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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
1/19/1978--Introduced. Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to make real estate and operating loans available to private domestic corporations and partnerships controlled by farmers and ranchers engaged primarily in farming or ranching who, individually or as to their principal stockholders and partners, are United States citizens. Excepts ability to obtain credit for guaranteed loans from the eligibility requirement that applicants for real estate or operating loans must be unable to obtain sufficient credit elsewhere to finance their actual needs at reasonable rates and terms. Increases the maximum allowable total principal indebtedness for real estate loans which may be outstanding by any one borrower to $200,000 or $300,000 in the case of a guaranteed loan. States that special consideration for: (1) water and waste facilities loans may be given rural areas having a population of more than 5,500; and (2) soil and water conservation, pollution control and private business enterprise loans given to rural areas having a population or more than 25,000. Removes the $500,000 ceiling from the aggregate principal of loans made using the Agricultural Credit Insurance Fund. Increases the amount of indebtedness which may be outstanding for operating loans for an individual from $50,000 to $100,000 or in the case of a guaranteed loan, $200,000. States that the interest rates on such loans which are guaranteed shall be the rate agreed upon by the borrower and lender. Authorizes the Secretary to purchase the guaranteed portion of any rural development loan using funds from the Rural Development Insurance Fund and the guaranteed portion of all other loans with funds from the Agricultural Credit Insurance Fund; but only when an adequate secondary market is not available in the private sector. Replaces the current provision for an up to five-year renewal of an operating loan with a provision for the consolidation or rescheduling of outstanding loans for payment over a period not to exceed seven years from the date of such consolidation or rescheduling. Authorizes the Secretary to make loans and grants and approve transfers and assumptions under such act in connection with property securing a loan made, insured, or held by the Secretary notwithstanding the fact an area ceases to be eligible for assistance under such Act. Authorizes the Secretary to provide a procedure for appeal and review of determinations by a county committee that a loan applicant is able to obtain sufficient credit elsewhere to finance his actual needs at reasonable rates and terms.