PUBLIC LAW 98-258—APR. 10, 1984

98 STAT. 139

42 USC 5121
note.

Insurance.

stock, and equipment) are used as collateral to secure a loan made
under this subtitle, the Secretary shall value the assets based on the
higher of (A) the value of the assets on the day before the date the
governor of the State in which the farm is located requests assist-
ance under this subtitle or the Disaster Relief Act of 1974 for any
portion of such State affected by the disaster with respect to which
the application for the loan is made, or (B) the value of the assets
one year before such day/'.

(c) the amendments made by this section shall be applicable to 7 USC 1961 note.
disasters occurring after May 30,1983.

ECONOMIC EMERGENCY LOANS

SEC. 603. Section 211 of the Emergency Agricultural Credit Ad-
justment Act of 1978 (7 U.S.C. prec. 1961 note) is amended by—

(1) inserting "(a)" immediately before "The provisions"; and

(2) adding at end thereof the following new subsection:

"(b) With respect to the economic emergency loan program oper-
ated under this title during the period beginning December 22, 1983,
and ending September 30,1984, the Secretary—

"(1) shall make available to eligible applicants during such
period new contracts of insurance totaling, in the aggregate,
$310,000,000, and

"(2) as appropriate to achieve the goals of the economic
emergency loan program and taking into consideration the
amount of funds used for loan guarantees, may make available
to eligible applicants during such period additional new con-
tracts of insurance totaling, in the aggregate, not more than
$290,000,000.".

OPERATING LOANS

SEC. 604. (a) Section 313 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1943) is amended by striking out
"$100,000, or, in the case of a loan guaranteed by the Secretary,
$200,000" and inserting in lieu thereof "$200,000, or, in the case of a
loan guaranteed by the Secretary, $400,000".

(b) Section 316(b) of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 19460W) is amended by—

(1) in the second sentence, inserting "(or, in the case of loans
for farm operating purposes, fifteen years)" after "seven years";
and

(2) in the fifth sentence, striking out "The interest rate" and
inserting in lieu thereof "Except as otherwise provided for farm
loans under section 331B of this title, the interest rate". Infra.

FARM LOAN INTEREST RATES

SEC. 605. The Consolidated Farm and Rural Development Act (7
U.S.C. 1921 et seq.) is amended by inserting after section 331A the
following new section:

"SEC. 331B. Any loan for farm ownership purposes under subtitle
A of this title, farm operating purposes under subtitle B of this title,
or disaster emergency purposes under subtitle C of this title, other
than a guaranteed loan, that is deferred, consolidated, rescheduled,
or reamortized under this title shall, notwithstanding any other
provision of this title, bear interest on the balance of the original

7 USC 1981b.

7 USC 1922,

1941.

7 USC 1961.