[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: 7CFR1965.4]

[Page 321]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS--COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                         AGRICULTURE (CONTINUED)
 
PART 1965--REAL PROPERTY--Table of Contents
 
  Subpart A--Servicing of Real Estate Security for Farm Loan Programs 
                    Loans and Certain Note-Only Cases
 
Sec.  1965.4  FmHA or its successor agency under Public Law 103-354's responsibility.

    The County Supervisor, District Director or other servicing official 
is responsible for informing borrowers of their responsibilities in 
connection with the loan, seeing that the security is being properly 
maintained and accounted for, and servicing the account and security in 
accordance with this subpart. When a borrower fails to maintain, 
protect, or account for the security, as required by the loan documents, 
or makes unauthorized disposition or use of any security, FmHA or its 
successor agency under Public Law 103-354 will institute prompt action 
to protect FmHA or its successor agency under Public Law 103-354's 
interest. The County Supervisor, District Director or other servicing 
official will obtain any needed legal advice from the Office of the 
General Counsel (OGC) through the State Director. Once a case has been 
referred to the OGC for legal action, no further action will be taken by 
the County Supervisor, District Director or other servicing official 
without prior clearance from OGC. If the case has been referred to the 
U.S. Attorney, clearance with the U.S. Attorney will be obtained through 
the OGC. All FmHA or its successor agency under Public Law 103-354 
employees will document actions taken to service a loan in the running 
case record in the borrower's FmHA or its successor agency under Public 
Law 103-354 file(s). When a servicing action affects a borrower's 
account (e.g., a foreclosure action is pending), the appropriate FmHA or 
its successor agency under Public Law 103-354 servicing official will 
notify the Finance Office.