Volume 82 · 771
Public Law 90–488
To amend the Consolidated Farmers Home Administration Act of 1961, as amended, to provide for loans for enterprises to supplement farm income and for farm conversion to recreation, remove the annual ceiling on Insured loans, increase the amount of unsold insured loans that may be made out of the fund, raise the aggregate annual limits on grants, establish a flexible loan interest rate, and for other purposes.
Approved August 15, 1968
Statutory text
AN ACT
To amend the Consolidated Farmers Home Administration Act of 1961, as amended, to provide for loans for enterprises to supplement farm income and for farm conversion to recreation, remove the annual ceiling on Insured loans, increase the amount of unsold insured loans that may be made out of the fund, raise the aggregate annual limits on grants, establish a flexible loan interest rate, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
That the Consolidated Farmers Home Administration Act of 1961, as amended, is further amended as follows:
The first sentence of section 303 is amended to read as follows: “Loans may be made or insured under this subtitle for (1) acquiring, enlarging, or improving farms, including farm buildings, land and water development, use and conservation, (2) recreational uses and facilities, (3) enterprises needed to supplement farm income, (4) refinancing existing indebtedness, and (5) loan closing costs.”
Sec. 2.
Section 304 is amended by inserting “(a)” after “subtitle”, and by changing the period at the end of the section to a comma and adding the following: “not including recreational uses and facilities, and (b) without regard to the requirements of sections 302 (2) and
(3), to individual farmowners or tenants to finance outdoor recreational enterprises or to convert to recreational uses their farming or ranching operations, including those heretofore financed under this title.”
Sec. 3.
Section 306(a) (2) is amended by changing “$50,000,000” to “$100,000,000”.
Sec. 4.
The last sentence of section 306(a) (3) is amended by changing “1968” to “1971”.
Sec. 5.
Section 306(a) (6) is amended by changing “$5,000,000” to “$15,000,000”.
Sec. 6.
Section 308 is amended by striking the word “Loans” front the beginning of the first sentence and inserting in lieu thereof “Until October 1, 1971, loans” and by striking the comma after the word “Secretary” and the phrase “aggregating not more than $450,000,000 in any one year,”.
Sec. 7.
Section 309(f) is amended by changing “$50,000,000” to
“$100,000,000”.
Sec. 8.
Section 312 is amended by (a) revising subsection (4) to
read as follows: “(4) financing land and water development, use, and conservation,”; (b) inserting new items (5) and (6) to read as follows: “(5) without regard to the requirements of section 311 (2) and (3), to individual farmers or ranchers to finance outdoor recreational
enterprises or to convert to recreational uses their farming or ranching operations, including those heretofore financed under this title, (6) enterprises needed to supplement farm income,”; and (c) by renumbering the present items “(5), (6), and (7)” to “(7), (8), and (9)”.
Sec. 9.
Section 313 is amended by changing the colon after “$35,000”
to a comma, and by striking the proviso in item (1).
Sec. 10.
Section 316 is amended by (a) striking from the first sentence
Interest rates.
“at an interest rate not to exceed 5 per centum per annum,” and (b) adding at the end of the section the following: “Loans made under this subtitle shall bear interest at a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, plus not to exceed 1 per centum per annum as determined by the Secretary.”
Sec. 11.
Section 331 is amended by adding a new subsection (f) at the
Valueless liens.
end thereof to read as follows:
“(f) Release mortgage and other contract liens if it appears that they have no present or prospective value or that their enforcement likely would be ineffectual or uneconomical.”
Sec. 12.
Section 333(b) of the Consolidated Farmers Home Administration
Act of 1961 is amended by striking the word “farming”.
Approved August 15, 1968.