article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Agricultural Credit Act of 2001''. SEC. 2. DEFINITION OF DEBT FORGIVENESS. Section 343(a)(12)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(12)(B)) is amended to read as follows: ``(B) Exceptions.--The term `debt forgiveness' does not include-- ``(i) consolidation, rescheduling, reamortization, or deferral of a loan; ``(ii) a write-down during the lifetime of the borrower that is due to a financial problem of the borrower relating to a natural disaster or a medical condition of the borrower or an immediate family member of the borrower (or, in the case of a borrower that is an entity, a principal owner of the borrower or an immediate family member of such an owner); or ``(iii) any write-down provided as a part of a resolution of a discrimination complaint against the Secretary.''. SEC. 3. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS. Section 373(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008h(b)) is amended to read as follows: ``(b) Loans Prohibited for Certain Borrowers Who Have Received Debt Forgiveness.-- ``(1) In general.--Except as provided in paragraph (2), the Secretary may not make or guarantee a loan under subtitle A or B to a borrower who, on more than 2 occasions, received debt forgiveness on a loan made or guaranteed under this title. ``(2) Exceptions.--The Secretary may make a direct or guaranteed farm operating loan for paying annual farm or ranch operating expenses of a borrower who-- ``(A) was restructured with a write-down under section 353; or ``(B) is current on payments under a confirmed reorganization plan under chapter 11, 12, or 13 of title 11, United States Code.''. SEC. 4. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED FARMERS AND RANCHERS. Section 355(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(c)(2)) is amended by striking ``shall be reallocated within such State'' and inserting ``in the first 10 months of the fiscal year may be pooled and rcated for use of socially disadvantaged farmers and ranchers in other States as determined by the Secretary, in excess of the funds otherwise allocated in accordance with this section''. SEC. 5. EXCEPTION TO TERM LIMITS ON OPERATING LOANS ONLY FOR DISASTERS OR EMERGENCIES. (a) Direct Operating Loans.--Section 311(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended-- (1) in paragraph (1)-- (A) by striking ``Subject to paragraph (3), the'' and inserting ``The''; (B) in subparagraph (B), by striking ``or''; (C) in subparagraph (C), by striking the period and inserting ``; or''; and (D) by adding at the end the following: ``(D) is operating in an area which, during the previous or current crop year-- ``(i) the Secretary finds has been affected by a natural disaster in the United States or by a major disaster or emergency designated by the President under the Disaster Relief and Emergency Assistance Act; or ``(ii) has suffered from an economic emergency, as determined by the Secretary.''; and (2) by striking paragraph (3). (b) Guaranteed Operating Loans.--Section 319(b)(2) of such Act (7 U.S.C. 1949(b)(2)) is amended to read as follows: ``(2) Disasters and emergencies.--A farmer or rancher shall be eligible to receive a guaranteed operating loan under this subtitle if the borrower is operating in an area which, during the preceding or current crop year-- ``(A) the Secretary finds has been affected by a natural disaster in the United States or by a major disaster or emergency designated by the President under the Disaster Relief and Emergency Assistance Act; or ``(B) has suffered from an economic emergency, as determined by the Secretary.''. SEC. 6. PERCENTAGE OF RECAPTURE FOR SHARED APPRECIATION ARRANGEMENT. (a) In General.--Section 353(e)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001(e)(3)) is amended by striking ``, and 50'' and inserting ``, 50 percent if the recapture occurs after 4 years and within 8 years after the restructuring, and 35''. (b) Applicability.--The amendment made by subsection (a) shall apply to shared appreciation arrangements with respect to which recapture has not occurred, regardless of whether the arrangements were entered into before, on, or after the date of the enactment of this Act. SEC. 7. TECHNICAL CORRECTION. Section 353 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001) is amended-- (1) by striking subsection (m); and (2) by redesignating subsections (n) and (o) as subsections (m) and (n), respectively.
summary: Agricultural Credit Act of 2001 - Amends the Consolidated Farm and Rural Development Act to exclude from "debt forgiveness": (1) loan rescheduling, consolidation, deferral, or reamortization; (2) a write-down due to natural disaster or family medical condition; or (3) a write-down as part of the resolution of a discrimination complaint against the Secretary of Agriculture.Increases the number of occasions of permitted loan or loan guarantee debt forgiveness per borrower from one to two. Includes as an exception to such limitation an operating loan or loan guarantee to an individual whose payments are current under a specified reorganization plan.Permits excess funds obligated for socially disadvantaged farmers to be reallocated for such use in another State (currently limited to intrastate reallocation).Permits direct operating loans and loan guarantees to be made to persons in areas: (1) affected by a natural disaster or designated emergency; or (2) determined to be suffering from an economic emergency.Revises (shared appreciation arrangement) recapture percentage provisions.