[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 961 Referred in House (RFH)]

  2d Session
                                 S. 961


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 27, 2000

                Referred to the Committee on Agriculture

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                                 AN ACT


 
  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 after 
                        the time of restructuring; and
                    ``(C) allow the borrower to obtain a loan, in 
                addition to any other outstanding loans under this 
                title, to pay any amounts due on a shared appreciation 
                agreement, at a rate of interest that is not greater 
                than the rate of interest on outstanding marketable 
                obligations of the United States of a maturity 
                comparable to that of the loan.''.
    (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 matures on or after the date of enactment of this Act.

            Passed the Senate November 19, 1999.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.