BORROWERS’ RIGHTS.

SEC. 208. BORROWERS’ RIGHTS. (a) Definition of Loan.— Section 4.14A(a)(5) of the Farm Credit Act of 1971 (12 U.S.C. 2202a(a)(5)) is amended— (1) by striking “(5) Loan.—The” and inserting the following: 110 STAT. 174 “(5) Loan.— “(A) In general.— Subject to subparagraph (B), the”; and (2) by adding at the end the following: “(B) Exclusion for loans designated for sale into SECONDARY MARKET.— “(i) In general.— Except as provided in clause (ii), the term ‘loan’ does not include a loan made on or after the date of enactment of this subparagraph that is designated, at the time the loan is made, for sale into a secondary market. “(ii) Unsold loans.— “(I) In general.— Except as provided in subclause (II), if a loan designated for sale under clause (i) is not sold into a secondary market during the 180-day period that begins on the date of the designation, the provisions of this section and sections 4.14, 4.14B, 4.14C, 4.14D, and 4.36 that would otherwise apply to the loan in the absence of the exclusion described in clause (i) shall become effective with respect to the loan. “(II) Later sale.— If a loan described in subclause (I) is sold into a secondary market after the end of the 180-day period described in subclause (I), subclause (I) shall not apply with respect to the loan beginning on the date of the sale.”. (b) Borrowers’ Rights for Pooled Loans.— The first sentence of section 8.9(b) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa–9(b)) is amended by inserting “(as defined in section 4.14A(a)(5))” after “application for a loan”.