[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 961 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 961

  To amend the Consolidated Farm and Rural Development Act to improve 
                   shared appreciation arrangements.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 5, 1999

Mr. Burns (for himself, Mr. Craig, Mr. Baucus, Mr. Daschle, Mr. Kerrey, 
 and Mr. Johnson) introduced the following bill; which was read twice 
 and referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To amend the Consolidated Farm and Rural Development Act to improve 
                   shared appreciation arrangements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHARED APPRECIATION ARRANGEMENTS.

    (a) In General.--Section 353(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2001(e)) is amended by striking paragraph (2) 
and inserting the following:
            ``(2) Terms.--A shared appreciation agreement entered into 
        by a borrower under this subsection shall--
                    ``(A) have a term not to exceed 10 years;
                    ``(B) provide for recapture based on the difference 
                between--
                            ``(i) the appraised value of the real 
                        security property at the time of restructuring; 
                        and
                            ``(ii) that value at the time of recapture, 
                        except that that value shall not include the 
                        value of any capital improvements made to the 
                        real security property by the borrower; and
                    ``(C) be based on appraisals that are conducted by 
                persons with a principal place of business that is 
                located in the State containing the real property.''.
    (b) Application.--The amendment made by subsection (a) shall apply 
to a shared appreciation arrangement entered into under section 353(e) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)) 
that is in effect on or after the date of enactment of this Act.
                                 <all>