Federal · Title 7 — Agriculture

7 U.S.C. § 2008h: Loan and loan servicing limitations

Read the full statutory 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. 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 debt forgiveness after April 4, 1996 , on a loan made or guaranteed under this chapter; or received debt forgiveness on more than 3 occasions on or before April 4, 1996 . was restructured with a write-down under section 2001 of this title ; is current on payments under a confirmed reorganization plan under chapters 1 11, 12, or 13 of title 11; or 1 So in original. Probably should be “chapter”. 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 April 4, 1996 , under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq.). on or before April 4, 1996 , received not more than 1 debt forgiveness on a loan made or guaranteed under this chapter; and after April 4, 1996 , has not received debt forgiveness on a loan made or guaranteed under this chapter. For purposes of clause (i), a borrower who was restructured with a write-down or restructuring under section 2001 of this title shall not be considered to have received debt forgiveness on a loan made or guaranteed under this chapter. 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.

Verify at the official source: Federal legislative text

Facing this? Know exactly what happens next.

MOFRD turns this code section into your situation: the deadlines that apply to you, the forms your county uses, and the resolution paths people in your position actually take. Free for 3 days — no card required.

This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.