Page:United States Statutes at Large Volume 112 Part 4.djvu/67

 PUBLIC LAW 105-277—OCT. 21, 1998 112 STAT. 2681-38 "(B) the Secretary may not guarantee a loan under this title to a borrower that has received— "(i) debt forgiveness after April 4, 1996, on a loan made or guaranteed under this title; or "(ii) received debt forgiveness on more them 3 occasions on or before April 4, 1996. "(2) EXCEPTIONS.— "(A) IN GENERAL.— The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who— "(i) was restructured with a write-down under section 353; or "(ii) is current on payments under a confirmed reorganization plan under chapters 11, 12, or 13 of Title 11 of the United States Code. "(B) EMERGENCY LOANS.— The Secretary may make an emergency loan under section 321 to a borrower that— "(i) on or before April 4, 1996, received not more than 1 debt forgiveness on a loan made or guaranteed \mder this title; and "(ii) after April 4, 1996, has not received debt forgiveness on a loan made or guaranteed under this title.". SEC. 802. Section 324(d) of the ConsoHdated Farm and Rural Development Act (7 U.S.C. 1964(d)) is amended— (1) by striking "(d) All loans" and inserting the following: "(d) REPAYMENT.— "(1) IN GENERAL.— Al l loans"; and (2) by adding at the end the following: "(2) No BASIS FOR DENIAL OF LOAN.— "(A) IN GENERAL.—Subject to subparagraph (B), the Secretary shall not deny a loan under this subtitle to a borrower by reason of the fact that the borrower lacks a particular amount of collateral for the loan if the Secretary is reasonably certain that the borrower will be able to repay the loan. " (B) REFUSAL TO PLEDGE AVAILABLE COLLATERAL. — The Secretary may deny or cancel a loan under this subtitle if a borrower refuses to pledge available collateral on request by the Secretary.". SEC. 803. (a) Section 508(n) of the Federal Crop Insurance Act (7 U.S.C. 1508(n)) is amended— (1) by striking "If and inserting the following: "(1) IN GENERAL.— Except as provided in paragraph (2), if; and (2) by adding at the end the following: "(2) EXCEPTION. — Paragraph (1) shall not apply to emergency loans under subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.).". (b) Section 196(i)(3) of the Agricultural Market Transition Act (7 U.S.C. 7333(i)(3)) is amended— (1) by striking "If and inserting the following: "(A) IN GENERAL.— Except as provided in subparagraph (B), if; and (2) by adding at the end the following:

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