[Code of Federal Regulations]
[Title 7, Volume 12]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1930.129]

[Page 214]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                         AGRICULTURE (CONTINUED)
 
PART 1930--GENERAL--Table of Contents
 
    Subpart C--Management and Supervision of Multiple Family Housing 
                     Borrowers and Grant Recipients
 
Sec. 1930.129  RHS loans.

    RHS loans will be serviced according to program regulations and the 
conditions specified in the borrower's loan resolution. The following 
additional supervisory action by the Servicing Official will also apply 
to assure that the terms of the loan resolution and loan objectives are 
carried out:
    (a) Review of the site development account records for compliance 
with authorized loan expenditures.
    (b) Work with the borrower on the adjustment of sales price, not to 
exceed market value, of the developed lots as they are being sold to 
assure adequate income to repay the loan, pay taxes, accrued interest, 
and any other authorized debt or expenditures.
    (c) Determine that lots are sold only to eligible buyers.
    (d) Work closely with the borrower to plan for the sale of all lots 
prior to the due date of the note.
    (e) Should the RHS borrower default in its loan obligations, the 
account will be serviced according to Sec. 1965.85 of subpart B of part 
1965 of this chapter. The Servicing Official's report to the State 
Director should contain the following information:
    (1) The status of the account, number of lots unsold, and reasons 
for the problem.
    (2) Prospects of selling lots to eligible buyers and a target date 
as to when this can be accomplished, if feasible.
    (3) General comments and recommendations for future servicing of 
this account. Where necessary, liquidation may be recommended.
    (f) State Directors will take the following actions in connection 
with problem RHS accounts:
    (1) Provide additional guidance and assistance as necessary.
    (2) If a satisfactory proposal for selling the lots can be 
developed, the account will be serviced according to program regulations 
and the provisions of this subpart and subpart B of part 1965 of this 
chapter.
    (3) Where no satisfactory proposal for selling the remaining lots 
can be developed, the account will be handled according to 
Sec. 1965.85(e) of subpart B of part 1965 of this chapter for 
liquidation.