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Code · STATUTE-COMPILATIONS · Consolidated Farm and Rural Development Act · Sec. 373

Sec. 373. LOAN AND LOAN SERVICING LIMITATIONS

428 words·~2 min read·/statute-compilations/comps-10243/sec-373

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## SEC. 373 LOAN AND LOAN SERVICING LIMITATIONS **[**[7 U.S.C. 2008h](/us/usc/t7/s2008h)**]** ###
(a)Delinquent Borrowers Prohibited From Obtaining Direct Operating Loans The Secretary may not make a direct operating loan under subtitle B to a borrower who is delinquent on any loan made or guaranteed under this title. ###
(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 title to a borrower that has received debt forgiveness on a loan made or guaranteed under this title; and #####
(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 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 353; ######
(ii)is current on payments under a confirmed reorganization plan under chapters5 11, 12, or 13 of Title 11 of the United States Code; or 5So in law. References to chapters should be singular. ######
(iii)received debt forgiveness on not more than 1 occasion resulting directly and primarily from a major disaster or emergency designated by the President on or after April 4, 1996, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). #####
(B)Emergency loans ######
(i)In general 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 under this title; and ######
(II)after April 4, 1996, has not received debt forgiveness on a loan made or guaranteed under this title. ######
(ii)Restructured loans For purposes of clause (i), a borrower who was restructured with a write-down or restructuring under section 353 shall not be considered to have received debt forgiveness on a loan made or guaranteed under this title. ###
(c)No More Than 1 Debt Forgiveness For A Borrower On A Direct Loan The Secretary may not provide to a borrower debt forgiveness on a direct loan made under this title if the borrower has received debt forgiveness on another direct loan made under this title.
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Sec. 373
LOAN AND LOAN SERVICING LIMITATIONS
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