Sec. 2. ### (a)

343 words·~2 min read·/statute-compilations/comps-10267/sec-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## Sec. 2 ###

(a)The Secretary of Agriculture is authorized and directed to provide financial assistance to bona fide farmers and ranchers, including bona fide farmers or ranchers owning livestock that are fed in custom feedyards, who are primarily and directly engaged in agricultural production and who have substantial operations in breeding, raising, fattening, or marketing livestock. In the case of corporations or partnerships, such financial assistance shall be extended only when a majority interest in such corporations or partnerships is held by stockholders or partners who themselves are primarily and directly engaged in such agricultural production. For purposes of this Act, the term “**livestock**” shall mean beef cattle, dairy cattle, swine, sheep, goats, chickens, and turkeys including dairy cattle raised and maintained for the primary purpose of marketing dairy products. ###

(b)The Secretary shall guarantee loans, including both principal all interest, made by any legally organized lending agency which otherwise meet the purposes and conditions of this Act. As used here, a guaranteed loan is one which is made, held, and serviced by a legally organized lending agency and which is guaranteed by the Secretary hereunder: *Provided,* That the term “**legally organized lending agency**” shall be deemed to include the Federal Financing Bank only to the extent that such Bank may hold the guaranteed portion of such loans. ###

(c)No contract guaranteed any such loan by a lender shall require the Secretary to guarantee more than 90 per centum of the principal and interest on such loan. ###

(d)No fees or charges shall be assessed by the Secretary for any guarantee provided by him under this Act. ###

(e)Loans guaranteed under this Act shall bear interest at a rate to be agreed upon by the lender and borrower. ###

(f)Loans guaranteed under this Act shall be for the period reasonably required by the needs of the borrower, taking into consideration the security the borrower has available, but not exceeding an original term of seven years. Loans may be renewed for not more than three additional years.