§ 2008h. — Loan and loan servicing limitations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC2008h]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
Sec. 2008h. Loan and loan servicing limitations
(a) Delinquent borrowers prohibited from obtaining direct operating
loans
The Secretary may not make a direct operating loan under subchapter
II of this chapter to a borrower who is delinquent on any loan made or
guaranteed under this chapter.
(b) Prohibition of loans for borrowers that have received debt
forgiveness
(1) Prohibitions
Except as provided in paragraph (2)--
(A) the Secretary may not make a loan under this chapter to
a borrower that has received debt forgiveness on a loan made or
guaranteed under this chapter; and
(B) the Secretary may not guarantee a loan under this
chapter to a borrower that has received--
(i) debt forgiveness after April 4, 1996, on a loan made
or guaranteed under this chapter; or
(ii) received debt forgiveness on more than 3 occasions
on or before April 4, 1996.
(2) Exceptions
(A) In general
The Secretary may make a direct or guaranteed farm operating
loan for paying annual farm or ranch operating expenses of a
borrower who--
(i) was restructured with a write-down under section
2001 of this title;
(ii) is current on payments under a confirmed
reorganization plan under chapters \1\ 11, 12, or 13 of
title 11; or
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\1\ So in original. Probably should be ``chapter''.
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(iii) received debt forgiveness on not more than 1
occasion resulting directly and primarily from a major
disaster or emergency designated by the President on or
after April 4, 1996, under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
(B) Emergency loans
The Secretary may make an emergency loan under section 1961
of this title to a borrower that--
(i) on or before April 4, 1996, received not more than 1
debt forgiveness on a loan made or guaranteed under this
chapter; and
(ii) after April 4, 1996, has not received debt
forgiveness on a loan made or guaranteed under this chapter.
(c) No more than 1 debt forgiveness for borrower on direct loan
The Secretary may not provide to a borrower debt forgiveness on a
direct loan made under this chapter if the borrower has received debt
forgiveness on another direct loan made under this chapter.
(Pub. L. 87-128, title III, Sec. 373, as added Pub. L. 104-127, title
VI, Sec. 648(b), Apr. 4, 1996, 110 Stat. 1104; amended Pub. L. 105-277,
div. A, Sec. 101(a) [title VIII, Sec. 801], Oct. 21, 1998, 112 Stat.
2681, 2681-37; Pub. L. 107-171, title V, Sec. 5319, May 13, 2002, 116
Stat. 348.)
References in Text
For definition of ``this chapter'', referred to in text, see note
set out under section 1921 of this title.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act,
referred to in subsec. (b)(2)(A)(iii), is Pub. L. 93-288, May 22, 1974,
88 Stat. 143, as amended, which is classified principally to chapter 68
(Sec. 5121 et seq.) of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see Short Title note
set out under section 5121 of Title 42 and Tables.
Amendments
2002--Subsec. (b)(2)(A)(iii). Pub. L. 107-171 added cl. (iii).
1998--Subsec. (b). Pub. L. 105-277 added subsec. (b) and struck out
heading and text of former subsec. (b). Text read as follows:
``(1) In general.--Except as provided in paragraph (2), the
Secretary may not make or guarantee a loan under this chapter to a
borrower who received debt forgiveness on a loan made or guaranteed
under this chapter.
``(2) Exception.--The Secretary may make a direct or guaranteed farm
operating loan for paying annual farm or ranch operating expenses of a
borrower who was restructured with a write-down under section 2001 of
this title.''
