INTEREST RATE ON FARM OWNERSHIP LOANS AND OPERATING LOANS MADE TO LIMITED RESOURCE BORROWERS.

SEC. 1803. INTEREST RATE ON FARM OWNERSHIP LOANS AND OPERATING LOANS MADE TO LIMITED RESOURCE BORROWERS. (a) Farm Ownership Loans.— Subparagraph (B) of section 307(a)(3) (7 U.S.C. 1927(a)(3)(B)) is amended to read as follows: “(B) Except as provided in paragraph (6), the interest rate on loans (other than guaranteed loans) under section 310D shall not be— “(i) greater than the sum of— “(I) an amount that does not exceed one-half of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and “(II) an amount not exceeding 1 percent per year, as the Secretary determines is appropriate; or “(ii) less than 5 percent per year.”. (b) Operating Loans.— Paragraph (2) of section 316(a) (7 U.S.C. 1946(a)(2)) is amended to read as follows: “(2) The interest rate on any loan (other than a guaranteed loan) to a low income, limited resource borrower under this subtitle shall not be— “(A) greater than the sum of— 104 STAT. 3819 “(i) an amount that does not exceed one-half of the current average market yield on outstanding marketable obligations of the United States with maturities of 5 years; and “(ii) an amount not exceeding 1 percent per year, as the Secretary determines is appropriate; or “(B) less than 5 percent per year.”.