720 
made or guaranteed under the authorities of 
this title specified in subparagraph (C) for ac-
tivities that involve the use of prime farmland, 
the interest rates shall be the interest rates oth-
erwise applicable under this section increased 
by 2 percent per year. 
‘‘(B) PRIME FARMLAND.— 
‘‘(i) IN
GENERAL.—Wherever prac-
ticable, construction by a State, munici-
pality, or other political subdivision of local 
government that is supported by loans de-
scribed in subparagraph (A) shall be 
placed on land that is not prime farmland, 
in order to preserve the maximum prac-
ticable quantity of prime farmlands for 
production of food and fiber. 
‘‘(ii) INCREASED RATE.—In any case 
in which other options exist for the siting 
of construction described in clause (i) and 
the governmental authority still desires to 
carry out the construction on prime farm-
land, the 2-percent interest rate increase 
provided by this paragraph shall apply, but 
that increased interest rate shall not apply 
where such other options do not exist. 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00720
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
721 
‘‘(C) APPLICABLE AUTHORITIES.—The au-
thorities referred to in subparagraph (A) are— 
‘‘(i) the provisions of section 3502(a) 
relating to loans for recreational develop-
ments and essential community facilities; 
‘‘(ii) section 3601(e)(2)(A); and 
‘‘(iii) section 3601(c). 
‘‘(c) PAYMENT OF CHARGES.—A borrower of a loan 
made or guaranteed under this subtitle shall pay such fees 
and other charges as the Secretary may require, and pre-
pay to the Secretary such taxes and insurance as the Sec-
retary may require, on such terms and conditions as the 
Secretary may prescribe. 
‘‘(d) SECURITY.— 
‘‘(1) IN GENERAL.—The Secretary shall take as 
security for an obligation entered into in connection 
with a loan made under this subtitle such security 
as the Secretary may require. 
‘‘(2) LIENS
TO
UNITED
STATES.—An instru-
ment for security under paragraph (1) may con-
stitute a lien running to the United States notwith-
standing the fact that the note for the security may 
be held by a lender other than the United States. 
‘‘(3) MULTIPLE LOANS.—A borrower may use 
the same collateral to secure 2 or more loans made 
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00721
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS
722 
or guaranteed under this subtitle, except that the 
outstanding amount of the loans may not exceed the 
total value of the collateral. 
‘‘(e) LEGAL COUNSEL FOR SMALL LOANS.—In the 
case of a loan of less than $500,000 made or guaranteed 
under section 3501 that is evidenced by a note or mort-
gage (as distinguished from a bond issue), the borrower 
shall not be required to appoint bond counsel to review 
the legal validity of the loan if the Secretary has available 
legal counsel to perform the review. 
‘‘SEC. 3702. STRATEGIC ECONOMIC AND COMMUNITY DE-
VELOPMENT. 
‘‘(a) PRIORITY.—In the case of any rural develop-
ment program authorized by this subtitle, the Secretary 
may give priority to applications that are otherwise eligible 
and support strategic community and economic develop-
ment plans on a multijurisdictional basis, as approved by 
the Secretary. 
‘‘(b) EVALUATION.—In evaluating strategic applica-
tions, the Secretary shall give a higher priority to strategic 
applications for a plan described in subsection (a) that 
demonstrate— 
‘‘(1) the plan was developed through the col-
laboration of multiple stakeholders in the service 
area of the plan, including the participation of com-
VerDate Mar 15 2010 
23:29 Jul 08, 2013
Jkt 029200
PO 00000
Frm 00722
Fmt 6652
Sfmt 6201
E:\BILLS\H2498.IH
H2498
sroberts on DSK5SPTVN1PROD with BILLS