[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1413 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1413

  To amend the Consolidated Farm and Rural Development Act to permit 
   borrowers and grantees to use certain rural development loans and 
         grants for other purposes under certain circumstances.


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                   IN THE SENATE OF THE UNITED STATES

                           September 10, 2001

 Mr. Lugar (for himself and Mr. Harkin) 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 permit 
   borrowers and grantees to use certain rural development loans and 
         grants for other purposes under certain circumstances.

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

SECTION 1. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
              PURPOSES.

    Subtitle A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.) is amended by adding at the end the following:

``SEC. 310F. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
              PURPOSES.

    ``If, after making a loan or a grant described in section 381E(d), 
the Secretary determines that the circumstances under which the loan or 
grant was made have sufficiently changed to make the project or 
activity for which the loan or grant was made available no longer 
appropriate, the Secretary may allow the loan borrower or grant 
recipient to use property (real and personal) purchased with the loan 
or grant funds, or proceeds from the sale of property (real and 
personal) purchased with such funds, for another project or activity 
that (as determined by the Secretary)--
            ``(1) will be carried out in the same area as the original 
        project or activity;
            ``(2) meets the criteria for a loan or a grant described in 
        section 381E(d); and
            ``(3) satisfies such additional requirements as are 
        established by the Secretary.''.
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