Page:United States Statutes at Large Volume 101 Part 3.djvu/368

 101 STAT. 1666

PUBLIC LAW 100-233—JAN. 6, 1988

SEC. 604. ADDITIONAL COLLATERAL.

Section 307 (7 U.S.C. 1927) is amended by adding at the end thereof the following new subsection: "(e) The Secretary may not— "(1) require any borrower to provide additional collateral to secure a farmer program loan made or insured under this title, if the borrower is current in the payment of principal and interest on the loan; or "(2) bring any action to foreclose, or otherwise liquidate, any such loan as a result of the failure of a borrower to provide additional collateral to secure a loan, if the borrower was current in the payment of principal and interest on the loan at the time the additional collateral was requested.". SEC. 605. NOTICE OF LOAN SERVICE PROGRAMS.

Subtitle D (7 U.S.C. 1981 et seq.) is amended by inserting after section 331C the following new section: 7 USC 1981d.

"SEC. 331D. NOTICE OF LOAN SERVICE PROGRAMS.

"(a) REQUIREMENT.—The Secretary shall provide notice by certified mail to each borrower who is at least 180 days delinquent in the pa3anent of principal or interest on a loan made or insured under this title. "0)) CONTENTS.—The notice required under subsection (a) shall— "(1) include a summary of all primary loan service programs, preservation loan service programs, and appeal procedures, including the eligibility criteria, and terms and conditions of such programs and procedures; "(2) include a summary of the manner in which the borrower may apply, and be considered, for all such programs, except that the Secretary shall not require the borrower to select among such programs or waive any right in order to be considered for any program carried out by the Secretary; '(3) advise the borrower regarding all filing requirements and any deadlines that must be met for requesting loan servicing; (4) provide any relevant forms, including applicable response forms; "(5) advise the borrower that a copy of regulations is available on request; and "(6) be designed to be readable and understandable by the borrower. "(c) CONTAINED IN REGULATIONS.—All notices required by this section shall be contained in the regulations implementing this title. "(d) TIMING.—The notice described in subjection (b) shall be provided— "(1) at the time an application is made for participation in a loan service program; "(2) on written request of the borrower; and ' "(3) before the earliest of— "(A) initiating any liquidation; "(B) requesting the conveyance of security property; "(C) accelerating the loan; "(D) repossessing property; "(E) foreclosing on property; or ' "(F) taking any other collection action. "(e)

CONSIDERATION OF BORROWERS FOR LOAN SERVICE PRO-

GRAMS.—The Secretary shall consider a farmer program borrower

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