535 
type at the time of the deferral, consolidation, re-
scheduling, or reamortization. 
‘‘(g) PERIOD AND EFFECT.— 
‘‘(1) PERIOD.—The Secretary may consolidate 
or reschedule outstanding loans for payment over a 
period not to exceed 7 years (or, in the case of loans 
for farm operating purposes, 15 years) from the 
date of the consolidation or rescheduling. 
‘‘(2) EFFECT.—The amount of unpaid principal 
and interest of the prior loans so consolidated or re-
scheduled shall not create a new charge against any 
loan levels authorized by law. 
‘‘(h) PREREQUISITES TO FORECLOSURE OR LIQUIDA-
TION.—No foreclosure or other similar action shall be 
taken to liquidate any loan determined to be ineligible for 
restructuring by the Secretary under this section— 
‘‘(1) until the borrower has been given the op-
portunity to appeal the decision; and 
‘‘(2) if the borrower appeals, the appeals proc-
ess has been completed, and a determination has 
been made that the loan is ineligible for restruc-
turing. 
‘‘(i) NOTICE
OF
INELIGIBILITY
FOR
RESTRUC-
TURING.— 
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536 
‘‘(1) IN GENERAL.—A notice of ineligibility for 
restructuring shall be sent to the borrower by reg-
istered or certified mail not later than 15 days after 
a determination of ineligibility. 
‘‘(2) CONTENTS.—The notice required under 
paragraph (1) shall contain— 
‘‘(A) the determination and the reasons for 
the determination; 
‘‘(B) the computations used to make the 
determination, including the calculation of the 
recovery value of the collateral securing the 
loan; and 
‘‘(C) a statement of the right of the bor-
rower to appeal the decision to the appeals divi-
sion, and to appear before a hearing officer. 
‘‘(j) INDEPENDENT APPRAISALS.— 
‘‘(1) IN GENERAL.—An appeal may include a 
request by the borrower for an independent ap-
praisal of any property securing the loan. 
‘‘(2) PROCESS FOR APPRAISAL.—On a request 
under paragraph (1), the Secretary shall present the 
borrower with a list of 3 appraisers approved by the 
county supervisor, from which the borrower shall se-
lect an appraiser to conduct the appraisal. 
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537 
‘‘(3) COST.—The cost of an appraisal under 
this subsection shall be paid by the borrower. 
‘‘(4) RESULT.—The result of an appraisal 
under this subsection shall be considered in any final 
determination concerning the loan. 
‘‘(5) COPY.—A copy of any appraisal under this 
subsection shall be provided to the borrower. 
‘‘(k) ONLY 1 WRITE-DOWN OR NET RECOVERY BUY- 
OUT PER BORROWER FOR A LOAN MADE AFTER JANU-
ARY 6, 1988.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
for each borrower not more than 1 write-down or net 
recovery buy-out under this section with respect to 
all loans made to the borrower after January 6, 
1988. 
‘‘(2) SPECIAL
RULE.—For purposes of para-
graph (1), the Secretary shall treat any loan made 
on or before January 6, 1988, with respect to which 
a restructuring, write-down, or net recovery buy-out 
is provided under this section after January 6, 1988, 
as a loan made after January 6, 1988. 
‘‘(l) LIQUIDATION OF ASSETS.—The Secretary may 
not use the authority provided by this section to reduce 
or terminate any portion of the debt of the borrower that 
the borrower could pay through the liquidation of assets 
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