possession or eviction from a residence by reason of foreclosure of any mortgage or lien, cancellation of any contract of sale, or termination of any lease, entered into prior to the disaster. Such assistance shall be provided for a period of not to exceed one year or for the duration of the period of financial hardship, whichever is the lesser. The Presiden: is authorized for the purposes of this subsection and in furtherance of the purposes of section 240 of this Act, to provide reemployment assistance services under other laws to individuals who are unemployed as a result of a major disaster.

SMALL BUSINESS DISASTER LOANS

SEC. 231. In the administration of the disaster loan program under section 7(b) (1), (2), and (4) of the Small Business Act, as amended (15 U.S.C. 636(b)), in the case of property loss or damage or injury resulting from a major disaster as determined by the President or & disaster as determined by the Administrator, the Small Business Administration

(1) to the extent such loss or damage or injury is not compersated for by insurance or otherwise, (A) shall, on that part of any loan in excess of $500, cancel the principal of the loan, except that the total amount so canceled shall not exceed $2,500, except that this clause (A) shall apply only to loans made to cover losses and damage and injury resulting from major disasters & determined by the President, and (B) may defer interest payments or principal payments, or both, in whole or in part, on any loan made under this section during the first three years of the term of the loan except that any such deferred payments shall bear interest at the rate determined under section 234 of this Act.

(2) to the extent such injury, loss, or damage is not compen sated for by insurance or otherwise, may grant any loan for repair, rehabilitation, or replacement of property damaged, o destroyed, without regard to whether the required financial assist ance is otherwise available from private sources.

(3) may, in the case of the total destruction or substantial property damage of a home or business concern, refinance any mortgage or other liens outstanding against the destroyed or damaged property if such property is to be repaired, rehabilitated, or replaced, except that the amount refinanced shall not exceed the amount of the physical loss sustained. Any such refinancing sha be subject to the provisions of clauses (1) and (2) of this section

FARMERS HOME ADMINISTRATION EMERGENCY LOANS

SEC. 232.1 In the administration of the emergency loan program under subtitle C of the Consolidated Farmers Home Administration Act of 1961, as amended (7 U.S.C. 1961-67), and the rural housing loan program under section 502 of title V of the Housing Act of 1949. as amended (42 U.S.C. 1472), in the case of loss or damage, resulting from a major disaster as determined by the President, or a natural disaster as determined by the Secretary of Agriculture—

!

1 Sec. 7 of Public Law 93-24, 87 Stat. 24, approved April 20, 1973, repealed this section 232.

E

(1) to the extent such loss or damage is not compensated for by insurance or otherwise, (A) shall, on that part of any loan in excess of $500, cancel the principal of the loan, except that the total amount so canceled shall not exceed $2,500, except that this clause (A) shall apply only to loans made to cover losses and damage resulting from major disasters as determined by the President, and (B) may defer interest payments or principal payments, or both, in whole or in part, on any loan made under this section during the first three years of the term of the loan, except that any such deferred payments shall bear interest at the rate determined under section 234 of this Act.

(2) to the extent such injury, loss, or damage is not compensated for by insurance or otherwise, may grant any loan for repair, rehabilitation, or replacement of property damaged or destroyed, without regard to whether the required financial assistance is otherwise available from private sources.

(3) may, in the case of the total destruction or substantial property damage of homes or farm service buildings and related structures and equipment, refinance any mortgage or other liens outstanding against the destroyed or damaged property if such property is to be repaired, rehabilitated, or replaced, except that the amount refinanced shall not exceed the amount of the physical loss sustained. Any such refinancing shall be subject to the provisions of clauses (1) and (2) of this section.

LOANS HELD BY THE VETERANS' ADMINISTRATION

SEC. 233. (1) Section 1820 (a) (2) of title 38, United States Code, is mended to read as follows:

"(2) subject to specific limitations in this chapter, consent to the modification, with respect to rate of interest, time of payment of principal or interest or any portion thereof, security or other provisions of any note, contract, mortgage or other instrument securing a loan which has been guaranteed, insured, made or acquired under this chapter;"

(2) Section 1820 (f) of title 38, United States Code, is amended to ead as follows:

"(f) Whenever loss, destruction, or damage to any residential proprty securing loans guaranteed, insured, made, or acquired by the Administrator under this chapter occurs as the result of a major disster as determined by the President under the Disaster Assistance Act f 1970, the Administrator shall (1) provide counseling and such other ervice to the owner of such property as may be feasible and shall nform such owner concerning the disaster assistance available from ther Federal agencies and from State or local agencies, and (2) puruant to subsection (a) (2) of this section, extend on an individual case asis such forbearance or indulgence to such owners as the Adminisrator determines to be warranted by the facts of the case and the cirumstances of such owner."

DISASTER LOAN INTEREST RATES

SEC. 234. Any loan made under sections 231, and 232 of this Act hall not exceed the current cost of repairing or replacing the disaster

injury, loss, or damage in conformity with current codes and specifications. Any loan made under sections 231, 232, 236 (b) and 237 of this Act shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of ten to twelve years reduced by not to exceed 2 percentum per annum. In no event shall any loan made under this section bear interest at a rate in excess of 6 per centum per annum.

AGE OF APPLICANT FOR LOANS

SEC. 235. In the administration of any Federal disaster loan program under the authority of section 231, 232, or 233 of this Act, the age of any adult loan applicant shall not be considered in determining whether such loan should be made or the amount of such loan.

FEDERAL LOAN ADJUSTMENTS

SEC. 236. (a) In addition to the loan extension authority provided in section 12 of the Rural Electrification Act, the Secretary of Agricul ture is authorized to adjust and readjust the schedules for payment of principal and interest on loans to borrowers under programs administered by the Rural Electrification Administration, and to extend the maturity date of any such loan to a date not beyond forty years from the date of such loan where he determines such action is necessary because of the impairment of the economic feasibility of the system, or the loss, destruction, or damage of the property of such borrowers as a result of a major disaster.

(b) The Secretary of Housing and Urban Development is author ized to refinance any note or other obligation which is held by him in connection with any loan made by the Department of Housing and Urban Development or its predecessor in interest, or which is included within the revolving fund for liquidating programs established by the Independent Offices Appropriation Act of 1955, where he finds such refinancing necessary because of the loss, destruction, or damage (as a result of a major disaster) to property or facilities securing such obligations. The Secretary may authorize a suspension in the payment of principal and interest charges on, and an additional extension in the maturity of, any such loan for a period not to exceed five years if be determines that such action is necessary to avoid severe financia hardship.

AID TO MAJOR SOURCES OF EMPLOYMENT

SEC. 237. (a) The Small Business Administration in the case of s nonagricultural enterprise, and the Farmers Home Administration in the case of an agricultural enterprise, are authorized to provide any industrial, commercial, agricultural, or other enterprise, which has constituted a major source of employment in an area suffering major disaster and which is no longer in substantial operation as a result of such disaster, a loan in such amount as may be necessary to enable such enterprise to resume operations in order to assist in restor ing the economic viability of the disaster area. Loans authorized by this section shall be made without regard to limitations on the size of loans which may otherwise be imposed by any other provision of law or regulation promulgated pursuant thereto.

(b) Assistance under this section shall be in addition to any other ederal disaster assistance, except that such other assistance may be ljusted or modified to the extent deemed appropriate by the Director ader the authority of section 208 of this Act. Any loan made under is section shall be subject to the interest requirements of section 234 this Act, but the President, if he deems it necessary, may defer yments of principal and interest for a period not to exceed three ars after the date of the loan. Any such deferred payments shall ar interest at the rate determined under section 234 of this Act.

FOOD COUPONS AND DISTRIBUTION

SEC. 238. (a) Whenever the President determines that, as a result a major disaster, low-income households are unable to purchase lequate amounts of nutritious food, he is authorized, under such rms and conditions as he may prescribe, to distribute through the ecretary of Agriculture coupon allotments to such households pursuit to the provisions of the Food Stamp Act of 1964 and to make rplus commodities available pursuant to the provisions of section 203 this Act.

(b) The President, through the Secretary of Agriculture, is authored to continue to make such coupon allotments and surplus comodities available to such households for so long as he determines ecessary, taking into consideration such factors as he deems approriate, including the consequences of the major disaster on the earning ower of the households to which assistance is made available under is section.

(c) Nothing in this section shall be construed as amending or otherise changing the provisions of the Food Stamp Act of 1964 except s they relate to the availability of food stamps in a major disaster

rea.

LEGAL SERVICES

SEC. 239. Whenever the Director determines that low-income individals are unable to secure legal services adequate to meet their needs as consequence of a major disaster, consistent with the goals of the prorams authorized by this Act, the Director shall assure that such prorams are conducted with the advice and assistance of appropriate ederal agencies and State and local bar associations.

UNEMPLOYMENT ASSISTANCE

SEC. 240. The President is authorized to provide to any individual nemployed as a result of a major disaster, such assistance as he deems ppropriate while such individual is unemployed. Such assistance as he President shall provide shall not exceed the maximum amount and ne maximum duration of payment under the unemployment compenation program of the State in which the disaster occurred, and the mount of assistance under this section to any such individual shall be educed by any amount of unemployment compensation or of private come protection insurance compensation available to such individual or such period of unemployment.

COMMUNITY DISASTER GRANTS

SEC. 241. The President is authorized to make grants to any local government which, as the result of a major disaster, has suffered a substantial loss of property tax revenue (both real and personal). Grants made under this section may be made for the tax year in which the disaster occurred and for each of the following two tax years. The grant for any tax year shall not exceed the difference between the annual average of all property tax revenues received by the local gov ernment during the three-tax-year period immediately preceding the tax year in which the major disaster occurred and the actual property tax revenue received by the local government for the tax year in which the disaster occurred and for each of the two tax years following the major disaster but only if there has been no reduction in the tax rates and the tax assessment valuation factors of the local government. If there has been a reduction in the tax rates or the tax assessment valua tion factors then, for the purpose of determining the amount of st grant under this section for the year or years when such reduction is in effect, the President shall use the tax rates and tax assessment val uation factors of the local government in effect at the time of the dis aster without reduction, in order to determine the property tax rer. enues which would have been received by the local government for such reduction.

TIMBER SALE CONTRACTS

but

SEC. 242. (a) Where an existing timber sale contract between the Secretary of Agriculture or the Secretary of the Interior and a timber purchaser does not provide relief from major physical change not due to negligence of the purchaser prior to approval of construction of any section of specified road or of any other specified development facility and, as a result of a major disaster, a major physical change results in additional construction work in connection with such road or facility by such purchaser with an estimated cost, as determined by the appropriate Secretary, (1) of more than $1,000 for sales under one million board feet, (2) of more than $1 per thousand board feet for sales of one of three million board feet, or (3) of more than $3,000 for sales over three million board feet, such increased construction cost shall be borne by the United States.

(b) If the Secretary determines that damages are so great that res toration, reconstruction, or construction is not practical under the cost sharing arrangement authorized by subsection (a) of this section, the Secretary may allow cancellation of the contract notwithstanding con trary provisions therein.

(c) The Secretary of Agriculture is authorized to reduce to seven days the minimum period of advance public notice required by the first section of the Act of June 4, 1897 (16 U.S.C. 476), in connection with the sale of timber from national forests, whenever the Secretary deter mines that (1) the sale of such timber will assist in the construction of any area of a State damaged by a major disaster, (2) the sale of such I timber will assist in sustaining the economy of such area, or (3) the sale of such timber is necessary to salvage the value of timber damaged in such major disaster or to protect undamaged timber.