[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Page S15154]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        TO AMEND THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

  S. 961, passed during today's session, follows:

                                 S. 961

       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.

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