From the U.S. Code Online via GPO Access
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 7USC1926]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                     SUBCHAPTER I--REAL ESTATE LOANS
 
Sec. 1926. Water and waste facility loans and grants


(a) In general

    (1) The Secretary is also authorized to make or insure loans to 
associations, including corporations not operated for profit, Indian 
tribes on Federal and State reservations and other federally recognized 
Indian tribes, and public and quasi-public agencies to provide for the 
application or establishment of soil conservation practices, shifts in 
land use, the conservation, development, use, and control of water, and 
the installation or improvement of drainage or waste disposal 
facilities, recreational developments, and essential community 
facilities including necessary related equipment, all primarily serving 
farmers, ranchers, farm tenants, farm laborers, rural businesses, and 
other rural residents, and to furnish financial assistance or other aid 
in planning projects for such purposes. The Secretary may also make or 
insure loans to communities that have been designated as rural 
empowerment zones or rural enterprise communities pursuant to part I of 
subchapter U of chapter 1 of title 26, or as rural enterprise 
communities pursuant to section 766 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681, 2681-37), 
to provide for the installation or improvement of essential community 
facilities including necessary related equipment, and to furnish 
financial assistance or other aid in planning projects for such 
purposes. The Secretary may also make loans to any borrower to whom a 
loan has been made under the Rural Electrification Act of 1936 (7 U.S.C. 
901 et seq.), for the conservation, development, use, and control of 
water, and the installation of drainage or waste disposal facilities, 
primarily serving farmers, ranchers, farm tenants, farm laborers, rural 
businesses, and other rural residents. When any loan made for a purpose 
specified in this paragraph is sold out of the Agricultural Credit 
Insurance Fund as an insured loan, the interest or other income thereon 
paid to an insured holder shall be included in gross income for purposes 
of chapter 1 of title 26. With respect to loans of less than $500,000 
made or insured under this paragraph that are evidenced by notes and 
mortgages, as distinguished from bond issues, borrowers shall not be 
required to appoint bond counsel to review the legal validity of the 
loan whenever the Secretary has available legal counsel to perform such 
review.
    (2) Water, waste disposal, and wastewater facility grants.--
        (A) Authority.--
            (i) In general.--The Secretary is authorized to make grants 
        to such associations to finance specific projects for works for 
        the development, storage, treatment, purification, or 
        distribution of water or the collection, treatment, or disposal 
        of waste in rural areas.
            (ii) Amount.--The amount of any grant made under the 
        authority of this subparagraph shall not exceed 75 per centum of 
        the development cost of the project to serve the area which the 
        association determines can be feasibly served by the facility 
        and to adequately serve the reasonably foreseeable growth needs 
        of the area.
            (iii) Grant rate.--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.
        (B) Revolving funds for financing water and wastewater 
    projects.--
            (i) In general.--The Secretary may make grants to qualified 
        private, nonprofit entities to capitalize revolving funds for 
        the purpose of providing financing to eligible entities for--
                (I) predevelopment costs associated with proposed water 
            and wastewater projects or with existing water and 
            wastewater systems; and
                (II) short-term costs incurred for replacement 
            equipment, small-scale extension services, or other small 
            capital projects that are not part of the regular operations 
            and maintenance activities of existing water and wastewater 
            systems.

            (ii) Eligible entities.--To be eligible to obtain financing 
        from a revolving fund under clause (i), an eligible entity must 
        be eligible to obtain a loan, loan guarantee, or grant under 
        paragraph (1) or this paragraph.
            (iii) Maximum amount of financing.--The amount of financing 
        made to an eligible entity under this subparagraph shall not 
        exceed--
                (I) $100,000 for costs described in clause (i)(I); and
                (II) $100,000 for costs described in clause (i)(II).

            (iv) Term.--The term of financing provided to an eligible 
        entity under this subparagraph shall not exceed 10 years.
            (v) Administration.--The Secretary shall limit the amount of 
        grant funds that may be used by a grant recipient for 
        administrative costs incurred under this subparagraph.
            (vi) Annual report.--A nonprofit entity receiving a grant 
        under this subparagraph shall submit to the Secretary an annual 
        report that describes the number and size of communities served 
        and the type of financing provided.
            (vii) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subparagraph $30,000,000 
        for each of fiscal years 2002 through 2007.
    (3) No grant shall be made under paragraph (2) of this subsection in 
connection with any project unless the Secretary determines that the 
project (i) will serve a rural area which, if such project is carried 
out, is not likely to decline in population below that for which the 
project was designed, (ii) is designed and constructed so that adequate 
capacity will or can be made available to serve the present population 
of the area to the extent feasible and to serve the reasonably 
foreseeable growth needs of the area, and (iii) is necessary for an 
orderly community development consistent with a comprehensive community 
water, waste disposal, or other development plan of the rural area.
    (4)(A) The term ``development cost'' means the cost of construction 
of a facility and the land, easements, and rights-of-way, and water 
rights necessary to the construction and operation of the facility.
    (B) The term ``project'' shall include facilities providing central 
service or facilities serving individual properties, or both.
    (5) Application requirements.--Not earlier than 60 days before a 
preliminary application is filed for a loan under paragraph (1) or a 
grant under paragraph (2) for a water or waste disposal purpose, a 
notice of the intent of the applicant to apply for the loan or grant 
shall be published in a general circulation newspaper. The selection of 
engineers for a project design shall be done by a request for proposals 
by the applicant.
    (6) The Secretary may make grants aggregating not to exceed 
$30,000,000 in any fiscal year to public bodies or such other agencies 
as the Secretary may determine having authority to prepare comprehensive 
plans for the development of water or waste disposal systems in rural 
areas which do not have funds available for immediate undertaking of the 
preparation of such plan.
    (7) Repealed. Pub. L. 107-171, title VI, Sec. 6020(b)(1), May 13, 
2002, 116 Stat. 363.
    (8) In each instance where the Secretary receives two or more 
applications for financial assistance for projects that would serve 
substantially the same group of residents within a single rural area, 
and one such application is submitted by a city, town, county or other 
unit of general local government, he shall, in the absence of 
substantial reasons to the contrary, provide such assistance to such 
city, town, county or other unit of general local government.
    (9) Conformity with state drinking water standards.--No Federal 
funds shall be made available under this section for a water system 
unless the Secretary determines that the water system will make 
significant progress toward meeting the standards established under 
title XIV of the Public Health Service Act (commonly known as the ``Safe 
Drinking Water Act'') (42 U.S.C. 300f et seq.).
    (10) Conformity with federal and state water pollution control 
standards.--No Federal funds shall be made available under this section 
for a water treatment discharge or waste disposal system unless the 
Secretary determines that the effluent from the system conforms with 
applicable Federal and State water pollution control standards.
    (11) Rural business opportunity grants.--
        (A) In general.--The Secretary may make grants, not to exceed 
    $1,500,000 annually, to public bodies, private nonprofit community 
    development corporations or entities, or such other agencies as the 
    Secretary may select to enable the recipients--
            (i) to identify and analyze business opportunities, 
        including opportunities in export markets, that will use local 
        rural economic and human resources;
            (ii) to identify, train, and provide technical assistance to 
        existing or prospective rural entrepreneurs and managers;
            (iii) to establish business support centers and otherwise 
        assist in the creation of new rural businesses, the development 
        of methods of financing local businesses, and the enhancement of 
        the capacity of local individuals and entities to engage in 
        sound economic activities;
            (iv) to conduct regional, community, and local economic 
        development planning and coordination, and leadership 
        development; and
            (v) to establish centers for training, technology, and trade 
        that will provide training to rural businesses in the 
        utilization of interactive communications technologies to 
        develop international trade opportunities and markets.

        (B) Criteria.--In awarding the grants, the Secretary shall 
    consider, among other criteria to be established by the Secretary--
            (i) the extent to which the applicant provides development 
        services in the rural service area of the applicant; and
            (ii) the capability of the applicant to accomplish the 
        activities described in the relevant clauses of subparagraph 
        (A).

        (C) Coordination.--The Secretary shall ensure, to the maximum 
    extent practicable, that assistance provided under this paragraph is 
    coordinated with and delivered in cooperation with similar services 
    or assistance provided to rural residents by the Cooperative State 
    Research, Education, and Extension Service or other Federal 
    agencies.
        (D) Authorization of appropriations.--There are authorized to be 
    appropriated to carry out this paragraph $15,000,000 for each of 
    fiscal years 1996 through 2007.

    (12)(A) The Secretary shall, in cooperation with institutions 
eligible to receive funds under the Act of July 2, 1862 (12 Stat. 503-
505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of August 
30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), 
including the Tuskegee Institute and State, substate, and regional 
planning bodies, establish a system for the dissemination of information 
and technical assistance on federally sponsored or funded programs. The 
system shall be for the use of institutions eligible to receive funds 
under the Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C. 
301-305, 307, and 308), or the Act of August 30, 1890 (26 Stat. 417-419, 
as amended; 7 U.S.C. 321-326 and 328), including the Tuskegee Institute 
and State, substate, and regional planning bodies, and other persons 
concerned with rural development.
    (B) The informational system developed under this paragraph shall 
contain all pertinent information, including, but not limited to, 
information contained in the Federal Procurement Data System, Federal 
Assistance Program Retrieval System, Catalogue of Federal Domestic 
Assistance, Geographic Distribution of Federal Funds, United States 
Census, and Code of Federal Regulations.
    (C) The Secretary shall obtain from all other Federal departments 
and agencies comprehensive, relevant, and applicable information on 
programs under their jurisdiction that are operated in rural areas.
    (D) Of the sums authorized to be appropriated to carry out the 
provisions of this chapter, not more than $1,000,000 per year may be 
expended to carry out the provisions of this paragraph.
    (13) In the making of loans and grants for community waste disposal 
and water facilities under paragraphs (1) and (2) of this subsection the 
Secretary shall accord highest priority to the application of any 
municipality or other public agency (including an Indian tribe on a 
Federal or State reservation or other federally recognized Indian tribal 
group) in a rural community having a population not in excess of five 
thousand five hundred and which, in the case of water facility loans, 
has a community water supply system, where the Secretary determines that 
due to unanticipated diminution or deterioration of its water supply, 
immediate action is needed, or in the case of waste disposal, has a 
community waste disposal system, where the Secretary determines that due 
to unanticipated occurrences the system is not adequate to the needs of 
the community. The Secretary shall utilize the Soil Conservation Service 
in rendering technical assistance to applicants under this paragraph to 
the extent he deems appropriate.
    (14) Rural water and wastewater technical assistance and training 
programs.--
        (A) In general.--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 distribution of water or the collection, 
        treatment, or disposal of waste in rural areas;
            (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) Selection priority.--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) Funding.--Not less than 1 nor more than 3 percent of any 
    funds appropriated 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.

    (15) 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 1927(a)(3)(A) of this 
title.
    (16) 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.
    (17)(A) 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.
    (18) In making or insuring loans or making grants under this 
subsection, the Secretary may not condition approval of such loans or 
grants upon any requirement, condition or certification other than those 
specified under this chapter.
    (19) Community facilities grant program.--
        (A) In general.--The Secretary may make grants, in a total 
    amount not to exceed $10,000,000 for any fiscal year, to 
    associations, units of general local government, nonprofit 
    corporations, Indian tribes (as such term is defined under section 
    450b(e) of title 25),\1\ and federally recognized Indian tribes to 
    provide the Federal share of the cost of developing specific 
    essential community facilities in rural areas.
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    \1\ So in original.
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        (B) Federal share.--
            (i) In general.--Except as provided in clauses (ii) and 
        (iii), the Secretary shall, by regulation, establish the amount 
        of the Federal share of the cost of the facility under this 
        paragraph.
            (ii) Maximum amount.--The amount of a grant provided under 
        this paragraph for a facility shall not exceed 75 percent of the 
        cost of developing the facility.
            (iii) Graduated scale.--The Secretary shall provide for a 
        graduated scale for the amount of the Federal share provided 
        under this paragraph, with higher Federal shares for facilities 
        in communities that have lower community population and income 
        levels, as determined by the Secretary.

        (C) Reservation of funds for child day care facilities.--
            (i) In general.--For each fiscal year, not less than 10 
        percent of the funds made available to carry out this paragraph 
        shall be reserved for grants to pay the Federal share of the 
        cost of developing and constructing day care facilities for 
        children in rural areas.
            (ii) Release.--Funds reserved under clause (i) for a fiscal 
        year shall be reserved only until April 1 of the fiscal year.

    (20) Community facilities grant program for rural communities with 
extreme unemployment and severe economic depression.--
        (A) Definition of not employed rate.--In this paragraph, the 
    term ``not employed rate'', with respect to a community, means the 
    percentage of individuals over the age of 18 who reside within the 
    community and who are ready, willing, and able to be employed but 
    are unable to find employment, as determined by the department of 
    labor of the State in which the community is located.
        (B) Grant authority.--The Secretary may make grants to 
    associations, units of general local government, nonprofit 
    corporations, and Indian tribes (as defined in section 450b of title 
    25) in a State to provide the Federal share of the cost of 
    developing specific essential community facilities in rural 
    communities with respect to which the not employed rate is greater 
    than the lesser of--
            (i) 500 percent of the average national unemployment rate on 
        November 9, 2000, as determined by the Bureau of Labor 
        Statistics; or
            (ii) 200 percent of the average national unemployment rate 
        during the Great Depression, as determined by the Bureau of 
        Labor Statistics.

        (C) Federal share.--Paragraph (19)(B) shall apply to a grant 
    made under this paragraph.
        (D) Authorization of appropriations.--There are authorized to be 
    appropriated to carry out this paragraph $50,000,000 for fiscal year 
    2001 and such sums as are necessary for each subsequent fiscal year, 
    of which not more than 5 percent of the amount made available for a 
    fiscal year shall be available for community planning and 
    implementation.
        (E) Rural broadband.--Notwithstanding subparagraph (C), the 
    Secretary may make grants to state \2\ agencies for use by 
    regulatory commissions in states \2\ with rural communities without 
    local dial-up Internet access or broadband service to establish a 
    competitively, technologically neutral grant program to 
    telecommunications carriers or cable operators that establish common 
    carrier facilities and services which, in the commission's 
    determination, will result in the long-term availability to such 
    communities of affordable broadband services which are used for the 
    provision of high speed Internet access.
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    \2\ So in original. Probably should be capitalized.

    (21) Community facilities grant program for rural communities with 
high levels of out-migration or loss of population.--
        (A) Grant authority.--The Secretary may make grants to 
    associations, units of general local government, nonprofit 
    corporations, and Indian tribes (as defined in section 450b of title 
    25) in a State to provide the Federal share of the cost of 
    developing specific essential community facilities in any geographic 
    area--
            (i) that is represented by--
                (I) any political subdivision of a State;
                (II) an Indian tribe on a Federal or State reservation; 
            or
                (III) other federally recognized Indian tribal group;

            (ii) that is located in a rural area (as defined in section 
        2009 \3\ of this title);
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    \3\ See References in Text note below.
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            (iii) with respect to which, during the most recent 5-year 
        period, the net out-migration of inhabitants, or other 
        population loss, from the area equals or exceeds 5 percent of 
        the population of the area; and
            (iv) that has a median household income that is less than 
        the nonmetropolitan median household income of the United 
        States.

        (B) Federal share.--Paragraph (19)(B) shall apply to a grant 
    made under this paragraph.
        (C) Authorization of appropriations.--There are authorized to be 
    appropriated to carry out this paragraph $50,000,000 for fiscal year 
    2001 and such sums as are necessary for each subsequent fiscal year, 
    of which not more than 5 percent of the amount made available for a 
    fiscal year shall be available for community planning and 
    implementation.

    (22) Rural water and wastewater circuit rider program.--
        (A) In general.--The Secretary shall establish a national rural 
    water and wastewater circuit rider program that is based on the 
    rural water circuit rider program of the National Rural Water 
    Association that (as of May 13, 2002) receives funding from the 
    Secretary, acting through the Rural Utilities Service.
        (B) Relationship to existing program.--The program established 
    under subparagraph (A) shall not affect the authority of the 
    Secretary to carry out the circuit rider program for which funds are 
    made available under the heading ``rural community advancement 
    program'' in title III of the Agriculture, Rural Development, Food 
    and Drug Administration, and Related Agencies Appropriations Act, 
    2002 (115 Stat. 719).
        (C) Authorization of appropriations.--There is authorized to be 
    appropriated to carry out this paragraph $15,000,000 for fiscal year 
    2003 and each fiscal year thereafter.

    (23) Multijurisdictional regional planning organizations.--
        (A) Grants.--The Secretary shall provide grants to 
    multijurisdictional regional planning and development organizations 
    to pay the Federal share of the cost of providing assistance to 
    local governments to improve the infrastructure, services, and 
    business development capabilities of local governments and local 
    economic development organizations.
        (B) Priority.--In determining which organizations will receive a 
    grant under this paragraph, the Secretary shall give priority to an 
    organization that--
            (i) serves a rural area that, during the most recent 5-year 
        period--
                (I) had a net out-migration of inhabitants, or other 
            population loss, from the rural area that equals or exceeds 
            5 percent of the population of the rural area; or
                (II) had a median household income that is less than the 
            nonmetropolitan median household income of the applicable 
            State; and

            (ii) has a history of providing substantive assistance to 
        local governments and economic development organizations.

        (C) Federal share.--A grant provided under this paragraph shall 
    be for not more than 75 percent of the cost of providing assistance 
    described in subparagraph (A).
        (D) Maximum amount of grants.--The amount of a grant provided to 
    an organization under this paragraph shall not exceed $100,000.
        (E) Authorization of appropriations.--There is authorized to be 
    appropriated to carry out this paragraph $30,000,000 for each of 
    fiscal years 2003 through 2007.

    (24) Loan guarantees for water, wastewater, and essential community 
facilities loans.--
        (A) In general.--The Secretary may guarantee a loan made to 
    finance a community facility or water or waste facility project in a 
    rural area, including a loan financed by the net proceeds of a bond 
    described in section 142(a) of title 26.
        (B) Requirements.--To be eligible for a loan guarantee under 
    subparagraph (A), an individual or entity offering to purchase the 
    loan shall demonstrate to the Secretary that the person has--
            (i) the capabilities and resources necessary to service the 
        loan in a manner that ensures the continued performance of the 
        loan, as determined by the Secretary; and
            (ii) the ability to generate capital to provide borrowers of 
        the loan with the additional credit necessary to properly 
        service the loan.

    (25) Tribal college and university essential community facilities.--
        (A) In general.--The Secretary may make grants to tribal 
    colleges and universities (as defined in section 1059c of title 20) 
    to provide the Federal share of the cost of developing specific 
    tribal college or university essential community facilities in rural 
    areas.
        (B) Federal share.--
            (i) In general.--Except as provided in clauses (ii) and 
        (iii), the Secretary shall, by regulation, establish the maximum 
        percentage of the cost of the facility that may be covered by a 
        grant under this paragraph.
            (ii) Maximum amount.--The amount of a grant provided under 
        this paragraph for a facility shall not exceed 75 percent of the 
        cost of developing the facility.
            (iii) Graduated scale.--The Secretary shall provide for a 
        graduated scale of the percentages of the cost covered by a 
        grant made under this paragraph that provides higher percentages 
        for facilities in communities that have lower community 
        population and income levels, as determined by the Secretary.

        (C) Authorization of appropriations.--There is authorized to be 
    appropriated to carry out this paragraph $10,000,000 for each of 
    fiscal years 2003 through 2007.

(b) Curtailment or limitation of service prohibited

    The service provided or made available through any such association 
shall not be curtailed or limited by inclusion of the area served by 
such association within the boundaries of any municipal corporation or 
other public body, or by the granting of any private franchise for 
similar service within such area during the term of such loan; nor shall 
the happening of any such event be the basis of requiring such 
association to secure any franchise, license, or permit as a condition 
to continuing to serve the area served by the association at the time of 
the occurrence of such event.

(c) Repealed. Pub. L. 91-606, title III, Sec. 302(2), Dec. 31, 1970, 84 
        Stat. 1759

(d) Carryover of unused authorizations for appropriations

    Any amounts appropriated under this section shall remain available 
until expended, and any amounts authorized for any fiscal year under 
this section but not appropriated may be appropriated for any succeeding 
fiscal year.

(Pub. L. 87-128, title III, Sec. 306, Aug. 8, 1961, 75 Stat. 308; Pub. 
L. 87-703, title IV, Sec. 401(2), Sept. 27, 1962, 76 Stat. 632; Pub. L. 
89-240, Sec. 1, Oct. 7, 1965, 79 Stat. 931; Pub. L. 89-769, Sec. 6(b), 
Nov. 6, 1966, 80 Stat. 1318; Pub. L. 90-488, Secs. 3-5, Aug. 15, 1968, 
82 Stat. 770; Pub. L. 91-524, title VIII, Sec. 806(a), Nov. 30, 1970, 84 
Stat. 1383; Pub. L. 91-606, title III, Sec. 302(2), Dec. 31, 1970, 84 
Stat. 1759; Pub. L. 91-617, Sec. 1(a), Dec. 31, 1970, 84 Stat. 1855; 
Pub. L. 92-419, title I, Secs. 104-112, Aug. 30, 1972, 86 Stat. 658, 
659; Pub. L. 91-524, title VIII, Sec. 816(c), as added Pub. L. 93-86, 
Sec. 1(27)(B), Aug. 10, 1973, 87 Stat. 240; Pub. L. 95-334, title I, 
Secs. 104-107(a), Aug. 4, 1978, 92 Stat. 421, 422; Pub. L. 96-355, 
Sec. 7, Sept. 24, 1980, 94 Stat. 1174; Pub. L. 96-438, Sec. 2(1), Oct. 
13, 1980, 94 Stat. 1871; Pub. L. 97-35, title I, Sec. 121, Aug. 13, 
1981, 95 Stat. 368; Pub. L. 99-198, title XIII, Sec. 1304(a), Dec. 23, 
1985, 99 Stat. 1519; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 
2095; Pub. L. 101-624, title XXIII, Secs. 2316(b), 2321, 2328, 2329, 
2341, 2342, 2393, Nov. 28, 1990, 104 Stat. 4008, 4010, 4017, 4026, 4027, 
4057; Pub. L. 102-237, title VII, Sec. 701(a), (h)(1)(A), (B), Dec. 13, 
1991, 105 Stat. 1879, 1880; Pub. L. 103-129, Sec. 3, Nov. 1, 1993, 107 
Stat. 1366; Pub. L. 103-354, title II, Sec. 235(b)(5), Oct. 13, 1994, 
108 Stat. 3222; Pub. L. 104-127, title VII, Secs. 741(a), 758, 763, Apr. 
4, 1996, 110 Stat. 1122, 1132, 1148; Pub. L. 106-387, Sec. 1(a) [title 
VII, Sec. 773], Oct. 28, 2000, 114 Stat. 1549, 1549A-45; Pub. L. 106-
472, title III, Secs. 304(a), 305(a), Nov. 9, 2000, 114 Stat. 2070, 
2071; Pub. L. 107-76, title VII, Sec. 762, Nov. 28, 2001, 115 Stat. 743; 
Pub. L. 107-171, title VI, Secs. 6001-6007(a), 6008, 6020(b)(1), May 13, 
2002, 116 Stat. 352-355, 363.)

                       References in Text

    Section 766 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, referred 
to in subsec. (a)(1), is Pub. L. 105-277, div. A, Sec. 101(a)[title VII, 
Sec. 766], Oct. 21, 1998, 112 Stat. 2681, 2681-37, which is not 
classified to the Code.
    The Rural Electrification Act of 1936, referred to in subsec. 
(a)(1), is act May 20, 1936, ch. 432, 49 Stat. 1363, as amended, which 
is classified generally to chapter 31 (Sec. 901 et seq.) of this title. 
For complete classification of this Act to the Code, see section 901 of 
this title and Tables.
    The Public Health Service Act, referred to in subsec. (a)(9), is act 
July 1, 1944, ch. 373, 58 Stat. 682, as amended. Title XIV of the Act, 
known as the Safe Drinking Water Act, is classified principally to 
subchapter XII (Sec. 300f et seq.) of chapter 6A of Title 42, The Public 
Health and Welfare. For complete classification of these Acts to the 
Code, see Short Title note and Short Title of 1974 Amendments note set 
out under section 201 of Title 42 and Tables.
    Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C. 301-305, 
307 and 308), referred to in subsec. (a)(12)(A), is act July 2, 1862, 
ch. 130, 12 Stat. 503, as amended, popularly known as the Morrill Act 
and also as the First Morrill Act, which is classified generally to 
subchapter I (Sec. 301 et seq.) of chapter 13 of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 301 of this title and Tables.
    Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-
326 and 328), referred to in subsec. (a)(12)(A), is act Aug. 30, 1890, 
ch. 841, 26 Stat. 417, as amended, popularly known as the Agricultural 
College Act of 1890 and also as the Second Morrill Act, which is 
classified generally to subchapter II (Sec. 321 et seq.) of chapter 13 
of this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 321 of this title and Tables.
    For definition of ``this chapter'', referred to in subsec. 
(a)(12)(D), (18), see note set out under section 1921 of this title.
    Section 2009 of this title, referred to in subsec. (a)(21)(A)(ii), 
was subsequently amended, and no longer defines the term ``rural area''.
    The Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 2002, referred to in subsec. 
(a)(22)(B), is Pub. L. 107-76, Nov. 28, 2001, 115 Stat. 704. Provisions 
under the heading ``rural community advancement program'' in title III 
of the Act appear at 115 Stat. 719 and are not classified to the Code.


                               Amendments

    2002--Subsec. (a)(1). Pub. L. 107-171, Sec. 6001, inserted after 
first sentence ``The Secretary may also make or insure loans to 
communities that have been designated as rural empowerment zones or 
rural enterprise communities pursuant to part I of subchapter U of 
chapter 1 of title 26, or as rural enterprise communities pursuant to 
section 766 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999 (Public 
Law 105-277; 112 Stat. 2681, 2681-37), to provide for the installation 
or improvement of essential community facilities including necessary 
related equipment, and to furnish financial assistance or other aid in 
planning projects for such purposes.''
    Subsec. (a)(2). Pub. L. 107-171, Sec. 6002, inserted heading, 
designated existing provisions as subpar. (A) and inserted heading, 
designated first sentence of subpar. (A) as cl. (i), inserted heading, 
and struck out ``aggregating not to exceed $590,000,000 in any fiscal 
year'' after ``authorized to make grants'', designated second sentence 
of subpar. (A) as cl. (ii), inserted heading, and substituted 
``subparagraph'' for ``paragraph'', designated third sentence of subpar. 
(A) as cl. (iii) and inserted heading, and added subpar. (B).
    Subsec. (a)(7). Pub. L. 107-171, Sec. 6020(b)(1), struck out heading 
and text of par. (7). Text read as follows: ``For the purpose of water 
and waste disposal grants and direct and guaranteed loans provided under 
paragraphs (1) and (2), the terms `rural' and `rural area' mean a city, 
town, or unincorporated area that has a population of no more than 
10,000 inhabitants.''
    Subsec. (a)(11)(D). Pub. L. 107-171, Sec. 6003, substituted 
``$15,000,000'' for ``$7,500,000'' and ``2007'' for ``2002''.
    Subsec. (a)(19)(C). Pub. L. 107-171, Sec. 6004, added subpar. (C).
    Subsec. (a)(22) to (25). Pub. L. 107-171, Secs. 6005-6007(a), 6008, 
added pars. (22) to (25).
    2001--Subsec. (a)(20)(E). Pub. L. 107-76 added subpar. (E).
    2000--Subsec. (a)(19)(A). Pub. L. 106-387, which directed amendment 
of section 306(a)(19)(A) of the Consolidated Farmers Home Administration 
Act of 1961 by inserting ``, Indian tribes (as such term is defined 
under section 450b(e) of title 25),'' after ``nonprofit corporations'', 
was executed to this section, which is section 306(a)(19)(A) of the 
Consolidated Farm and Rural Development Act, to reflect the probable 
intent of Congress.
    Subsec. (a)(20). Pub. L. 106-472, Sec. 304(a), added par. (20).
    Subsec. (a)(21). Pub. L. 106-472, Sec. 305(a), added par. (21).
    1996--Subsec. (a)(2). Pub. L. 104-127, Sec. 741(a)(1), substituted 
``$590,000,000'' for ``$500,000,000''.
    Subsec. (a)(5). Pub. L. 104-127, Sec. 758, added par. (5).
    Subsec. (a)(7). Pub. L. 104-127, Sec. 741(a)(2), added par. (7) and 
struck out former par. (7) which read as follows: ``As used in this 
chapter, the terms `rural' and `rural area' shall not include any area 
in any city or town which has a population in excess of ten thousand 
inhabitants, except that (A) for the purpose of loans for essential 
community facilities under subsection (a)(1) of this section, the terms 
`rural' and `rural area' may include any area in any city or town that 
has a population not in excess of twenty thousand inhabitants; and (B) 
for purposes of loans and grants for private business enterprises under 
sections 1924(b), 1932 and 1942(b), (c), and (d) of this title the terms 
`rural' and `rural area' may include all territory of a State that is 
not within the outer boundary of any city having a population of fifty 
thousand or more and its immediately adjacent urbanized and urbanizing 
areas with a population density of more than one hundred persons per 
square mile, as determined by the Secretary of Agriculture according to 
the latest decennial census of the United States: Provided, That special 
consideration for such loans and grants shall be given to areas other 
than cities having a population of more than twenty-five thousand.''
    Subsec. (a)(9), (10). Pub. L. 104-127, Sec. 741(a)(3), added pars. 
(9) and (10) and struck out former pars. (9) and (10) which read as 
follows:
    ``(9) No Federal funds shall be authorized for use unless it be 
certified by the appropriate State water pollution control agency that 
the water supply system authorized will not result in pollution of 
waters of the State in excess of standards established by that agency.
    ``(10) In the case of sewers and waste disposal systems, no Federal 
funds shall be advanced hereunder unless the appropriate State water 
pollution control agency shall certify that the effluent therefrom shall 
conform with appropriate State and Federal water pollution control 
standards when and where established.''
    Subsec. (a)(11). Pub. L. 104-127, Sec. 741(a)(3), added par. (11) 
and struck out former par. (11) which authorized grants to public 
bodies, private nonprofit community development corporations or 
entities, or other agencies to enable such recipients to (1) identify 
and analyze business opportunities, including opportunities in export 
markets, that would use local rural economic and human resources, (2) 
identify, train, and provide technical assistance to existing or 
prospective rural entrepreneurs and managers, (3) establish business 
support centers and otherwise assist in creation of new rural 
businesses, development of methods of financing local businesses, and 
enhancing capacity of local individuals and entities to engage in sound 
economic activities, and (4) conduct regional, community, and local 
economic development planning and coordination, and leadership 
development.
    Subsec. (a)(14). Pub. L. 104-127, Sec. 741(a)(6)(A)-(D)(i), inserted 
par. heading and headings for subpars. (A) to (C), and realigned margins 
of subpars. and cls. (i) to (iii) of subpar. (A).
    Pub. L. 104-127, Sec. 741(a)(4), (5), redesignated par. (16) as (14) 
and struck out former par. (14) which read as follows:
    ``(14)(A) The Secretary, under such reasonable rules and conditions 
as he shall establish, shall make grants to eligible volunteer fire 
departments for up to 50 per centum of the cost of firefighting 
equipment needed by such departments but which such departments are 
unable to purchase through the resources otherwise available to them, 
and for the cost of the training necessary to enable such departments to 
use such equipment efficiently.
    ``(B) For the purposes of this subsection, the term `eligible 
volunteer fire department' means any established volunteer fire 
department in a rural town, village, or unincorporated area where the 
population is less than two thousand but greater than two hundred, as 
reasonably determined by the Secretary.''
    Subsec. (a)(14)(C). Pub. L. 104-127, Sec. 741(a)(6)(D)(ii), which 
directed substitution of ``3 percent of any funds appropriated'' for ``2 
per centum of any funds provided in appropriations Acts'', was executed 
by making the substitution for ``2 per centum of any funds provided in 
Appropriations Acts'', to reflect the probable intent of Congress.
    Subsec. (a)(15). Pub. L. 104-127, Sec. 741(a)(4), (5), redesignated 
par. (17) as (15) and struck out former par. (15) which authorized 
making or insuring of loans to associations, including corporations not 
operated for profit, Indian tribes on Federal and State reservations and 
other federally recognized Indian tribes, and public and quasi-public 
agencies, for purpose of financing construction, acquisition, and 
operation of transmission facilities for any electric system owned and 
operated by a public body located in a rural area which was, as of 
October 1, 1976, receiving bulk power from designated agencies of 
Department of the Interior.
    Subsec. (a)(16) to (18). Pub. L. 104-127, Sec. 741(a)(5), 
redesignated pars. (18) to (20) as (16) to (18), respectively. Former 
pars. (16) to (18) redesignated (14) to (16), respectively.
    Subsec. (a)(19). Pub. L. 104-127, Sec. 763, added par. (19).
    Pub. L. 104-127, Sec. 741(a)(5), redesignated par. (19) as (17).
    Subsec. (a)(20). Pub. L. 104-127, Sec. 741(a)(5), redesignated par. 
(20) as (18).
    1994--Subsec. (a)(15)(C), (D). Pub. L. 103-354 redesignated subpar. 
(D) as (C) and struck out former subpar. (C) which read as follows: 
``The Administrator of the Rural Electrification Administration shall 
administer loans made or insured under this paragraph.''
    1993--Subsec. (a)(1). Pub. L. 103-129 inserted after first sentence 
``The Secretary may also make loans to any borrower to whom a loan has 
been made under the Rural Electrification Act of 1936 (7 U.S.C. 901 et 
seq.), for the conservation, development, use, and control of water, and 
the installation of drainage or waste disposal facilities, primarily 
serving farmers, ranchers, farm tenants, farm laborers, rural 
businesses, and other rural residents.''
    1991--Subsec. (a)(11)(B)(ii). Pub. L. 102-237, Sec. 701(a)(1), in 
subcl. (I) inserted ``and'' after semicolon and in subcl. (II) 
substituted a period for ``; and''.
    Subsec. (a)(12)(D), (20). Pub. L. 102-237, Sec. 701(h)(1)(A), (B), 
substituted ``this chapter'' for ``this Act''.
    Subsec. (a)(21). Pub. L. 102-237, Sec. 701(a)(2), struck out par. 
(21) which was identical to par. (20).
    1990--Subsec. (a)(1). Pub. L. 101-624, Sec. 2328, inserted ``rural 
businesses,'' after ``farm laborers,''.
    Subsec. (a)(2). Pub. L. 101-624, Sec. 2321, struck out ``: Provided, 
That for fiscal years commencing after September 30, 1981, such grants 
may not exceed $154,900,000 in any fiscal year'' after ``in rural 
areas''.
    Subsec. (a)(3). Pub. L. 101-624, Sec. 2316(b), struck out ``and not 
inconsistent with any planned development provided in any State, 
multijurisdictional, county, or municipal plan approved by competent 
authority for the area in which the rural community is located, and the 
Secretary shall require the submission of all applications for financial 
assistance under this section to the multijurisdictional substate 
areawide general purpose planning and development agency that has been 
officially designated as a clearinghouse agency under Office of 
Management and Budget Circular A-95 and to the county or municipal 
government having jurisdiction over the area in which the proposed 
project is to be located for review and comment within a designated 
period of time not to exceed 30 days concerning among other 
considerations, the effect of the project upon the areawide goals and 
plans of such agency or government. No loan under this section shall be 
made that is inconsistent with any multijurisdictional planning and 
development district areawide plan of such agency. The Secretary is 
authorized to reimburse such agency or government for the cost of making 
the required review. Until October 1, 1973, the Secretary may make 
grants prior to the completion of the comprehensive plan, if the 
preparation of such plan has been undertaken for the area'' after ``of 
the rural area''.
    Subsec. (a)(11). Pub. L. 101-624, Secs. 2341, 2342, amended par. 
(11) generally. Prior to amendment, par. (11) read as follows: ``The 
Secretary may make grants, not to exceed $15,000,000 annually, to public 
bodies or such other agencies as the Secretary may select to provide 
rural development technical assistance, rural community leadership 
development, and community and areawide rural development planning.''
    Subsec. (a)(20). Pub. L. 101-624, Sec. 2329, added par. (20).
    Subsec. (a)(21). Pub. L. 101-624, Sec. 2393, added par. (21).
    1986--Subsec. (a)(1), (15)(B). Pub. L. 99-514 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for 
purposes of codification was translated as ``title 26'' thus requiring 
no change in text.
    1985--Subsec. (a)(2). Pub. L. 99-198 provided for graduated scale of 
grant rates for each project and higher rates in communities having 
lower community population and income levels.
    Subsec. (a)(16) to (19). Pub. L. 99-198 added pars. (16) to (19).
    1981--Subsec. (a)(2). Pub. L. 97-35 inserted provisions limiting 
grants for fiscal years after Sept. 30, 1981.
    1980--Subsec. (a)(7). Pub. L. 96-438 provided that for the purpose 
of loans for essential community facilities under subsection (a)(1) of 
this section, terms ``rural'' and ``rural area'' may include any area in 
any city or town with a population not in excess of twenty thousand.
    Subsec. (a)(11) to (15). Pub. L. 96-355 in par. (11) substituted 
provisions authorizing annual grants not to exceed $15,000,000 for rural 
development technical assistance, rural community leadership 
development, etc., for provisions authorizing annual grants not to 
exceed $10,000,000 for preparation of comprehensive plans for rural 
development or designated aspects of such rural development, added par. 
(12), and redesignated former pars. (12) to (14) as (13) to (15), 
respectively.
    1978--Subsec. (a)(1). Pub. L. 95-334, Sec. 104, inserted provisions 
respecting bond counsel requirements for loans under $500,000.
    Subsec. (a)(2). Pub. L. 95-334, Sec. 105, substituted 
``$500,000,000'' for ``$300,000,000'' and ``75'' for ``50''.
    Subsec. (a)(7). Pub. L. 95-334, Sec. 106, struck out references to 
the Commonwealth of Puerto Rico and the Virgin Islands.
    Subsec. (a)(14). Pub. L. 95-334, Sec. 107(a), added par. (14).
    1973--Subsec. (a)(13). Pub. L. 91-524, title VIII, Sec. 816(c), as 
added by Pub. L. 93-86 added par. (13).
    1972--Subsec. (a)(1). Pub. L. 92-419, Sec. 104(1), (2), authorized 
loans to Indian tribes on Federal and State reservations and other 
federally recognized Indian tribes and included as an allowable use 
provision for essential community facilities including necessary related 
equipment, respectively.
    Subsec. (a)(2). Pub. L. 92-419, Sec. 105, substituted 
``$300,000,000'' for ``$100,000,000''.
    Subsec. (a)(3). Pub. L. 92-419, Secs. 106, 107, substituted 
``project'' for ``facility'' where first appearing; in item (i), 
substituted ``project'' for ``facility'' and inserted in such text ``, 
if such project is carried out,''; in item (ii), substituted ``will or 
can be'' for ``will be or can be''; substituted ``and (iii)'' for ``or 
(iii)'' and in such item (iii), substituted ``an orderly community 
development consistent with a comprehensive community water, waste 
disposal, or other development plan'' and ``development provided in any 
State, multijurisdictional, county, or municipal plan approved by 
competent authority'' for ``orderly community development consistent 
with a comprehensive community water or sewer development plan'' and 
``development under State, county, or municipal plans approved as 
official plans by competent authority'', substituted ``Secretary shall 
require the submission of all applications for financial assistance 
under this section to the multijurisdictional substate areawide general 
purpose planning and development agency that has been officially 
designated as a clearinghouse agency under Office of Management and 
Budget Circular A-95 and to the county or municipal government having 
jurisdiction over the area in which the proposed project is to be 
located for review and comment within a designated period of time not to 
exceed 30 days concerning among other considerations, the effect of the 
project upon the areawide goals and plans of such agency or government'' 
for ``Secretary shall establish regulations requiring the submission of 
all applications for financial assistance under this chapter to the 
county or municipal government in which the proposed project is to be 
located for review and comment by such agency within a designated period 
of time''; prohibited loans inconsistent with multijurisdictional 
planning and development district areawide plan of the agency; 
authorized agency or government reimbursement for cost of making the 
review; and extended authority for making grants prior to completion of 
the comprehensive plan from Oct. 1, 1971 to Oct. 1, 1973.
    Subsec. (a)(5). Pub. L. 92-419, Sec. 110, struck out provisions of 
former par. (5) which prohibited any loan or grant under subsec. (a) of 
this section which would cause the unpaid principal indebtedness of any 
association under this chapter and Act Aug. 28, 1937, as amended 
(superseded by this chapter), together with amount of any assistance in 
the form of a grant to exceed $4,000,000 at any one time.
    Subsec. (a)(6). Pub. L. 92-419, Sec. 108, substituted 
``$30,000,000'' for ``$15,000,000'', struck out ``official'' before 
``comprehensive plans'', and substituted ``waste disposal systems'' for 
``sewer systems''.
    Subsec. (a)(7). Pub. L. 92-419, Sec. 109, substituted definition of 
``rural'' and ``rural area'' as excluding an area in a city or town with 
a population in excess of ten thousand inhabitants for prior provision 
for rural areas for purposes of water and waste disposal projects 
excluding an area in a city or town with a population in excess of 5,500 
inhabitants, provided exception provision and special consideration for 
loans and grants to areas other than cities having a population of more 
than twenty-five thousand.
    Subsec. (a)(11), (12). Pub. L. 92-419, Secs. 111, 112, added pars. 
(11) and (12).
    1970--Subsec. (a)(1). Pub. L. 91-617 required inclusion in gross 
income of the interest or other income paid to an insured holder when 
any loan made for a purpose specified in subsec. (a)(1) is sold out of 
the Agricultural Credit Insurance Fund as an insured loan.
    Subsec. (c). Pub. L. 91-606 repealed subsec. (c), added by Pub. L. 
89-769, Sec. 6(b), Nov. 6, 1966, 80 Stat. 1318, which related to loans 
to associations in areas suffering major disasters. See section 4401 et 
seq. of Title 42, The Public Health and Welfare.
    Subsec. (d). Pub. L. 91-524 added subsec. (d).
    1968--Subsec. (a). Pub. L. 90-488 substituted ``$100,000,000'' for 
``$50,000,000'' in par. (2), ``1971'' for ``1968'' in par. (3), and 
``$15,000,000'' for ``$5,000,000'' in par. (6), respectively.
    1966--Subsec. (c). Pub. L. 89-769 added subsec. (c).
    1965--Subsec. (a). Pub. L. 89-240 designated existing provisions as 
par. (1), struck out ``including the development of recreational 
facilities'' after ``shifts in land use'', substituted ``drainage or 
waste disposal facilities'' for ``drainage facilities'', inserted ``and 
recreational developments'', deleted provisions which prohibited loans 
which would cause an association's unpaid principal indebtedness to 
exceed $500,000, in the case of direct loans and $1,000,000 in the case 
of insured loans at any one time, and added pars. (2) to (10).
    1962--Subsec. (a). Pub. L. 87-703 authorized loans to be made or 
insured to provide for the application or establishment of shifts in 
land use including the development of recreational facilities.


                    Effective Date of 1991 Amendment

    Amendment by section 701(a) of Pub. L. 102-237 effective as if 
included in the provision of the Food, Agriculture, Conservation, and 
Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, and 
amendment by section 701(h)(1)(A), (B) of Pub. L. 102-237 to any 
provision specified therein effective as if included in act that added 
provision so specified at the time such act became law, see section 
1101(b)(6), (c) of Pub. L. 102-237, set out as a note under section 1421 
of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-355 effective Oct. 1, 1980, see section 10 
of Pub. L. 96-355, set out as an Effective Date note under section 2204b 
of this title.


                    Effective Date of 1978 Amendment

    Section 105 of Pub. L. 95-334 provided that the amendment made by 
that section is effective Oct. 1, 1978.


                    Effective Date of 1970 Amendments

    Section 1(b) of Pub. L. 91-617 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to the insured 
loans sold out of the Agricultural Credit Insurance Fund after the date 
of the enactment of this Act [Dec. 31, 1970].''
    Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section 304 
of Pub. L. 91-606, set out as a note under section 165 of Title 26, 
Internal Revenue Code.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-769 applicable with respect to any major 
disaster occurring after Oct. 3, 1964, see section 14 of Pub. L. 89-769.

                          Transfer of Functions

    Powers, duties, and assets of agencies, offices, and other entities 
within Department of Agriculture relating to rural development functions 
transferred to Rural Development Administration by section 2302(b) of 
Pub. L. 101-624.


                       Assistance in Rural Alaska

    Pub. L. 106-387, Sec. 1(a) [title VII, Sec. 736], Oct. 28, 2000, 114 
Stat. 1549, 1549A-33, provided that:``Notwithstanding any other 
provision of law, for any fiscal year, in the case of a high cost, 
isolated rural area of the State of Alaska that is not connected to a 
road system--
        ``(1) in the case of assistance provided by the Rural Housing 
    Service for single family housing under title V of the Housing Act 
    of 1949 (7 [42] U.S.C. 1471 et seq.), the maximum income level for 
    the assistance shall be 150 percent of the average income level in 
    metropolitan areas of the State;
        ``(2) in the case of community facility loans and grants 
    provided under paragraphs (1) and (19), respectively, of section 
    306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
    1926(a)) and assistance provided under programs carried out by the 
    Rural Utilities Service, the maximum income level for the loans, 
    grants, and assistance shall be 150 percent of the average income 
    level in nonmetropolitan areas of the State;
        ``(3) in the case of a business and industry guaranteed loan 
    made under section 310B(a)(1) of the Consolidated Farm and Rural 
    Development Act (7 U.S.C. 1932(a)(1)), to the extent permitted under 
    that Act, the Secretary of Agriculture shall--
            ``(A) guarantee the repayment of 90 percent of the principal 
        and interest due on the loan; and
            ``(B) charge a loan origination and servicing fee in an 
        amount not to exceed 1 percent of the amount of the loan; and
        ``(4) in the case of assistance provided under the Rural 
    Community Development Initiative for fiscal year 2001 carried out 
    under the rural community advancement program established under 
    subtitle E of the Consolidated Farm and Rural Development Act (7 
    U.S.C. 2009 et seq.), the median household income level, and the not 
    employed rate, with respect to applicants for assistance under the 
    Initiative shall be scored on a community-by-community basis.''


 Temporary Expanded Eligibility of Certain Timber-Dependent Communities 
    in Pacific Northwest for Loans and Grants From Rural Development 
                             Administration

    Pub. L. 103-427, Oct. 31, 1994, 108 Stat. 4373, provided that:
    ``(a) Findings.--Congress finds the following:
        ``(1) Timber-dependent communities in the Pacific Northwest have 
    contributed significantly to the economic needs of the United States 
    and have helped ensure an adequate national supply of timber and 
    timber products.
        ``(2) A significant portion of the timber traditionally 
    harvested in the Pacific Northwest is derived from Federal forest 
    lands, and these forests have played an important role in sustaining 
    local economies.
    ``(b) Expanded Eligibility.--During the period beginning on the date 
of the enactment of this Act [Oct. 31, 1994] and ending on September 30, 
1998, the terms `rural' and `rural area', as used in the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1921 et seq.), shall include 
any town, city, or municipality--
        ``(1) part or all of which lies within 100 miles of the boundary 
    of a national forest covered by the Federal document entitled 
    `Forest Plan for a Sustainable Economy and a Sustainable 
    Environment', dated July 1, 1993;
        ``(2) that is located in a county in which at least 15 percent 
    of the total primary and secondary labor and proprietor income is 
    derived from forestry, wood products, or forest-related industries 
    such as recreation and tourism; and
        ``(3) that has a population of not more than 25,000 inhabitants.
    ``(c) Effect on State Allotments of Funds.--This section shall not 
be taken into consideration in allotting funds to the various States for 
purposes of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.), or otherwise affect or alter the manner under which such 
funds were allotted to States before the date of the enactment of this 
Act [Oct. 31, 1994].''


            Rural Wastewater Treatment Circuit Rider Program

    Section 2324 of Pub. L. 101-624 directed Secretary to establish 
national rural wastewater circuit rider grant program that was to be 
modeled after existing National Rural Water Association Rural Water 
Circuit Rider Program that received funding from Farmers Home 
Administration and authorized $4,000,000 for each fiscal year to carry 
out such program, prior to repeal by Pub. L. 104-127, title VII, 
Sec. 703, Apr. 4, 1996, 110 Stat. 1108.


            Interest Rate Restructuring for Certain Borrowers

    Pub. L. 100-233, title VI, Sec. 615(b)(2), Jan. 6, 1988, 101 Stat. 
1682, provided that: ``Effective July 29, 1987, the interest rate 
charged on any loan of $2,000,000 or more made on such date under 
section 306 [7 U.S.C. 1926] to any nonprofit corporation shall be the 
interest rate quoted to such nonprofit corporation by the Farmers Home 
Administration on June 22, 1987, in the request for obligation of funds 
made with respect to the loan.''


                   Lease of Certain Acquired Property

    Pub. L. 100-233, title VI, Sec. 620, Jan. 6, 1988, 101 Stat. 1684, 
provided that: ``Notwithstanding any other provision of law, the 
Secretary of Agriculture may lease to public or private nonprofit 
organizations, for a nominal rent, any facilities acquired in connection 
with the disposition of a loan made by the Secretary under section 306 
[7 U.S.C. 1926]. Any such lease shall be for such reasonable period of 
time as the Secretary determines is appropriate.''

                  Section Referred to in Other Sections

    This section is referred to in sections 917, 1926a, 1927, 1929, 
1929a, 1932, 1983, 1983a, 1991, 1992, 2001a, 2009d, 2204b, 2204b-1, 
6613, 6942, 6944 of this title; title 16 section 2106; title 42 section 
5153.