Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Agricultural Credit Act of 1999''.

SEC. 2. DEFINITION OF DEBT FORGIVENESS.

Section 343(a)(12)(B) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as
follows:
''(B) Exceptions.--The term 'debt forgiveness' does
not include--
''(i) consolidation, rescheduling,
reamortization, or deferral of a loan;
''(ii) a write-down during the lifetime of
the borrower that is due to a financial problem
of the borrower relating to a natural disaster
or a medical condition of the borrower or an
immediate family member of the borrower (or, in
the case of a borrower that is an entity, a
principal owner of the borrower or an immediate
family member of such an owner); or
''(iii) any write-down provided as a part
of a resolution of a discrimination complaint
against the Secretary.''.

SEC. 3. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.

Section 373(b) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 2008h(b)) is amended to read as follows:
''(b) Loans Prohibited for Certain Borrowers Who Have Received Debt
Forgiveness.--
''(1) In general.--Except as provided in paragraph (2), the
Secretary may not make or guarantee a loan under subtitle A or
B to a borrower who, on more than 2 occasions, received debt
forgiveness on a loan made or guaranteed under this title.
''(2) Exceptions.--The Secretary may make a direct or
guaranteed farm operating loan for paying annual farm or ranch
operating expenses of a borrower who--
''(A) was restructured with a write-down under
section 353; or
''(B) is current on payments under a confirmed
reorganization plan under chapter 11, 12, or 13 of
title 11, United States Code.''.

SEC. 4. MARGIN REQUIREMENTS.

(a) Eligibility for Farmer Program Loan Guarantees.--Section
339(b)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1989(b)(3)) is amended by striking '', including expenses of replacing
capital items (determined after taking into account depreciation of the
items)''; and
(b) Restructured Loan Valuation Determinations.--Section
353(c)(3)(C) of such Act (7 U.S.C. 2001(c)(3)(C)) is amended by
striking ''100 percent'' and inserting ''110 percent''.

SEC. 5. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED FARMERS
AND RANCHERS.

Section 355(c)(2) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2003(c)(2)) is amended by striking ''shall be reallocated
within such State'' and inserting ''in the first 10 months of the
fiscal year may be pooled and reallocated for use of socially
disadvantaged farmers and ranchers in other States as determined by the
Secretary, in excess of the funds otherwise allocated in accordance
with this section''.

SEC. 6. EXCEPTION TO TERM LIMITS ON OPERATING LOANS ONLY FOR DISASTERS
OR EMERGENCIES.

(a) Direct Operating Loans.--Section 311(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended--
(1) in paragraph (1)--
(A) by striking ''Subject to paragraph (3), the''
and inserting ''The'';
(B) in subparagraph (B), by striking ''or'';
(C) in subparagraph (C), by striking the period and
inserting ''; or''; and
(D) by adding at the end the following:
''(D) is operating in an area which, during the
previous or current crop year--
''(i) the Secretary finds has been affected
by a natural disaster in the United States or
by a major disaster or emergency designated by
the President under the Disaster Relief and
Emergency Assistance Act; or
''(ii) has suffered from an economic
emergency, as determined by the Secretary.'';
and
(2) by striking paragraph (3).
(b) Guaranteed Operating Loans.--Section 319(b)(2) of such Act (7
U.S.C. 1949(b)(2)) is amended to read as follows:
''(2) Disasters and emergencies.--A farmer or rancher shall
be eligible to receive a guaranteed operating loan under this
subtitle if the borrower is operating in an area which, during
the preceding or current crop year--
''(A) the Secretary finds has been affected by a
natural disaster in the United States or by a major
disaster or emergency designated by the President under
the Disaster Relief and Emergency Assistance Act; or
''(B) has suffered from an economic emergency, as
determined by the Secretary.''.

SEC. 7. PERCENTAGE OF RECAPTURE FOR SHARED APPRECIATION ARRANGEMENT.

(a) In General.--Section 353(e)(3) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2001(e)(3)) is amended by striking '',
and 50'' and inserting '', 50 percent if the recapture occurs after 4
years and within 8 years after the restructuring, and 35''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to shared appreciation arrangements with respect to which
recapture has not occurred, regardless of whether the arrangements were
entered into before, on, or after the date of the enactment of this
Act.

SEC. 8. TECHNICAL CORRECTION.

Section 353 of the Consolidated Farm and Rural Development Act (7
U.S.C. 2001) is amended--
(1) by striking subsection (m); and
(2) by redesignating subsections (n) and (o) as subsections
(m) and (n), respectively.
Student:
(Sec. 3) Increases the number of occasions of permitted loan or loan guarantee debt forgiveness per borrower from one to two. Includes as an exception to such limitation an operating loan or loan guarantee to an individual whose payments are current under a specified reorganization plan.
(Sec. 4) Eliminates capital item replacement expenses in determinations of farmer program loan guarantee eligibility.
(Sec. 5) Permits excess funds obligated for socially disadvantaged farmers to be reallocated for such use in another State (currently limited to intrastate reallocation).
(Sec. 6) Permits direct operating loans and loan guarantees to be made to persons in areas: (1) affected by a natural disaster or designated emergency; or (2) determined to be suffering from an economic emergency.
(Sec. 7) Revises (shared appreciation arrangement) recapture percentage provisions.