{"identifier":"/us/usc/t7/s2008h","title":7,"num":"\u00a7\u202f2008h.","heading":"Loan and loan servicing limitations","text":"\u00a7\u202f2008h.\nLoan and loan servicing limitations\n(a)\nDelinquent borrowers prohibited from obtaining direct operating loans\nThe Secretary may not make a direct operating loan under subchapter II to a borrower who is delinquent on any loan made or guaranteed under this chapter.\n(b)\nProhibition of loans for borrowers that have received debt forgiveness\n(1)\nProhibitions\nExcept as provided in paragraph (2)\u2014\n(A) the Secretary may not make a loan under this chapter to a borrower that has received debt forgiveness on a loan made or guaranteed under this chapter; and\n(B) the Secretary may not guarantee a loan under this chapter to a borrower that has received\u2014\n(i) debt forgiveness after\nApril 4, 1996\n(ii) received debt forgiveness on more than 3 occasions on or before\nApril 4, 1996\n(2)\nExceptions\n(A)\nIn general\nThe Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who\u2014\n(i) was restructured with a write-down under\nsection 2001 of this title\n(ii) is current on payments under a confirmed reorganization plan under chapters\n1\n1 So in original. Probably should be \u201cchapter\u201d.\n(iii) received debt forgiveness on not more than 1 occasion resulting directly and primarily from a major disaster or emergency designated by the President on or after\nApril 4, 1996\n42 U.S.C. 5121\n(B)\nEmergency loans\n(i)\nIn general\nThe Secretary may make an emergency loan under\n(I) on or before\nApril 4, 1996\n(II) after\nApril 4, 1996\n(ii)\nRestructured loans\nFor purposes of clause (i), a borrower who was restructured with a write-down or restructuring under\nsection 2001 of this title\n(c)\nNo more than 1 debt forgiveness for borrower on direct loan\nThe Secretary may not provide to a borrower debt forgiveness on a direct loan made under this chapter if the borrower has received debt forgiveness on another direct loan made under this chapter.","url":"https://projectusc.org/usc/t7/s2008h.html","content":[{"t":"sec","id":"/us/usc/t7/s2008h","children":[{"t":"num","text":"\u00a7\u202f2008h."},{"t":"heading","text":"Loan and loan servicing limitations"},{"t":"subsec","id":"/us/usc/t7/s2008h/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Delinquent borrowers prohibited from obtaining direct operating loans"},{"t":"content","children":[{"t":"p","text":"The Secretary may not make a direct operating loan under subchapter II to a borrower who is delinquent on any loan made or guaranteed under this chapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s2008h/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Prohibition of loans for borrowers that have received debt forgiveness"},{"t":"para","id":"/us/usc/t7/s2008h/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Prohibitions"},{"t":"chapeau","text":"Except as provided in paragraph (2)\u2014"},{"t":"subpara","id":"/us/usc/t7/s2008h/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the Secretary may not make a loan under this chapter to a borrower that has received debt forgiveness on a loan made or guaranteed under this chapter; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t7/s2008h/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" the Secretary may not guarantee a loan under this chapter to a borrower that has received\u2014"},{"t":"clause","id":"/us/usc/t7/s2008h/b/1/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" debt forgiveness after ","children":[{"t":"text","text":"April 4, 1996","tail":", on a loan made or guaranteed under this chapter; or"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t7/s2008h/b/1/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" received debt forgiveness on more than 3 occasions on or before ","children":[{"t":"text","text":"April 4, 1996","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t7/s2008h/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exceptions"},{"t":"subpara","id":"/us/usc/t7/s2008h/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who\u2014"},{"t":"clause","id":"/us/usc/t7/s2008h/b/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" was restructured with a write-down under ","children":[{"t":"ref","text":"section 2001 of this title","href":"/us/usc/t7/s2001","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t7/s2008h/b/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" is current on payments under a confirmed reorganization plan under chapters\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201cchapter\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201cchapter\u201d.","tail":" 11, 12, or 13 of title 11; or"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t7/s2008h/b/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" received debt forgiveness on not more than 1 occasion resulting directly and primarily from a major disaster or emergency designated by the President on or after ","children":[{"t":"text","text":"April 4, 1996","tail":", under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ("},{"t":"ref","text":"42 U.S.C. 5121","href":"/us/usc/t42/s5121","tail":" et seq.)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t7/s2008h/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Emergency loans"},{"t":"clause","id":"/us/usc/t7/s2008h/b/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The Secretary may make an emergency loan under ","children":[{"t":"ref","text":"section 1961 of this title","href":"/us/usc/t7/s1961","tail":" to a borrower that\u2014"}]},{"t":"subclause","id":"/us/usc/t7/s2008h/b/2/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" on or before ","children":[{"t":"text","text":"April 4, 1996","tail":", received not more than 1 debt forgiveness on a loan made or guaranteed under this chapter; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t7/s2008h/b/2/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" after ","children":[{"t":"text","text":"April 4, 1996","tail":", has not received debt forgiveness on a loan made or guaranteed under this chapter."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t7/s2008h/b/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Restructured loans"},{"t":"content","children":[{"t":"p","text":"For purposes of clause (i), a borrower who was restructured with a write-down or restructuring under ","children":[{"t":"ref","text":"section 2001 of this title","href":"/us/usc/t7/s2001","tail":" shall not be considered to have received debt forgiveness on a loan made or guaranteed under this chapter."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t7/s2008h/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"No more than 1 debt forgiveness for borrower on direct loan"},{"t":"content","children":[{"t":"p","text":"The Secretary may not provide to a borrower debt forgiveness on a direct loan made under this chapter if the borrower has received debt forgiveness on another direct loan made under this chapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}