Sec. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS
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## SEC. 5001 ELIGIBILITY FOR FARM OWNERSHIP LOANS ###
(a)In General Section 302(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a)) is amended— ####
(1)by striking “
(a)In General.—The ” and inserting the following: > > ### “(a) In General > > > #### “(1) Eligibility requirements > > The” > ; ####
(2)in the first sentence, by striking “and limited liability companies” and inserting “limited liability companies, and such other legal entities as the Secretary considers appropriate,”; ####
(3)in the second sentence, by redesignating paragraphs
(1)through
(4)as subparagraphs
(A)through (D), respectively; ####
(4)in each of the second and third sentences, by striking “and limited liability companies” each place it appears and inserting “limited liability companies, and such other legal entities”; ####
(5)in the third sentence— #####
(A)by striking “clause (3)” and inserting “subparagraph (C)”; #####
(B)by striking “clause (4)” and inserting “subparagraph (D)”; and ####
(6)by adding at the end the following: > > #### “(2) Special rules > > > ##### “(A) Eligibility of certain operating-only entities > > An entity that is or will become only the operator of a family farm shall be considered to meet the owner-operator requirements of paragraph
(1)if the individuals that are the owners of the family farm own more than 50 percent (or such other percentage as the Secretary determines is appropriate) of the entity. > > > ##### “(B) Eligibility of certain embedded entities > > An entity that is an owner-operator described in paragraph (1), or an operator described in subparagraph
(A)of this paragraph that is owned, in whole or in part, by other entities, shall be considered to meet the direct ownership requirement imposed under paragraph
(1)if at least 75 percent of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the individuals that own the family farm.” > . ###
(b)Direct Farm Ownership Experience Requirement Section 302(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922(b)(1)) is amended in the matter preceding subparagraph
(A)by inserting “or has other acceptable experience for a period of time, as determined by the Secretary,” after “3 years”. ###
(c)Conforming Amendments ####
(1)Section 304(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1924(c)(2)) by striking “paragraphs
(1)and
(2)of section 302(a)” and inserting “subparagraphs
(A)and
(B)of section 302(a)(1)”. ####
(2)Section 310D(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1934(a)) is amended in the second sentence— #####
(A)by inserting after “partnership” the following: “, or such other legal entities as the Secretary considers appropriate,”; and #####
(B)by striking “or partners” each place it appears and inserting “partners, or owners”.
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