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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3236 Introduced in House (IH)]

104th CONGRESS
  2d Session
                                H. R. 3236

 To amend the Consolidated Farm and Rural Development Act to provide a 
 grace period for the prohibition on Consolidated Farm Service Agency 
                (CFSA) lending to delinquent borrowers.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 1996

 Mr. Combest (for himself and Mr. Thornberry) introduced the following 
        bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
 To amend the Consolidated Farm and Rural Development Act to provide a 
 grace period for the prohibition on Consolidated Farm Service Agency 
                (CFSA) lending to delinquent borrowers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

 repeal of section 373 of the consolidated farm and rural development 
                                  act

    Section 1.--Section 373 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922 et seq.) is repealed.

                  loan and loan servicing limitations

    Sec. 2.--The Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) is amended by adding at the end the following:

``SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS.

    ``(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) Loans Prohibited for Borrowers That Have Received Debt 
Forgiveness.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may not make or guarantee a loan under this title to 
        a borrower who received debt forgiveness on a loan made or 
        guaranteed under this title.
            ``(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 353.
    ``(c) No More Than One 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.''.

    grace period for prohibition on lending to delinquent borrowers

    Sec. 3.--The amendment made by section 2 shall become effective on 
July 5, 1996. This bill would provide a grace period for implementation 
of section 373 of the Consolidated Farm and Rural Development Act (the 
``ConAct'') (7 U.S.C. 1921 et seq.) until July 5, 1996. Section 373 of 
the ConAct, which was added by the Federal Agriculture Improvement and 
Reform Act of 1996 (Public Law 104-127, April 4, 1996), prohibits 
direct operating loans to a borrower who: (1) is delinquent on any 
direct loan or guaranteed loan; or (2) has received debt forgiveness on 
any direct or guaranteed loan, with an exception for a borrower who was 
restructured under section 353 of the ConAct.
                                 <all>
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