I

106TH CONGRESS

1ST SESSION H. R. 1983

To amend the Consolidated Farm and Rural Development Act to improve

the agricultural credit programs of the Department of Agriculture, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 27, 1999

Mrs. CLAYTON (for herself, Mr. POMEROY, Mrs. THURMAN, Mr. ETHERIDGE,

Mr. PASTOR, Mr. TOWNS, and Mr. BISHOP) introduced the following bill;

which was referred to the Committee on Agriculture

A BILL

To amend the Consolidated Farm and Rural Development

Act to improve the agricultural credit programs of the

Department of Agriculture, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Agricultural Credit Act

5 of 1999’’.

6 SEC. 2. DEFINITION OF DEBT FORGIVENESS.

7 Section 343(a)(12)(B) of the Consolidated Farm and

8 Rural Development Act (7 U.S.C. 1991(a)(12)(B)) is

9 amended to read as follows:
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1 ‘‘(B) EXCEPTIONS.—The term ‘debt for2 giveness’ does not include—

3 ‘‘(i) consolidation, rescheduling, re4 amortization, or deferral of a loan;

5 ‘‘(ii) a write-down during the lifetime

6 of the borrower that is due to a financial

7 problem of the borrower relating to a nat8 ural disaster or a medical condition of the

9 borrower or an immediate family member

10 of the borrower (or, in the case of a bor11 rower that is an entity, a principal owner

12 of the borrower or an immediate family

13 member of such an owner); or

14 ‘‘(iii) any write-down provided as a

15 part of a resolution of a discrimination

16 complaint against the Secretary.’’.

17 SEC. 3. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR

18 DEBT FORGIVENESS.

19 Section 373(b) of the Consolidated Farm and Rural

20 Development Act (7 U.S.C. 2008h(b)) is amended to read

21 as follows:

22 ‘‘(b) LOANS PROHIBITED FOR CERTAIN BORROWERS

23 WHO HAVE RECEIVED DEBT FORGIVENESS.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), the Secretary may not make or guarantee
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1 a loan under subtitle A or B to a borrower who, on

2 more than 2 occasions, received debt forgiveness on

3 a loan made or guaranteed under this title.

4 ‘‘(2) EXCEPTIONS.—The Secretary may make a

5 direct or guaranteed farm operating loan for paying

6 annual farm or ranch operating expenses of a bor7 rower who—

8 ‘‘(A) was restructured with a write-down

9 under section 353; or

10 ‘‘(B) is current on payments under a con11 firmed reorganization plan under chapter 11,

12 12, or 13 of title 11, United States Code.’’.

13 SEC. 4. MARGIN REQUIREMENTS.

14 (a) ELIGIBILITY FOR FARMER PROGRAM LOAN

15 GUARANTEES.—Section 339(b)(3) of the Consolidated

16 Farm and Rural Development Act (7 U.S.C. 1989(b)(3))

17 is amended by striking ‘‘, including expenses of replacing

18 capital items (determined after taking into account depre19 ciation of the items)’’; and

20 (b) RESTRUCTURED LOAN VALUATION DETERMINA21 TIONS.—Section 353(c)(3)(C) of such Act (7 U.S.C.

22 2001(c)(3)(C)) is amended by striking ‘‘100 percent’’ and

23 inserting ‘‘110 percent’’.
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1 SEC. 5. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY

2 DISADVANTAGED FARMERS AND RANCHERS.

3 Section 355(c)(2) of the Consolidated Farm and

4 Rural Development Act (7 U.S.C. 2003(c)(2)) is amended

5 by striking ‘‘shall be reallocated within such State’’ and

6 inserting ‘‘in the first 10 months of the fiscal year may

7 be pooled and reallocated for use of socially disadvantaged

8 farmers and ranchers in other States as determined by

9 the Secretary, in excess of the funds otherwise allocated

10 in accordance with this section’’.

11 SEC. 6. EXCEPTION TO TERM LIMITS ON OPERATING

12 LOANS ONLY FOR DISASTERS OR EMER13 GENCIES.

14 (a) DIRECT OPERATING LOANS.—Section 311(c) of

15 the Consolidated Farm and Rural Development Act (7

16 U.S.C. 1941(c)) is amended—

17 (1) in paragraph (1)—

18 (A) by striking ‘‘Subject to paragraph (3),

19 the’’ and inserting ‘‘The’’;

20 (B) in subparagraph (B), by striking ‘‘or’’;

21 (C) in subparagraph (C), by striking the

22 period and inserting ‘‘; or’’; and

23 (D) by adding at the end the following:

24 ‘‘(D) is operating in an area which, during

25 the previous or current crop year—
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1 ‘‘(i) the Secretary finds has been af2 fected by a natural disaster in the United

3 States or by a major disaster or emergency

4 designated by the President under the Dis5 aster Relief and Emergency Assistance

6 Act; or

7 ‘‘(ii) has suffered from an economic

8 emergency, as determined by the Sec9 retary.’’; and

10 (2) by striking paragraph (3).

11 (b) GUARANTEED OPERATING LOANS.—Section

12 319(b)(2) of such Act (7 U.S.C. 1949(b)(2)) is amended

13 to read as follows:

14 ‘‘(2) DISASTERS AND EMERGENCIES.—A farmer

15 or rancher shall be eligible to receive a guaranteed

16 operating loan under this subtitle if the borrower is

17 operating in an area which, during the preceding or

18 current crop year—

19 ‘‘(A) the Secretary finds has been affected

20 by a natural disaster in the United States or by

21 a major disaster or emergency designated by

22 the President under the Disaster Relief and

23 Emergency Assistance Act; or

24 ‘‘(B) has suffered from an economic emer25 gency, as determined by the Secretary.’’.
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1 SEC. 7. PERCENTAGE OF RECAPTURE FOR SHARED APPRE2 CIATION ARRANGEMENT.

3 (a) IN GENERAL.—Section 353(e)(3) of the Consoli4 dated Farm and Rural Development Act (7 U.S.C.

5 2001(e)(3)) is amended by striking ‘‘, and 50’’ and insert6 ing ‘‘, 50 percent if the recapture occurs after 4 years

7 and within 8 years after the restructuring, and 35’’.

8 (b) APPLICABILITY.—The amendment made by sub9 section (a) shall apply to shared appreciation arrange10 ments with respect to which recapture has not occurred,

11 regardless of whether the arrangements were entered into

12 before, on, or after the date of the enactment of this Act.

13 SEC. 8. TECHNICAL CORRECTION.

14 Section 353 of the Consolidated Farm and Rural De15 velopment Act (7 U.S.C. 2001) is amended—

16 (1) by striking subsection (m); and

17 (2) by redesignating subsections (n) and (o) as

18 subsections (m) and (n), respectively.

Æ