[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR4279.144]

[Page 578]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 4279_GUARANTEED LOANMAKING--Table of Contents
 
                  Subpart B_Business and Industry Loans
 
Sec. 4279.144  Appraisals.

    Lenders will be responsible for ensuring that appraisal values 
adequately reflect the actual value of the collateral. All real property 
appraisals associated with Agency guaranteed loanmaking and servicing 
transactions will meet the requirements contained in the Financial 
Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 and 
the appropriate guidelines contained in Standards 1 and 2 of the Uniform 
Standards of Professional Appraisal Practices (USPAP). All appraisals 
will include consideration of the potential effects from a release of 
hazardous substances or petroleum products or other environmental 
hazards on the market value of the collateral. For additional guidance 
and information concerning the completion of real property appraisals, 
refer to subpart A of part 1922 of this title and to ``Standard 
Practices for Environmental Site Assessments: Transaction Screen 
Questionnaire'' and ``Phase I Environmental Site Assessment,'' both 
published by the American Society of Testing and Materials. Chattels 
will be evaluated in accordance with normal banking practices and 
generally accepted methods of determining value.

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