Order of Preference, Extent of Guaranty.—

Sec. 129. Order of Preference, Extent of Guaranty.— The Consolidated Farmers Home Administration Act of 1961 is amended by adding at the end thereof the following new section: 86 Stat. 667 “Sec. 344. No loan (other than one to a public body or nonprofit association (including Indian tribes on Federal and State reservations or other federally recognized Indian tribal groups) for community facilities or one of a type authorized by section 306(a) (1) prior to its amendment by the Rural Development Act. of 1072) shall be made by the Secretary either for sale as an insured loan or otherwise under section 304(b), 306(a)(1), 310B, 312(b), or 312(c) unless the Secretary shall have determined that no other lender is willing to make such loan and assume 10 per centum of any loss sustained thereon. No contract guaranteeing any such loan by such other lender shall require the Secretary to participate in more than 90 per centum of any loss sustained thereon.”