441 
‘‘(2) COMPENSATORY PAYMENTS.—Nothing in 
this subsection prevents the inclusion of, as part of 
the collateral securing the loan, any payment or 
other compensation the borrower may receive for 
damages to the surface of the collateral real estate 
resulting from the exploration for or recovery of 
minerals. 
‘‘(f) ADDITIONAL COLLATERAL.—The Secretary may 
not— 
‘‘(1) require any borrower to provide additional 
collateral to secure a farmer program loan made or 
guaranteed under this subtitle, if the borrower is 
current in the payment of principal and interest on 
the loan; or 
‘‘(2) bring any action to foreclose, or otherwise 
liquidate, the loan as a result of the failure of a bor-
rower to provide additional collateral to secure the 
loan, if the borrower was current in the payment of 
principal and interest on the loan at the time the ad-
ditional collateral was requested. 
‘‘SEC. 3106. LIMITED-RESOURCE LOANS. 
‘‘(a) IN GENERAL.—The Secretary may make or 
guarantee a limited-resource loan for any of the purposes 
specified in sections 3102(a) or 3103(a) to a farmer in 
the United States who— 
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442 
‘‘(1) in the case of an entity, all members, 
stockholders, or partners are eligible under section 
3101(b); 
‘‘(2) has a low income; and 
‘‘(3) demonstrates a need to maximize the in-
come of the farmer from farming operations. 
‘‘(b) INSTALLMENTS.—A loan made or guaranteed 
under this section shall be repayable in such installments 
as the Secretary determines will provide for reduced pay-
ments during the initial repayment period of the loan and 
larger payments during the remainder of the repayment 
period of the loan. 
‘‘(c) INTEREST RATES.—Except as provided in sec-
tion 3105(b)(3) and in section 3204(b)(3), the interest 
rate on loans (other than guaranteed loans) under this 
section shall not be— 
‘‘(1) greater than the sum obtained by add-
ing— 
‘‘(A) an amount that does not exceed 1⁄2 of 
the current average market yield on out-
standing marketable obligations of the United 
States with maturities of 5 years; and 
‘‘(B) an amount not exceeding 1 percent 
per year, as the Secretary determines is appro-
priate; or 
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‘‘(2) less than 5 percent per year. 
‘‘SEC. 3107. DOWNPAYMENT LOAN PROGRAM. 
‘‘(a) IN GENERAL.— 
‘‘(1) ESTABLISHMENT.—Notwithstanding any 
other provision of this chapter, the Secretary shall 
establish, under the farm ownership loan program 
established under this chapter, a program under 
which loans shall be made under this section to a 
qualified beginning farmer or a socially disadvan-
taged farmer for a downpayment on a farm owner-
ship loan. 
‘‘(2) COORDINATION.—The Secretary shall be 
the primary coordinator of credit supervision for the 
downpayment loan program established under this 
section, in consultation with a commercial or cooper-
ative lender and, if applicable, a contracting credit 
counseling service selected under section 3420(c). 
‘‘(b) LOAN TERMS.— 
‘‘(1) PRINCIPAL.—Each loan made under this 
section shall be in an amount that does not exceed 
45 percent of the lesser of— 
‘‘(A) the purchase price of the farm to be 
acquired; 
‘‘(B) the appraised value of the farm to be 
acquired; or 
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