[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: 7CFR1965.51]

[Page 352-353]
 
                          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 B--Security Servicing for Multiple Housing Loans
 
Sec.  1965.51  General.

    Source: 49 FR 49590, Dec. 21, 1984, unless otherwise noted.


    This subpart prescribes the policies, procedures, and authorizations 
for servicing and liquidating all Farmers Home Administration or its 
successor agency under Public Law 103-354 (FmHA or its successor agency 
under Public Law 103-354) multiple housing type loans and labor housing 
grants. These loans include Rural Rental Housing (RRH), Rural 
Cooperative Housing (RCH), Rural Housing Site (RHS), and Farm Labor 
Housing (LH). The servicing functions described in this subpart are for 
the purpose of assisting the borrower in meeting the objectives of the 
loan, repaying loans on schedule, complying with FmHA or its successor 
agency under Public Law 103-354 agreements and regulations, protecting 
the interest of FmHA or its successor agency under Public Law 103-354, 
and maintaining the security property. Borrowers will be required to pay 
their debts to the FmHA or its successor agency under Public Law 103-354 
and other creditors according to their agreements. Borrowers shall be 
required to operate their facilities according to FmHA or its successor 
agency under Public Law 103-354 regulations and applicable State and 
local laws and regulations. State Directors with the assistance of the 
Office of General Counsel (OGC) should issue necessary State Supplements 
to assure compliance with State laws. After

[[Page 353]]

careful analysis, and borrower in default who does not evidence 
prospects of attaining successful operations within a reasonable time 
will have its loan(s) liquidated according to authorizations contained 
in this subpart and Subpart A of Part 1955 of this chapter.