forth in section 303 solely to borrowers of loans that are outstanding on the date of enactment of the Food Security Act of 1985.". (b) Section 311 of such Act (7 U.S.C. 1941) is amended by adding at the end thereof the following new subsection: "(c) The Secretary may not restrict eligibility for loans made or insured under this subtitle for purposes set forth in section 312 solely to borrowers of loans that are outstanding on the date of enactment of the Food Security Act of 1985.".

Prohibition. 7 USC 1923.

Prohibition. 7 USC 1942.

FAMILY FARM RESTRICTION

SEC. 1303. Sections 302 and 311 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 and 1941) are each amended by adding, at the end of the parenthetical provision in clause (3) of the second sentence, the following: "or, in the case of holders of the entire interest who are related by blood or marriage and all of whom are or will become farm operators, the ownership interest of each such holder separately constitutes not larger than a family farm, even if their interests collectively constitute larger than a family farm, as defined by the Secretary'. WATER AND WASTE DISPOSAL FACILITIES

SEC. 1304. (a) Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by— (1) adding at the end of paragraph (2) the following: "The Secretary shall fix the grant rate for each project in conformity with regulations issued by the Secretary that shall provide for a graduated scale of grant rates establishing higher rates for projects in communities that have lower community population and income levels."; and (2) adding at the end thereof the following: "(16XA) The Secretary may make grants to private nonprofit organizations for the purpose of enabling them to provide to associations described in paragraph (1) of this subsection technical assistance and training to— "(i) identify, and evaluate alternative solutions to, problems relating to the obtaining, storage, treatment, purification, or

Regulations.

Grants.

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 99 STAT. 1520

Grants.

Prohibition. Grants.

Post, p. 1521. Grants.

Loans.

Study. Loans. Grants. Ante, p. 1519.

Report.

PUBLIC LAW 99-198—DEC. 23, 1985

distribution of water or the collection, treatment, or disposal of waste in rural areeis; "(ii) prepare applications to receive financial assistance for any purpose specified in paragraph (2) of this subsection from any public or private source; and "(iii) improve the operation and maintenance practices at any existing works for the storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas. "(B) In selecting recipients of grants to be made under subparagraph (A), the Secretary shall give priority to private nonprofit organizations that have experience in providing the technical assistance and training described in subparagraph (A) to associations serving rural areas in which residents have low income and in which water supply systems or waste facilities are unhealthful. "(C) Not less than 1 nor more than 2 per centum of any funds provided in Appropriations Acts to carry out paragraph (2) of this subsection for any fiscal year shall be reserved for grants under subparagraph (A) unless the applications, qualifying for grants, received by the Secretary from eligible nonprofit organizations for the fiscal year total less than 1 per centum of those funds. "(17) In the case of water and waste disposal facility projects serving more than one separate rural community, the Secretary shall use the median population level and the community income level of all the separate communities to be served in applying the standards specified in paragraph (2) of this subsection and section 307(a)(3)(A). "(18) Grants under paragraph (2) of this subsection may be used to pay the local share requirements of another Federal grant-in-aid program to the extent permitted under the law providing for such grant-in-aid program. "(19XA) In the approval and administration of a loan made under paragraph (1) for a water or waste disposal facility, the Secretary shall consider fully any recommendation made by the loan applicant or borrower concerning the technical design and choice of materials to be used for such facility. "(B) If the Secretary determines that a design or materials, other than those that were recommended, should be used in the water or waste disposal facility, the Secretary shall provide such applicant or borrower with a comprehensive justification for such determination.". (b)(1) The Secretary of Agriculture shall— (A) conduct a study of the practicality and cost effectiveness of making loans and grants under section 306 of the C]!onsolidated Farm and Rural Development Act (7 U.S.C. 1926) for the construction of water and waste disposal facilities in rural areas at individual locations, rather than central or community locations; and (B) in such study consider the feasibility of small multiuser drinking water facilities, the costs involved in connecting rural residents into the community water systems, improvements to small community water systems, and alternative rural drinking water systems. (2) Not later than 120 days after the date of enactment of this Act, the Secretary shall submit a report on the results of the study required under paragraph (1) to the (Dommittee on Agriculture of

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the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. INTEREST RATES—WATER AND WASTE DISPOSAL FACILITY AND COMMUNITY FACILITY LOANS

SEC. 1304A. Section 307(a)(3)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(A)) is amended by CD striking out "where the median family income of the persons to be served by such facility is below the poverty line prescribed by the Office of Management and Budget, as adjusted under section 624 of the Economic Opportunity Act of 1964 (42 U.S.C. 2971d)" and inserting in lieu thereof "where the median household income of the persons to be served by such facility is below the higher of 80 per centum of the statewide nonmetropolitan median household income or the poverty line established by the Office of Management and Budget, as revised under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))"; and (2) inserting before the period at the end thereof the following: "; and not in excess of 7 per centum per annum on loans for such facilities that do not qualify for the 5 per centum per annum interest rate but are located in areas where the median household income of the persons to be served by the facility does not exceed 100 per centum of the statewide nonmetropolitein median household income". MINERAL RIGHTS AS COLLATERAL

SEC. 1305. Section 307 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927) is amended by adding at the end thereof Supra. the following: "(d) With respect to a farm ownership loan made after the date of Loans. the enactment of this subsection, unless appraised values of the Petroleum petroleum rights to oil, gas, or other minerals are specifically included as part products. of the appraised value of collateral securing the loan, the rights to oil, gas, or other minerals located under the property shall not be considered part of the collateral securing the loan. Nothing in this subsection shall prevent the inclusion of, as part of the collateral securing the loan, any payment or other compensation the borrower may receive for damages to the surface of the collateral real estate resulting from the exploration for or recovery of minerals.".

and

FARM RECORDKEEPING TRAINING FOR LIMITED RESOURCE BORROWERS

SEC. 1306. The first sentence of section 312(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1942(a)) is amended— (1) by striking out "and" at the end of clause (10); and (2) by inserting before the period at the end thereof the Loans. following new clause: ", and (12) training in maintaining records of farming and ranching operations for limited resource borrowers receiving loans under section 310D". 7 USC 1934. NONSUPERVISED ACCOUNTS

SEC. 1307. Section 312 of the (Consolidated Farm and Rural Development Act (7 U.S.C. 1942) is amended by adding at the end the Supra. following:

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 99 STAT. 1522 Loans. Banks and banking.

PUBLIC LAW 99-198—DEC. 23, 1985

"(e) Notwithstanding any other provision of this title, the Secretary shall reserve not more than 10 percent of any loan made under this subtitle or $5,000 of such loan, whichever is less, to be placed in a nonsupervised bank account which may be used at the discretion of the borrower for necessary family living needs or purposes not inconsistent with previously agreed upon farming or ranching plans. If the borrower exhausts this reserve, the Secretary may review and adjust the farm plan with the borrower and consider rescheduling the loan, extending additional credit, the use of income proceeds to pay necessary farm and home and other expenses, or additional available loan servicing.". ELIGIBILITY FOR EMERGENCY LOANS

SEC. 1308. (a) Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended by— (1) inserting after "United States" in clause (1) of the first sentence "and who are owner-operators (in the case of loans for a purpose under subtitle A) or operators (in the case of loans for Corporations. a purpose under subtitle B) of not larger than family farms"; (2) in clause (2) of the first sentence, striking out "farm cooperatives or private domestic corporations or partnerships in which a majority interest is held by members, stockholders, or partners who are citizens of the United States if the cooperative, corporation, or partnership is engaged primarily in farming, ranching, or aquaculture," and inserting in lieu thereof the following: "farm cooperatives, private domestic corporations, partnerships, or joint operations (A) that are engaged primarily in farming, ranching, or aquaculture, and (B) in which a majority interest is held by individuals who are citizens of the United States and who are owner-operators (in the case of loans for a purpose under subtitle A) or operators (in the case of loans for a purpose under subtitle B) of not larger than family farms (or in the case of such cooperatives, corporations, partnerships, or joint operations in which a majority interest is held by individuals who are related by blood or marriage, as defined by the Secretary, such individuals must be either owners or operators of not larger than a family farm and at least one such individual must be an operator of not larger than a family farm),"; and (Corporations. (3) inserting after the first sentence the following: "In addition to the foregoing requirements of this subsection, in the case of farm cooperatives, private domestic corporations, partnerships, and joint operations, the family farm requirement of the preceding sentence shall apply as well to all farms in which the entity has an ownership and operator interest (in the case of loans for a purpose under subtitle A) or an operator interest (in the case of loans for a purpose under subtitle B).". (b)(1) Subsection (b) of section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(b)) is amended to read as follows: "(b) An applicant shall be ineligible for financial assistance under this subtitle for crop losses if crop insurance was available to the applicant for such crop losses under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).". Prohibition. (2) The amendment made by paragraph (1) shall not apply to a 7 USC 1961 note, person whose eligibility for an emergency loan is the result of 98 Stat. 138.

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99 STAT. 1523

damage to an annual crop planted or harvested before the end of 1986. (3) Section 324(b)(l) of such Act (7 U.S.C. 1964(b)(l)) is amended by striking out "but (A)" and all that follows through "Secretary" and inserting in lieu thereof "but not in excess of 8 percent per annum". (c) Subsection (a) of section 324 of such Act (7 U.S.C. 1964(a)) is amended to read as follows: "(a) No loan made or insured under this subtitle may exceed the amount of the actual loss caused by the disaster or $500,000, whichever is less, for each disaster.". (d) Section 330 of such Act (7 U.S.C. 1971) is repealed.

Prohibition.

Repeal.

SETTLEMENT OF CLAIMS

SEC. 1309. Subsection (d) of the second paragraph of section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981(d)) is amended to read as follows: "(d) compromise, adjust, reduce, or charge-off claims, and adjust, modify, subordinate, or release the terms of security instruments, leases, contracts, and agreements entered into or administered by the Farmers Home Administration under any of its programs, as circumstances may require, to carry out this title. The Secretary may release borrowers or others obligated on a debt incurred under this title from personal liability with or without payment of any consideration at the time of the compromise, adjustment, reduction, or charge-off of any claim, except that no compromise, adjustment, reduction, or charge-off of any claim may be made or carried out— "(1) on terms more favorable than those recommended by the appropriate county committee utilized pursuant to section 332; or "(2) after the claim has been referred to the Attorney General, unless the Attorney General approves;".

Securities. Contracts.

Post, p. 1524.

OIL AND GAS ROYALTIES

SEC. 1310. (a) Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 33IB the following new section: "SEC. 331C. (a) The Secretary shall permit a borrower of a loan made or insured under this title to make a prospective payment on such loan with proceeds from— "(1) the leasing of oil, gas, or other mineral rights to real property used to secure such loan; or "(2) the sale of oil, gas, or other minerals removed from real property used to secure such loan, if the value of the rights to such oil, gas, or other minerals has not been used to secure such loan. "(b) Subsection (a) shall not apply to a borrower of a loan made or insured under this title with respect to which a liquidation or foreclosure proceeding is pending on the date of enactment of the Food Security Act of 1985.'\ (b) Section 204 of the Emergency Agricultural Credit Adjustment Act of 1978 (7 U.S.C. 1947 note) is amended by adding at the end thereof the following new subsection: "(e)(1) The Secretary shall permit a borrower of a loan made or insured under this title to make a prospective payment on such loan with proceeds from—

Loans. 7 USC 1981c. Real property.

Prohibition. Loans.

7 USC note precl 1961. Loans.

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 99 STAT. 1524 Real property.

Prohibition.

PUBLIC LAW 99-198—DEC. 23, 1985

"(A) the leasing of oil, gas, or other mineral rights to real property used to secure such loan; or "(B) the sale of oil, gas, or other minerals removed from real property used to secure such loan if the value of the rights to such oil, gas, or other minerals has not been used to secure such loan. "(2) Paragraph (1) shall not apply to a borrower of a loan made or insured under this title with respect to which a liquidation or foreclosure proceeding is pending on the date of enactment of the Food Security Act of 1985." COUNTY COMMITTEES

Regulations.

SEC. 1311. Section 332(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1982(a)) is amended to read as follows: "(a) In each county or area in which activities are carried out under this title, there shall be a county committee composed of three members. Two members shall be elected, from among their number, by farmers deriving the principal part of their income from farming who reside within the county or area, and one member, who shall reside within the county or area, shall be appointed by the Secretary for a term of three years. At the first election of county committee members under this subsection, one member shall be elected for a term of one year and one member shall be elected for a term of two years. Thereafter, elected members of the county committee shall be elected for a term of three years. The Secretary, in selecting the appointed member of the county committee, shall ensure that, to the greatest extent practicable, the committee is fairly representative of the farmers in the county or area. The Secretary may appoint an alternate for each member of the county committee. Appointed and alternate members of the county committee shall be removable by the Secretary for cause. The Secretary shall issue such regulations as are necessary relating to the election and appointment of members and alternate members of the county committees.". PROMPT APPROVAL OF LOANS AND LOAN GUARANTEES

7 USC 1983a.

SEC. 1312. (a) Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 333 (7 U.S.C. 1983) the following new section: "SEC. 333A. (a)(1) The Secretary shall approve or disapprove an application for a loan or loan guarantee made under this title, and notify the applicant of such action, not later than 60 days after the Secretary has received a complete application for such loan or loan guarantee. "(2) If an application for a loan or loan guarantee under this title is incomplete, the Secretary shall inform the applicant of the reasons such application is incomplete not later than 20 days after the Secretary has received such application. "(3) If an application for a loan or loan guarantee under this title is disapproved by the Secretary, the Secretary shall state the reasons for the disapproval in the notice required under paragraph (1). "(b)(1) Except as provided in paragraph (2), if an application for an insured loan under this title is approved by the Secretary, the Secretary shall provide the loan proceeds to the applicant not later

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99 STAT. 1525

than 15 days (or such longer period as the applicant may approve) after the application for the loan is approved by the Secretary. "(2) If the Secretary is unable to provide the loan proceeds to the applicant within such 15-day period because sufficient funds are not available to the Secretary for such purpose, the Secretary shall provide the loan proceeds to the applicant as soon as practicable (but in no event later than 15 days unless the applicant agrees to a longer period) after sufficient funds for such purpose become available to the Secretary. "(c) In an application for a loan or loan guarantee under this title is disapproved by the Secretary, but such action is subsequently reversed or revised as the result of an appeal within the Department of Agriculture or to the courts of the United States and the application is returned to the Secretary for further consideration, the Secretary shall act on the application and provide the applicant with notice of the action within 15 days after return of the application to the Secretary. "(d) In carrying out the approved lender program established by exhibit A to subpart B of part 1980 of title 7, Code of Federal Regulations, the Secretary shall ensure that each request of a lending institution for designation as an approved lender under such program is reviewed, and a decision made on the application, not later than 15 days after the Secretary has received a complete application for such designation. '(e)(1) As soon as practicable after the date of enactment of the Food Security Act of 1985, the Secretary shall take such steps as are necessary to make personnel, including the payment of overtime for such personnel, and other resources of the Department of Agriculture available to the Farmers Home Administration as are sufficient to enable the Farmers Home Administration to expeditiously process loan applications that are submitted by farmers and ranchers. "(2) In carrying out paragraph (1), the Secretary may use any authority of law provided to the Secretary, including— "(A) the Agricultural Credit Insurance Fund established under section 309; and "(B) the employment procedures used in connection with the emergency loan program established under subtitle C ". (b) The amendment made by subsection (a) shall be effective with respect to applications for loans or loan guarantees under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) received by the Secretary of Agriculture after the date of enactment of this Act.

7 USC 1929. Effective date. 7 USC 1983a note.

APPEALS

SEC. 1313. (a) Subtitle D of the Consolidated Farm and Rural Development Act is amended by inserting after section 333A (as added by section 1312) the following new section: Ante, p. 1524. "SEC. 333B. (a) The Secretary shall provide an applicant for or Loans. borrower of a loan, or an applicant for or recipient of a loan Emulations. guartuitee, under this title who has been directly and adversely 7 USC 1983b. affected by a decision of the Secretary made under this title (hereafter in this section referred to as the 'appellant') with written notice of the decision, an opportunity for an informal meeting, and an opportunity for a hearing with respect to such decision, in accordance with regulations issued by the Secretary consistent with this section.

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 99 STAT. 1526

study. Loans.

Ante, p. 1524. Report.

PUBLIC LAW 99-198—DEC. 23, 1985

"(b)(1) Not later than 10 days after such adverse decision, the Secretary shall provide the appellant with written notice of the decision, an opportunity for an informal meeting, an opportunity for a hearing, and the procedure to appeal such decision (including any deadlines for filing appeals). "(2) Upon the request of the appellant and in order to provide an opportunity to resolve differences and minimize formal appeals, the Secretary shall hold an informal meeting with the appellant prior to the initiation of any formal appeal of the decision of the Secretary. "(c)(l) An appellant shall have the right to have— "(A) access to the personal file of the appellant maintained by the Secretary, including a reasonable opportunity to inspect and reproduce the file at an office of the Farmers Home Administration located in the area of the appellant; and "(B) representation by an attorney or nonattorney during the inspection and reproduction of files under subparagraph (A) and at any informal meeting or hearing. "(2) The Secretary may charge an appellant for any reasonable costs incurred in reproducing files under paragraph (I)(A).". (b)(1) The Secretary of Agriculture shall conduct a study of the administrative appeals procedure used in the farm loan programs of the Farmers Home Administration. (2) In conducting such study, the Secretary shall examine— (A) the number and type of appeals initiated by loan applicants and borrowers; (B) the extent to which initial administrative actions are reversed on appeal; (C) the reasons that administrative actions are reversed, modified, or sustained on appeal; (D) the number and disposition of appeals in which the loan applicant or borrower is represented by legal counsel; (E) the quantity of time required to complete action on appeals and the reasons for delays; (F) the feasibility of the use of administrative law judges in the appeals process; and (G) the desirability of electing members of county committees established under section 332 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1982). (c) Not later than September 1, 1986, the Secretary shall submit a report describing the results of the study required under this section to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. DISPOSITION AND LEASING OF FARMLAND

Conservation. State and local governments.

SEC. 1314. (a) Section 335 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985) is amended by— (1) striking out "Real" in subsection (b) and inserting in lieu thereof "Except as provided in subsection (e), real"; (2) in subsection (c)— (A) striking out "The" in the first sentence and inserting in lieu thereof "Except as provided in subsection (e), the'; and (B) adding at the end thereof the following new sentence: "Notwithstanding the preceding sentence, the Secretary may for conservation purposes grant or sell an easement, restriction, development rights, or the equivalent thereof.

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99 STAT. 1527

to a unit of local or State government or a private nonprofit organization separately from the underlying fee or sum of all other rights possessed by the United States."; and (3) by adding at the end thereof the following new subsection: "(e)(l) The Secretary shall to the extent practicable sell or lease farmland administered under this title in the following order of priority: (A) Sale of such farmland to operators (as of the time immediately before such sale) of not larger than family-size farms. "(B) Lease of such farmland to operators (as of the time immediately before such lease is entered into) of not larger than family-size farms. "(2) The Secretary shall not offer for sale or sell any such farmland if the placing of such farmland on the market will have a detrimental effect on the value of farmland in the area. "(3)(A) The Secretary shall consider granting, and may grant, to an operator of not larger than a family-size farm, in conjunction with paragraph (3), a lease with an option to purchase farmland administered under this title. "(B) The Secretary shall issue regulations providing for leasing such land, or leasing such land with an option to purchase, on a fair and equitable basis. "(C) In leasing such land, the Secretary shall give special consideration to a previous owner or operator of such land if such owner or operator has financial resources, and farm management skills and experience, that the Secretary determines are sufficient to assure a reasonable prospect of success in the proposed farming operation. "(D) To the extent the Secretary may lease or operate real property under this subsection, the Secretary shall, if the Secretary determines to administer such property through management contracts, offer the contracts on a competitive bid basis, giving preference to persons who will live in, and own and operate qualified small businesses in, the area where the property is located. "(4)(A)(i) The Secretary may sell farmland administered under this title through an installment sale or similar device that contains such terms as the Secretary considers necessary to protect the investment of the Federal Government in such land. "(ii) The Secretary may subsequently sell any contract entered into to carry out clause (i). "(B) The Secretary shall offer such land for sale to operators of not larger than family-size farms at a price that reflects the aversige annual income that may be reasonably anticipated to be generated from farming such land. "(C) If two or more qualified operators of not larger than familysize farms desire to purchase, or lease with an option to purchase, such land, the appropriate county committee shall, by majority vote, select the operator who may purchase such land, on such basis as the Secretary may prescribe by regulation. "(5)(A) If the Secretary determines that farmland administered under this title is not suitable for sale or lease to an operator of not larger than a family-size farm because such farmland is in a tract or tracts that the Secretary determines to be larger than that necessary for family-size farms, the Secretary shall subdivide such land into tracts suitable for such operator. "(B) The Secretary shall dispose of such subdivided farmland in accordance with this subsection.

51-194 O -

QL. 3

Part 2

Prohibition,

Regulations,

Real property. Contracts. Small business.

Contracts,

Regulations,

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 99 STAT. 1528

PUBLIC LAW 99-198—DEC. 23, 1985

"(6) If suitable farmland is available for disposition under this subsection, the Secretary shall— "(A) publish an announcement of the availability of such farmland in at least one newspaper that is widely circulated in the county in which the farmland is located; and "(B) post an announcement of the availability of such farmland in a prominent place in the local office of the Farmers Home Administration that serves the county in which the farmland is located. Conservation. "(7) In the case of farmland administered under this title that is highly erodible land (as defined in section 1201 of the Food Security Act of 1985), the Secretary may require the use of specified conservaAnte, p. 1504. tion practices on such land as a condition of the sale or lease of such land. "(8) Notwithstanding any other provisions of law, compliance by the Secretary with this subsection shall not cause any acreage allotment, marketing quota, or acreage base assigned to such property to lapse, terminate, be reduced, or otherwise be adversely affected.". 7 USC 1985 note. (b) The Secretary of Agriculture shall implement the amendments made by this section not later than 90 days after the date of enactment of this Act. RELEASE OF NORMAL INCOME SECURITY

Ante, p. 1526.

Loans.

SEC. 1315. Section 335 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985) (as amended by section 1314(3)) is further amended by adding at the end thereof the following new subsection: "(fKD As used in this subsection, the term 'normal income security' has the same meaning given such term in section 1962.17(b) of title 7, Code of Federal Regulations (as of January 1, 1985). "(2) Until such time as the Secretary accelerates a loan made or insured under this title, the Secretary shall release from the normal income security provided for such loan an amount sufficient to pay the essential household and farm operating expenses of the borrower, as determined by the Secretary.". LOAN SUMMARY STATEMENTS

SEC. 1316. Section 337 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1987) is amended by— (1) inserting "(a)" after the section designation; and (2) adding at the end thereof the following new subsection: "(b)(l) As used in this subsection, the term 'summary period' means— "(A) the period beginning on the date of enactment of the Food Security Act of 1985 and ending on the date on which the first loan summary statement is issued after such date of enactment; or "(B) the period beginning on the date of issuance of the preceding loan summary statement and ending on the date of issuance of the current loan summary statement. "(2) On the request of a borrower of a loan made or insured (but not guaranteed) under this title, the Secretary shall issue to such borrower a loan summary statement that reflects the account activity during the summary period for each loan made or insured under this title to such borrower, including—

II -

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99 STAT. 1529

"(A) the outstanding amount of principal due on each such loan at the beginning of the summary period; "(B) the interest rate charged on each such loan; "(C) the amount of payments made on and their application to each such loan during the summary period and an explanation of the basis for the application of such payments; "(D) the amount of principal and interest due on each such loan at the end of the summary period; "(E) the total amount of unpaid principal and interest on all such loans at the end of the summary period; "(F) any delinquency in the repayment of any such loan; "(G) a schedule of the amount and date of payments due on each such loan; and "(H) the procedure the borrower may use to obtain more information concerning the status of such loans.". AUTHORIZATION OF LOAN AMOUNTS

SEC. 1317. (a) Subsection (b) of section 346 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)) is amended to read as follows: "(b)(l)(A) For each of the fiscal years ending September 30, 1986, through September 30, 1988, real estate and operating loans may be insured, made to be sold and insured, or guaranteed in accordance with subtitles A and B, respectively, from the Agricultural Credit Insurance Fund established under section 309 in an amount equal to $4,000,000,000, of which not less than $520,000,000 shall be for farm ownership loans under subtitle A. "(B) Subject to subparagraph (C), such amount shall be apportioned as follows: "(i) For the fiscal year ending September 30, 1986— "(I) $2,000,000,000 for insured loans, of which not less than $260,000,000 shall be for farm ownership loans; and "(II) $2,000,000,000 for guaranteed loans, of which not less than $260,000,000 shall be for guarantees of farm ownership loans. "(ii) For the fiscal year ending September 30, 1987—, "(I) $1,500,000,000 for insured loans, of which not less than $195,000,000 shall be for farm ownership loans; and "(II) $2,500,000,000 for guaranteed loans, of which not less than $325,00,000 shall be for guarantees of farm ownership loans. "(iii) For the fiscal year ending September 30, 1988— "(I) $1,000,000,000 for insured loans, of which not less than $130,000,000 shall be for farm ownership loans; and "(II) $3,000,000,000 for guaranteed loans, of which not less than $39,00,00 shall be for guarantees of farm ownership loans. "(C) For each of the fiscal years referred to in subparagraph (A), the Secretary may transfer not more than 25 percent of the amounts authorized for guaranteed loans to amounts authorized for insured loans. "(D)(i) For each of the fiscal years 1986, 1987, and 1988, emergency loans may be made or insured or guaranteed in accordance with subtitle C from the Agricultural Credit Insurance Fund as follows: $1,300,000,000 for fiscal year 1986, $700,000,000 for fiscal year 1987, and $600,000,000 for fiscal year 1988.

7 USC 1929.

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text: All Quiet along the Potomac and other poems/Fire-Proof


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 99 STAT. 1530

7 USC 1994.

PUBLIC LAW 99-198—DEC. 23, 1985

"(E) Loans for each of the fiscal years 1986, 1987, and 1988 are authorized to be insured, or made to be sold and insured, or guaranteed under the Rural Development Insurance Fund as follows: "(i) Insured water and waste disposal facility loans, $340,000,000. "(ii) Industrial development loans, $250,000,000. "(iii) Insured community facility loans, $115,000,000.". 0)) Section 346(e)(l) of such Act is amended by CD striking out "20" each place it appears and inserting in lieu thereof "25"; and (2) striking out "fiscal year 1984" and inserting in lieu thereof "each fiscal year". (c) Section 346 of such Act (as amended by subsection (b)) is amended— (1) striking out subsection (d); and (2) redesignating subsection (e) as subsection (d). FARM DEBT RESTRUCTURE AND CONSERVATION SET-ASIDE CONSERVATION EASEMENTS

7 USC 1997.

Ante, p. 1504.

Real property. Real property.

Loans.

Real property.

SEC. 1318. (a) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end thereof the following new section: "SEC. 349. (a) For purposes of this section: "(1) The term 'governmental entity' means any sigency of the United States, a State, or a unit of local government of a State. "(2) The terms 'highly erodible land' and 'wetland' have the meanings, respectively, that such terms are given in section 1201 of the Food Security Act of 1985. "(3) The term 'wildlife' means fish or wildlife as defined in section 2(a) of the Lacey Act Amendments of 1981 (16 U.S.C. 3371(a)). "(5) The term 'recreational purposes' includes hunting. "(b) Subject to subsection (c), the Secretary may acquire and retain an easement in real property, for a term of not less than 50 years, for conservation, recreational, and wildlife purposes. "(c) Such easement may be acquired or retained for real property if such property— "(1) is wetland, upland, or highly erodible land; "(2) is determined by the Secretary to be suitable for the purposes involved; "(3)(A)(i) secures any loan made under any law administered by the Farmers Home Administration and held by the Secretary; and "(ii) the borrower of such loan is unable, as determined by the Secretary, to repay such loan in a timely manner; or "(B) is administered under this title by the Secretary; and "(4) was (except in the case of wetland) row cropped each year of the 3-year period ending on the date of the enactment of the Food Security Act of 1985. "(d) The terms and conditions specified in each such easement shall— "(1) specify the purposes for which such real property may be used;

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Page:United States Statutes at Large Volume 99 Part 2.djvu/421

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1531

"(2) identify the conservation measures to be taken, and the recreational and wildlife uses to be allowed, with respect to such real property; and "(3) require such owner to permit the Secretary, and any person or governmental entity designated by the Secretary, to have access to such real property for the purpose of monitoring compliance with such easement. "(e) Any such easement acquired by the Secretary shall be purchased from the borrower involved by canceling that part of the aggregate amount of such outstanding loans of the borrower held by the Secretary under laws administered by the Farmers Home Administration that bears the same ratio to the aggregate amount of the outstanding loans of such borrower held by the Secretary under all such laws as the number of acres of the real property of such borrower that are subject to such easement bears to the aggregate number of acres securing such loans. In no case shall the amount so cancelled exceed the value of the land on which the easement is acquired. "(f) If the Secretary elects to use the authority provided by this section, the Secretary shall consult with the Director of the Fish and Wildlife Service for purposes of— "(1) selecting real property in which the Secretary may acquire easements under this section; "(2) formulating the terms and conditions of such easements; and "(3) enforcing such easements. "(g) The Secretary, and any person or governmental entity designated by the Secretary, may enforce an easement acquired by the Secretary under this section. "(h) This section shall not apply with respect to the cancellation of any part of any loan that was made after the date of enactment of the Food Security Act of 1985.". (b)(1) The last sentence of section 335(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1985(c)) is amended by inserting ", other than easements acquired under section 349" before the period at the end thereof. (2) The second sentence of section 1001 of the Agricultural Act of 1970 (16 U.S.C. 1501) is amended— (1) by striking out "perpetual"; and (2) by inserting "for a term of not less than 50 years" after "easements".

Loans. Real property. Prohibition.

Real property.

Prohibition.

Ante, pp. 1526, 1528. Ante, p. 1530.

ADMINISTRATION OF GUARANTEED FARM LOAN PROGRAMS

SEC. 1319. The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding after the section added by section 1318 the following: "SEC. 350. Notwithstanding any other provision of this title, the Secretary shall ensure that farm loan guarantee programs carried out under this title are designed so as to be responsive to borrower and lender needs and to include provisions under reasonable terms and conditions for advances, before completion of the liquidation process, of guarantee proceeds on loans in default.".

Ante, p. 1530. 7 USC 1998.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/422

 99 STAT. 1532

PUBLIC LAW 99-198—DEC. 23, 1985 INTEREST RATE REDUCTION PROGRAM

Ante, p. 1531. Loans. 7 USC 1999. Contracts. Loans.

Contracts. Loans.

Contracts. Prohibition. Loans. 7 USC 1929. Prohibition.

SEC. 1320. Effective only for the period beginning on the date of enactment of this Act and ending September 30, 1988, the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding after the section added by section 1319 the following: "SEC. 351. (a) The Secretary shall establish and carry out in accordance with this section an interest rate reduction program for loans guaranteed under this title. "(b) Under such program, the Secretary shall enter into a contract with, and make payments to, a l ^ a l l y organized institution to reduce during the term of such contract the interest rate paid by a borrower on a guaranteed loan made by such institution if— "(1) the borrower— "(A) is unable to obtain sufficient credit elsewhere to finance the actual needs of the borrower at reasonable rates and terms, taking into consideration private and cooperative rates and terms for a loan for a similar purpose and period of time in the community in or near which the borrower resides; "(B) is otherwise unable to make payments on such loan in a timely manner; and "(C) has a total estimated cash income during the 12month period beginning on the date such contract is entered into (including all farm and nonfarm income) that will equal or exceed the total estimated cash expenses to be incurred by the borrower during such period (including all farm and nonfarm expenses); and "(2) the lender reduces during the term of such contract the annual rate of interest payable on such loan by a minimum percentage specified in such contract. "(c) In return for a contract entered into by a lender under subsection (b) for the reduction of the interest rate paid on a loan, the Secretary shall make pa3nnents to the lender in an amount equal to not more than 50 percent of the cost of reducing the annual rate of interest payable on such loan, except that such payments may not exceed the cost of reducing such rate by more than 2 percent. "(d) The term of a contract entered into under this section to reduce the interest rate on a guaranteed loan may not exceed the outstanding term of such loan, or 3 years, whichever is less. "(e)(1) Notwithstanding any other provision of this title, the Agricultural Credit Insurance Fund established under section 309 may be used by the Secretary to carry out this section. "(2) The total amount of funds lused by the Secretary to carry out this section may not exceed $490,000,000.". HOMESTEAD PROTECTION

Supra. 7 USC 2000.

SEC. 1321. The Consolidated Farm and Rural Development Act is amended by adding after the section added by section 1320 the following: "SEC. 352. (a) As used in this section: "(1) The term 'Administrator' means the Administrator of the Small Business Administration.

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Rh times more insulting to us even than the accusation of taking part in a pogrom.

"Gentlemen! While I have been speaking I have often noticed smiles on your faces. I understand you. Our presence here, our application for your assistance, and above all the unexpectedness of such a phenomenon as a systematic organisation of thieves, with delegates who are thieves, and a leader of the deputation, also a thief by profession—it is all so original that it must inevitably arouse a smile. But now I will speak from the depth of my heart. Let us be rid of our outward wrappings, gentlemen, let us speak as men to men.

"Almost all of us are educated, and all love books. We don't only read the adventures of Roqueambole, as the realistic writers say of us. Do you think our hearts did not bleed and our cheeks did not burn from shame, as though we had been slapped in the face, all the time that this unfortunate, disgraceful, accursed, cowardly war lasted. Do you really think that our souls do not flame with anger when our country is lashed with Cossack-whips, and trodden under foot, shot and spit at by mad, exasperated men? Will you not believe that we thieves meet every step towards the liberation to come with a thrill of ecstasy?

"We understand, every one of us—perhaps only a little less than you barristers, gentlemen—the real sense of the pogroms. Every time that some dastardly event or some ignominious failure has occurred, after executing a martyr in a dark corner of a fortress, or after deceiving public confidence, some one who is hidden and unapproachable gets frightened of the people's anger and diverts its vicious element upon the heads of innocent Jews. Whose diabolical mind invents these pogroms—these titanic blood-lettings, these cannibal amusements for the dark, bestial souls?

"We all see with certain clearness that the last convulsions of the bureaucracy are at hand. Forgive me if I present it imaginatively. There was a people that had a chief temple, wherein dwelt a bloodthirsty deity, behind a curtain, guarded by priests. Once fearless hands tore the curtain away. Then all the people saw, instead of a god, a huge, shaggy, voracious spider, like a loathsome cuttlefish.


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Page:United States Statutes at Large Volume 99 Part 2.djvu/423

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1533

"(2) The term 'farm program loan' means any loan made by the Administrator under the Small Business Act (15 U.S.C. 631 et seq.) for any of the purposes authorized for loans under subtitles A or B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.). "(3) The term 'homestead property' means the principal residence and adjoining property possessed and occupied by a borrower specified in paragraph (2) of this subsection. "(4) The term 'Secretary' means the Secretary of Agriculture. "(b)(1) If the Secretary forecloses a loan made or insured under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), the Administrator forecloses a farm program loan made under the Small Business Act (15 U.S.C. 631 et seq.), or a borrower of a loan made or insured by either agency declares bankruptcy or goes into voluntary liquidation to avoid foreclosure or bankruptcy, the Secretary or Administrator may upon application by the borrower, permit the borrower to retain possession and occupancy of any principal residence of the borrower, and a reasonable amount of adioining land for the purpose of family maintenance. (2) The value of the homestead property shall be determined insofar as possible by an independent appraisal made within six months from the date of the borrower's application to retain possession and occupancy of the homestead property. "(3) The period of occupancy of homestead property under this subsection may not exceed five years, but in no case shall be the Secretary or the Administrator grant a period of occupancy less than three years, subject to compliance with the requirements of subsection (c). "(c) To be eligible to occupy homestead property, a borrower of a loan made or insured by the Secretary or the Administrator must— "(1) apply for such occupancy during the three-year period beginning on the date of the enactment of this Act; '(2) have exhausted all other remedies for the extension or restructuring of such loan, including all remedies afforded under section 331(d); "(3) have made gross annual farm sales of at least $40,000 in at least two calendar years during the five-year period beginning on January 1, 1981, and ending on December 31, 1985 (or the equivalent crop or fiscal years); "(4) have received from mrming operations at least 60 per centum of the gross annual income of the borrower and any spouse of the borrower during at least two years of such fiveyear period; "(5) have occupied the homestead property, and engaged in farming or ranching operations on adjoining land, or other land controlled by said borrower, during such five-year period; "(6) during the period of occupancy of the homestead propn erty, pay a reasonable sum as rent for such property to the Secretary or the Administrator in an amount substantially equivalent to rents charged for similar residential properties in the area in which the homestead property is located, and failure to make rental payments in a timely fashion shall constitute cause for the termination of all rights of a borrower to possession and occupancy of the homestead property under this subsection; "(7) during the period of occupancy of homestead property, maintain such property in good condition; and

Loans,

Loans.

Prohibition,

Loans,

Ante, p. 1523.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/424

 99 STAT. 1534

PUBLIC LAW 99-198—DEC. 23, 1985

"(8) agree to such other terms and conditions as are prescribed by the Secretary or the Administrator in order to facilitate the administration of this subsection. "(d) At the end of the period of occupancy described in subsection (c), the Secretary or the Administrator shall grant to the borrower a first right of refusal to reacquire the homestead property on such terms and conditions (which may include pa3anent of principal in installments) as the Secretary or the Administrator shall determine. "(e) At the time any reacquisition agreement is entered into, the Secretary or the Administrator may not demand a total payment of principal that is in excess of the value of the homestead property as established under subsection (b)(2).". EXTENSION OF CREDIT TO ALL RURAL UTILITIES THAT PARTICIPATE IN THE PROGRAM ADMINISTERED BY THE RURAL ELECTRIFICATION ADMINISTRATION Loans. Banks and banking.

SEC. 1322. Section 3.8 of the Farm Credit Act of 1971 (12 U.S.C. 2129) is amended by— (1) inserting "(1)" immediately before "Any association"; and (2) adding at the end thereof a new subsection (2) as follows: "(2) Notwithstanding any other provision of this title, cooperatives and other entities that have received a loan, loan commitment, or loan guarantee from the Rural Electrification Administration, or a loan or loan commitment from the Rural Telephone Bank, or that have been certified by the Administrator of the Rural Electrification Administration to be eligible for such a loan, loan commitment, or loan guarantee, and subsidiaries of such cooperatives or other entities, shall also be eligible to borrow from a bank for cooperatives.". NONPROFIT NATIONAL RURAL DEVELOPMENT AND FINANCE CORPORATIONS

Loans. SEC. 1323. (a)(1) For the fiscal year ending September 30, 1986, the 7 USC 1932 note. Secretary of Agriculture (hereafter in this section referred to as the "Secretary") shall guarantee loans made by public agencies or private organizations (including loans made by financial institutions such as insurance companies) to nonprofit national rural development and finance corporations that establish similar and affiliated statewide rural development and finance programs for the purpose of providing loans, guarantees, and other financial assistance to profit or nonprofit local businesses to improve business, industry, and employment opportunities in a rural area (as determined by the Secretary). (2) To be eligible to obtain a loan guarantee under this subsection, a corporation must— (A) demonstrate to the Secretary the ability of the corporation to administer a national revolving rural development loan program; (B) be prepared to commit financial resources under the control of the corporation to the establishment of affiliated statewide rural development and finance programs; and (C) have secured commitments of significant financial support from public agencies and private organizations for such affiliated statewide programs. (3) A national rural development and finance corporation receiving a loan guarantee under this subsection shall base a determina-

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Page:United States Statutes at Large Volume 99 Part 2.djvu/425

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1535

tion to establish an affiliated statewide program in large part on the willingness of States and private organizations to sponsor and make funds available to such program. (4) Notwithstanding any other provision of law, for the fiscal year ending September 30, 1986, of the amounts available to guarantee loans in accordance with section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) from the Rural Development Insurance Fund, $20,000,000 shall be used by the Secretary to guarantee loans under the national rural development and finance program established under this subsection, to remain available until expended. (b)(1) For the fiscal year ending September 30, 1986, the Secretary shall make grants, from funds transferred under paragraph (2), to national rural development and finance corporations for the purpose of establishing a rural development program to provide financial and technical assistance to compliment the loan guarantees made to such corporations under subsection (a). (2) All funds authorized under the Rural Development Loan Fund, including those on deposit and available upon date of enactment, under sections 623 and 633 of the Community EJconomic Development Act of 1981 (42 U.S.C. 9801 et seq.) shall be transferred to the Secretary provided that— (A) all funds on deposit and available on date of enactment shall be used for the purpose of making grants under paragraph (1) and shall remain available until expended; and (B) notwithstanding any other provision of law, all loans to intermediary borrowers made prior to date of enactment, shall upon date of enactment, for the life of such loan, bear a rate of interest not to exceed that in effect upon the date of issuance of such loans.

Grants,

42 USC 9812, 9822.

Grants

PROTECTION FOR PURCHASERS OF FARM PRODUCTS

SEC. 1324. (a) Congress finds that— 7 USC 1631. (1) certain State laws permit a secured lender to enforce liens against a purchaser of farm products even if the purchaser does not know that the sale of the products violates the lender's security interest in the products, lacks any practical method for discovering the existence of the security interest, and has no reasonable means to ensure that the seller uses the sales proceeds to repay the lender; (2) these laws subject the purchaser of farm products to double payment for the products, once at the time of purchase, and again when the seller fails to repay the lender; (3) the exposure of purchasers of farm products to double payment inhibits free competition in the market for farm products; and (4) this exposure constitutes a burden on and an obstruction eommerce and trade. to interstate commerce in farm products. (b) The purpose of this section is to remove such burden on and obstruction to interstate commerce in farm products. (c) For the purposes of this section— (1) The term "buyer in the ordinary course of business" means a person who, in the ordinary course of business, buys farm products from a person engaged in farming operations who is in the business of selling farm products.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/426

 99 STAT. 1536

PUBLIC LAW 99-198—DEC. 23, 1985 (2) The term "central filing system" means a system for filing effective financing statements or notice of such financing statements on a statewide basis and which has been certified by the Secretary of the United States Department of Agriculture; the Secretary shall certify such system if the system complies with the requirements of this section; specifically under such system— (A) effective financing statements or notice of such financing statements are filed with the office of the Secretary of State of a State; (B) the Secretary of State records the date and hour of the filing of such statements; (C) the Secretary of State compiles all such statements into a master list— (i) organized according to farm products; (ii) arranged within each such product— (I) in alphabetical order according to the last name of the individual debtors, or, in the case of debtors doing business other than as individuals, the first word in the name of such debtors; and (II) in numerical order according to the social security number of the individual debtors or, in the case of debtors doing business other than as individuals, the Internal Revenue Service taxpayer identification number of such debtors; and (III) geographically by county or parish; and (IV) by crop year; (iii) containing the information referred to in paragraph (4)(D); (D) the Secretary of State maintains a list of all buyers of farm products, commission merchants, and selling agents who register with the Secretary of State, on a form indicating— (i) the name and address of each buyer, commission merchant and selling agent; (ii) the interest of each buyer, commission merchant, and selling agent in receiving the lists described in subparagraph (E); and (iii) the farm products in which each buyer, commission merchant, and selling agent has an interest; (E) the Secretary of State distributes regularly as prescribed by the State to each buyer, commission merchant, and selling agent on the list described in subparagraph (D) a copy in written or printed form of those portions of the master list described in paragraph (C) that cover the farm products in which such buyer, commission merchant, or selling agent has registered an interest; (F) the Secretary of State furnishes to those who are not registered pursuant to (2)(D) of this section oral confirmation within 24 hours of any effective financing statement on request followed by written confirmation to any buyer of farm products buying from a debtor, or commission merchant or selling agent selling for a seller covered by such statement. (3) The term "commission merchant" means any person engaged in the business of receiving any farm product for sale, on commission, or for or on behalf of another person.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/427

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1537

(4) The term "effective financing statement" means a statement that— (A) is an original or reproduced copy thereof; (B) is signed and filed with the Secretary of State of a State by the secured party; (C) is signed by the debtor; (D) contains, (i) the name and address of the secured party; (ii) the name and address of the person indebted to the secured party; (iii) the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; (iv) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable; and a reasonable description of the property, including county or parish in which the property is located; (E) must be amended in writing, within 3 months, similarly signed and filed, to reflect material changes; (F) remains effective for a period of 5 years from the date of filing, subject to extensions for additional periods of 5 years each by refiling or filing a continuation statement within 6 months before the expiration of the initial 5 year period; (G) lapses on either the expiration of the effective period of the statement or the filing of a notice signed by the secured party that the statement has lapsed, whichever occurs first; (H) is accompanied by the requisite filing fee set by the Secretary of State; and (I) substantially complies with the requirements of this subparagraph even though it contains minor errors that are not seriously misleading. (5) The term farm product" means an agricultural commodity such as wheat, corn, soybeans, or a species of livestock such as cattle, hogs, sheep, horses, or poultry used or produced in farming operations, or a product of such crop or livestock in its unmanufactured state (such as ginned cotton, wool-clip, maple syrup, milk, and eggs), that is in the possession of a person engaged in farming operations. (6) The term "knows" or "knowledge" means actual knowledge. (7) The term "security interest" means an interest in farm products that secures payment or performance of an obligation. (8) The term "selling agent" means any person, other than a commission merchant, who is engaged in the business of negotiating the sale and purchase of any farm product on behalf of a person engaged in farming operations. (9) The term "State" means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, the Commonwealth of the Northern Mariana Islands, or the Trust Territory of the Pacific Islands. (10) The term "person" means any individual, partnership, corporation, trust, or any other business entity.

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Page:United States Statutes at Large Volume 99 Part 2.djvu/428

 99 STAT. 1538

PUBLIC LAW 99-198—DEC. 23, 1985

(11) The term "Secretary of State" means the Secretary of State or the designee of the State. (d) Except as provided in subsection (e) and notwithstanding any other provision of Federal, State, or local law, a buyer who in the ordinary course of business buys a farm product from a seller engaged in farming operations shall take free of a security interest created by the seller, even though the security interest is perfected; and the buyer knows of the existence of such interest. (e) A buyer of farm products takes subject to a security interest created by the seller if— (I)(A) within 1 year before the sale of the farm products, the buyer has received from the secured party or the seller written notice of the security interest organized according to farm products that— (i) is an original or reproduced copy thereof; (ii) contains, (I) the name and address of the secured party; (II) the name and address of the person indebted to the secured party; (III) the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; (IV) a description of the farm products subject to the security interest created by the debtor, including the amount of such products where applicable, crop year, county or parish, and a reasonable description of the property; and (iii) must be amended in writing, within 3 months, similarly signed and transmitted, to reflect material changes; (iv) will lapse on either the expiration period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and (v) any payment obligations imposed on the buyer by the secured party as conditions for waiver or release of the security interest; and (B) the buyer has failed to perform the payment obligations, or (2) in the case of a farm product produced in a State that has established a central filing system— (A) the buyer has failed to register with the Secretary of State of such State prior to the purchase of farm products; and (B) the secured party has filed an effective financing statement or notice that covers the farm products being sold; or (3) in the case of a farm product produced in a State that has established a central filing system, the buyer— (A) receives from the Secretary of State of such State written notice as provided in subparagraph (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm product being sold by such seller as being subject to an effective financing statement or notice; and (B) does not secure a waiver or release of the security interest specified in such effective financing statement or

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Page:United States Statutes at Large Volume 99 Part 2.djvu/429

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1539

notice from the secured party by performing any payment obligation or otherwise; and (f) What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides. (g)(1) Except as provided in paragraph (2) and notwithstanding Prohibition, any other provision of Federal, State, or local law, a commission merchant or selling agent who sells, in the ordinary course of business, a farm product for others, shall not be subject to a security interest created by the seller in such farm product even though the security interest is perfected and even though the commission merchant or selling agent knows of the existence of such interest. (2) A commission merchant or selling agent who sells a farm product for others shall be subject to a security interest created by the seller in such farm product if— (A) within 1 year before the sale of such farm product the commission merchant or selling agent has received from the secured party or the seller written notice of the security interest; organized according to farm products, that— (i) is an original or reproduced copy thereof; (ii) contains, (I) the name and address of the secured party; (II) the name and address of the person indebted to the secured party; (III) the social security number of the debtor or, in the case of a debtor doing business other than as an individual, the Internal Revenue Service taxpayer identification number of such debtor; (IV) a description of the farm products subject to the security interest created by the debtor, including the amount of such products, where applicable, crop year, county or parish, and a reasonable description of the property, etc.; and (iii) must be amended in writing, within 3 months, similarly signed and transmitted, to reflect material changes; (iv) will lapse on either the expiration period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first; and (v) any payment obligations imposed on the commission merchant or selling agent by the secured party as conditions for waiver or release of the security interest; and (B) the commission merchant or selling agent has failed to perform the payment obligations; (C) in the case of a farm product produced in a State that has established a central filing system— (i) the commission merchant or selling agent has failed to register with the Secretary of State of such State prior to the purchase of farm products; and (ii) the secured party has filed an effective financing statement or notice that covers the farm products being sold; or (D) in the case of a farm product produced in a State that has established a central filing system, the commission merchant or selling agent— (i) receives from the Secretary of State of such State written notice as provided in subsection (c)(2)(E) or (c)(2)(F) that specifies both the seller and the farm products being

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Page:United States Statutes at Large Volume 99 Part 2.djvu/430

 99 STAT. 1540

Regulations.

Effective date.

PUBLIC LAW 99-198—DEC. 23, 1985

sold by such seller as being subject to an effective financing statement or notice; and (ii) does not secure a waiver or release of the security interest specified in such effective financing statement or notice from the secured party by performing any payment obligation or otherwise. (3) What constitutes receipt, as used in this section, shall be determined by the law of the State in which the buyer resides. (h)(1) A security agreement in which a person engaged in farming operations creates a security interest in a farm product may require the person to furnish to the secured party a list of the buyers, commission merchants, and selling agents to or through whom the person engaged in farming operations may sell such farm product. (2) If a security agreement contains a provision described in paragraph (1) and such person engaged in farming operations sells the farm product collateral to a buyer or through a commission merchant or selling agent not included on such list, the person engaged in farming operations shall be subject to paragraph (3) unless the person— (A) has notified the secured party in writing of the identity of the buyer, commission merchant, or selling agent at least 7 days prior to such sale; or (B) has accounted to the secured party for the proceeds of such sale not later than 10 days after such sale. (3) A person violating paragraph (2) shall be fined $5,000 or 15 per centum of the value or benefit received for such farm product described in the security agreement, whichever is greater. (i) The Secretary of Agriculture shall prescribe regulations not later than 90 days after the date of enactment of this Act to aid States in the implementation and management of a central filing system. (j) This section shall become effective 12 months after the date of enactment of this Act. PROHIBITING COORDINATED FINANCIAL STATEMENT

Regulations. Loans. 7 USC 1989 note.

SEC. 1325. The Secretary of Agriculture shall not use or require the submission of the coordinated financial statement referred to in the proposed regulations of the Farmers Home Administration published in the Federal Register of November 8, 1983 (48 F.R. 5131251317) in connection with an application submitted on or after the date of the enactment of this Act for any loan under any program of the Department of Agriculture carried out by the Farmers Home Administration. REGULATORY RESTRAINT

12 USC 2254 note.

Loans. Banks and banking.

SEC. 1326. (a) Congress finds and declares that— (1) high production costs and low commodity prices have combing to reduce farm income to the lowest levels since the depths of the Depression in the 1930's, to subject many agricultural producers, through no fault of their own, to severe economic hardship, and in many cases temporarily but seriously to impair producers' ability to meet loan repayment schedules in a timely fashion; and (2) a policy of adverse classification of agricultural loans by bank examiners under these circumstances will trigger a wave of foreclosures and similar actions on the part of banks, thereby

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Page:United States Statutes at Large Volume 99 Part 2.djvu/431

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1541

depressing land values and prices for agricultural facilities and equipment and having a devastating effect on farmers and the banking industry, and upon rural areas of the United States in general, (b) It is therefore the sense of Congress that the Federal bank regulatory agencies should ensure, in their examination procedures, that examiners exercise caution and restraint and give due consideration not only to the current cash flow of agricultural borrowers under flnancial stress, but to factors such as their loan collateral and ultimate ability to repay as well, for so long as the adverse economic effects of the cost-price squeeze of recent years continue to impair the ability of these borrowers to meet scheduled repayments on their loans.

Banks and banking. Loans.

STUDY OF FARM CREDIT SYSTEM

SEC. 1327. (a) The Farm Credit Administration shall conduct a study of the need for the establishment of a fund to be used— (1) to insure institutions of the Farm Credit System against Loans, losses on loans made by such institutions; or (2) for any other purp(»e that would— (A) assist in stabilizing the financial condition of such System; and (B) provide for the protection of the capital that borrow- Loans, ers of such loans have invested in such System. (b) In conducting the study required under subsection (a), the Farm Credit Administration shall— (1) consider the advisability of using the revolving funds provided for under section 4.1 of the Farm Credit Act of 1971 (12 U.S.C. 2152) to provide initial capital for the fund referred to in subsection (a); and (2) estimate the amount and level of future assessments levied on institutions of the Farm Credit System that would be necessary to ensure the long-term liquidity of such fund. (c) Not later than 180 days after the date of enactment of this Act, Report, the Farm Credit Administration shall submit a report containing the results of the study required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. CONTINUATION OF SMALL FARMER TRAINING AND TECHNICAL ASSISTANCE PROGRAM

SEC. 1328. The Secretary of Agriculture shall, during the period 7 USC 1981 note. beginning on the date of enactment of this Act and ending on September 30, 1988, maintain at substantially current levels the small farmer training and technical assistance program in the office of the Administrator of the Farmers Home Administration. STUDY OF FARM AND HOME PLAN

SEC. 1329. (a) The Secretary of Agriculture shall conduct a study of the appropriateness of the Farm and Home Plan (Form FmHA 431-2) used by the Farmers Home Administration in connection with loans made or insured under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.). (b) After carrying out such study, if the Secretary finds the plan is inappropriate, the Secretary shall—

Loans.

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Report.

National ^^rir'

PUBLIC LAW 99-198—DEC. 23, 1985

(1) evaluate other alternative farm plan forms for use in connection with such loans; (2) evaluate the need to develop a new farm plan form for such use; and (3) specify the steps that should be taken to improve or replace the current form. (c) Not later than 120 days after the date of enactment of this Act, the Secretary shall report the results of the study required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. TITLE XIV—AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING

Extension, and

Teaching Policy

Subtitle A—General Provisions

Act Amendments of 1935

«.. ^ „ „ „,„, „ SHORT TITLE

7 USC 3101 note.

SEC. 1401. This title may be cited as the "National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985". FINDINGS

SEC. 1402. Section 1402 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101) is amended by— (1) in paragraph (8)— (A) striking out "and" at the end of subparagraph (N); (B) inserting "and" at the end of subparagraph (O); and (C) adding at the end thereof the following new subparagraph: "(P) research on new or improved food processing (such as food irradiation) or value-added food technologies;'; (2) in paragraph (10)— (A) striking out "The research" and all that follows through the colon in the matter preceding the subparagraphs and inserting in lieu thereof the following: 'The research, extension, and teaching programs must be maintained and constantly adjusted to meet ever-changing challenges. National support of cooperative research, extension, and teaching efforts must be reaffirmed and strengthened to meet major needs and challenges in the following areas:"; (B) redesignating subparagraphs (B), (C), (D), (E), (F), and (G) as subparagraphs (C), (D), (F), (G), (H), and (I), respectively; (C) inserting after subparagraph (A) the following new subparagraph: "(B) AGRICULTURAL POLICY.—The effects of technological,

economic, sociological, and environmental developments on the agricultural structure of the United States are strong and continuous. It is critical that emerging agriculturalrelated technologies, economic changes, and sociological and environmental developments, both national and international, be analyzed on a continuing basis in an interdisciplinary fashion to determine the effect of those forces

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on the structure of agriculture and to improve agricultural policy decisionmaking."; (D) inserting after subparagraph (D) (as redesignated by subparagraph (B)) the following new subparagraph: "(E) COORDINATION OF BIOTECHNOLOGY RESPONSIBILITIES OF FEDERAL GTOVERNMENT.—Biotechnology guidelines and regulations must be made consistent throughout the F ^ e r a l Government so they may promote scientific development and protect the public. The biotechnology risk assessment processes used by various Federal agencies must be standardized."; (E) striking out subparagraph (F) (as redesignated by subparagraph (B)) and inserting in lieu thereof the following new subparagraph: (F) NATURAL RESOURCES.—Improved management of soil, water, forest, and range resources is vital to maintain the resource base for food, fiber, and wood production. An expanded research program in the areas of soil and water conservation and forest and range production practices is needed to develop more economical and effective management svstems. Key objectives of this research are— (i) incorporating water and soil-saving technologies into current and evolving production practices; "(ii) developing more cost-effective and practical conservation technologies; "(iii) managing water in stressed environments; "(iv) protecting the quality of the surface water and groundwater resources of the United States; "(v) establishing integrated multidisciplinary organic farming research projects, including research on alternative farming systems, that will identify options from which individual farmers may select the production components that are most appropriate for their individual situations; "(vi) developing better targeted pest management systems; and "(vii) improving forest and range management technologies that meet demands more efficiently, better protect multiresource options, and enhance quality of output."; (F) in subparagraph (G) (as redesignated by subparagraph (B))(i) striking out "to" before "the economy"; and (ii) striking out "owner-operated" before "family farms"; and (G) striking out subparagraph (I) (as redesignated by subparagraph (B)) and inserting in lieu thereof the following new subparagraph: (I)

INTERNATIONAL FOOD AND AGRICULTURE.—United

Regulations.

Forests and forest products. Conservation.

Schools and

States agricultural production has proven its ability to colleges. produce abundant quantities of food for an expanding world population. Despite rising expectation for improved diets in the world today, there are instances of drought, civil unrest, economic crisis, or other conditions that preclude the local production or distribution of food. There are instances where localized problems impede the ability of farmers to produce needed food products. It is also recognized that

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Science and technology.

PUBLIC LAW 99-198—DEC. 23, 1985 many nations have progressive and effective agricultural research programs that produce results of interest and applicability to United States agriculture. The exchange of knowledge and information between nations is essential to the well-being of all nations. A dedicated effort involving the Federal Government, the State cooperative institutions, and other colleges and universities is needed to expand international food and agricultural research, extension, and teaching programs. Improved cooperation and communication by the Department of Agriculture and the cooperators with international agricultural research centers, counterpart agencies, and universities in other nations are necessary to improve food and agricultural progress throughout the world."; (3) striking out the period at the end of paragraph (11) and inserting in lieu thereof "; and"; and (4) adding at the end thereof the following new paragraph: "(12) the agricultural system of the United States— "(A) is increasingly dependent on science and technology to maintain and improve productivity levels, manage the resource base, provide high quality products, and protect the environment; and "(B) requires a constant source of food and agricultural scientific expertise to maintain this dynamic system.". DEFINITIONS

SEC. 1403. Section 1404(8) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(8)) is amended by— (1) striking out "and" at the end of subparagraph (H); (2) inserting "and" at the end of subparagraph (I); and (3) adding at the end thereof the following new subparagraph: "(J) international food and agricultural issues, such as agricultural development, development of institutions, germ plasm collection and preservation, information exchange and storage, and scientific exchanges;". RESPONSIBIUTIES OF THE SECRETARY OF AGRICULTURE

Science and technology.

SEC. 1404. Section 1405 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is amended by— (1) striking out "and" at the end of paragraph (10); and (2) striking out paragraph (11) and inserting in lieu thereof the following new paragraphs: " d D coordinate the efforts of States, State cooperative institutions. State extension services, the Joint Council, the Advisory Board, and other appropriate institutions in assessing the current status of, and developing a plan for, the effective transfer of new technologies, including biotechnology, to the farming community, with particular emphasis on addressing the unique problems of small- and medium-sized farms in gaining information about those technologies; and (12) establish appropriate controls with respect to the development and use of the application of biotechnology to jB^iculture.".

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JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES

SEC. 1405. (a) Section 1407(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3122(a)) is amended by striking out "1985" and inserting in lieu thereof "1990". (b) Section 1407(b) of such Act is amended by inserting before the last sentence the following new sentence: "To ensure that the views of food technologists are considered by the Joint Council, one of the members of the Joint Council shall, as determined to be appropriate by the Secretary, be appointed by the Secretary from among distingxiished persons who are food technologists from accredited or certified departments of food technology, as determined by the Secretary.". (c) Section 1407(d)(2) of such Act is amended by— (1) striking out "and" at the end of subparagraph (F); (2) striking out the period at the end of subparagraph (G) and inserting in lieu thereof "; and"; and (3) adding at the end thereof the following new subparagraph: "(H) coordinate with the Secretary in assessing the current status of, and developing a plan for, the effective transfer of new technologies to the farming community.". NATIONAL AGRICULTURAL RESEARCH AND EXTENSION USERS ADVISORY BOARD

SEC. 1406. (a) Section 1408(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(a)) is amended by striking out "1985" and inserting in lieu thereof "1990". (b) Section 1408(f)(2) of such Act (7 U.S.C. 3123(fK2)) is amended by(1) striking out "and" at the end of subparagraph (E); (2) striking out the period at the end of subparagraph (F) and inserting in lieu thereof "; and"; and (3) adding at the end thereof the following new subparagraph: "(G) coordinating with the Secretary in assessing the current status of, and developing a plan for, the effective transfer of new technologies to the farming community.". FEDERAL-STATE PARTNERSHIP

SEC. 1407. (a) The first sentence of section 1409A(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3124a(a)) is amended by— (1) striking out "and" at the end of paragraph (2); (2) striking out the period at the end of paragraph (3) and inserting in lieu thereof "; and"; and (3) adding at the end thereof the following new paragraph: "(4) international agricultural programs under title XII of the Foreign Assistance Act of 1961 (22 U.S.C. 2220a et seq.).". (b) Section 1409A of such Act is amended by adding at the end thereof the following new subsections: "(d)(1) To promote research for purposes of developing agricultural policy alternatives, the Secretary is encouraged— "(A) to designate at least one State cooperative institution to conduct research in an interdisciplinary fashion; and

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"(B) to report on a regular basis with respect to the effect of emerging technological, economic, sociological, and environmental developments on the structure of agriculture. "(2) Support for this effort should include grants to examine the role of various food production, processing, and distribution systems that may primarily benefit small- and medium-sized family farms, such as diversified farm plans, energy, water, and soil conservation technologies, direct and cooperative marketing, production and processing cooperatives, and rural community resource management. "(e) To address more effectively the critical need for reducing farm input costs, improving soil, water, and energy conservation on farms and in rural areas, using sustainable agricultural methods, adopting alternative processing and marketing systems, and encouraging rural resources management, the Secretary is encouraged to designate at least one State agricultural experiment station and one Agricultural Research Service facility to examine these issues in an integrated and comprehensive manner, while conducting ongoing pilot projects contributing additional research through the Federal-State partnership.". REPORT OF THE SECRETARY OF AGRICULTURE

SEC. 1408. Section 1410 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125) is amended by— (1) inserting "and" at the end of paragraph (2); (2) striking out "; and" at the end of paragraph (3) and inserting in lieu thereof a period; and (3) striking out paragraph (4). COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS

Science and technology. Conservation.

Prohibition.

SEC. 1409. (a)(1) The third sentence of section 2(b) of the Act entitled "An Act to facilitate the work of the Department of Agriculture, and for other purposes", approved August 4, 1965 (7 U.S.C. 450i(b)), is amended by— (A) inserting ", with emphasis on biotechnology," after "(2) research" in paragraph (2); (B) striking out "and" at the end of paragraph (5); (C) striking out the period at the end of paragraph (6) and inserting in lieu thereof a semicolon; and (D) adding at the end thereof the following new paragraphs: "(7) research to reduce farm input costs through the collection of national and international data and the transfer of appropriate technology relating to sustainable agricultural systems, soil, energy, and water conservation technologies, rural and farm resource management, and the diversification of farm product processing and marketing systems; and "(8) research to develop new and alternative industrial uses for agricultural crops.". (2) Section 2(b) of such Act is amended by inserting after the fourth sentence the following new sentence: "No grant may be made under this subsection for any purpose for which a grant may be made under subsection (d) or for the planning, repair, rehabilitation, acquisition, or construction of a building or a facility.".

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(3) Effective October 1, 1985, section 2(b) of such Act is amended by striking out the last sentence and inserting in lieu thereof the following new sentences: "There are authorized to be appropriated, for the purpose of carrying out this subsection, $70,000,000 for each of the fiscal years ending September 30, 1986, through September 30, 1990. Four percent of the amount appropriated for each of such fiscal years to carry out this subsection may be retained by the Secretary to pay administrative costs incurred by the Secretary to carry out this subsection.". (b)(1) Section 2(c) of such Act is amended by inserting after the first sentence the following new sentence: "No grant may be made under this subsection for any purpose for which a grant may be made under subsection (d) or for the planning, repair, rehabilitation, acquisition, or construction of a building or facility.". (2) Effective October 1, 1985, section 2(c) of such Act is amended by adding at the end thereof the following new sentence: "Four percent of the amount appropriated for any fiscal year to carry out this subsection may be retained by the Secretary to pay administrative costs incurred by the Secretary to carry out this subsection.". (c) Section 2 of such Act is amended by adding at the end thereof the following new subsection: "(i) The Federal Advisory Committee Act (5 U.S.C. App. 2) and title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel or board created for the purpose of reviewing applications or proposals submitted under this section.". GRANTS FOR SCHOOLS OF VETERINARY MEDICINE

SEC. 1410. Section 1415(c)(l) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151(c)(1)) is amended by striking out "Four" and inserting in lieu thereof "Five". RESEARCH FACILITIES

SEC. 1411. (a) The first section of the Act entitled "An Act to assist the States to provide additional facilities for research at the State agricultural experiment stations", approved July 22, 1963 (7 U.S.C. 390), is amended by— (1) inserting "on a matching funds basis" after "funds"; (2) inserting "and equipment" after "facilities"; and (3) striking out "an adequate research program" and inserting in lieu thereof "agricultural research and related academic programs". (b) Section 2 of such Act (7 U.S.C. 390a) is amended by— (1) striking out "which are to become a part of such buildings"; and (2) inserting "matching" after "means o f. (c) Section 3 of such Act (7 U.S.C. 390b) is amended by— (1) striking out paragraph (1) and inserting in lieu thereof the following new paragraph: "(1) the term 'State' means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and the Virgin Islands of the United States;"; and

Effective date, '^ USC 450i.

7 USC 450i. Prohibition. Grants.

Effective date,

Prohibition.

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7 USC 390e. Prohibition. Grants. Ante, p. 1547.

Repeal.

Repeal.

Research Facilities Act. 7 USC 390 note.

PUBLIC LAW 99-198—DEC. 23, 1985

(2) in paragraph (2), inserting ", forestry, or veterinary medicine" after "to conduct sigricultural". (d)(1) Effective October 1, 1985, subsection (a) of section 4 of such Act (7 U.S.C. 390c(a)) is amended to read as follows: "(a) There are authorized to be appropriated, for grants to eligible institutions under this Act to be used for the purpose set out in section 2, $20,000,000 for each of the fiscal years ending September 30, 1986, through September 30, 1990.". (2) Subsection (b) of section 4 of such Act is amended to read as follows: "(b) No grant may be made under section 2 for an amount exceeding a percentage determined by the Secretary of the cost of the project for which such grant is made. The remaining cost of such project shall be paid with funds from non-Federal sources.". (e) The first sentence of section 5 of such Act (7 U.S.C. 390d) is amended by— (1) striking out "apportioned"; and (2) striking out ", which are to become part of such buildings". if) Section 6 of such Act (7 U.S.C. 390e) is repealed. (g) Section 7 of such Act (7 U.S.C. 390f) is amended by— (1) inserting "equipment and" after "multiple-purpose"; and (2) inserting "and related programs, including forestry and veterinary medicine," after "research". (h) Section 8 of such Act (7 U.S.C. 390g) is repealed. (i)(1) The first sentence of section 9(a) of such Act (7 U.S.C. 390h(a)) is amended by— (A) striking out "authorized to receive" and inserting in lieu thereof "that receives"; (B) striking out "section 4" and inserting in lieu thereof "section 2"; and (C) striking out "section 40))" and inserting in lieu thereof "section 3(2) (2) Section 9(b) of such Act (7 U.S.C. 390hOb)) is amended by— (A) striking out "allotted funds received" and inserting in lieu thereof "funds received under this Act"; and (B) striking out "allocated or". 0) Clause (3) of section 10 of such Act (7 U.S.C. 390i) is amended to read as follows: "(3) those eligible institutions, if any, that were prevented, because of failure to repay funds as required by section 70k)), from receiving any grant under this Act". (k) Sections 7, 9, 10, and 11 of such Act (7 U.S.C. 390f, 390h, 390i, 390j) are redesignated as sections 6, 7, 8, and 9, respectively. (1) Such Act (7 U.S.C. 390 et seq.) is amended by adding at the end thereof the following new section: "SEC. 10. This Act may be cited as the 'Research Facilities Act'.". GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES EDUCATION

S E C 1412. (a) Section 1417(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(a)) is amended by— (1) in the second sentence of paragraph (2), striking out "Such grants shall be made without regard to matching funds, but each" and inserting in lieu thereof "Each"; and (2) striking out the last sentence of paragraph (3) and inserting in lieu thereof the following new sentence:

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"Each recipient institution shall have a significant ongoing commitment to the food and agricultural sciences generally and to the specific subject area for which such grant is to be used.". (b) Subsection (d) of section 1417 of such Act is amended to read as 7 USC 3152. follows: "(d) There are authorized to be appropriated for purposes of carrying out this section $50,000,000 for each of the fiscal years ending September 30, 1982, through September 30, 1990.". (c) Section 1417 of such Act is amended by adding at the end thereof the following new subsection: "(e) The Federal Advisory Committee Act (5 U.S.C. App. 2) and Prohibition, title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to a panel or board created for the purpose of reviewing applications or proposals submitted under this section.". FOOD AND HUMAN NUTRITION RESEARCH AND EXTENSION PROGRAM

SEC. 1413. Sections 1424 and 1427 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174 and 3177) are repealed.

Repeal.

ANIMAL HEALTH AND DISEASE RESEARCH

SEC. 1414. (a) The first sentence of section 1432(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3194(a)) is amended by striking out "1985" and inserting in lieu thereof "1990". (b) The first sentence of section 1433(a) of such Act (7 U.S.C. 3195(a)) is amended by striking out "1985" and inserting in lieu thereof "1990". (c) Section 1434(a) of such Act (7 U.S.C. 3196(a)) is amended by striking out "1985" and inserting in lieu thereof "1990". EXTENSION AT 1890 LAND-GRANT COLLEGES

SEC. 1415. The third sentence of section 1444(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) is amended by— (1) striking out ", through the fiscal year ending September 30, 1985,"; and (2) inserting before the period at the end thereof the following: ", and related acts pertaining to cooperative extension work at the land-grant institutions identified in the Act of May 8, 1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 et seq.)". GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION FACILITIES

SEC. 1416. (a) It is the intent of Congress to assist institutions eligible to receive funds under the Act of August 30, 1890 (26 Stat. 417, chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee Institute (hereafter in this section referred to as "eligible institutions"), in the acquisition and improvement of extension facilities and equipment so that eligible institutions may participate fully with the State cooperative extension services in a balanced way in meeting the extension needs of the people of their respective States. (b) There are authorized to be appropriated for the purpose of carrying out this section $10,000,00(5 for each of the fiscal years

Tuskegee Institute. 7 USC 3224.

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