WATER AND WASTE LENDING BY BANKS FOR COOPERATIVES.

SEC. 2323. WATER AND WASTE LENDING BY BANKS FOR COOPERATIVES. (a) Authorization.— Section 3.7 of the Farm Credit Act of 1971 (12 U.S.C. 2128) is amended by adding at the end the following new subsection: “(f) The banks for cooperatives may, for the purpose of the installation, expansion, or improvement of water and waste disposal facilities in rural areas, make and participate in loans and commitments and to extend other technical and financial assistance to— “(1) cooperatives formed specifically for the purpose of establishing or operating such facilities; and “(2) public and quasi-public agencies and bodies, and other public and private entities that, under authority of State or local law, establish or operate such facilities. For purposes of this subsection, the term ‘rural area’ means all territory of a State that is not within the outer boundary of any city or town having a population of more than 20,000 based on the latest decennial census of the United States.”. (b) Conforming Amendment.— Section 3.8(b)(1) of the Farm Credit Act of 1971 (12 U.S.C. 2129(b)(1)) is amended by adding at the end the following new subparagraph: “(D) Any cooperative or other entity described in section 3.7(f).”.