Page:United States Statutes at Large Volume 110 Part 1.djvu/1122

 110 STAT. 1098 PUBLIC LAW 104-127—APR. 4, 1996 SEC. 640. DEFINITIONS. Section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) is amended— (1) in paragraph (11)— (A) in the text preceding subparagraph (A), by striking "applicant— " and inserting "applicant, regardless of whether the applicant is participating in a program under section 3 lOE—"; and (B) in subparagraph (F)— (i) by striking "15 percent" and inserting "25 percent"; and (ii) by inserting before the semicolon at the end the following: ", except that this subparagraph shall not apply to a loan made or guaranteed under subtitle B"; and (2) by adding at the end the following: "(12) DEBT FORGIVENESS.— "(A) IN GENERAL.— Except as provided in subparagraph (B), the term 'debt forgiveness' means reducing or terminating a farmer program loan made or guaranteed under this title, in a manner that results in a loss to the Secretary, through— "(i) writing down or writing off a loan under section 353; "(ii) compromising, adjusting, reducing, or charging-off a debt or claim under section 331; "(iii) paying a loss on a guaranteed loan under section 357; or "(iv) discharging a debt as a result of bankruptcy. "(B) LOAN RESTRUCTURING. —The term 'debt forgiveness' does not include consolidation, rescheduling, reamortization, or deferral.". SEC. 641. AUTHORIZATION FOR LOANS. Section 346 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994) is amended— (1) in the second sentence of subsection (a), by striking "with or without" and all that follows through "administration"; and (2) by striking subsection (b) and inserting the following: " (b) AUTHORIZATION FOR LOANS.— "(1) IN GENERAL.— The Secretary may make or guarantee loans under subtitles A and B from the Agricultural Credit Insurance Fund provided for in section 309 in not more than the following amounts: "(A) FISCAL YEAR 1996.— For fiscal year 1996, $3,085,000,000, of which— "(i) $585,000,000 shall be for direct loans, of which— "(I) $85,000,000 shall be for farm ownership loans under subtitle A; and " (II) $500,000,000 shall be for operating loans under subtitle B; and "(ii) $2,500,000,000 shall be for guaranteed loans, of which— "(I) $600,000,000 shall be for guarantees of farm ownership loans under subtitle A; and

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