104 STAT. 3828 PUBLIC LAW 101-624—NOV. 28, 1990 "(ii) TREATMENT OF INTRAFAMILY TRANSFERS. — For purposes of clause (i)(I), transfer of title to a property, on the death or retirement of the borrower, to a spouse or child of the borrower who is actively engaged in farming on the property shall not be treated as a sale or conveyance.", (g) APPRAISALS.—Section 353(c) (7 U.S.C. 2001(c)) is amended by adding at the end the following new paragraph: "(7) NEGOTIATION OF APPRAISAL. — "(A) IN GENERAL. — In making a determination concerning restructuring under this subsection, the Secretary, at the request of the borrower, shall enter into negotiations concerning appraisals required under this subsection with the borrower. "(B) INDEPENDENT APPRAISAL,— If the borrower, based on a separate current appraisal, objects to the decision of the Secretary regarding an appraisal, the borrower and the Secretary shall mutually agree, to the extent practicable, on an independent appraiser who shall conduct another appraisal of the borrower's property. The average of the two appraisals that are closest in value shall become the final appraisal under this paragraph. The borrower and the Secretary shall each pay one-half of the cost of the independent appraisal.", (h) ADDITIONAL PROVISIONS.— Section 353 is amended by adding at the end the following new subsections: "(1) PARTIAL LIQUIDATIONS. — If partial liquidations are performed (with the prior consent of the Secretary) as part of loan servicing by a guaranteed lender under this title, the Secretary shall not require full liquidation of a delinquent loan in order for the lender to be eligible to receive payment on losses. " (m) DISPOSITION OF NORMAL INCOME SECURITY. —For purposes of subsection (b)(2) of this section, and subparagraphs (A)(i) and (C)(i) of section 335(e)(l)(A), if a borrower— "(1) disposed of normal income security prior to October 14, 1988, without the consent of the Secretary; and "(2) demonstrates that— "(A) the proceeds were utilized to pay essential household and farm operating expenses; and "(B) the borrower would have been entitled to a release of income proceeds by the Secretary if the regulations in effect on the date of enactment of this subsection had been in effect at the time of the disposition, the Secretary shall not consider the borrower to have acted without good faith to the extent of the disposition. " (n) ONLY 1 WRITE-DOWN OR NET RECOVERY BUY-OUT PER BOR- ROWER FOR A LOAN MADE AFTER JANUARY 6, 1988.— "(1) IN GENERAL. — The Secretary may provide for any one borrower not more than 1 write-down or net recovery buy-out under this section with respect to all loans made to the borrower after January 6, 1988. "(2) Special rule. —For purposes of paragraph (1), the Secretary shall treat any loan made on or before January 6, 1988, with respect to which a restructuring, write-down, or net recovery buy-out is provided under this section after such date, as a loan made after such date.