Page:United States Statutes at Large Volume 104 Part 5.djvu/505

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PUBLIC LAW 101-624—NOV. 28, 1990 104 STAT. 3827 (e) GrOOD FAITH REQUIREMENT FOR LEASEBACK/BUYBACK ELIGI- BiLiTY.—Section 335(e)(l) (7 U.S.C. 1985(e)(l)) is amended— (1) in subparagraph (A)(i), by inserting ", if such borrowerowner has acted in good faith with the Secretary, as defined in regulations issued by the Secretary, in connection with such loan" before the period at the end; and (2) in subparagraph (C)(i), by inserting ", if such borrowerowner has acted in good faith with the Secretary, as defined in regulations issued by the Secretary, in connection with the loan of such borrower-owner for which such property served as security" before the period at the end. if) TERMINATION OF LOAN OBIJGATIONS. —Paragraph (6) of section 353(c) (7 U.S.C. 2001(c)(6)) is amended to read as follows: " (6) TERMINATION OF LOAN OBLIGATIONS.— " (A) REQUIRED CONDITIONS.— "(i) IN GENERAL.— Except as provided in subparagraph (B), the obligations of a borrower to the Secretary under a restructured loan shall terminate if— "(I) the borrower satisfies the requirements of paragraphs (1) and (2) of subsection (b); "(II) the value of the restructured loan is less than the recovery value; and "(III) within 90 days after receipt of the notification described in paragraph (4)(B), the borrower pays (or obtains third-party financing to pay) the Secretary an amount equal to the recovery value, " (ii) LIMITED APPLICABILITY OF GOOD FAITH REQUIRE- MENT.— Clause (i)(1) shall not apply to any offer of net recovery buyout made by the Secretary under this section before the date of enactment of this paragraph, unless the Secretary, before such date, determined that the borrower involved did not act in good faith with respect to the loan. "(B) RECAPTURE. — "(i) AUTHORITY TO REQUIRE BORROWER TO ENTER INTO AGREEMENT BEFORE TERMINATING LOAN OBLIGATIONS. — "(I) IN GENERAL. —The Secretary may require, as a condition of the termination of loan obligations under this paragraph, that the borrower enter into an agreement with the Secretary providing that if the borrower sells or otherwise conveys the real property used to secure such loan within 10 years after the date of such agreement, and realizes a gain on such sale or conveyance over the amount of the recovery value of the loan, then the Secretary may recapture part or all of the difference between the recovery value of the loan and the fair market value (on the date of such sale or conveyance) of the property securing the loan. "(II) LIMITATION ON RECAPTURE AMOUNT.—The agreement described in subclause (I) shall not provide for recapture of an amount that exceeds the difference between such recovery value and the outstanding balance of principal and interest owed on the loan immediately prior to the termination of any loan obligations under this paragraph.