[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: 7CFR762.141]



[Page 149-150]

 

                          TITLE 7--AGRICULTURE

 

       CHAPTER VII--FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE

 

PART 762_GUARANTEED FARM LOANS--Table of Contents

 

Sec. 762.141  Reporting requirements.



    Lenders are responsible for providing the local Agency credit 

officer with all of the following information on the loan and the 

borrower:

    (a) When the guaranteed loan becomes 30 days past due, and following 

the lender's meeting or attempts to meet with the borrower, all lenders 

will submit the appropriate Agency form showing guaranteed loan borrower 

default status. The form will be resubmitted every 60 days until the 

default is cured either through restructuring or liquidation.

    (b) All lenders will submit the appropriate guaranteed loan status 

reports as of March 31 and September 30 of each year;

    (c) CLP lenders also must provide the following:

    (1) A written summary of the lender's annual analysis of the 

borrower's operation. This summary should describe the borrower's 

progress and prospects for the upcoming operating cycle. This annual 

analysis may be waived or postponed if the borrower is financially 

strong. The summary will include a description of the reasons an 

analysis was not necessary.

    (2) For lines of credit, an annual certification stating that a cash 

flow projecting at least a feasible plan has been developed, that the 

borrower is in compliance with the provisions of the line of credit 

agreement, and that the previous year income and loan funds and security 

proceeds have been accounted for.

    (d) In addition to the requirements of paragraphs (a), (b), and (c) 

of this section, the standard eligible lender also will provide:

    (1) Borrower's balance sheet, and income and expense statement for 

the previous year.

    (2) For lines of credit, the cash flow for the borrower's operation 

that projects a feasible plan or better for the upcoming operating 

cycle. The standard eligible lender must receive approval from the 

Agency before advancing future years' funds.

    (3) An annual farm visit report or collateral inspection.

    (e) PLP lenders will submit additional reports as required in their 

lender's agreement.



[[Page 150]]



    (f) A lender receiving a final loss payment must complete and return 

an annual report on its collection activities for each unsatisfied 

account for 3 years following payment of the final loss claim.