110 STAT. 1104 PUBLIC LAW 104-127—APR. 4, 1996 "(a) IN GENERAL. —Subject to subsection (b), the Secretary"; (2) by striking paragraph (2) and inserting the following: "(2) that is eligible to be disposed of in accordance with section 335; and"; and (3) by adding at the end the following: "(b) CONDITIONS.— The Secretary may not transfer any property or interest in property under subsection (a) unless— "(1) at least 2 public notices are given of the transfer; "(2) if requested, at least 1 public meeting is held prior to the transfer; and "(3) the Governor and at least 1 elected county official of the State and county where the property is located are consulted prior to the transfer.". SEC. 647. IMPLEMENTATION OF TARGET PARTICIPATION RATES. Section 355 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003) is amended by adding at the end the following: "(f) IMPLEMENTATION CONSISTENT WITH SUPREME COURT HOLD- ING.—Not later than 180 days after the date of enactment of this subsection, the Secretary shall ensure that the implementation of this section is consistent with the holding of the Supreme Court in Adarand Constructors, Inc. v. Federico Pena, Secretary of Transportation, 115 S. Ct. 2097 (1995).". SEC. 648. DELINQUENT BORROWERS. (a) PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVICING FOR BORROWERS.— The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the following: 7 USC 2008g. "SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVIC- ING FOR BORROWERS. "The Secretary may not reschedule or reamortize a loan for a borrower under this title who has not requested consideration under section 331D(e) unless the borrower pays a portion, as determined by the Secretary, of the interest due on the loan.". (b) LOAN AND LOAN SERVICING LIMITATIONS.—The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) (as amended by subsection (a)) is amended by adding at the end the following: 7 USC 2008h. "SEC. 373. 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) LOANS PROHIBITED FOR BORROWERS THAT HAVE RECEIVED DEBT FORGIVENESS.— "(1) IN GENERAL.— Except as provided in paragraph (2), the Secretary may not make or guarantee a loan under this title to a borrower who received debt forgiveness on a loan made or guaranteed under this title. "(2) EXCEPTION.— The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who was restructured with a write-down under section 353. " (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
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