(ii) The best lien obtainable on real estate when funds are advanced for the payment of interest and principal on the debt secured by a lien on such property in order to bring the account current. (iii) The best lien obtainable on all other farm real estate owned by the applicant and on any other real estate owned by the applicant when necessary to adequately secure the loan. (3) Amounts not in excess of $1,000 advanced for any of the purposes outlined in paragraph (d) (2) (iv) of this section, may be secured as prescribed in subparagraph (1) of this paragraph, if the loan approving official determines that the loan can be secured adequately in that manner. (f) Loan processing. (1) Applications for loans will be received and processed for consideration by County Committees under the provisions of Subpart A of Part 301 of this chapter, except that Form FHA-197, "Application for Farmers Home Administration Services," will be used for both initial and subsequent loans. (2) When the loan will be made to a tenant and the proposed operations involve adjustments or practices that are not permissible under the terms of the lease, or when it appears necessary for other reasons, the landlord must agree in writing for the tenant to carry out the planned operations. This agreement may be obtained through a revision of the lease, by letter, the signature of the landlord on the farm plan, or any other satisfactory method. In addition, when the loan will include funds for land development or other improvements to the real estate, the tenant must have a written lease for a sufficient period and under terms that will enable him to obtain reasonable returns on his investment. Furthermore, the lease must provide for compensating the tenant for any unexhausted value of the improvements upon termination of the lease. (3) Applications for loans which are to be secured primarily by crop and chattel mortgages, even though real estate liens may be taken as additional security, will be processed in accordance with Part 342 of this chapter, except as follows: (i) Sections 342.1, 342.2, 342.3 (a) and (b) of this chapter are not applicable. (ii) Form FHA-910B, “County Committee Certification (Emergency Loans Great Plains)," will be used in lieu of (iii) Form FHA-203, "Promissory (iv) Section 342.3 (h) of this chapter is not applicable. Instead, Form FHA-5, "Loan Authorization," will be prepared in accordance with § 381.9 (c) of this chapter. (v) Section 342.3 (i) of this chapter (vi) When a real estate lien is to be (4) Loans made for farm enlargement, (i) Where funds are being advanced for farm enlargement purposes, options will be obtained in accordance with the provisions of Part 331 of this chapter. (ii) An appraisal of the farm will be made and reported on Form FHA-596, UNIVERSITT UT MIGNIVAN LIBRARIES "Appraisal Report," by an employee authorized to make appraisals. (iii) Title evidence will be obtained in the same manner as outlined for Soil and Water Conservation loans in § 352.1 (d) of this chapter. Loan dockets will be developed in accordance with Part 332 of this chapter except as follows: (a) Sections 332.2, 332.3 and 332.4 of this chapter are not applicable. (b) Section 332.6 of this chapter is amended hereby by substituting Form FHA-910B for Form FHA-491. (c) Section 332.7 of this chapter is not applicable. Instead, loans will be reviewed and acted upon by the loan approval official in accordance with § 342.4 of this chapter. If the loan is approved, the title evidence required will be obtained and when it is determined that the necessary security requirements can be met, Forms FHA-5 and FHA-203 will be forwarded to the Finance Office for issuance of the loan check. (d) Section 332.8 of this chapter is not applicable. However, when farm enlargement is involved, the option will be accepted following loan approval on Form FHA-191, "Acceptance of Option (Vendor to Furnish Abstract)," or FHA191B, "Acceptance of Option (Vendor to Furnish Title Insurance)," whichever is applicable. (e) Sections 332.9 and 332.12 of this chapter are not applicable and § 332.13 of this chapter is not applicable unless title insurance is used, in which case only those portions of this section dealing with title insurance and closing instructions are applicable. (iv) The borrower will keep the buildings on the property insured against loss or damage by fire, lightning, windstorm, hail, and other hazards and natural catastrophies as required by the Farmers Home Administration. The (g) Loan approval authority. loan approval authority delegated pursuant to § 381.12 of this chapter is applicable. (h) Servicing. Supervised loans made under this subpart will be serviced in accordance with the authorities, policies, and procedures applicable to the servicing of adjustment Production and Subsistence loans, except that Part 364 of this chapter is not applicable. Non-supervised loans will be serviced as indi.. cated under § 390.4. SUBPART B- AUTHORITY: der sec. 41, 50 1015. Inter as amended: § 390.21 vides the thorities f gram of justmen of Publ tween I in cou which part A by the of the sion i area, i been severa indebt over farm § 390.24 Processing adjustments. All requests for assistance under this program will be made to the County Supervisor. (a) Any farm debtor requesting assistance hereunder will be required to furnish complete information concerning his debts, financial condition, and farming or livestock operations. If the debtor is applying for loan assistance from the Farmers Home Administration, or recently has applied for such assistance, the information on Form FHA14, "Farm and Home Plan," should be sufficient for this purpose. If the debtor is not applying for loan assistance and has not so applied recently, he will be required to complete and execute Form FHA-197A and the title of the form will be changed to read: "Request for Debt Adjustment Assistance." When a creditor of a farm debtor requests debt adjustment assistance, the debtor will be advised and asked to furnish the necessary information about his situation, as indicated above, if it is not already available. (b) If the information developed on Form FHA-14 or Form FHA-197A shows a need for an adjustment of debts, the information will be made known to the creditors involved, who will be invited to make proposals for the adjustment of the debts they hold. This preliminary contact with creditors may be made by the debtor, the County Supervisor, or a member or members of the Farmers Home Administration County Committee. If the proposals made in response to this contact are adequate for reasonable and equitable adjustment, the proposals will be formalized into written agreements in accordance with paragraph (d) of this section. (c) When a satisfactory adjustment cannot be reached in accordance with paragraph (b) of this section, all creditors involved will be invited to attend a meeting of the County Committee for the purpose of discussing the debtor's situation and attempting to arrive at adjustments within the debtor's ability to pay. Any satisfactory agreements reached at such a meeting will be formalized into written agreements in accordance with paragraph (d) of this section. (d) Each satisfactory agreement reached for the adjustment of a debt within the debtor's ability to pay will be documented on Form FHA-241, "Debt Adjustment Agreement," and executed by both parties. Form FHA-241 will be prepared and executed in an original and two copies. The original will be delivered to the debtor, one copy will be delivered to the creditor, and the copy will be filed in the County Office. CHAPTER IV-COMMODITY STABILIZATION SERVICE AND COMMODITY CREDIT CORPORATION DEPARTMENT OF AGRICULTURE Part 400 402 405 406 SUBCHAPTER A- GENERAL REGULATIONS AND POLICIES Rules of Contract Disputes Board for Commodity Credit Corporation. Loans, purchases and other operations. Rewards. SUBCHAPTER B-LOANS, PURCHASES, AND OTHER OPERATIONS CROSS REFERENCE: For regulations relative to standards, Inspections, and marketing pracLices: See 7 CFR Chapter 1. |