To require the Congressional Oversight Panel to submit a special report on farm loan restructuring.

SA 1032. Mr. FEINGOLD (for himself and Mrs. Gillibrand) submitted an
amendment intended to be proposed by him to the bill S. 896, to prevent
mortgage foreclosures and enhance mortgage credit availability; which
was ordered to lie on the table; as follows:

At the end, add the following:

TITLE __--FARM LOAN RESTRUCTURING

SEC. _01. FARM LOAN RESTRUCTURING.

(a) Definitions.--In this section:
(1) Farm loan.--The term ``farm loan'' means a loan,
including a loan guaranteed by the Farm Service Agency, made
by a lender for any of the purposes described in--
(A) section 303(a)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1923(a)(1));
(B) section 312(a) of that Act (7 U.S.C. 1942(a)); or
(C) section 323 of that Act (7 U.S.C. 1963).
(2) Lender.--The term ``lender'' means a bank or financial
institution, including any subsidiary or branch of a bank or
financial institution, that receives financial assistance
under the Troubled Asset Relief Program established under
title I of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5211 et seq.).
(b) Offer to Restructure Required.--
(1) In general.--Except as otherwise provided in this
section, each lender shall be required to offer to borrowers
to whom the lender made a farm loan a restructuring program
comparable to terms and conditions of the program established
under section 353 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2001) and in accordance with this
subsection.
(2) Repurchasing requirement.--If a lender sells a farm
loan in a secondary market but retains the right to
repurchase all or part of the farm loan, the lender shall
repurchase the farm loan if necessary to complete the
restructuring required under this subsection.
(3) Recapture period.--Beginning on the date of enactment
of this title, the recapture period for any shared
appreciation agreement required as part of a debt write-down
under the loan restructuring program of a lender shall not
exceed 5 years from the date of the write-down.
(4) Borrower future eligibility.--The receipt by a borrower
of a debt write-down under the loan restructuring program of
a lender shall not prevent the borrower from establishing
eligibility for future loans from the lender.
(5) Principal residence.--In a case in which a borrower has
given a lender a security interest in the principal residence
of the borrower to secure a farm loan and the borrower is at
least 60 days past due on any farm loan made by the lender,
the lender shall offer restructuring for all farm loans made
by the lender to the borrower, regardless of whether the farm
loan secured by the principal residence of the borrower is 60
days past due.
(6) Ability to make payments.--If a borrower demonstrates
an ability to make payments on a restructured farm loan that
has a net present value that is at least equal to what the
lender would receive in case of foreclosure, the lender shall
restructure the farm loan.
(c) Future Eligibility.--Except as otherwise provided in
this section, a lender that received financial assistance
described in subsection (a)(2) prior to the date of enactment
of this title shall be ineligible to receive additional
financial assistance under the program specified in that
paragraph or any other Federal financial assistance,
including through loan guarantee programs, until the lender
offers to borrowers a restructuring program described in
subsection (b), or begins the process to implement such a
program, for farm loans made by the lender before, on, or
after the date of enactment of this Act.
(d) Applicability.--
(1) In general.--This section applies to any lender that
receives financial assistance described in paragraph (2) or
modifies the terms of assistance described in that paragraph
on or after the date of enactment of this title.
(2) TARP termination.--In the case of a lender that
received assistance under the Troubled Asset Relief Program
established under title I of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5211 et seq.), the farm
loan restructuring requirements under subsection (b) shall
not apply to the lender effective beginning on the date on
which the lender completes repayment of that assistance, as
determined by the Secretary of the Treasury.
(3) Temporary waiver.--
(A) In general.--The Secretary of the Treasury may
temporarily waive the requirement for an individual lender to
offer restructuring under this section if the lender
demonstrates to the satisfaction of the Secretary that the
requirement--
(i) significantly impacts the ability of the lender to
provide farm loans; or
(ii) significantly worsens the financial stress test
assessment of the lender.
(B) Term.--The term of a waiver under subparagraph (A) may
not exceed 30 days but may be renewed.
(C) Notice.--The Secretary of the Treasury shall provide
notice to Congress and the public of any waivers made under
this paragraph.
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