Page:United States Statutes at Large Volume 101 Part 3.djvu/277

 PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1575

"(5) LOAN.—The term 'loan' means a loan made to a farmer, rancher, or producer or harvester of aquatic products, for any agricultural or aquatic purpose and other credit needs of the borrower, including financing for basic processing and marketing directly related to the borrower's operations and those of other eligible farmers, ranchers, and producers or harvesters of aquatic products. "(6) QuAUFiED LENDER.—The term 'qualified lender' means— "(A) a System institution that makes loans (as defined in paragraph (5)) except a bank for cooperatives; and "(B) each bank, institution, corporation, company, union, and association described in section 2.3(a)(2) but only with respect to loans discounted or pledged under section 2.3(a). "(7) RESTRUCTURE AND RESTRUCTURING.—The terms 'restructure' and 'restructuring' include rescheduling, reamortization, renewal, deferral of principal or interest, monetary concessions, and the taking of any other action to modify the terms of, or forbear on, a loan in any way that will make it probable that the operations of the borrower will become financially val. "(b) NOTICE.—

"(1) IN GENERAL.—On a determination by a quedified lender that a loan made by the lender is or has become a distressed loan, the lender shall provide written notice to the borrower that the loan may be suitable for restructuring, and include with such notice— "(A) a copy of the policy of the lender established under subsection (g) that governs the treatment of distressed loans; and "(B) all materials necessary to enable the borrower to submit an application for restructuring on the loan. "(2) NOTICE BEFORE FORECLOSURE.—Not later than 45 days before any qualified lender begins foreclosure proceedings with respect to a loan outstanding to any borrower, the lender shall notify the borrower that the loan may be suitable for restructuring and that the lender will review any such suitable loan for restructuring, and shall include with such notice a copy of the policy and the materials described in paragraph (1). "(3) LIMITATION ON FORECLOSURE.—No qualified lender may

foreclose or continue any foreclosure proceeding with respect to any distressed loan before the lender has completed any pending consideration of the loan for restructuring under this section. "(c) MEETINGS.—On determination by a qualified lender that a loan made by the lender is or has become a distressed loan, the lender shall provide a reasonable opportunity for the borrower thereof to personally meet with a representative of the lender— "(1) to review the status of the loan, the financial condition of the borrower, and the suitability of the loan for restructuring; and "(2) with respect to a loan that is in nonaccrual status, to develop a plan for restructuring the loan if the loan is suitable for restructuring. "(d) CONSIDERATION OF APPLICATIONS.—

"(1) IN GENERAL.—When a qualified lender receives an application for restructuring from a borrower, the qualified lender shall determine whether or not to restructure the loan, taking into consideration—

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