[Code of Federal Regulations]
[Title 7, Volume 14]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1956.96]

[Page 262]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS--COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                         AGRICULTURE (CONTINUED)
 
PART 1956--DEBT SETTLEMENT--Table of Contents
 
 Subpart B--Debt Settlement--Farm Loan Programs and Multi-Family Housing
 
Sec.  1956.96  Delinquent adjustment agreements.

    The employee in charge of the account should notify debtors in 
advance of the due dates of payments on debt settlement agreements. The 
employee in charge of the account should also promptly contact debtors 
who are delinquent on debt settlement payments and find out their 
reasons for not making payments when due, and their plans for completing 
their agreements. In instances in which the debtor is delinquent under 
the terms of the debt settlement and is likely to be financially unable 
to meet the terms of the debt settlement agreement, FmHA or its 
successor agency under Public Law 103-354 may cancel the existing 
agreement and process a different type of settlement more consistent 
with the debtor's repayment ability, provided the facts in the case 
justify such action. This settlement will be processed in accordance 
with the procedure for the new agreement. An extension may be given by 
FmHA or its successor agency under Public Law 103-354 to extend for 90 
days the time for making the payments when the circumstances of the case 
justify an extension. Extensions for a greater period of time may be 
made by the State Director upon recommendation of the County Committee 
(for FP loans) and the employee in charge of the account. A decision not 
to extend the time for making payments is not appealable. When an 
adjustment agreement is cancelled, the debtor will be notified of the 
reasons in writing. The cancellation of an adjustment offer is 
appealable. If an agreement is cancelled, any payments received shall be 
retained as payments on the debt owed at the time of the adjustment 
offer.

[58 FR 21345, Apr. 21, 1993]