LOAN AND LOAN SERVICING LIMITATIONS.

SEC. 373. [7 U.S.C. 2008h] LOAN AND LOAN SERVICING LIMITATIONS. (a) Delinquent Borrowers Prohibited From Obtaining Direct Operating Loans.—The Secretary may not make a direct operating loan under subtitle B to a borrower who is delinquent on any loan made or guaranteed under this title. (b) Prohibition of Loans for Borrowers That Have Received Debt Forgiveness.— (1) Prohibitions.—Except as provided in paragraph (2)— (A) the Secretary may not make a loan under this title to a borrower that has received debt forgiveness on a loan made or guaranteed under this title; and (B) the Secretary may not guarantee a loan under this title to a borrower that has received— (i) debt forgiveness after April 4, 1996, on a loan made or guaranteed under this title; or (ii) received debt forgiveness on more than 3 occasions on or before April 4, 1996. (2) Exceptions.— (A) In general.—The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who— (i) was restructured with a write-down under section 353; (ii) is current on payments under a confirmed reorganization plan under chapters 11, 12, or 13 of Title 11 of the United States Code; or (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 April 4, 1996, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). (B) Emergency loans.— (i) In general.—The Secretary may make an emergency loan under section 321 to a borrower that— (I) on or before April 4, 1996, received not more than 1 debt forgiveness on a loan made or guaranteed under this title; and (II) after April 4, 1996, has not received debt forgiveness on a loan made or guaranteed under this title. (ii) Restructured loans.—For purposes of clause (i), a borrower who was restructured with a write-down or restructuring under section 353 shall not be considered to have received debt forgiveness on a loan made or guaranteed under this title. (c) No More Than 1 Debt Forgiveness For A Borrower On A Direct Loan.—The Secretary may not provide to a borrower debt forgiveness on a direct loan made under this title if the borrower has received debt forgiveness on another direct loan made under this title.