TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS.

SEC. 631. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS. Section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981) is amended by adding at the end the following: “(d) Temporary Authority To Enter Into Contracts.— “(1) Definitions.— In this subsection: “(A) Eligible financial institution.— The term ‘eligible financial institution’ means a financial institution with substantial experience in farm, ranch, or aquaculture lending that is regulated by the Comptroller of the Currency, the Farm Credit Administration, or a similar regulatory body. “(B) Pilot project.— The term ‘pilot project’ includes services related to borrower loan documentation, financial information, credit history, and appraisals of real estate and chattel. “(2) Authority.— The Secretary may enter into a contract with an eligible financial institution for servicing a farmer program loan under this title, including 1 or more pilot projects. “(3) Report.— Not later than September 30, 1997, and September 30 of each year thereafter, the Secretary shall report to Congress on— “(A) the Secretary’s experience in using contracts under paragraph (2); and “(B) recommendations for legislation related to this subsection, if any. “(4) Savings clause.— Nothing in this subsection shall limit the authority of the Secretary or an eligible financial institution to contract for any services under this Act or any other law. “(5) Sunset provision.— This subsection shall be effective until September 30, 2002.”.