To amend the Consolidated Farm and Rural Development Act to improve shared appreciation arrangements. (Introduced in the Senate)

S 961 IS

106th CONGRESS

1st Session

S. 961

To amend the Consolidated Farm and Rural Development Act to improve shared appreciation arrangements.

IN THE SENATE OF THE UNITED STATES

May 5, 1999

Mr. BURNS (for himself, Mr. CRAIG, Mr. BAUCUS, Mr. DASCHLE, Mr. KERREY, and Mr. JOHNSON) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Consolidated Farm and Rural Development Act to improve shared appreciation arrangements.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHARED APPRECIATION ARRANGEMENTS.

(a) IN GENERAL- Section 353(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)) is amended by striking paragraph (2) and inserting the following:

`(2) TERMS- A shared appreciation agreement entered into by a borrower under this subsection shall--

`(A) have a term not to exceed 10 years;

`(B) provide for recapture based on the difference between--

`(i) the appraised value of the real security property at the time of restructuring; and

`(ii) that value at the time of recapture, except that that value shall not include the value of any capital improvements made to the real security property by the borrower; and

`(C) be based on appraisals that are conducted by persons with a principal place of business that is located in the State containing the real property.'.

(b) APPLICATION- The amendment made by subsection (a) shall apply to a shared appreciation arrangement entered into under section 353(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)) that is in effect on or after the date of enactment of this Act.