Payment of losses on guaranteed loans

7 U.S. Code § 2005. Payment of losses on guaranteed loans

(a) Payments to lenders
(1) Requirement
Within 3 months after a court of competent jurisdiction confirms a plan of reorganization under chapter 12 of title 11, for any borrower to whom a lender has made a loan guaranteed under this chapter, the Secretary shall pay the lender an amount estimated by the Secretary to be equal to the loss incurred by the lender for purposes of the guarantee.
(2) Payment toward loan guarantee
Any amount paid to a lender under this subsection with respect to a loan guaranteed under this chapter shall be treated as payment towards satisfaction of the loan guarantee.
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