Page:United States Statutes at Large Volume 110 Part 1.djvu/1114

 110 STAT. 1090 PUBLIC LAW 104-127 —APR. 4, 1996 "(4) TERMINATION OF DELINQUENT LOANS. —If a borrower does not pay an installment on a line-of-credit loan on schedule, the borrower may not take an advance or draw on the lineof-credit, unless the Secretary determines that— "(A) the borrower's failure to pay on schedule was due to unusual conditions that the borrower could not control; and "(B) the borrower will reduce the line-of-credit balance to the scheduled level at the end of— "(i) the production cycle; or "(ii) the marketing of the borrower's agricultural products. "(5) AGRICULTURAL COMMODITIES.— ^A line-of-credit loan may be used to finance the production or marketing of an agricultural commodity that— "(A) is eligible for a price support program of the Department of Agriculture; or "(B) was eligible for a price support program of the Department of Agriculture on the day before the date of enactment of the Federal Agriculture Improvement and Reform Act of 1996.". SEC. 615. INSURANCE OF OPERATING LOANS. Section 317 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1947) is repealed. SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS. (a) IN GENERAL. —Section 318 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1948) is repealed. (b) CONFORMING AMENDMENT.— Section 3 IGF of the Consolidated Farm and Rural Development Act (7 U.S.C. 1936) is repealed. SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE. Section 319 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1949) is amended by striking subsection (b) and inserting the following: "(b) LIMITATION ON PERIOD BORROWERS ARE ELIGIBLE FOR GUARANTEED ASSISTANCE. — "(1) GENERAL RULE. —Subject to paragraph (2), the Secretary shall not guarantee a loan under this subtitle for a borrower for any year after the 15th year that a loan is made to, or a guarantee is provided with respect to, the borrower under this subtitle. "(2) TRANSITION RULE. — I f, as of October 28, 1992, a farmer or rancher has received a direct or guaranteed operating loan under this subtitle during each of 10 or more previous years, the borrower shall be eligible to receive a guaranteed operating loan under this subtitle during 5 additional years after October 28, 1992. ".

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