Page:United States Statutes at Large Volume 104 Part 5.djvu/504

 104 STAT. 3826 PUBLIC LAW 101-624—NOV. 28, 1990 amount of the outstanding loan secured by the land and the value of the land, whichever is greater; or "(B) in the case of a nondelinquent loan, 33 percent of the amount of the loan secured by the land."; and (9) by striking subsection (h). SEC. 1816. DEBT RESTRUCTURING AND LOAN SERVICING. Regulations. (a) EuGiBiLiTY FOR RESTRUCTURING. — Section 353(b)(l) (7 U.S.C. 2001(b)(l)) is amended by inserting before the semicolon the following: ", except that the regulations shall require that, if the value of the assets calculated under subsection (c)(2)(A)(ii) that may be realized through liquidation or other methods would produce enough income to make the delinquent loan current, the borrower shall not be eligible for assistance under subsection (a)". (b) CHANGES IN NET RECOVERY VALUE CALCULATION.— (1) INCLUSION OF CERTAIN NONESSENTIAL UNSECURED ASSETS OF THE BORROWER IN THE RECOVERY VALUE.— Section 353(c)(2)(A) (7 U.S.C. 2001(c)(2)(A)) is amended to read as follows: "(A)(i) the amount of the current appraised value of the interests of the borrower in the property securing the loan; plus "(ii) the value of the interests of the borrower in all other assets that are— "(I) not essential for necessary family living expenses; "(II) not essential to the operation of the farm; and "(III) not exempt from judgment creditors or in a bankruptcy action under Federal or State law; less". (2) INCLUSION OF SECURITY PROPERTY NOT POSSESSED BY THE BORROWER IN THE RECOVERY VALUE.—Section 353(c)(2) (7 U.S.C. 2001(c)(2)) is amended— (A) in subparagraph (B)(iv), by striking "costs." and inserting "costs; plus"; and (B) by adding at the end the following new subparagraph: "(C) the value, as determined by the Secretary, of any property not included in subparagraph (A)(i) if the property is specified in any security agreement with respect to such loan and the Secretary determines that the value of such property should be included for purposes of this section.". (c) DEBT SERVICE MARGIN.—Section 353(c)(3) (7 U.S.C. 2001(c)(3)) is amended by adding at the end the following new subparagraph: " (C) DEBT SERVICE MARGIN. — "(i) ASSUMPTION.— For the purpose of assessing under subparagraph (A) the ability of a borrower to meet debt obligations and continue farming operations, the Secretary shall assume that the borrower needs up to 105 percent of the amount indicated for payment of debt obligations. "(ii) AVAILABLE INCOME. — If an amount up to 105 percent of the debt pa3mients of the borrower has been earmarked for such payments, the Secretary shall consider the income of the borrower to be adequate to meet the debt obligations of the borrower.". (d) DEADLINE FOR RESTRUCTURING CALCULATIONS.— Section 353(c)(4) (7 U.S.C. 2001(c)(4)) is amended by striking "60" and inserting"90 ".

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