[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: 7CFR1965.58]

[Page 355-356]
 
                          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.  1965.58  Responsibilities.

    (a) District Directors will: (1) Keep sufficiently informed of 
borrower operations to know whether they are operating successfully and 
complying with their obligations to the FmHA or its successor agency 
under Public Law 103-354,
    (2) Furnish borrowers with information, notices, reminders, fair 
housing posters, advice and assistance, and take other actions regarding 
the loan obligations and compliance therewith as considered necessary to 
determine whether borrowers are operating successfully, are complying 
with their loan obligations, and are likely to continue with compliance. 
This includes conducting all civil rights compliance reviews to 
determine compliance with all appropriate legislation regarding 
nondiscrimination in federally financed programs, in accordance with 
Subpart E of Part 1901 of this chapter,
    (3) Promptly report to the State Director the failure of any 
borrower to comply with the terms and conditions of its agreements with 
FmHA or its successor agency under Public Law 103-354 after 
noncompliance has been brought to the attention of the borrower and 
recommended corrective action has not been taken,
    (4) Furnish training and technical guidance not readily available 
through other sources to borrowers to protect the FmHA or its successor 
agency under Public Law 103-354's interests. This training and guidance 
may relate to business operations, project management, personnel 
training, membership activities, fair housing requirements and policy, 
or any other phase which vitally affects the borrower's operations,
    (5) Maintain the Management Card System according to FmHA or its 
successor agency under Public Law 103-354 Instruction 1905-A (available 
in any FmHA or its successor agency under Public Law 103-354 office) to 
assure prompt compliance by borrowers with FmHA or its successor agency 
under Public Law 103-354 requirements relating to repayments, budgets 
and reports, taxes, insurance and bond renewals, reports required by 
State law or regulations as indicated in State Supplements, security 
instrument expirations, and other items of loan and security servicing,
    (6) Maintain the official borrower case files according to the 
requirements of FmHA or its successor agency under Public Law 103-354 
Instruction 2033-A (available in FmHA or its successor agency under 
Public Law 103-354 State and District offices), and MISTR according to 
FmHA or its successor agency under Public Law 103-354 Instruction 2033, 
and
    (7) Promptly collect FmHA or its successor agency under Public Law 
103-354 loan payments and service security for the FmHA or its successor 
agency under Public Law 103-354 loans.
    (b) State Director will:
    (1) Coordinate and direct loan servicing activities relating to 
borrowers and perform other functions as prescribed by this subpart.
    (2) Delegate in writing any authority delegated to the State 
Director in this subpart unless otherwise restricted, to only those 
State Office staff members who, in the opinion of the State Director, 
have been adequately trained and who demonstrate their knowledge in 
understanding and administering the MFH policies and procedures of FmHA 
or its successor agency under Public Law 103-354. The individual 
delegation of responsibility and authority may be limited or expanded in 
scope, or revoked, as deemed appropriate by the State Director and will 
be prepared according to FmHA or its successor agency under Public Law 
103-354 Instruction 2006-F (available in any FmHA or its successor 
agency under Public Law 103-354 office). Unless specifically authorized 
elsewhere in this subpart, the

[[Page 356]]

authorities of the State Director may not be delegated below the State 
Office staff level. (The State Office staff does not include District 
Office staff for the purposes of this subpart.)
    (3) Ensure that District Directors carry out their responsibilities 
for loan servicing and provide the District Office with appropriate 
technical guidance, training and follow-up supervision to service loans.
    (4) Coordinate as appropriate with OGC.
    (5) Maintain necessary liaison with State and local officials.