PUBLIC LAW 95-334—AUG. 4, 1978
92 STAT. 427
are citizens of the United States if the cooperative, corporation, or partnership is engaged primarily in farming, ranching, or aquaculture, where the Secretary finds that the applicants' farming, ranching, or aquaculture operations have been substantially affected by a natural disaster in the United States or by a major disaster or emergency designated by the President pursuant to the provisions of the Disaster Belief Act of 1974: Provided, That they have experience and resources neces- 42 USC 5121 sary to assure a reasonable prospect for successful operation with the note. assistance of such loan and are unable to obtain sufficient credit elsewhere to finance their actual needs at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in the community in or near which they reside for loans for similar purposes and periods of time. For the purposes of this subtitle 'Aquaculture.' 'aquaculture' means husbandry of aquatic organisms under a controlled or selected environment.". DELETION o r REQUIREMENT FOR EMERGENCY LOAN INTEREST RATES TO BE BASED ON SMALL BUSINESS ADMINISTRATION LOAN RATES
SEC. 119. Section 324 of the Consolidated Farm and Kural Development Act is amended, effective October 1, 1978, by striking out sub- 7 USC 1964. section (b) and redesignating subsection (c) as subsection (b). CONFORMING AMENDMENT
SEC. 120. The Consolidated Farm and Rural Development Act is Repeal, amended by repealing section 325. 7 USC 1965. DELEGATION OF AUTHORITY TO COMPROMISE CLAIMS; AUTHORITY I N AREAS THAT HAVE CEASED TO BE RURAL
SEC. 121. Section 331 of the Consolidated Farm and Rural Develop7 USC 1981. ment Act is amended by— (1) in clause (a), striking out "and in Puerto Rico and the Virgin Islands"; (2) in clause (d), striking out "$15,000" and inserting in lieu thereof "$25,000"; (3) at the end of clause (i), striking out the period and inserting lieu thereof "; and"; and (4) adding at the end thereof a new clause (j) to read as follows: " (i) notwithstanding that an area ceases, or has ceased, to be 'rural', in a 'rural area', or an eligible area, make loans and grants, and approve transfers and assumptions, under this title on the same basis as though the area still was rural in connection with property securing any loan made, insured, or held by the Secretary under this title or in connection with any property held by the Secretary under this title.". LOAN MORATORIUM AND POLICY ON FORECLOSURES
SEC. 122. The Consolidated Farm and Rural Development Act is amended by adding after section 331 a new section 331A as follows: "SEC. 33iA. In addition to any other authority that the Secretary 7 USC 1981a. may have to defer principal and interest and forego foreclosure, the Secretary may permit, at the request of the borrower, the deferral of principal and interest on any outstanding loan made, insured, or held by the Secretary under this title, or under the provisions of any other
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