520 
‘‘(c) TERMS AND CONDITIONS.—The terms and con-
ditions specified in a contract under subsection (a) shall— 
‘‘(1) specify the purposes for which the real 
property may be used; 
‘‘(2) identify any conservation measure to be 
taken, and any recreational and wildlife use to be al-
lowed, with respect to the real property; and 
‘‘(3) require the owner to permit the Secretary, 
and any person or governmental entity designated by 
the Secretary, to have access to the real property for 
the purpose of monitoring compliance with the con-
tract. 
‘‘(d) REDUCTION OR FORGIVENESS OF DEBT.— 
‘‘(1) IN GENERAL.—Subject to this section, the 
Secretary may reduce or forgive the outstanding 
debt of a borrower— 
‘‘(A) in the case of a borrower to whom the 
Secretary has made an outstanding loan under 
a law administered by the Secretary, by can-
celing that part of the aggregate amount of the 
outstanding loan that bears the same ratio to 
the aggregate amount as— 
‘‘(i) the number of acres of the real 
property of the borrower that are subject 
to the contract; bears to 
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‘‘(ii) the aggregate number of acres 
securing the loan; or 
‘‘(B) in any other case, by treating as pre-
paid that part of the principal amount of a new 
loan to the borrower issued and held by the 
Secretary under a law administered by the Sec-
retary that bears the same ratio to the principal 
amount as— 
‘‘(i) the number of acres of the real 
property of the borrower that are subject 
to the contract; bears to 
‘‘(ii) the aggregate number of acres 
securing the new loan. 
‘‘(2) 
MAXIMUM
CANCELED
AMOUNT.—The 
amount canceled or treated as prepaid under para-
graph (1) shall not exceed— 
‘‘(A) in the case of a delinquent loan, the 
greater of— 
‘‘(i) the value of the land on which the 
contract is entered into; or 
‘‘(ii) the difference between— 
‘‘(I) the amount of the out-
standing loan secured by the land; 
and 
‘‘(II) the value of the land; or 
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‘‘(B) in the case of a nondelinquent loan, 
33 percent of the amount of the loan secured 
by the land. 
‘‘(e) CONSULTATION WITH FISH
AND WILDLIFE 
SERVICE.—If the Secretary uses the authority provided by 
this section, the Secretary shall consult with the Director 
of the Fish and Wildlife Service for the purposes of— 
‘‘(1) selecting real property in which the Sec-
retary may enter into a contract under this section; 
‘‘(2) formulating the terms and conditions of 
the contract; and 
‘‘(3) enforcing the contract. 
‘‘(f) ENFORCEMENT.—The Secretary, and any person 
or governmental entity (including an agency of the Fed-
eral Government) designated by the Secretary, may en-
force a contract entered into by the Secretary under this 
section. 
‘‘SEC. 3411. DEBT RESTRUCTURING AND LOAN SERVICING. 
‘‘(a) IN GENERAL.—The Secretary shall modify a de-
linquent farmer program loan made under this subtitle, 
or purchased from the lender or the Federal Deposit In-
surance Corporation under section 3902, to the maximum 
extent practicable— 
‘‘(1) to avoid a loss to the Secretary on the 
loan, with priority consideration being placed on 
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writing-down the loan principal and interest (subject 
to subsections (d) and (e)), and debt set-aside (sub-
ject to subsection (e)), to facilitate keeping the bor-
rower on the farm, or otherwise through the use of 
primary loan service programs under this section; 
and 
‘‘(2) to ensure that a borrower is able to con-
tinue farming operations. 
‘‘(b) ELIGIBILITY.—To be eligible to obtain assist-
ance under subsection (a)— 
‘‘(1) the delinquency shall be due to a cir-
cumstance beyond the control of the borrower, as de-
fined in regulations issued by the Secretary, except 
that the regulations shall require that, if the value 
of 
the 
assets 
calculated 
under 
subsection 
(c)(2)(A)(ii) that may be realized through liquida-
tion or other methods would produce enough income 
to make the delinquent loan current, the borrower 
shall not be eligible for assistance under subsection 
(a); 
‘‘(2) the borrower shall have acted in good faith 
with the Secretary in connection with the loan as de-
fined in regulations issued by the Secretary; 
‘‘(3) the borrower shall present a preliminary 
plan to the Secretary that contains reasonable as-
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