Sec. 3. As a condition of the Secretary's guaranteeing any loan under this Act—

215 words·~1 min read·/statute-compilations/comps-10267/sec-3

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## Sec. 3 As a condition of the Secretary's guaranteeing any loan under this Act— ###

(a)The lender shall certify that— ####

(1)the lender is unwilling to provide credit to the loan applicant in the absence of the guarantee authorized by this Act; ####

(2)the loan applicant is directly and in good faith engaged in agricultural production, and the financing to be furnished the loan applicant is to be used for purposes related to the breeding, raising, fattening, or marketing of livestock; ####

(3)the loan is for the purpose of maintaining the operations of the loan applicant, and the total loans made to the loan applicant do not exceed the amount necessary to permit the continuation of his livestock operations at a level equal to its highest level during the eighteen months immediately preceding the date of enactment of this Act: *Provided,* That the total principal balance outstanding at any one time on loans guaranteed under this Act for any borrower shall not exceed $350,000; ###

(b)The loan applicant shall certify that he will be unable to obtain financing in the absence of the guarantee authorized by this Act. ###

(c)The Secretary finds there is reasonable probability of accomplishing the objectives of the Act and repayment of the loan.