Young Farmers’ Loans.—

Sec. 120. Young Farmers’ Loans.— (a) Section 311 of the Consolidated Farmers Home Administration Act of 1961 is amended by— (1) inserting “ (a) ” before the first word; and (2) adding at the end of the section a new subsection as follows: “(b) (1) Loans may also be made under this subtitle without regard to the requirements of clauses (2) and (3) of subsection (a) to youths who, are rural residents to enable them to operate enterprises in connection with their participation in 4-H Clubs, Future Farmers of America, and similar organizations and for the purposes specified in section 312. “(2) A person receiving a loan under this subsection who executes a promissory note therefor shall thereby incur full personal liability for the indebtedness evidenced by such note in accordance with its terms free of any disability of minority. “(3) For loans under this subsection the Secretary may accept the personal liability of a cosigner of the promissory note in addition to the borrowers’ personal liability.” (b) Section 312 of the Consolidated Farmers Home Administration Act of 1961 is amended by inserting “ (a) ” after “311”.