LOANS GUARANTEED.

SEC. 606. LOANS GUARANTEED. Section 309(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)) is amended by adding at the end the following: “(4) Maximum guarantee of 90 percent.— Except as provided in paragraphs (5) and (6), a loan guarantee under this title shall be for not more than 90 percent of the principal and interest due on the loan. “(5) Refinanced loans guaranteed at 95 percent.— The Secretary shall guarantee 95 percent of— “(A) in the case of a loan that solely refinances a direct loan made under this title, the principal and interest due on the loan on the date of the refinancing; or 110 STAT. 1087 “(B) in the case of a loan that is used for multiple purposes, the portion of the loan that refinances the principal and interest due on a direct loan made under this title that is outstanding on the date the loan is guaranteed. “(6) Beginning farmer loans guaranteed up to 95 percent.— The Secretary may guarantee not more than 95 percent of— “(A) a farm ownership loan for acquiring a farm or ranch to a borrower who is participating in the down payment loan program under section 310E; or “(B) an operating loan to a borrower who is participating in the down payment loan program under section 310E that is made during the period that the borrower has a direct loan outstanding under this subtitle for acquiring a farm or ranch.”.