Farmers Home Administration Loan Restructuring
Amends the Consolidated Farm and Rural Development Act to prohibit the Secretary of Agriculture from:
(1) requiring a Farmers Home Administration (FmHA) borrower to provide additional collateral if loan payments are current; and
(2) foreclosing as a result of the failure to provide additional collateral.
Authorizes the Secretary to negotiate the settlement of a guaranteed loan with a lending institution to honor a portion of a guarantee and avoid foreclosure.
Directs the Secretary, within 90 days of a court-confirmed bankruptcy, to pay the lender an amount estimated to be equal to the guaranteed portion of the lender's loss.
Directs the Secretary to notify delinquent FmHA borrowers of the available loan service programs and how to apply for such assistance.
Requires that appropriate procedures be used to calculate future yields for loan application purposes in cases where past yields have been affected by natural disasters.
Provides minimum notice periods for county committee nominations (45 days) and elections (30 days).
Makes any farmer eligible for a director insured loan also eligible to serve as a county committee member (but only one such farmer may serve at one time.) Directs the Secretary to establish with FmHA a national appeals division to hear borrower loan appeals.
Requires a county committee to classify or reclassify farmland as suitable for meaningful farming operation unless it cannot be used to meet certain purposes.
Requires the Secretary to sell suitable farmland administered under a specified program to operators of not larger than family-size farms.
Directs the Secretary, during the longer of the 180-day period after acquisition or the applicable State-permitted period, to permit a borrower to repurchase or lease his or her property.
Establishes the following order of repurchase priority:
(1) the immediate previous owner;
(2) if actively engaged in farming, the spouse or child of the previous owner, or stockholder of a family-held corporation; and
(3) operators of not larger than family-size farms.
Authorizes the government of any Indian tribe to revise FmHA repurchase or lease priority.
States that such disposition rights shall be in addition to any State protections.
Provides certain farmers with income releases (from funds held as loan security) of up to $18,000 for 12 months for household and farm operating expenses.
Provides for a secondary market in the guaranteed portion of FmHA loans.
Requires that before any such sale all fees be paid in full and the loan be fully disbursed to the borrower.
States that after such a sale the lender shall remain obligated under the guarantee agreement and shall continue to service the loan.
Permits loan pooling.
Requires the Secretary to submit an annual report to the appropriate congressional committees.
Includes wildlife habitats in the conservation reserve program.
Amends the Food Security Act of 1985 to extend the interest rate reduction program until 1993.
Amends the Consolidated Farm and Rural Development Act to establish a three-year demonstration project to reduce loan interest for persons seeking to purchase FCS-held property.
(1) interest reductions to not more than four percent; and
(2) the length of time such reductions shall apply to the lesser of five years or the outstanding term of such loan.
(1) the Secretary to guarantee 95 percent of such loan; and
(2) subdividing of land into more affordable tracts.
Revises homestead protection provisions.
Permits occupancy for up to five years.
Requires the Secretary to notify the foreclosed borrower of such homestead rights.
Makes persons eligible for such protection who:
(1) apply within 90 days of foreclosure; and
(2) have farmed and resided on the land (with permitted absences of up to 12 months) for a specified time and meet certain income percentage requirements.
Provides that during such occupancy period the borrower shall have the right of first refusal.
States that such homestead rights shall be in addition to any State protections.
Directs the Secretary to modify delinquent FmHA loans to:
(1) avoid losses to the Secretary with priority consideration placed on principal and interest write-downs, and debt set-asides, or otherwise through primary loan service; and
(2) ensure that borrowers are able to continue farming and ranching operations.
Sets forth eligibility criteria, including:
(1) the delinquency must be due to circumstances beyond the borrower's control;
(2) good faith activity by the borrower, including a reasonable recovery plan; and
(3) a net recovery by the Government that will equal or exceed similar foreclosure recovery.
Sets forth restructuring determination provisions.
Directs the Secretary to:
(1) make the required loan calculations and notify the borrower within 60 days of receiving the restructuring request;
(2) if the application is appropriate, offer to restructure the loan within an additional 45 days; and
(3) if deemed inappropriate, notify the borrower within 15 days of such determination.
Authorizes up to ten-year shared appreciation arrangements (recapture of written-off amounts) as a precondition to loan restructuring.
Prohibits foreclosure of a loan that has been determined ineligible for restructuring until the borrower has been given an opportunity to appeal, or until such appeal has been exhausted.
Directs the Secretary to:
(1) establish county-wide target participation rates for minority farmers to receive loans to purchase or lease FmHA-held land; and
(2) report annually to the appropriate congressional committees.
Authorizes the Secretary, without reimbursement, to transfer to any Federal or State agency, for conservation purposes, FmHA-acquired land that is determined to be:
(2) of marginal agricultural value; and
(3) environmentally sensitive or of special importance.