
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC2008h]

 
                          TITLE 7--AGRICULTURE
 
                     CHAPTER 50--AGRICULTURAL CREDIT
 
                SUBCHAPTER IV--ADMINISTRATIVE PROVISIONS
 
Sec. 2008h. Loan and loan servicing limitations


(a) Delinquent borrowers prohibited from obtaining direct operating 
        loans

    The Secretary may not make a direct operating loan under subchapter 
II of this chapter to a borrower who is delinquent on any loan made or 
guaranteed under this chapter.

(b) Prohibition of loans for borrowers that have received debt 
        forgiveness

                          (1) Prohibitions

        Except as provided in paragraph (2)--
            (A) the Secretary may not make a loan under this chapter to 
        a borrower that has received debt forgiveness on a loan made or 
        guaranteed under this chapter; and
            (B) the Secretary may not guarantee a loan under this 
        chapter to a borrower that has received--
                (i) debt forgiveness after April 4, 1996, on a loan made 
            or guaranteed under this chapter; or
                (ii) received debt forgiveness on more than 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 
            2001 of this title; or
                (ii) is current on payments under a confirmed 
            reorganization plan under chapters \1\ 11, 12, or 13 of 
            title 11.
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    \1\ So in original. Probably should be ``chapter''.
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        (B) Emergency loans

            The Secretary may make an emergency loan under section 1961 
        of this title to a borrower that--
                (i) on or before April 4, 1996, received not more than 1 
            debt forgiveness on a loan made or guaranteed under this 
            chapter; and
                (ii) after April 4, 1996, has not received debt 
            forgiveness on a loan made or guaranteed under this chapter.

(c) No more than 1 debt forgiveness for borrower on direct loan

    The Secretary may not provide to a borrower debt forgiveness on a 
direct loan made under this chapter if the borrower has received debt 
forgiveness on another direct loan made under this chapter.

(Pub. L. 87-128, title III, Sec. 373, as added Pub. L. 104-127, title 
VI, Sec. 648(b), Apr. 4, 1996, 110 Stat. 1104; amended Pub. L. 105-277, 
div. A, Sec. 101(a) [title VIII, Sec. 801], Oct. 21, 1998, 112 Stat. 
2681, 2681-37.)

                       References in Text

    For definition of ``this chapter'', referred to in text, see note 
set out under section 1921 of this title.


                               Amendments

    1998--Subsec. (b). Pub. L. 105-277 added subsec. (b) and struck out 
heading and text of former subsec. (b). Text read as follows:
    ``(1) In general.--Except as provided in paragraph (2), the 
Secretary may not make or guarantee a loan under this chapter to a 
borrower who received debt forgiveness on a loan made or guaranteed 
under this chapter.
    ``(2) Exception.--The Secretary may make a direct or guaranteed farm 
operating loan for paying annual farm or ranch operating expenses of a 
borrower who was restructured with a write-down under section 2001 of 
this title.''
