PUBLIC LAW 102-554 —OCT. 28, 1992 106 STAT. 4145 the commercial or cooperative lender and, if applicable, the contracting credit counseling service selected under section 360(c). "(b) LOAN TERMS.— "(1) PRINCIPAL. —Each loan made under this section shall be in an amount equal to 30 percent of the purchase price or appraisal value, whichever is lower, of the farm or ranch to be acquired, unless the borrower requests a lesser amount. "(2) INTEREST RATE. —The interest rate on any loan made by the Secretary under this section shall be 4 percent. "(3) DURATION. —Each loan under this section shall be made for a period of 10 years or less, at the option of the borrower. (4) REPAYMENT. —Each borrower of a loan under this section shall repay the loan to the Secretary in equal annual installments. "(5) NATURE OF RETAINED SECURITY INTEREST.— The Secretary shall retain an interest in each farm or ranch acquired with a loan made under this section that shall— "(A) be secured by the farm or ranch; "(B) be junior only to such interests in the farm or ranch as may be conveyed at the time of acquisition to the person (including a lender) from whom the borrower obtamed a lo€ui used to acquire the farm or ranch; and "(C) require the borrower to obtain the permission of the Secretary before the borrower may grant an additional security interest in the farm or rancn. "(c) LIMITATIONS. — " (1) BORROWERS REQUIRED TO MAKE MINIMUM DOWN PAY- MENT.—The Secretary shall not make a loan under this section to any borrower with respect to a farm or ranch if the contribution of the borrower to the down payment on the farm or ranch will be less than 10 percent of the purchase price of the farm or ranch. "(2) MAXIMUM PRICE OF PROPERTY TO BE ACQUIRED.—The Secretary shall not make a loan under this section with respect to a farm or ranch for which the purchase price or apprtiisal value, whichever is lower, exceeds $250,000.
- (3) PROHIBITED TYPES OF FINANCING.—The Secretary shall
not make a loan under this section with respect to a farm or ranch if the farm or ranch is to be acquired with other financing that contains any of the following conditions: ^(A) The financing is to be amortized over a period of less than 30 years. "(B) A balloon payment will be due on the financing during the 10-year period beginning on the date the loan is to M made by the Secretary. "(d) ADMINISTRATION. —In carrying out this section, the Secretary shall, to the maximum extent practicable— "(1) facilitate the transfer oi farms and ranches from retiring farmers and ranchers to persons eligible for insured loans under this subtitle; "(2) make efforts to widely publicize the availability of Public loans under this section among— information. "(A) potentially eligible recipients of the loans; "(B) retiring farmers and ranchers; and "(C) applicants for farm ownership loans under this subtitle;
�
