[Code of Federal Regulations]

[Title 7, Volume 14]

[Revised as of January 1, 2007]

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

[CITE: 7CFR1965.4]



[Page 286-287]

 

                          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 A_Servicing of Real Estate Security for Farm Loan Programs Loans 

                       and Certain Note-Only Cases

 

Sec.  1965.4  FmHA or its successor agency under Public Law 103-354's responsibility.



    The County Supervisor, District Director or other servicing official 

is responsible for informing borrowers of their responsibilities in 

connection with the loan, seeing that the security is being properly 

maintained and accounted for, and servicing the account and security in 

accordance with this subpart. When a borrower fails to maintain, 

protect, or account for the security, as required by the loan documents, 

or makes unauthorized disposition or use of any security, FmHA or its 

successor agency under Public Law 103-354 will institute prompt action 

to protect FmHA or its successor agency under Public Law 103-354's 

interest. The County Supervisor, District Director or other servicing 

official will obtain any needed legal advice from the Office of the 

General Counsel (OGC) through the State Director. Once a



[[Page 287]]



case has been referred to the OGC for legal action, no further action 

will be taken by the County Supervisor, District Director or other 

servicing official without prior clearance from OGC. If the case has 

been referred to the U.S. Attorney, clearance with the U.S. Attorney 

will be obtained through the OGC. All FmHA or its successor agency under 

Public Law 103-354 employees will document actions taken to service a 

loan in the running case record in the borrower's FmHA or its successor 

agency under Public Law 103-354 file(s). When a servicing action affects 

a borrower's account (e.g., a foreclosure action is pending), the 

appropriate FmHA or its successor agency under Public Law 103-354 

servicing official will notify the Finance Office.