[Code of Federal Regulations]

[Title 7, Volume 7]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR762.128]



[Page 145-146]

 

                          TITLE 7--AGRICULTURE

 

       CHAPTER VII--FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE

 

PART 762_GUARANTEED FARM LOANS--Table of Contents

 

Sec. 762.128  Environmental and special laws.



    (a) Environmental requirements. The requirements found in part 1940, 

subpart G, of this title must be met for guaranteed OL and FO. CLP and 

PLP lenders may certify that they have documentation in their file to 

demonstrate compliance with paragraph (c) of this section. Standard 

eligible lenders must submit evidence supporting compliance with this 

section.

    (b) Determination. The Agency determination of whether an 

environmental problem exists will be based on:

    (1) The information supplied with the application;

    (2) The Agency Official's personal knowledge of the operation;

    (3) Environmental resources available to the Agency including, but 

not limited to, documents, third parties, and governmental agencies;

    (4) A visit to the farm operation when the available information is 

insufficient to make a determination;

    (5) Other information supplied by the lender or loan applicant upon 

Agency request. If necessary, information not supplied with the 

application will be requested by the Agency.

    (c) Special requirements. Lenders will assist in the environmental 

review process by providing environmental information. In all cases, the 

lender must retain documentation of their investigation in the loan 

applicant's case file.

    (1) A determination must be made as to whether there are any 

potential impacts to a 100 year floodplain as defined by Federal 

Emergency Management Agency floodplain maps, Natural Resources 

Conservation Service data, or other appropriate documentation.

    (2) The lender will assist the borrower in securing any applicable 

permits or waste management plans. The lender may consult with the 

Agency for guidance on activities which require consultation with State 

regulatory agencies, special permitting or waste management plans.

    (3) The lender will examine the security property to determine if 

there are any structures or archeological sites which are listed or may 

be eligible for listing in the National Register of Historic Places. The 

lender may consult with the Agency for guidance on which situations will 

need further review in accordance with the National Historical 

Preservation Act and part 1940, subpart G, and part 1901, subpart F, of 

this title.

    (4) The loan applicant must certify they will not violate the 

provisions of Sec. 363 of the CONACT, the Food Security Act of 1985, 

and Executive Order 11990 relating to Highly Erodible Land and Wetlands.

    (5) All lenders are required to ensure that due diligence is 

performed in conjunction with a request for guarantee of a loan 

involving real estate. Due diligence is the process of evaluating real 

estate in the context of a real estate transaction to determine the 

presence of contamination from release of hazardous substances, 

petroleum products, or other environmental hazards and determining what 

effect, if any,



[[Page 146]]



the contamination has on the security value of the property. The Agency 

will accept as evidence of due diligence the most current version of the 

American Society of Testing Materials (ASTM) transaction screen 

questionnaire available from 100 Barr Harbor Drive, West Conshohocken, 

Pennsylvania 19428-2959, or similar documentation, approved for use by 

the Agency, supplemented as necessary by the ASTM phase I environmental 

site assessments form.

    (d) Equal opportunity and nondiscrimination. (1) With respect to any 

aspect of a credit transaction, the lender will not discriminate against 

any applicant on the basis of race, color, religion, national origin, 

sex, marital status, or age, provided the applicant can execute a legal 

contract. Nor will the lender discriminate on the basis of whether all 

or a part of the applicant's income derives from any public assistance 

program, or whether the applicant in good faith, exercises any rights 

under the Consumer Protection Act.

    (2) Where the guaranteed loan involves construction, the contractor 

or subcontractor must file all compliance reports, equal opportunity and 

nondiscrimination forms, and otherwise comply with all regulations 

prescribed by the Secretary of Labor pursuant to Executive Orders 11246 

and 11375.

    (e) Other Federal, State and local requirements. Lenders are 

required to coordinate with all appropriate Federal, State, and local 

agencies and comply with special laws and regulations applicable to the 

loan proposal.