I 

113TH CONGRESS 

2D SESSION H. R. 5542 

To amend the Agricultural Act of 2014 to require the Secretary of Agriculture 

to extend the term of a marketing assistance loan and the deadline 

for repayment of a farm ownership, operating, or emergency loan when 

the purchaser of the agricultural commodity subject to the marketing 

assistance loan declared bankruptcy before paying the farmer for the 

commodity. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2014 

Mr. CRAWFORD (for himself, Mr. GRIFFIN of Arkansas, Mr. WOMACK, and 

Mr. COTTON) introduced the following bill; which was referred to the 

Committee on Agriculture 

A BILL 

To amend the Agricultural Act of 2014 to require the Secretary of Agriculture to extend the term of a marketing 

assistance loan and the deadline for repayment of a 

farm ownership, operating, or emergency loan when the 

purchaser of the agricultural commodity subject to the 

marketing assistance loan declared bankruptcy before 

paying the farmer for the commodity. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Farm Protection Act 

3 of 2014’’. 

4 SEC. 2. EXTENSION OF MARKETING ASSISTANCE LOANS 

5 AND DEADLINE FOR REPAYMENT OF FARM 

6 OWNERSHIP, OPERATING, OR EMERGENCY 

7 LOANS IN CERTAIN CASES OF BANKRUPTCY. 

8 Section 1203(b) of the Agricultural Act of 2014 (7 

9 U.S.C. 9033(b)) is amended— 

10 (1) by striking ‘‘The Secretary’’ and inserting 

11 the following: 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the Secretary’’; and 

14 (2) by adding at the end the following new 

15 paragraph: 

16 ‘‘(2) EXTENSION OF CERTAIN LOANS IN EVENT

17 OF PURCHASER BANKRUPTCY.— 

18 ‘‘(A) IN GENERAL.—This paragraph ap19 plies whenever— 

20 ‘‘(i) the producers on a farm have a 

21 marketing assistance loan under section 

22 1201 for a loan commodity; 

23 ‘‘(ii) the producers have sold, trans24 ferred, or delivered the loan commodity 

25 subject to the loan to a purchaser; and 


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1 ‘‘(iii) a case under any chapter of title 

2 11, United States Code (in this paragraph 

3 referred to as a ‘chapter 11 bankruptcy’), 

4 has been commenced in which the pur5 chaser is the debtor. 

6 ‘‘(B) EXTENSION FOR NON-PAYMENT.—If 

7 a chapter 11 bankruptcy in which the purchaser 

8 of a loan commodity is the debtor, as described 

9 in subparagraph (A), is commenced before the 

10 purchaser pays the producers in full for the 

11 loan commodity, the Secretary shall extend, to 

12 a date that is not less than 180 days after the 

13 date on which the chapter 11 bankruptcy is 

14 closed or dismissed— 

15 ‘‘(i) the term and any due date for 

16 any payment or obligation pursuant to the 

17 marketing assistance loan of the producers; 

18 and 

19 ‘‘(ii) the due date for any payment or 

20 obligation pursuant to any ownership, op21 erating, or emergency loan made to the 

22 producers under the Consolidated Farm 

23 and Rural Development Act (7 U.S.C. 

24 1921 et seq.). 

25 ‘‘(C) RELATED SUSPENSIONS.— 


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1 ‘‘(i) ACCRUAL OF INTEREST.—If the 

2 purchaser of the loan commodity has al3 ready taken possession of the loan com4 modity, the Secretary also shall suspend 

5 the accruing of interest on the loans de6 scribed in subparagraph (B) during the pe7 riod of the extension under such subpara8 graph. 

9 ‘‘(ii) RECOVERY ACTIONS.—If a trust10 ee in the purchaser’s chapter 11 bank11 ruptcy seeks recovery of all or any portion 

12 of a purchase price paid to or on behalf of 

13 the producers for the loan commodity, the 

14 Secretary also shall suspend any efforts to 

15 collect from the producers any amounts re16 lated to such recovery or potential recovery 

17 until a date that is not less than 180 days 

18 after the final resolution of the action to 

19 recover all or any portion of the purchase 

20 price.’’. 

Æ 


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