472 
‘‘SEC. 3302. PURPOSES OF LOANS. 
‘‘Subject to the limitations on the amounts of loans 
provided in section 3303(a), a loan may be made or guar-
anteed under this chapter for— 
‘‘(1) any purpose authorized for a loan under 
chapter 1 or 2; and 
‘‘(2) crop or livestock purposes that are— 
‘‘(A) necessitated by a quarantine, natural 
disaster, major disaster, or emergency; and 
‘‘(B) considered desirable by the farmer. 
‘‘SEC. 3303. TERMS OF LOANS. 
‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Secretary 
may not make or guarantee a loan under this chapter to 
a borrower who has suffered a loss in an amount that— 
‘‘(1) exceeds the actual loss caused by a dis-
aster; or 
‘‘(2) would cause the total indebtedness of the 
borrower under this chapter to exceed $500,000. 
‘‘(b) INTEREST RATES.—Any portion of a loan under 
this chapter up to the amount of the actual loss suffered 
by a farmer caused by a disaster shall be at a rate pre-
scribed by the Secretary, but not in excess of 8 percent 
per annum. 
‘‘(c) 
INTEREST
SUBSIDIES
FOR
GUARANTEED 
LOANS.—In the case of a guaranteed loan under this 
chapter, the Secretary may pay an interest subsidy to the 
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lender for any portion of the loan up to the amount of 
the actual loss suffered by a farmer caused by a disaster. 
‘‘(d) TIME FOR REPAYMENT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
loan under this chapter shall be repayable at such 
times as the Secretary may determine, considering 
the purpose of the loan and the nature and effect of 
the disaster, but not later than the maximum repay-
ment period allowed for a loan for a similar purpose 
under chapters 1 and 2. 
‘‘(2) EXTENDED
REPAYMENT
PERIOD.—The 
Secretary may, if the loan is for a purpose described 
in chapter 2 and the Secretary determines that the 
need of the loan applicant justifies the longer repay-
ment period, make the loan repayable at the end of 
a period of more than 7 years, but not more than 
20 years. 
‘‘(e) SECURITY FOR LOAN.— 
‘‘(1) IN GENERAL.—A borrower of a loan made 
under this chapter shall secure the loan with the full 
personal liability of the borrower and such other se-
curity as the Secretary may prescribe. 
‘‘(2) ADEQUATE SECURITY.—Subject to para-
graph (3), the Secretary may not make or guarantee 
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a loan under this chapter unless the security for the 
loan is adequate to ensure repayment of the loan. 
‘‘(3) INADEQUATE
SECURITY
DUE
TO
DIS-
ASTER.—If adequate security for a loan under this 
chapter is not available because of a disaster, the 
Secretary shall accept as security any collateral that 
is available if the Secretary is confident that the col-
lateral and the repayment ability of the farmer are 
adequate security for the loan. 
‘‘(4) VALUATION OF FARM ASSETS.—If a farm 
asset (including land, livestock, or equipment) is 
used as collateral to secure a loan applied for under 
this chapter and the governor of the State in which 
the farm is located requests assistance under this 
chapter or the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.) for the portion of the State in which the asset 
is located, the Secretary shall establish the value of 
the asset as of the day before the occurrence of the 
natural or major disaster or emergency. 
‘‘(f) REVIEW OF LOAN.— 
‘‘(1) IN GENERAL.—In the case of a loan made, 
but not guaranteed, under section 3301, the Sec-
retary shall review the loan 3 years after the loan 
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