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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 7:7:12.1.2.1.2.1.1.1 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | A | Subpart A—Real Property Insurance | § 1806.1 General. | RHS | [41 FR 34571, Aug. 16, 1976, as amended at 61 FR 59777, Nov. 22, 1996; 72 FR 64121, Nov. 15, 2007; 80 FR 9864, Feb. 24, 2015] | (a) Authority. This subpart sets forth the policies and procedures regarding insurance requirements on real property which serves as security for a debt under the Multi-Family Housing Programs of the Rural Housing Service (RHS), herein referred to as the “Agency.” This subpart is inapplicable to Farm Service Agency, Farm Loan Programs. (b) Borrower to furnish insurance. The real estate mortgage executed by the borrower provides that he will furnish and continually maintain and pay for insurance on buildings situated or constructed on the property with companies, in amounts, and on terms and conditions satisfactory to RD until the loan is repaid. (c) Borrower's selection of company. The borrower may select the insurance company provided that the company and insurance policy comply with all the requirements set forth in this Instruction. (d) Responsibility. The County Supervisor is responsible for taking all actions in connection with insurance as may be necessary to protect the security interest of RD. Any unusual situation that may arise with respect to obtaining or servicing insurance should be referred to the State Director. The State Director will refer any questions of a legal nature to the Office of the General Counsel (OGC). (e) Use of Form RD 426-1, “Valuations of Buildings.” The minimum insurance required will be indicated in the appraisal report by the employee who makes the appraisal of property that includes insurable buildings. In the case where no real estate appraisal is required or the appraisal report does not indicate the minimum insurance coverage, Form RD 426-1 will be prepared by the County Supervisor. Reevaluation of the buildings will not be done on appraisal reports; however, when new buildings are constructed or values increase or decrease materially and reevaluation is necessary to properly reflect the buildings' security interest of RD, the County Supervisor will prepare or revise Form RD 426-1 as appropriate. Changes made on an existing Form RD 426-1 will be dated and init… | |||
| 7:7:12.1.2.1.2.1.1.2 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | A | Subpart A—Real Property Insurance | § 1806.2 Companies and policies. | RHS | [41 FR 34571, Aug. 16, 1976, as amended at 41 FR 49990, Nov. 12, 1976; 42 FR 33262, June 30, 1977; 43 FR 56013, Nov. 30, 1978; 44 FR 45115, Aug. 1, 1979; 51 FR 17921, May 16, 1986; 54 FR 35869, Aug. 30, 1989; 56 FR 6945, Feb. 21, 1991; 80 FR 9864, Feb. 24, 2015] | Property insurance policies or other evidence of insurance will be accepted from borrowers when the requirements outlined herein are complied with fully. (a) Companies. It is desirable that companies be licensed to do business in the particular State or other jurisdiction where the property is located, or that they be otherwise authorized by law to transact business within such State or other jurisdiction (hereinafter called “State”). If the required insurance is not available locally at comparable rates from an insurance company licensed or otherwise authorized to do business in the State, insurance may be accepted from another company if (1) the OGC advises that policies issued by such company will not be rendered unenforceable by virtue of the company's failure to be licensed or otherwise authorized to transact business in the State and that the company is a legal entity which may be sued in the State where the insured property is located, and (2) the State Director determines that the company is reputable and financially sound. In making the above determinations, the State Director will consider all relevant available information such as that which may be obtained from financial statements, Best's Insurance Reports, State insurance authorities, and other lending institutions. (b) Insurance policies —(1) Standard policies. If a standard fire insurance policy has been adopted for the State, it should be used unless State statutes exempt the company from the regulations requiring its use. The standard policy is one containing substantially the same standard provisions adopted or recommended by legislative action or by order of the supervisory insurance authorities of the State in which the security is located. (2) Other policies. To be acceptable, any other insurance policies must conform to the requirements of this Instruction. (i) “Homeowner's” policies, “All Physical Loss” policies, “Broad Form” policies, and other such all-inclusive policies are acceptable if they otherwise meet the requirements o… | |||
| 7:7:12.1.2.1.2.1.1.3 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | A | Subpart A—Real Property Insurance | § 1806.3 Coverage requirements. | RHS | [41 FR 34571, Aug. 16, 1976, as amended at 56 FR 6945, Feb. 21, 1991; 80 FR 9865, Feb. 24, 2015] | The County Supervisor should encourage the borrower for his own protection to insure for their depreciated replacement value (actual cash value) all essential buildings. Essential buildings include the dwelling and any other buildings that are necessary for the operation of the property or that provide income to assure orderly repayment of the loan. If insurance is for less than the depreciated replacement value of all essential buildings, the County Supervisor will see that the coverage is obtained on one or more of the most essential buildings. The minimum amount of coverage will be furnished as prescribed below: (a) Loans secured by a first lien. (1) When the unpaid balance of the Agency loan secured by a first lien is equal to or greater than the depreciated replacement value of the essential buildings, or the cost of adequate essential buildings which can be constructed for amounts less than the depreciated replacement value of the existing buildings, the essential buildings will be insured, to the nearest multiple of insurance that is available, for the lesser of (i) their depreciated replacement value, or (ii) the cost of constructing adequate essential buildings. For example, if insurance is available in only multiples of $1,000, the minimum insurance required on an essential building valued at $6,600 would be $7,000, and that required on an essential building valued at $6,400 would be $6,000. (2) When the unpaid balance of the loan is less than the sum of the depreciated replacement value of the essential buildings to be insured, the total amount of insurance must be at least equal to the lesser of (i) the unpaid balance of the loan, or (ii) the cost of adequate essential buildings which can be constructed for amounts less than the depreciated replacement value of the existing buildings to be insured. (3) When, by the use of loan funds or otherwise, buildings are erected or substantial improvements are made to essential buildings, the amount of insurance will be adjusted in accordance with paragraph… | |||
| 7:7:12.1.2.1.2.1.1.4 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | A | Subpart A—Real Property Insurance | § 1806.4 Examining and general servicing of insurance. | RHS | [41 FR 34571, Aug. 16, 1976, as amended at 42 FR 33262, June 30, 1977; 50 FR 39638, Sept. 30, 1985; 54 FR 35869, Aug. 30, 1989; 57 FR 36590, Aug. 14, 1992; 69 FR 69103, Nov. 26, 2004; 80 FR 9865, Feb. 24, 2015] | (a) Examination by county office of policies, endorsements, binders, and other evidence of insurance. Upon receipt in the County Office of a policy, endorsement, binder, or other evidence of insurance, submitted by a borrower, it will be examined promptly for compliance with the requirements of this Instruction. If the evidence of insurance is found to be acceptable, it will be placed in the borrower's case folder. (1) Unacceptable policies. (i) When the borrower furnishes any policy or other evidence of insurance which does not meet the requirements of this Instruction such policy or other evidence of insurance will be returned to the borrower with the reasons why it is not acceptable. (ii) If the borrower does not furnish acceptable insurance by the date the previous policy expired or was canceled, the County Supervisor will proceed as provided in § 1806.6. (2) Expiration records and notices. (i) In cases other than those involving FP or section 502 RH borrowers, the County Supervisor will notify the borrower of the expiration of his insurance at least 30 days in advance of such expiration unless he has received written evidence that the insurance has been renewed. (ii) FP and Section 502 RH borrowers will be informed during the tenth month after the date of loan closing of their responsibility to carry insurance. Form RD 426-4 will be sent to these borrowers, regardless of whether there is evidence that the insurance has been renewed. Thereafter, the County Supervisor will not be required to further determine whether the borrower has adequately maintained insurance; however, if a further notice of expiration is received in the County Office, the County Supervisor will again notify the borrower by using RD 426-4 of his responsibility. (3) Release of mortgage interest. When the borrower's loan has been paid in full and the satisfaction or release of the mortgage has been executed, the County Supervisor or his delegate will execute the following Release of Mortgage Interest on the mortgage clause att… | |||
| 7:7:12.1.2.1.2.1.1.5 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | A | Subpart A—Real Property Insurance | § 1806.5 Losses. | RHS | [41 FR 34571, Aug. 16, 1976, as amended at 50 FR 39638, Sept. 30, 1985; 80 FR 9865, Feb. 24, 2015] | (a) Protecting property. It is the responsibility of the borrower to immediately notify the County Supervisor and insurance company or agent of any loss or damage to insured property and collect the amount of the loss. When the County Supervisor learns of a loss to property which secures an Agency loan, he will: (1) Check the borrower's casefile for an insurance policy or other evidence of insurance. When a policy or other evidence of insurance has not been retained by the Agency, such as for FP and section 502 RH borrowers, the County Supervisor will determine whether the property was insured and whether the Agency was named as mortgagee in the insurance policy. (2) Determine that the borrower has taken such steps as are necessary to protect the interest of the Agency in the security property against further damage. When serious problems arise with respect to protecting the property from further damage, the borrower cannot or will not arrange adequate protection for the property, or when legal action appears to be necessary, the County Supervisor will arrange for emergency protection and immediately refer the case with complete information to the State Director. (b) Loss covered by insurance. (1) If the Agency is listed as mortgagee in the insurance policy, the County Supervisor will collect the amount of the loss and may consent to the borrower using funds to repair or replace damaged or destroyed property or to apply loss proceeds to his loan account or to any prior liens that might exist in the order of their priority. (2) If the Agency is not listed as mortgagee in the insurance policy, the County Supervisor will contact the borrower to determine whether he has received the loss proceeds. If the borrower has received the loss proceeds but not yet paid for improvements to repair or replace the property, or has not received the loss proceeds the County Supervisor will: (i) Notify the insurance company in writing of the Agency's interest in the security property and request that the loss proceeds be ma… | |||
| 7:7:12.1.2.1.2.1.1.6 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | A | Subpart A—Real Property Insurance | § 1806.6 Failure of borrower to provide insurance. | RHS | [41 FR 34571, Aug. 16, 1976, as amended at 42 FR 33263, June 30, 1977; 43 FR 34430, Aug. 4, 1978; 50 FR 39638, Sept. 30, 1985; 56 FR 6945, Feb. 21, 1991; 57 FR 36590, Aug. 14, 1992; 67 FR 78326, Dec. 24, 2002; 80 FR 9865, Feb. 24, 2015] | When a borrower fails to provide and maintain property insurance which meets the requirements set forth in § 1806.2 of this subpart, every effort will be made to have the borrower provide coverage acceptable to the Agency. It will be emphasized that under the terms of the security instrument, it is the borrower's responsibility to provide and maintain proper insurance coverage. Existing borrowers required to escrow will be notified by letter at least 90 days prior to initiating escrowing for insurance. Failure to provide insurance is a nonmonetary default and will be a consideration in determining if the loan is to be continued. For FP or SFH borrowers not required to escrow, the County Supervisor will obtain insurance coverage and voucher for the insurance premium only in cases where: An unusual and severe hazard, such as recurring fires or unstable ground conditions, exists, or, an SFH borrower on a moratorium is unable to pay the insurance premium and the borrower requests that the Agency pay the premium. For SFH borrowers required to escrow, force placed insurance will be obtained if the borrower fails to provide acceptable insurance. Borrowers being phased into escrow will be given at least 30 days to obtain coverage, after which force placed insurance will be obtained. If the escrow account contains insufficient funds to pay the insurance when due, the County Supervisor will request the borrower to pay an amount equal to the difference between the premium due and the escrow balance in a lump sum within 30 days after notification. If the borrower fails to remit the amount requested, the amount will be advanced and charged to the borrower's account as a recoverable cost. The amortization period for an advance due to an escrow shortage will be one year. Insurance coverage shall be provided continuously unless the property is acquired by the Agency. The cost of obtaining such a policy shall be advanced and charged to the borrower's account as a recoverable cost. Amortization of the charge will be handled in a… | |||
| 7:7:12.1.2.1.2.2.1.1 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.21 General. | RHS | [39 FR 17093, May 13, 1974, as amended at 69 FR 69103, Nov. 26, 2004; 72 FR 64121, Nov. 15, 2007; 80 FR 9865, Feb. 24, 2015] | (a) Authority. This subpart prescribes the policies and procedures to be followed in implementing the National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973. The provisions of these Acts are applicable to Rural Development and Farm Service Agency, herein referred to as the “Agency” authorities permitting financing of buildings of any type now located in or to be located in special flood or mudslide prone areas as designated by the Federal Insurance Administration (FIA) of the Department of Housing and Urban Development (HUD), and any machinery, equipment, fixtures and furnishings contained or to be contained therein. This subpart does not apply to Farm Service Agency, Farm Loan Programs and to Rural Rental Housing, Rural Cooperative Housing, or Farm Labor Housing programs of the Rural Housing Service. (b) Background. The Congress has found that annual losses throughout the nation caused by floods and mudslides are increasing at an alarming rate, largely as a result of the accelerated development and concentration of populations in areas subject to floods and mudslides. The availability of Federal funds in the form of loans, grants, guarantees, insurance and other forms of financial assistance are often determining factors in the utilization of land and the location and construction of industrial, commercial and residential facilities. (c) Scope. The National Flood Insurance Program (the program) was authorized and created because the private insurance industry has been unable to provide insurance coverage at reasonable prices for such natural disasters as floods and mudslides. Subsidized and affordable insurance has been made available under the Act through an agreement between the Federal Insurance Administration and the National Flood Insurers Association. | |||
| 7:7:12.1.2.1.2.2.1.2 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.22 Areas of responsibility. | RHS | [39 FR 17093, May 13, 1974, as amended at 80 FR 9865, Feb. 24, 2015] | (a) Federal Insurance Administration ( FIA ). (1) Identify and publish information with respect to all areas in the country which are subject to floods and mudslides and designate those areas on Flood Hazard Boundary maps. (2) Notify affected communities of their designations and encourage them to adopt and enforce land use and other control measures and to adopt ordinances or laws which will regulate and control construction in areas designated as having special flood or mudslide hazards. (3) Make flood insurance available at reasonable rates in sufficient amounts, within the statutory limits, to adequately protect owners against loss to their buildings and contents when those buildings are located in or will be located in designated special flood and mudslide prone areas in communities participating in the National Flood Insurance Program. (b) The Agency. The State Director, after being notified by the National Office or FIA of designated flood or mudslide hazard areas and receiving flood hazard boundary maps identifying the hazard areas, FIA insurance rate charts, or other information concerning the program, will inform the appropriate County Supervisors and provide them the maps, rate charts, and other relevant information concerning the program in areas they serve. Permanent records indicating the date a community was notified as containing identified flood hazard areas, communities participating in the program, and communities eligible to participate but not participating in the program will be maintained in the State Office. County Supervisors will notify, in writing, those borrowers whose insurable buildings are located in designated flood or mudslide hazard areas of the availability of national flood insurance and encourage them to obtain flood insurance to protect their and the Government's financial interest. (c) Community. Communities are required to participate in the National Flood Insurance Program within 1 year after notification of its formal identification as a community containing one… | |||
| 7:7:12.1.2.1.2.2.1.3 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.23 Definitions. | RHS | [39 FR 17093, May 13, 1974, as amended at 80 FR 9865, Feb. 24, 2015] | For the purpose of this subpart, the following definitions apply: (a) Financial assistance means any form of direct, insured or guaranteed loan, including reamortization and assumption on new terms of any loan, any form of grant, or other form of direct or indirect assistance extended by the Agency. (b) Financial assistance for acquisition or construction purposes means any form of Federal financial assistance which is intended in whole or in part for the acquisition, construction, reconstruction, or substantial improvement of any building and for any machinery, equipment, fixtures and furnishings contained or to be contained in such buildings. (c) Community means any state or political subdivision thereof, such as county, parish, township, city or other local government which has zoning and building code jurisdiction over a particular area having special flood hazards. (d) Eligible community means a community in which the Administrator of FIA has authorized the sale of flood insurance under the program. (e) Designated special flood or mudslide prone area means those areas in a community subject to flood or mudslide which have been identified by flood hazard boundary maps or those areas not identified by maps but where, due to emergency, the FIA Administrator has authorized the sale of flood insurance. (f) Flood means a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of streams, rivers, or other inland water, the collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels, or abnormally high tidal water or rising coastal waters resulting from severe storms, hurricanes, or tidal waves resulting from volcano eruptions or earthquakes. (g) Mudslide or mudflow means a major occurrence involving the appearance of a large river or flow of “liquid mud” down a hillside, usually as a result of earlier brush… | |||
| 7:7:12.1.2.1.2.2.1.4 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.24 Eligibility. | RHS | In addition to an applicant meeting the requirements for the type of financial assistance requested, the following requirements for eligibility of applicants for financial assistance for acquisition and construction purposes in designated special flood and mudslide prone areas must be met: (a) If flood insurance is available, to be eligible after March 1, 1974, the applicant must have purchased a flood insurance policy at the time the loan or grant is closed. (b) Applicants will not receive financial assistance in those communities that have been notified as having special flood and mudslide prone areas and where flood insurance is not available within 1 year after such notification or by July 1, 1975, whichever is later. | ||||
| 7:7:12.1.2.1.2.2.1.5 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.25 Conditions. | RHS | [39 FR 17093, May 13, 1974, as amended at 52 FR 8002, Mar. 13, 1987; 56 FR 6945, Feb. 21, 1991; 80 FR 9865, Feb. 24, 2015] | The Agency financial assistance may be extended to eligible applicants meeting the eligibility requirements of § 1806.24 of this subpart, provided the following conditions are also met: (a) Dwelling and multi-unit housing facilities. (1) If the financial assistance is to buy a dwelling or multi-unit housing facility: (i) The first floor elevation of the habitable space of the dwelling or housing unit must be above the 100-year flood level. (ii) The housing must be served by public utilities and facilities, such as sewer, gas, electrical and water systems that are located and constructed to minimize or eliminate flood damage, or have an onsite water supply system and waste disposal system located so as to avoid impairment of such systems and contamination from the waste disposal system to the water supply system from flooding. (2) If the financial assistance is to build or provide substantial improvement, the requirements of paragraph (a)(1) of this section must be met and all construction must meet requirements of the applicable development standards, and: (i) A building permit must be issued by the appropriate governing officials having jurisdiction in the area and compliance must be had with the zoning code or other established legal requirements of the area for reducing or eliminating flood or mudslide damage. (ii) The structure must be designed and anchored to prevent flotation, collapse or lateral movement of the structure. (iii) Construction materials and utility equipment that are resistant to flood damage must be used. (iv) Construction methods and practices that will minimize flood damage must be followed. (3) If the financial assistance is to make minor repairs, the conditions of paragraphs (a)(1) (i) and (ii) and (2) (i), (ii) and (iii) of this section must be met or the building must have existed on the site prior to the date the area was identified as having special flood or mudslide hazards and the loan approval official must determine that the dwelling is suitable as a residence. (4) Wh… | |||
| 7:7:12.1.2.1.2.2.1.6 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.26 Coverage and premium rates. | RHS | Exhibit A sets forth limits of coverage and chargeable premium rates under the program. Insurance policies under the program can be obtained from any licensed property insurance agent or broker serving the eligible community or from the National Flood Insurers Association Serving Company (Serving Company) for the state. The Servicing Company for each state is shown in exhibit B. | ||||
| 7:7:12.1.2.1.2.2.1.7 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.27 Acceptable policies and servicing. | RHS | The general acceptance of policies and servicing of insurance will be performed in accordance with Subpart A of this part. Any unusual situations that may arise with respect to obtaining or servicing flood insurance should be referred to the State Director. The State Director will attempt to resolve any problems concerning the flood insurance program in the state with the Servicing Company. Flood hazard boundary maps, insurance rate tables, the insurability of specific structures, and other information concerning the program may be obtained from the Servicing Company. Difficulties in administering the program which the State Director is unable to resolve should be referred to the National Office for Assistance. | ||||
| 7:7:12.1.2.1.2.2.1.8 | 7 | Agriculture | XVIII | A | 1806 | PART 1806—INSURANCE | B | Subpart B—National Flood Insurance | § 1806.28 Borrowers required to escrow. | RHS | [56 FR 6946, Feb. 21, 1991, as amended at 67 FR 78326, Dec. 24, 2002] | For borrowers required to use escrow accounts for the payment of real estate taxes and insurance, the flood insurance premium will be paid when due from funds contained in the escrow account. If the escrow account contains insufficient funds to pay the flood insurance premium when due, the County Supervisor will request the borrower to pay an amount equal to the difference between the premium due and the escrow balance in a lump sum within 30 days after notification. If the borrower fails to remit the amount requested, the amount will be advanced and charged to the borrower's account as a recoverable cost. The amortization period for an advance due to an escrow shortage will be one year. Amortization of the charge will be handled in accordance with7 CFR part 3550. When a borrower has more than one loan secured by the real estate on which the flood insurance premium is being paid, the advance will be charged to the initial or lowest numbered loan. | |||
| 7:7:12.1.2.1.4.1.1.1 | 7 | Agriculture | XVIII | A | 1810 | PART 1810—INTEREST RATES, TERMS, CONDITIONS, AND APPROVAL AUTHORITY | A | Subpart A—Interest Rates, Amortization, Guarantee Fee, Annual Charge, and Fixed Period | § 1810.1 Information concerning interest rates, amortization, guarantee fee, annual charge, and fixed period. | RHS | [56 FR 11503, Mar. 19, 1991, as amended at 80 FR 9865, Feb. 24, 2015] | (a) Tables for computing the interest rates (including the annual charge rates and length of fixed period for initial repurchase agreement for insured loans), tables for use in determining the amounts of interest on loans at different rates, tables providing factors in amortizing loans, and the guarantee fee for guaranteed loans, may be obtained from any County, District, or State Office of the Agency (Rural Business-Cooperative Service and Rural Housing Service of the U.S. Department of Agriculture) or from its National Office at 14th and Independence Avenue SW., Washington, DC 20250. (b) In the event that the tables provided for in paragraph (a) of this section do not furnish adequate information, questions should be directed to the Assistant Administrator, Finance Office, U.S. Department of Agriculture, 1520 Market Street, St. Louis, Missouri 63103. | |||
| 7:7:12.1.2.1.4.1.1.2 | 7 | Agriculture | XVIII | A | 1810 | PART 1810—INTEREST RATES, TERMS, CONDITIONS, AND APPROVAL AUTHORITY | A | Subpart A—Interest Rates, Amortization, Guarantee Fee, Annual Charge, and Fixed Period | § 1810.2 Adjustment of interest rates for certain loans involving use of or construction on prime or unique farmland. | RHS | [46 FR 47763, Sept. 30, 1981, as amended at 56 FR 11503, Mar. 19, 1991; 80 FR 9866, Feb. 24, 2015] | (a) For essential community facility loans, insured farm ownership loans for recreation or non-farm enterprises, insured farm operating loans for recreation enterprises, soil and water loans for recreation purposes, individual recreation loans, and insured business and industry loans, the interest rate will be increased by two per centum per annum if the project being financed will involve the use of, or construction on, prime or unique farmland. Prime or unique farmland is as defined in § 657.5 (a) and (b) of title 7, Code of Federal Regulations (1980). (b) The two per centum interest rate increase will not apply if the applicant/borrower is a public body or Indian tribe and has demonstrated to the Agency that there are no suitable options for locating the proposed essential community facility project on land that is not prime or unique farmland. (c) For each essential community facility loan and insured business and industry loan the District Director, after consultation with the Soil Conservation Service (SCS), will determine whether the proposed project will involve the use of, or construction on, prime or unique farmland. For each insured farm ownership loan for a recreation or non-farm enterprise, insured farm operating loan for a recreation enterprise, soil and water loan for a recreational purpose, or individual recreation loan, the County Supervisor, after consultation with SCS, will determine whether the proposed project will involve the use of, or construction on, prime or unique farmland. The determination will be documented by the Agency and made a part of the official case file. | |||
| 7:7:12.1.2.2.5.2.1.1 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.261 General. | RHS | [35 FR 16087, July 1, 1970, as amended at 58 FR 224, Jan. 5, 1993; 80 FR 9866, Feb. 24, 2015] | This subpart sets forth the policies and procedures and delegates authority for making Rural Housing Site (RHS) loans under sections 523 and 524 of the Housing Act of 1949. Any processing or servicing activity conducted pursuant to this subpart involving authorized Rural Development (RD) employees, members of their families, known close relatives, or business or close personal associates, is subject to the provisions of subpart D of part 1900 of this chapter. Applicants for this assistance are required to identify any known relationship or association with an RD employee. Section 523 loans are direct loans for the purchase and development of building sites for housing to be built by the self-help method; they have additional requirements which are contained in § 1822.278. | |||
| 7:7:12.1.2.2.5.2.1.10 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.270 Technical, legal, and other services. | RHS | [35 FR 16087, July 1, 1970, as amended at 51 FR 6733, Feb. 26, 1986; 56 FR 67471, Dec. 31, 1991; 80 FR 9866, Feb. 24, 2015] | (a) Appraisals. The property will be appraised by an RD employee authorized to make real estate appraisals. The appraisal will consist of a narrative statement prepared and signed by the authorized employee describing in detail the items considered in arriving at the value of the property. Two values will be established by the appraiser: (1) The fair market value of the total property “as is”. (2) The aggregate fair market value of the building sites after development. (i) In determining the value of the property, the appraiser will consider the value and selling prices of similar building sites in the area. The selling prices of similar sites must be fully documented. (ii) [Reserved] (b) Title clearance and legal services. For a loan to a public nonprofit organization, title clearance and legal services will be obtained in accordance with instructions from the OGC, observing the provisions of subpart B of part 1927 of this chapter to the extent feasible. For a loan to a private nonprofit organization, the provisions of subpart B of part 1927 of this chapter regarding title clearance and legal services will apply. The applicant will be encouraged to have the same approved closing agent, where practical, perform the title clearance work in connection with the purchase of the land and the sale of the individual sites. (c) Contracts for legal services. On projects requiring more legal services than are customarily required for title clearance alone, the applicant will be required to have a written contract when loan funds will be used for legal services. All such contracts will be subject to review and approval by the State director and therefore should be submitted to the State Director before execution by the applicant. Contracts will provide for the types of service to be performed and the amount of fees to be paid either in lump sum on the completion of all services or in installments as services are performed. (d) Engineering services. On projects requiring engineering services, a written contrac… | |||
| 7:7:12.1.2.2.5.2.1.11 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.271 Processing applications. | RHS | [35 FR 16087, July 1, 1970, as amended at 41 FR 7487, Feb. 19, 1976; 41 FR 20392, May 18, 1976; 43 FR 24264, June 5, 1978; 44 FR 4435, Jan. 22, 1979; 50 FR 8583, Mar. 4, 1985; 52 FR 19283, May 22, 1987; 54 FR 29330, July 12, 1989; 69103, Nov. 26, 2004; 80 FR 9866, Feb. 24, 2015] | (a) Application. The application will be in the form of a letter to the county supervisor with the following information included in or attached to the letter: (1) Name and address of applicant. (2) A copy of, or an accurate citation to, the specific provisions of State law under which the applicant is organized; a copy of the applicant's articles of incorporation, bylaws, and other authorizing documents; the names and addresses of the applicant's members, directors, and officers; and if another organization is a member of the applicant organization its name, address, and principal business. (3) A current, dated, and signed financial statement showing assets, and liabilities, together with information on the repayment schedule and status of each debt. (4) Evidence of inability to obtain credit from other sources. (5) General description of the project. (i) Location and size of tract or tracts to be bought and/or developed. (ii) Number and size of individual sites planned together with a detailed plot plan. (iii) Preliminary engineering plans, if available. (6) Estimated cost and amount of loan needed. (7) Explanation of applicant's financial contribution to the project. (8) A map showing the location of and other supporting information on neighborhood and existing facilities such as distance to shopping area, neighborhood churches, available transportation, drainage, sanitation facilities, water supply available or planned, and access to essential services such as doctors, dentists, and hospitals. (9) If facilities such as water and sewage systems, paved streets, and utilities are not currently available, information on when and how they will be provided. (10) Evidence of the need for the proposed sites in the locality by low- and moderate-income families and other qualified applicants that are likely to be able to obtain financing for a home. (11) Written evidence of any State, county, or local planning, zoning, or other ordinances imposing additional restrictions or requirements upon the propose… | |||
| 7:7:12.1.2.2.5.2.1.12 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.272 Approval or disapproval of a loan. | RHS | [69 FR 69103, Nov. 26, 2004] | The provisions of 7 CFR part 3560, subpart B will be followed. | |||
| 7:7:12.1.2.2.5.2.1.13 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.273 Actions subsequent to loan approval. | RHS | [69 FR 69103, Nov. 26, 2004] | After the loan is approved, actions to be taken will be in accordance with 7 CFR part 3560, subpart B. | |||
| 7:7:12.1.2.2.5.2.1.14 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.274 Loan closing. | RHS | [35 FR 16087, July 1, 1970, as amended at 42 FR 4408, Jan. 25, 1977; 50 FR 8584, Mar. 4, 1985; 56 FR 67472, Dec. 31, 1991; 69 FR 69104, Nov. 26, 2004; 80 FR 9866, Feb. 24, 2015] | (a) Applicable instructions. The complete loan docket will be sent to the OGC for loan closing instructions. RHS loans will be closed in accordance with applicable provisions of subpart B of part 1927 of this chapter, and State Instructions which supplement this Instruction, and closing instructions of the OGC, and with the assistance of the approved attorney, representatives of the title insurance company, or local attorney, whichever is appropriate. (b) Mortgage. Unless the OGC determines the Form to be inappropriate, real estate mortgage Form RD 3550-14, “Real Estate Mortgage or Deed of Trust for (state),” will be used for all RHS section 524 loans modified as prescribed by or with the advice of the OGC with respect to the name, address, and other identification of the borrower, the style of execution, and the acknowledgement. Additional paragraphs will be included in the mortgage to read as follows: The borrower agrees not to discriminate in the sale of the dwelling financed under this mortgage due to a prospective purchaser's race, color, national origin, sex, religion, age, marital status, or handicap. The borrower further agrees to comply with all Federal, State, or local laws and ordinances prohibiting discrimination in the sale of housing. The borrower's failure or refusal to comply with this agreement will be a basis for Rural Development to deny future requests for participation in its rural housing programs and activities. This instrument also secures the obligations and covenants of borrower set forth in Borrower's Loan Resolution of __________ (date), which is hereby incorporated herein by reference. The borrower agrees not to discriminate in the sale of the dwelling financed under this mortgage due to a prospective purchaser's race, color, national origin, sex, religion, age, marital status, or handicap. The borrower further agrees to comply with all Federal, State, or local laws and ordinances prohibiting discrimination in the sale of housing. The borrower's failure or refusal to comply… | |||
| 7:7:12.1.2.2.5.2.1.15 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.275 Actions after sites are developed. | RHS | [35 FR 16087, July 1, 1970, as amended at 51 FR 4135, Feb. 3, 1986; 67 FR 78326, Dec. 24, 2002; 80 FR 9866, Feb. 24, 2015] | The building sites will be sold on a nonprofit basis to eligible families or organizations as described in § 1822.266(c). (a) An option, RD 440-34, “Option to Purchase Real Property,” will be executed. The site will be clearly identified by a land survey. (b) The sale price of each individual site will not be more than a sufficient amount to pay a proportionate part of the RHS loan and any other actual costs of buying, developing, and selling the building site. (c) The proceeds from sale of the building sites will be applied on the RHS loan and any prior lien or, with the prior approval of the National Office, used in a manner consistent with the purpose of the loan and the security interest of the Government. The sites will be released from the mortgage in accordance with 7 CFR part 3550, subpart D or otherwise in accordance with prior approval of the National Office. | |||
| 7:7:12.1.2.2.5.2.1.16 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.276 Subsequent RHS loans. | RHS | A subsequent RHS loan is an RHS loan to an applicant indebted for an initial RHS loan. Subsequent RHS loans will be made on the same basis as initial RHS loans. | ||||
| 7:7:12.1.2.2.5.2.1.17 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.277 Complaints regarding discrimination in opportunity to buy developed sites. | RHS | [56 FR 67472, Dec. 31, 1991, as amended at 69 FR 69104, Nov. 26, 2004] | Any applicant wishing to purchase a site financed by an RHS loan who believes he or she has been discriminated against because of race, color, national origin, religion, sex, handicap, or age, may file a complaint with the County Supervisor or State Director. Any such complaint will be handled in accordance with 7 CFR 3560.2. | |||
| 7:7:12.1.2.2.5.2.1.18 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.278 Special requirements for RHS section 523 loans (loans to organizations providing sites for self-help housing). | RHS | [35 FR 16087, July 1, 1970, as amended at 42 FR 4408, Jan. 25, 1977; 50 FR 8584, Mar. 4, 1985; 56 FR 67472, Dec. 31, 1991; 69 FR 69104, Nov. 26, 2004; 80 FR 9866, Feb. 24, 2015] | Loans to organizations which will provide sites for self-help housing (RHS sec. 523 loans) will be made under the provisions of this subpart with the following exceptions: (a) Eligibility. The applicant must be a nonprofit organization engaged in assisting self-help projects. (b) Interest. The interest rate will be 3 percent per annum on the unpaid principal balance. (c) Source of funds. These will be direct loans made from the self-help fund. (d) Evidence of need. Loans to newly formed organizations will be made on the basis of the applicant's providing firm information as to the number of sites to be developed and the names of eligible bona fide prospective purchasers who are assured of available home financing. Loans to organizations currently involved in mutual self-help housing projects may be made without submitting a list of the names of prospective site purchasers. There must, however, be definite evidence that enough families are available who are eligible and who will buy the sites when they are developed. (e) Multiple advances. These loans may be disbursed over a period not to exceed 18 months from the date of the first advance. (f) Note forms. Form RD 3560-52, “Multiple Family Housing Promissory Note,” will be used. See § 1822.274 (c). (g) Mortgage. Unless the OGC determines the Form to be inappropriate, real estate mortgage Form RD 3550-14, “Real Estate Mortgage or Deed of Trust for (state),” will be used modified as prescribed by or with the advice of the OGC with respect to the name, address, and other identification of the borrower, the style of execution, and the acknowledgement. Additional paragraphs will be included in the mortgage to read as follows: The borrower agrees not to discriminate in the sale of the dwelling financed under this mortgage due to a prospective purchaser's race, color, national origin, sex, religion, age, marital status, or handicap. The borrower further agrees to comply with all Federal, State, or local laws and ordinances prohibiting discrimination… | |||
| 7:7:12.1.2.2.5.2.1.19 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.279 Loan supervision and servicing. | RHS | [69 FR 69104, Nov. 26, 2004] | Loan supervision and loan servicing will be provided according to 7 CFR part 3560. | |||
| 7:7:12.1.2.2.5.2.1.2 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.262 Objective. | RHS | The basic objective of RHS loans is to assist public or private nonprofit organizations interested in providing sites for housing, to acquire and develop land in rural areas. This land will be subdivided into adequate building sites and sold on a nonprofit basis to (a) families eligible for low and moderate income section 502 Rural Housing (RH) loans, including self-help housing; (b) cooperative Rural Cooperative Housing (RCH) applicants and broadly based nonprofit Rural Rental Housing (RRH) applicants; and (c) applicants eligible for Housing and Urban Development (HUD) sections 235 and 236 insured mortgages. | ||||
| 7:7:12.1.2.2.5.2.1.3 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.263 Definitions. | RHS | [35 FR 10687, July 1, 1970, as amended at 40 FR 52837, Nov. 13, 1975; 46 FR 61989, Dec. 21, 1981; 67 FR 78326, Dec. 24, 2003] | As used in this subpart: (a) A private nonprofit organization is a corporation which: is owned and controlled by private persons; is organized and operated for purposes other than making gains or profits for the corporation or members; and, is legally precluded from distributing to its members any gains or profits. (b) A public nonprofit organization is a nonprofit corporation other than a private nonprofit corporation, including a municipal corporation or other corporate agency of a State or local government. (c) Rural area is open country or rural places as defined in 7 CFR part 3550, subpart A. (d) Development cost means the cost of purchasing and developing the sites including engineering and legal fees, streets, roads, utilities, minimum essential administrative costs, necessary equipment and estimated interest which the borrower cannot pay from other sources. (e) RHS section 523 loan means a loan to an organization which will provide sites for housing to be built by the self-help method. (f) RHS section 524 loan means a loan to an organization which will provide sites for housing to be built with no limitation as to the method of construction that will be used. (g) OGC means the Office of the General Counsel, including the regional attorney or attorney in charge serving the State in which the RHS project is located. | |||
| 7:7:12.1.2.2.5.2.1.4 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.264 Eligibility requirements. | RHS | [35 FR 16087, July 1, 1970, as amended at 80 FR 9866, Feb. 24, 2015] | (a) Eligibility of applicant. To be eligible for an RHS loan, the applicant must be a private or public nonprofit organization as defined in § 1822.263 (a) or (b) which is authorized to provide housing sites on a nonprofit basis. (1) If it is a private nonprofit organization as defined in § 1822.263(a), it should also: (i) Have a membership of at least 10 community leaders. (ii) Plan to adopt, if it is being newly organized, articles of incorporation and bylaws that generally conform to model articles and bylaws provided by the State director which will be consistent with State law and with changes appropriate to the purposes and powers of an eligible applicant under this subpart. (2) [Reserved] (b) Authorized representative of applicant. RHS will deal only with the applicant or bona fide representative or the applicant or the representative's technical advisors. An authorized representative of the applicant must have no pecuniary interest in the award of the engineering, architectural or construction contracts, necessary equipment, or the purchase or development of the land. | |||
| 7:7:12.1.2.2.5.2.1.5 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.265 Loan purposes. | RHS | [35 FR 16087, July 1, 1970, as amended at 43 FR 24264, June 5, 1978; 80 FR 9866, Feb. 24, 2015] | RHS loans may be made to qualified applicants: (a) For the purchase and development of adequate sites, including the construction of essential access roads, streets, utility lines, and necessary equipment which will become a permanent part of the development. If public water and waste disposal facilities are not available and cannot reasonably be provided on a community basis with other financing, including Water and Waste Disposal Association loans, funds may be included for this purpose. (b) For the payment of necessary engineering fees, legal fees, and closing costs. (c) For the payment of actual cash cost of incidental administrative expenses such as postage, telephone, advertising, and temporary secretarial help, if funds to pay these expenses are not otherwise available. The estimated cost of these items should be identified and shown in the budget. (d) To provide for needed landscaping, planting, seeding, or sodding, or other necessary facilities related to buildings such as walks, parking areas, and driveways. (e) When legally required by proper local, county, and State Governmental bodies as a condition for subdivision approval, RHS loan funds may be used to provide common areas playgrounds and tot lots, provided such facilities are dedicated to, and maintained by, a public body. | |||
| 7:7:12.1.2.2.5.2.1.6 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.266 Limitations. | RHS | [35 FR 10687, July 1, 1970, as amended at 40 FR 6951, Feb. 18, 1975; 80 FR 9866, Feb. 24, 2015] | (a) Loan limits. No RHS loan(s) will be made to any applicant which will result in the applicant's owning an unpaid principal balance of more than $100,000 on such loan(s) unless prior authorization for a larger loan is obtained from the national office. No such loan will exceed the development cost as defined in § 1822.263(d), or the value of the property as improved with the loan. These limitations also apply to cases in which the same persons hold a majority of the membership interests or constitute a majority of the directors of two or more applicants. (b) Limitations of use of loan funds. Loans will not be made for: (1) The purchase of land in excess of the immediate and identified needs in the locality. (2) The purchase of land from a member of an applicant-organization, or from another organization in which any member of the applicant-organization has an interest, without prior consent of the national office. (3) Refinancing of debts, except in accordance with paragraph (e) of this section. (4) Payment of any fee, charge, or commission to any broker, negotiator, or other person for the referral of a prospective applicant or solicitation of a loan. (5) Payment of any fee, salary, commission, profit, or compensation to an applicant, or to any officer, director, trustee, stockholder, member or agent of an applicant, except as provided in § 1822.265(b). No contract or agreement for services to be paid for with loan funds should be executed by the applicant without prior approval by the State director. (c) Sale of developed sites. The sites developed with a section 524 loan must be for housing low- and moderate-income families and may be sold to families, nonprofit organizations, public agencies, and cooperatives eligible for assistance under any section of title V of the Housing Act of 1949, or under any other law which provides financial assistance. For example, this may include: (1) Individuals with low and moderate incomes eligible for HUD mortgages. (2) Individuals with low and moderate inco… | |||
| 7:7:12.1.2.2.5.2.1.7 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.267 Special conditions. | RHS | [35 FR 16087, July 1, 1970, as amended at 41 FR 47460, Oct. 29, 1976; 42 FR 44669, Sept. 6, 1977; 43 FR 24264, June 5, 1978; 44 FR 1702, Jan. 8, 1979; 45 FR 39793, June 12, 1980; 46 FR 36106, July 14, 1981; 46 FR 61989, Dec. 21, 1981; 52 FR 8002, Mar. 13, 1987; 52 FR 19283, May 22, 1987; 67 FR 78326, Dec. 24, 2002; 80 FR 9866, Feb. 24, 2015] | (a) Evidence of need. Loans will be made on the basis of the applicant providing firm information as to the number of sites to be developed and evidence of a need for the proposed building sites in the locality. (b) Nondiscrimination. The borrower will be required to agree not to discriminate or permit discrimination, in accordance with section 3 of the loan resolution form “(‘Rural Housing Site’ Loan to Nonprofit Corporation),” available at all RD offices. (c) Supervisory assistance. Supervision will be provided borrowers to the extent necessary to achieve the objectives of the loan and to protect the interests of the Government. County supervisors will counsel with applicants in selecting locations that will provide essential services and facilities and will result in the development of desirable residential communities. (d) Loan resolution. A Loan Resolution will be adopted by the applicant's Board of Directors or similar governing body. If any provisions are not appropriate to a particular case, proposed substitute language should be submitted to the national office with the recommendations of the State director. (e) Development policies. Development will be planned and performed in accordance with subparts A and C of part 1924 of this chapter. (f) Water and waste disposal facilities. If public water and waste disposal facilities are not available and these facilities will be provided on a community basis with funds included in the RHS loan or with other financing, provision should be made to form an organization with members who will provide continuing maintenance and management of facilities. The cost of the facilities should be considered as a cost of developing the sites and included in the price charged for the lots when they are sold. (g) Compliance with local codes and regulations. Planning and development of sites will comply with all State, county, and local planning and zoning requirements, and will be for housing that will conform with any applicable laws, ordinances, codes, and… | |||
| 7:7:12.1.2.2.5.2.1.8 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.268 Rates, terms, and source of funds. | RHS | [35 FR 10687, July 1, 1970, as amended at 51 FR 6733, Feb. 26, 1986; 80 FR 9866, Feb. 24, 2015] | (a) Interest rate. Upon request of the applicant, the interest rate charged by Rural Development will be the lower of the interest rates in effect at the time of loan approval or loan closing. If an applicant does not indicate a choice, the loan will be closed at the interest rate in effect at the time of loan approval. Interest rates are specified in exhibit B of RD Instruction 440.1 (available in any RD office) for the type assistance involved. (b) Repayment period. Final payment will be due 2 years after the date of the loan. When necessary to carry out the loan purposes, the national office may authorize extension of maturity dates. As lots are sold before the final due date of the note, the proceeds of the sales will be applied on the account or any prior lien, or, with the prior approval of the national office, used in a manner consistent with the purposes of the loan and the security interest of the Government. (c) Source of funds. Loans under this subpart will be made as insured loans, except that loans under § 1822.278 to develop building sites for sale in connection with self-help projects will be made as direct loans. | |||
| 7:7:12.1.2.2.5.2.1.9 | 7 | Agriculture | XVIII | B | 1822 | PART 1822—RURAL HOUSING LOANS AND GRANTS | G | Subpart G—Rural Housing Site Loan Policies, Procedures, and Authorizations | § 1822.269 Security. | RHS | Each loan will be secured by a mortgage on the property purchased or improved with the loan, and a security interest in the funds held by the corporation in trust for the Government, in accordance with the provisions of the required Loan Resolution. | ||||
| 7:7:12.1.2.7.10.1.1.1 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.1 General. | RHS | [44 FR 18162, Mar. 27, 1979, as amended at 80 FR 9866, Feb. 24, 2015] | The authorities contained in this subpart apply to all assets, functions, and programs now or hereafter administered or serviced by the Rural Development, including but not limited to those relating to indebtedness, security, and other assets obtained or contracted through the Secretary of Agriculture, Resettlement Administration, Farm Security Administration, or Emergency Crop and Feed Loan Offices of the Farm Credit Administration, the Soil Conservation Service in connection with water conservation and utilization projects; the Puerto Rico Hurricane Relief Commission and successor agencies in connection with Puerto Rico Hurricane relief loans to individuals; State Rural Rehabilitation Corporations, the United States of America or its officials as trustees of the assets of State Rural Rehabilitation Corporations, Regional Agricultural Credit Corporations, Defense Relocation Corporations, land leasing and purchasing associations, corporations, and agencies, and whether the interest of the United States in the indebtedness, instrument of debt, security, security instrument, or other assets is that of obligee, owner, holder, insurer, assignee, mortgagee, beneficiary, trustee or other interest. This subpart is inapplicable to Farm Service Agency, Farm Loan Programs. | |||
| 7:7:12.1.2.7.10.1.1.2 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.2 National office staff and state directors. | RHS | [44 FR 18162, Mar. 27, 1979, as amended at 47 FR 5700, Feb. 8, 1982; 50 FR 23901, June 7, 1985; 52 FR 44375, Nov. 19, 1987; 56 FR 6946, Feb. 21, 1991; 80 FR 9867, Feb. 24, 2015] | The following officials of the Rural Development, in accordance with applicable laws, and the regulations implementing these laws, are severally authorized, for and on behalf of and in the name of the United States of America or the Rural Development, to do and perform all acts necessary in connection with making and insuring loans, making grants and advances, servicing loans and other indebtedness and obtaining, servicing and enforcing security and other instruments related thereto: The Deputy Administrator Program Operations, the Assistant Administrators for Farmer Programs, Housing, and Community and Business Programs, the Assistant Administrator Accounting and Director Finance Office; each Director and the Insured Loan Officer, Finance Office; the Directors for the Water and Waste Disposal Division, the Community Facilities Division, the Business and Industry Division, the Multi-Family Housing Processing Division, the Multi-Family Housing Servicing and Property Management Division, the Single Family Housing Processing Division, the Single Family Housing Servicing and Property Management Division, the Farm Real Estate and Production Division, the Emergency Division; and each State Director within the area of that State Director's jurisdiction; and in the absence or disability of any such official, the person acting in that official's position; and the delegates of any such official. The authority includes, but is not limited to, the authority to: (a) Effect the assignment of, or the declaration of trust with respect to, insured security instruments to place them in trust with the United States of America as trustee for the benefit of any holder of the promissory note or bond secured by such security instrument. (b) Acknowledge receipt of notice of sale or assignment of insured loans and security instruments. (c) Appoint or request the appointment of substitute trustees in deeds of trust. (d) Execute proofs of claim in bankruptcy, death, and other cases. (e) Consent to sale or assignment of, or sell or ass… | |||
| 7:7:12.1.2.7.10.1.1.3 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.3 State, district, and county office employees. | RHS | [50 FR 23902, June 7, 1985, as amended at 55 FR 43325, Oct. 29, 1990; 80 FR 9867, Feb. 24, 2015] | The following officials and employees of the Rural Development, in accordance with applicable laws, and the regulations implementing these laws, for and on behalf of, and in the name of the United States of America or the Rural Development, are also severally authorized within the area of their respective jurisdictions to perform the acts specified in paragraphs (g) through (r) of § 1900.2; and within their loan approval authority to sell or otherwise dispose of real or chattel property or interests therein and to execute and deliver bills of sale or other instruments to effect such sale or disposition: Chief, Farmer Programs/Specialist; Chief, Rural Housing/Specialist; Chief, Community Programs/Specialist; Chief, Business and Industry/Specialist; Chief, Community and Business Programs/Specialist; Chief, Appraisal Staff/Appraiser; Chief, Underwriting Staff/Underwriter; Chief, Underwriting and Appraisal Staff; Chief, Servicing and Inventory Staff/Credit Management Specialist/Realty Specialist; each District Director, Assistant District Director, Loan Specialist General, County (including Parish) Supervisor, Emergency Loan Supervisor, Assistant Emergency Loan Supervisor, or other supervisor or assistant supervisor, and in the absence or disability of any such official or employee, the person acting in the position. | |||
| 7:7:12.1.2.7.10.1.1.4 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.4 Ratification. | RHS | [44 FR 18162, Mar. 27, 1979] | All written instruments affecting title to real or personal property, including but not limited to deeds, releases, satisfactions, subordination agreements, severance agreements, consents, waivers, assignments, declarations of trust, and heretofore executed by officials or employees of the agencies or other entities referred to in § 1900.1 to carry out any purpose authorized by law, incident to the administration of programs under the jurisdiction of said agencies or other entities, are hereby approved, confirmed, and ratified. | |||
| 7:7:12.1.2.7.10.1.1.5 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.5 Assignment of cases. | RHS | [55 FR 43325, Oct. 29, 1990, as amended at 80 FR 9867, Feb. 24, 2015] | The State Director may, in writing, assign responsibilities and functions to a different office or staff position within the Rural Development State organizational structure other than that referred to in regulations, provided no benefits, rights, or opportunities of the public are changed. | |||
| 7:7:12.1.2.7.10.1.1.6 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.6 Chair, Loan Resolution Task Force. | RHS | [59 FR 43441, Aug. 24, 1994, as amended at 80 FR 9867, Feb. 24, 2015] | The Chair, Loan Resolution Task Force is delegated the following authorities, to be exercised until September 30, 1996: (a) The responsibility for, under applicable Rural Development regulations, collecting and settling all delinquent direct Farmer Program loans as defined in the Consolidated Farm and Rural Development Act, as amended, that have received all primary servicing rights and pre-acceleration homestead and preservation loan servicing rights under 7 CFR part 1951, subpart S; (b) The responsibility for making and directing the making of loan servicing decisions, under applicable Rural Development regulations, concerning delinquent direct Farmer Programs loans for which accrued principal and interest equals or exceeds one million dollars, to extend to borrowers their remaining primary servicing rights and pre-acceleration homestead and preservation loan servicing rights under 7 CFR part 1951, subpart S; (c) Authority for approving the grant of exceptions pursuant to §§ 1951.916, 1955.21, 1956.99 and 1965.35 of this chapter, to the extent necessary to carry out the responsibilities described in paragraphs (a) and (b) of this section. | |||
| 7:7:12.1.2.7.10.1.1.7 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | A | Subpart A—Delegations of Authority | § 1900.7 Effect on other regulations. | RHS | [44 FR 18162, Mar. 27, 1979. Redesignated at 55 FR 43325, Oct. 29, 1990, and further redesignated at 59 FR 43441, Aug. 24, 1994, as amended at 80 FR 9867, Feb. 24, 2015] | This subpart does not revoke or modify any other delegation or redelegation, instruction, procedure, or regulation issued by, or under authority of, the Under Secretary for Rural Development. | |||
| 7:7:12.1.2.7.10.2.1.1 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.51 Definitions. | RHS | Act means the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994, Public Law No. 103-354 (7 U.S.C. 6991 et seq. ). Agency means the Rural Utilities Service (RUS), the Rural Housing Service (RHS), and the Rural Business-Cooperative Development Service (RBS), or their successor agencies. Refer to 7 CFR 11.1 for other definitions applicable to appeals of adverse decisions covered by this subpart. | ||||
| 7:7:12.1.2.7.10.2.1.2 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.52 General. | RHS | This subpart specifies procedures for use by USDA personnel and program participants to ensure that full and complete consideration is given to program participants who are affected by an agency adverse decision. | ||||
| 7:7:12.1.2.7.10.2.1.3 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.53 Applicability. | RHS | (a) Appeals of adverse decisions covered by this subpart will be governed by 7 CFR part 11. (b) The provisions of this subpart apply to adverse decisions concerning direct loans, loan guarantees, and grants under the following programs: RUS Water and Waste Disposal Facility Loans and Grants Program; RHS Housing and Community Facilities Loan Programs; RBS Loan, Grant, and Guarantee Programs and the Intermediary Relending Program; and determinations of the Rural Housing Trust 1987-1 Master Servicer. (c) This subpart does not apply to decisions made by parties outside an agency even when those decisions are used as a basis for decisions falling within paragraph (b) of this section, for example: decisions by state governmental construction standards-setting agencies (which may determine whether RHS will finance certain houses); Davis-Bacon wage rates; flood plain determinations; archaeological and historical areas preservation requirements; and designations of areas inhabited by endangered species. | ||||
| 7:7:12.1.2.7.10.2.1.4 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.54 Effect on assistance pending appeal. | RHS | (a) Assistance will not be discontinued pending the outcome of an appeal of a complete or partial adverse decision. (b) Notwithstanding the provisions of paragraph (a) of this section, administrative offsets initiated under subpart C of part 1951 will not be stayed pending the outcome of an appeal and any further review of the decision to initiate the offset. | ||||
| 7:7:12.1.2.7.10.2.1.5 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.55 Adverse action procedures. | RHS | (a) If an applicant, guaranteed lender, a holder, borrower or grantee is adversely affected by a decision covered by this subpart, the decision maker will inform the participant of the adverse decision and whether the adverse decision is appealable. A participant has the right to request the Director of NAD to review the agency's finding of nonappealability in accordance with 7 CFR 11.6(a). In cases where the adverse decision is based on both appealable and nonappealable actions, the adverse action is not appealable. (b) A participant affected by an adverse decision of an agency is entitled under section 275 of the Act to an opportunity for a separate informal meeting with the agency before commencing an appeal to NAD under 7 CFR part 11. (c) Participants also have the right under section 275 of the Act to seek mediation involving any adverse decision appealable under this subpart if the mediation program of the State in which the participant's farming operation giving rise to the decision is located has been certified by the Secretary for the program involved in the decision. An agency shall cooperate in such mediation. Any time limitation for appeal will be stayed pending completion of the mediation process (7 CFR 11.5(c)). | ||||
| 7:7:12.1.2.7.10.2.1.6 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.56 Non-appealable decisions. | RHS | The following are examples of decisions which are not appealable: (a) Decisions which do not fall within the scope of this subpart as set out in § 1900.53. (b) Decisions that do not meet the definition of an “adverse decision” under 7 CFR part 11. (c) Decisions involving parties who do not meet the definition of “participant” under 7 CFR part 11. (d) Decisions with subject matters not covered by 7 CFR part 11. (e) Interest rates as set forth in agency procedures, except for appeals alleging application of an incorrect interest rate. (f) The State RECD Director's refusal to request an administrative waiver provided for in agency program regulations. (g) Denials of assistance due to lack of funds or authority to guarantee. | ||||
| 7:7:12.1.2.7.10.2.1.7 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | B | Subpart B—Adverse Decisions and Administrative Appeals | § 1900.57 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.10.3.1.1 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | C | Subpart C—Applicability of Federal Law | § 1900.101 General. | RHS | [44 FR 10979, Feb. 26, 1979, as amended at 45 FR 8934, Feb. 11, 1980; 80 FR 9867, Feb. 24, 2015] | This subpart provides Rural Development policy concerning: (a) The applicability of Federal rather than State Law in the conduct of Rural Development operations, and (b) The liability of an auctioneer for conversion of personal property mortgaged to Rural Development. | |||
| 7:7:12.1.2.7.10.3.1.2 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | C | Subpart C—Applicability of Federal Law | § 1900.102 Applicable law. | RHS | [44 FR 10979, Feb. 26, 1979, as amended at 80 FR 9867, Feb. 24, 2015] | Loans made by Rural Development are authorized and executed pursuant to Federal programs adopted by Congress to achieve national purposes of the U.S. Government. (a) Instruments evidencing or securing a loan payable to or held by the Rural Development, such as promissory notes, bonds, guaranty agreements, mortgages, deeds of trust, financing statements, security agreements, and other evidences of debt or security shall be construed and enforced in accordance with applicable Federal law. (b) Instruments evidencing a guarantee, conditional commitment to guarantee, or a grant, such as contracts of guarantee, grant agreements or other evidences of an obligation to guarantee or make a grant, executed by the Rural Development, shall be construed and enforced in accordance with applicable Federal law. (c) In order to implement and facilitate these Federal loan programs, the application of local procedures, especially for recordation and notification purposes, may be utilized to the fullest extent feasible and practicable. However, the use of local procedures shall not be deemed or construed to be any waiver by Rural Development of Federal immunity from any local control, penalty, or liability, or to subject Rural Development to any State required acts or actions subsequent to the delivery by Rural Development officials of the instrument to the appropriate local or State official. (d) Any person, corporation, or organization that applies for and receives any benefit or assistance from Rural Development that offers any assurance or security upon which Rural Development relies for the granting of such benefit or assistance, shall not be entitled to claim or assert any local immunity, privilege, or exemption to defeat the obligation such party incurred in obtaining or assuring such Federal benefit or assistance. (e) The liability of an auctioneer for conversion of personal property mortgaged to Rural Development shall be determined and enforced in acceptance with the applicable Federal law. “Auctioneer” for the purpose… | |||
| 7:7:12.1.2.7.10.4.1.1 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | § 1900.151 General. | RHS | [58 FR 224, Jan. 5, 1993, as amended at 71 FR 38979, July 11, 2006; 80 FR 9867, Feb. 24, 2015] | (a) The Standards of Ethical Conduct for Employees of the Executive Branch requires the maintenance of high standards of honesty, integrity, and impartiality by employees. To reduce the potential for employee conflict of interest, any processing, approval, servicing or review activity, including access through automated information systems, is conducted only by authorized Rural Development employees who: (1) Are not themselves the recipient. (2) Are not members of the family or known close relatives of the recipient. (3) Do not have an immediate working relationship with the recipient, the employee related to the recipient, or the employee who would normally conduct the activity. (4) Do not have a business or close personal association with the recipient. (b) No provision of this subpart takes precedence over individual program requirements or restrictions relating to eligibility for Rural Development assistance to Rural Development employees, members of families of employees, close relatives, or business or close personal associates of employees. (c) The determination of a case's need for special handling under the provisions of this subpart is not an adverse action and, therefore, is not subject to appeal. (d) The provisions of this subpart do not apply to the Farm Service Agency. The relevant regulations applicable to the Farm Service Agency can be found at 5 CFR parts 2635 and 8301. | |||
| 7:7:12.1.2.7.10.4.1.2 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | § 1900.152 Definitions. | RHS | [58 FR 224, Jan. 5, 1993, as amended at 80 FR 9867, Feb. 24, 2015] | Applicant or borrower. All persons or organizations, individually or collectively, applying for or receiving insured or guaranteed loan or grant assistance from or through Rural Development. Referred to as recipient. Assistance. Loans or grants made, insured or guaranteed, or serviced by Rural Development. Associates. All persons with whom an employee has a business or close personal association or immediate working relationship. Business association. Business relationship between those with an identity of financial interest; including but not limited to a business partnership, being an officer, director, trustee, partner or employee of an organization, or other long-term contractual relationship. Close personal association. Social relationship between unrelated residents of the same household. Close relatives. The spouse, relatives and step-relatives of an employee or the employee's spouse, including Grandmother, Grandfather, Mother, Father, Aunt, Uncle, Sister, Brother, Daughter, Son, Niece, Nephew, Granddaughter, Grandson, and First Cousin. Conflict of interest. A situation (or the appearance of one) in which one could reasonably conclude that a Rural Development employee's private interest conflicts with his or her Government duties and responsibilities, even though there may not actually be a conflict. Employee. All Rural Development personnel, including gratuitous employees and those negotiating for or having arrangements for prospective employment, except as otherwise specifically stated. For the purposes of this instruction only, the term also refers to county or area committee members, elected or appointed, and to closing agents who, although they are not employees, have a special relationship to Rural Development and therefore should be subject to these provisions. Immediate working relationship. A relationship between a subordinate and a supervisor in a direct line, or between co-workers in the same office. For the purposes of this subpart, the relationships among a County Supervisor a… | |||
| 7:7:12.1.2.7.10.4.1.3 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | § 1900.153 Identifying and reporting an employee relationship. | RHS | [80 FR 9867, Feb. 24, 2015] | (a) Responsibility of applicant. When an application for assistance is filed, the processing official asks if there is any known relationship or association with a Rural Development employee. The applicant is required to disclose the requested information under pertinent program regulations. (b) Responsibility of the Rural Development employee. A Rural Development employee who knows he or she is related to or associated with an applicant or recipient, regardless of whether the relationship or association is known to others, is required to notify the Rural Development official who is processing or servicing the assistance, in writing. RD Guide Letter 1900-D-1 (available in any RD office) may be used as the notice. If the appropriate official is not known, the State Director should be notified. Regardless of whether the relationship or association is defined in § 1900.152, if the employee believes there may be a potential conflict of interest, the Rural Development official who is processing or servicing the assistance may be notified and special handling requested. An employee's request that the case receive special handling is usually honored. (c) Responsibility of the Rural Development official. When any relationship or association is identified, the Rural Development official completes and submits RD Guide Letter 1900-D-2 to the State Director (or Administrator, under paragraph (e) of this section or § 1900.155(a)). When completed, RD Guide Letter 1900-D-3 is returned by the State Director, the processing official; (d) Relationship or association established after application for Rural Development assistance. If a relationship or association is established after an application has been filed or assistance has been provided, both recipient and employee are required to notify the Rural Development official as described in paragraphs (a) and (b) of this section. (e) Relationship or association with a State Office, Finance Office or National Office employee. If an identified relationship or associatio… | |||
| 7:7:12.1.2.7.10.4.1.4 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | § 1900.154 Determining the need for special handling. | RHS | The State Director (or Administrator, under § 1900.153(e) or § 1900.155(a) of this subpart): (a) [Reserved] (b) Determines whether the reported relationship or association is defined in § 1900.152 of this subpart and would violate the provisions of § 1900.151(a) of this subpart, (c)-(f) [Reserved] | ||||
| 7:7:12.1.2.7.10.4.1.5 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | § 1900.155 Designating the processing/servicing official. | RHS | [58 FR 224, Jan. 5, 1993, as amended at 80 FR 9868, Feb. 24, 2015] | (a) Designating an official with equivalent authority. The State Director (or Administrator, under § 1900.253(e) of this subpart or this paragraph) designates a nonrelated or nonassociated Rural Development official authorized to conduct the activity under program regulations, established delegation of authority and approval authority under subpart A of part 1901 of this chapter, and whose duty station is most convenient to the recipient and to the security property. A type and/or amount of assistance processed or serviced by a County Supervisor or at a County Office should be assigned only to another County Supervisor or County Office. A type and/or amount of assistance processed or serviced by a District Director or at a District Office should be assigned only to another District Director or District Office. (b) County Committee. For processing or servicing decisions to be made by a County Committee, if the recipient is a member, a different County Committee is designated. If the recipient is related to or associated with the member, notwithstanding the provisions of § 1900.151(a)(3) of this subpart, the State Director may permit the decision to be made by the local committee, if the related/associated member abstains. (c) [Reserved] | |||
| 7:7:12.1.2.7.10.4.1.6 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | § 1900.156 Special handling—processing. | RHS | [58 FR 224, Jan. 5, 1993, as amended at 80 FR 9868, Feb. 24, 2015] | (a) [Reserved] (b) Eligibility determination. The designated processing official reviews the application and develops additional data as necessary. Upon determination of whether the assistance will be provided, the designated processing official notifies the applicant of the decision in writing under program regulations, subpart A of part 1910 of this chapter, and subpart B of part 1900. If the determination is favorable, unless otherwise designated, the complete application is returned to the original processing official for docket preparation. If the determination is unfavorable, the designated processing official as decisionmaker participates in the appeal process to its conclusion. (c)-(e) [Reserved] (f) Closing agent. Unless there is a clear or apparent conflict of interest, closing will be at a location and by a closing agent chosen by the recipient. (g) Supervised bank account. Unless there is a clear or apparent conflict of interest, any supervised bank account (or construction account) is established at a financial institution chosen by the recipient under subpart A of part 1902 of this chapter. Countersignature authority is delegated only to a nonrelated or nonassociated Rural Development official. (h) Construction inspection. Construction inspections are delegated to a nonrelated or nonassociated employee authorized to conduct inspections, whose duty station is nearest the construction site. The designated processing/servicing official notifies the builder (or architect/engineer) in writing of how and from whom to request inspections. | |||
| 7:7:12.1.2.7.10.4.1.7 | 7 | Agriculture | XVIII | H | 1900 | PART 1900—GENERAL | D | Subpart D—Processing and Servicing Rural Development Assistance to Employees, Relatives, and Associates | §§ 1900.157-1900.200 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.11.2.1.1 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | E | Subpart E—Civil Rights Compliance Requirements | § 1901.201 Purpose. | RHS | [41 FR 40112, Sept. 17, 1976] | This subpart contains policies and procedures for implementing the regulations of the Department of Agriculture issued pursuant to Title VI of the Civil Rights Act of 1964, title VIII of the Civil Rights Act of 1968, Executive Order 11246 and the Equal Credit Opportunity Act of 1974, as they relate to the Farmers Home Administration (FmHA) or its successor agency under Public Law 103-354. Nothing herein shall be interpreted to prohibit preference to American Indians on Indian Reservations. | |||
| 7:7:12.1.2.7.11.2.1.2 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | E | Subpart E—Civil Rights Compliance Requirements | § 1901.202 Nondiscrimination in FmHA or its successor agency under Public Law 103-354 programs. | RHS | [41 FR 40112, Sept. 17, 1976] | (a) Nondiscrimination by recipients of FmHA or its successor agency under Public Law 103-354 assistance. (1) No recipient of FmHA or its successor agency under Public Law 103-354 financial assistance will directly or through contractual or other arrangements subject any person or cause any person to be subjected to discrimination on the ground of race, color, or national origin, with respect to any program or facility. This prohibition applies but is not restricted to unequal treatment in priority, quality, quantity, methods, or charges for service, use, occupancy or benefit, participation in the service or benefit available, or in the use, occupancy or benefit of any structure, facility, or improvement provided with FmHA or its successor agency under Public Law 103-354 financial assistance. (2) Specifically, and without limiting the general applicability of this subpart, such recipient will not on the grounds of race, color, or national origin: (i) Deny any person the use, occupancy, or enjoyment of the whole or any part of real or personal property or service, financial aid, or other benefit under any program or facility. (ii) Provide any person with any service, use, occupancy, or other benefit different from that provided others by the program or facility. (iii) Subject any person to segregation or separate treatment in any matter related to his or her receipt of any service or other benefit. (iv) Restrict in any way any person's enjoyment of any right, privilege, or advantage enjoyed by others through the facility or activity. (v) Treat any person differently from others in determining whether he or she satisfies any requirements or conditions for any admission or membership in the recipient or in any other organization. (vi) Deny any person an opportunity or restrict opportunity to participate in a program or facility by: (A) Refusing or failing to provide notice or services provided others for the purpose of encouraging participation in the program or facility; or (B) Providing any person with s… | |||
| 7:7:12.1.2.7.11.2.1.3 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | E | Subpart E—Civil Rights Compliance Requirements | § 1901.203 Title VIII of the Civil Rights Act of 1968. | RHS | [41 FR 40112, Sept. 17, 1976, as amended at 42 FR 45894, Sept. 13, 1977; 42 FR 58737, Nov. 11, 1977; 50 FR 23903, June 7, 1985; 53 FR 27825, July 25, 1988; 55 FR 13503, Apr. 11, 1990] | FmHA or its successor agency under Public Law 103-354 employees, FmHA or its successor agency under Public Law 103-354 borrowers, contractors, packagers, and others who provide housing for sale or rent, are obligated under the provisions of title VIII of the Civil Rights Act of 1968 to provide fair housing to all persons regardless of race, color, religion, sex, or national origin. (a) Coverage. The prohibitions against discrimination in the sale, rental, or financing of housing contained in title VIII apply to: (1) All dwellings financed by loans made by the Federal Government and, therefore, to all RH borrowers. (2) Any person in the business of selling or renting dwellings defined as: (i) The owner of a dwelling intended for occupancy by five or more families. (ii) Any person who has participated as principal in the sale or rental of three or more dwellings in the past year. (iii) Any person who has served as sale or rental agent in two or more transactions in the past year. (b) Discrimination acts prohibited. Title VIII prohibits FmHA or its successor agency under Public Law 103-354 employees, multiple housing borrowers, and those with whom FmHA or its successor agency under Public Law 103-354 does business (contractors, realtors, packagers) from: (1) Refusing to sell or rent a particular dwelling because of a person's race, color, religion, or national origin. The following actions constitute violations of this provision: (i) Refusing to package an RH loan application. (ii) Refusing or failing to show a particular dwelling or home in a particular subdivision. (iii) Directing persons only to areas populated by those of similar race, color, religion, or national origin when housing is available in other areas. (iv) Representing unsold dwellings or sites as sold to prospective buyers. (2) Requiring applicants for services to meet different terms or conditions because of their race, color, religion, or national origin; for example, requiring larger rents or downpayments from minority applicants.… | |||
| 7:7:12.1.2.7.11.2.1.4 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | E | Subpart E—Civil Rights Compliance Requirements | § 1901.204 Compliance reviews. | RHS | [41 FR 40112, Sept. 17, 1976, as amended at 52 FR 41949, Nov. 2, 1987; 53 FR 3860, Feb. 10, 1988; 55 FR 5962, Feb. 21, 1990; 57 FR 11559, Apr. 6, 1992; 58 FR 5565, Jan. 22, 1993; 58 FR 58643, Nov. 3, 1993; 59 FR 41389, Aug. 12, 1994; 61 FR 3781, Feb. 2, 1996; 62 FR 16468, Apr. 7, 1997; 62 FR 33510, June 19, 1997; 62 FR 42387, Aug. 7, 1997; 68 FR 69952, Dec. 16, 2003; 80 FR 15667, Mar. 25, 2015] | (a) Recipients subject to reviews. Recipients of the following kinds of loans and/or grants who received their loans or advances of funds on or after January 3, 1965, will be reviewed for compliance in accordance with Title VI of the Civil Rights Act of 1964. Guaranteed loans are not covered by Title VI and, therefore, are not subject to compliance reviews. (1) Economic Opportunity loans to individuals for nonagricultural enterprises. (2) Loans for Water and Waste Disposal facilities, including Resource Conservation and Development loans for this purpose. (3) Community Facility loans. (4) Watershed loans and advances. (5) Recreation Association loans including those made from Resource Conservation and Development funds. (6) Economic Opportunity loans to incorporated cooperative associations (Compliance reviews on unincorporated Economic Opportunity cooperatives subject to title VI will be conducted only as the need arises or as directed by either the State Director or the Administrator). (7) Loans to Timber Development organizations. (8) Rural Renewal loans and advances. (9) Rural Rental Housing (formerly Senior Citizen rental) and Rural Cooperative Housing loans. (10) Labor Housing loans and/or grants. (11) Rural Housing Site loans. (12) Business and Industrial Insured loans or grants. (13) Technical Assistance grants. (14) Development grants for water and waste disposal. (15) Technical Assistance and Training grants in accordance with Title XIII of Pub. L. 99-198. (16) Rural Business Development Grants. (17) Section 601 Energy Impacted Area Development Assistance grants. (18) Nonprofit National Corporations grants. (19) System for Delivery of Certain Rural Development Programs Panel Grants. (20) Emergency Community Water Assistance grants. (21) Section 306C WWD loans and grants. (22) Housing Application Packaging Grants. (23) Rural and Cooperative Development Grants in subpart F of part 4284 of this title. (24) Community Facilities Grants in part 3570, subpart B, of this title. (b) D… | |||
| 7:7:12.1.2.7.11.2.1.5 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | E | Subpart E—Civil Rights Compliance Requirements | § 1901.205 Nondiscrimination in construction financed with FmHA or its successor agency under Public Law 103-354 loan or grant. | RHS | [43 FR 58356, Dec. 14, 1978, as amended at 44 FR 24852, Apr. 27, 1979; 52 FR 8002, Mar. 13, 1987] | Executive Order 11246 provides for equal employment opportunity without regard to race, color, religion, sex, or national origin and the elimination of all facilities segregated on the basis of race, color, religion, or national origin on construction work financed by FmHA or its successor agency under Public Law 103-354 involving a construction contract of more than $10,000. (a) Compliance. This section applies to Federal or federally assisted construction contracts or subcontracts in excess of $10,000 for on-site construction. It also applies to invitations for bids published for such construction. If construction work of over $10,000 is partially financed by another Federal Agency, the County Supervisor will try to reach an agreement as to which agency will administer the nondiscrimination requirements. If unable to reach an agreement, the County Supervisor will refer the case to the State Director. (b) Requirements of applicants, contractors, or subcontractors and responsible FmHA or its successor agency under Public Law 103-354 officials —(1) Applicant. The applicant will be required to execute Form FmHA or its successor agency under Public Law 103-354 400-1, “Equal Opportunity Agreement,” at the time the loan is closed or before construction is started, whichever occurs first. If the applicant is an incorporated association, a resolution of the governing body will authorize execution of the form. Municipalities or other public bodies will have to incorporate references to this form in the loan resolution before it is adopted. If the applicant wants to publish for bids, the applicant must obtain Form FmHA or its successor agency under Public Law 103-354 1924-5, “Invitation for Bid (Construction Contract)” which is in compliance with Executive Order 11246, from the local FmHA or its successor agency under Public Law 103-354 County Supervisor. (2) Contractor or Subcontractor. (i) The prospective contractor or subcontractor must submit Form FmHA or its successor agency under Public Law 103-354 400-6, … | |||
| 7:7:12.1.2.7.11.3.1.1 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.251 Purpose. | RHS | [42 FR 62141, Dec. 9, 1977, as amended at 72 FR 64121, Nov. 15, 2007] | This subpart prescribes Farmers Home Administration (FmHA) or its successor agency under Public Law 103-354 policies, procedures, and guidelines for compliance with section 106 of the National Historic Preservation Act of 1966 (Pub. L. 89-665), the Reservoir Salvage Act of 1960 (Pub. L. 86-523), as amended May 24, 1974, by the Archeologic and Historic Preservation Act (Pub. L. 93-291), and section 1(3) of Executive Order 11593. This subpart is inapplicable to Farm Service Agency, Farm Loan Programs. | |||
| 7:7:12.1.2.7.11.3.1.10 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.262 State supplement. | RHS | (a) The State Director shall be responsible for preparing a list of all properties included in the National Register in his area of jurisdiction and issuing such list as a part of a State supplement. Such a list will be updated as needed to reflect changes in the National Register. (b) State Directors may also supplement this subpart and its exhibit as appropriate to meet State and local laws and regulations. | ||||
| 7:7:12.1.2.7.11.3.1.2 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.252 Policy. | RHS | (a) The FmHA or its successor agency under Public Law 103-354 recognizes that significant scientific, prehistorical, historical and archeological (HA) resources are an important part of our National Heritage. (b) The FmHA or its successor agency under Public Law 103-354 will consult with appropriate Federal, State, and local Agencies; other organizations; the State Historic Preservation Officer (SHPO) and individuals to assess the impact of any proposed FmHA or its successor agency under Public Law 103-354 undertaking on properties having historical or archeological significance in order to avoid or mitigate any adverse effects on the properties. (c) The procedures in this subpart have been developed in accordance with section 1(3) of Executive Order 111593. | ||||
| 7:7:12.1.2.7.11.3.1.3 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.253 Definitions. | RHS | (a) Undertaking means any new or continuing projects or program activities supported in whole or in part through FmHA or its successor agency under Public Law 103-354 contracts, grants, subsidies, loans, or other forms of funding assistance. This does not include any actual construction by FmHA or its successor agency under Public Law 103-354. (b) National Historic Preservation Act. The National Register means the National Register of Historic Places, which is a register of districts, sites, buildings, structures, and objects, significant in American history, architecture, archeology, and culture maintained by the Secretary of the Interior under the authority of section 2(b) of the Historic Sites Act of 1935 and section 101(a)(1) of the National Preservation Act. The National Register is published in its entirety in the Federal Register each year in February. Addenda are published on the first Tuesday of each month. (c) National Register Property means a district, site, building, structure, or object included in the National Register. (d) Property eligible for inclusion in the National Register means any district, site, building, structure, or object which the Secretary of the Interior determines is likely to meet the National Register criteria. (e) State Historic Preservation Officer (SHPO) means the official within each State, designated by the Governor at the request of the Secretary of the Interior, to administer the National Register and historic preservation grants program and to coordinate preservation planning within the State. (f) Criteria of effect means when any condition of an undertaking causes or may cause any change, beneficial or adverse, in the scientific, historical, architectural, archeological, or cultural character of a National Register property that qualifies the property under the National Register criteria. (g) Historical and archeological assessment means a determination by the FmHA or its successor agency under Public Law 103-354 State Director using the criteria o… | ||||
| 7:7:12.1.2.7.11.3.1.4 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.254 Scope. | RHS | FmHA or its successor agency under Public Law 103-354 will evaluate all undertakings for possible HA significance. This subpart covers the following types of undertakings: (a) Undertakings requiring a historical and archeological assessment. Although the following undertakings are presumed to involve nonfederally owned lands, they may have an effect on properties having HA significance and, therefore, will require a historical and archeological assessment: (1) Loans and grants for the development of business and industry including guaranteed loans. (2) Loans and grants for multiple family housing projects of 25 or more dwelling units. (3) Subdivision plans submitted for approval having 25 or more building sites. (4) Loans and grants in rural areas to construct, enlarge, extend, or otherwise improve: (i) Community water, sanitary sewage, solid waste disposal, and storm waste water disposal systems. (ii) Other essential community facilities such as fire and rescue, health, safety, public buildings, schools, transportation, traffic, and law enforcement. (5) Loans to develop community irrigation, drainage, and other soil and water conservation and use facilities. (6) Loans to acquire and develop grazing land for livestock of an association of members. (7) Loans in areas designated by the Soil Conservation Service (SCS), U.S. Department of Agriculture (USDA), to conserve and develop natural resources and to contribute to economic improvement of the area. (8) Loans to protect and develop land and water resources in small watersheds. (9) Loans to permit Indian tribes to buy land within their reservations. (b) Undertakings presumed not to require a historical and archeological assessment. The following undertakings are generally presumed to involve nonfederally owned lands and not to have an effect on properties of historical and archeological value and will therefore not usually require a historical and archeological assessment. However, when the State Director or County Supervisor finds or has had comm… | ||||
| 7:7:12.1.2.7.11.3.1.5 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.255 Historical and archeological assessments. | RHS | (a) The FmHA or its successor agency under Public Law 103-354 official, normally the FmHA or its successor agency under Public Law 103-354 County Supervisor, who receives a preapplication or application for loan or grant assistance on an undertaking that may have an effect on HA properties will, as part of the process, take the following actions: (1) Carefully review the State supplements issued by the State Director pursuant to § 1901.262(a) to determine whether there are any properties within the project area that appear in the National Register. (2) Document the following: (i) A brief narrative report of the findings and conclusions of an on-site reconnaissance of the project area. (ii) Any “in-house” knowledge of known or suspected HA sites in the project area. (3) Submit the information outlined in paragraph (a)(2) of this section to the FmHA or its successor agency under Public Law 103-354 State Director as part of the preapplication or application. (b) Upon receipt of the preapplication/application the FmHA or its successor agency under Public Law 103-354 State Director will, as a concurrent part of the preapplication/application review, prepare a historical and archeological assessment of the undertaking. In making the assessment the State Director will consider information from the following sources: (1) State and Regional Clearinghouse comments. (2) Information submitted by the County Supervisor pursuant to paragraph (a)(2) of this section. (3) Factual comments or recommendations of the SHPO or other responsible Federal, State, or local officials. (4) Any other reliable information concerning properties in the project area having HA significance. (c) Upon completion of the preapplication or application review, the State Director will take the following actions: (1) When his assessment indicates that no properties of HA significance will be effected by the proposed undertaking, he will proceed with processing of the preapplication or application. (2) When his assessment indicates that there … | ||||
| 7:7:12.1.2.7.11.3.1.6 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | §§ 1901.256-1901.258 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.11.3.1.7 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.259 Actions to be taken when archeological properties are discovered during construction. | RHS | (a) When properties of significant HA value are discovered during construction, the State Director will immediately consult with the applicant, the SHPO and the Regional Director of the National Park Service to determine whether there is sufficient factual evidence to warrant a decision to stop construction and undertake detailed survey and recovery. (b) When the consultations in paragraph (a) of this section result in a determination by the National Park Service to request the applicant to stop construction, such stop action should be taken so that the Park Service can initiate measures for immediate recovery within 60 days after notification of a discovery. (c) When the consultations in paragraph (a) of this section do not result in a determination by the National Park Service to stop construction and to undertake a survey and recovery, construction should be permitted to proceed with caution. In the event that the National Park Service determines that recovery is necessary, the FmHA or its successor agency under Public Law 103-354 applicant/borrower and the Park Service should determine that the consent of all persons, associations, or public entities having legal interests in the property involved has been secured. Also, the applicant should be informed that the Secretary of the Interior is authorized to compensate any person, association, or public entity damaged as a result of delay in construction or as a result of the temporary loss of the use of public or any nonfederally owned land. (d) No survey or recovery work will be required which in the determination of the State Director would seriously impede FmHA or its successor agency under Public Law 103-354 actions in providing assistance where the State Director determines that immediate action is required to avoid loss or damage of life or property. Nevertheless, appropriate measures will be taken to the extent practical to preserve, protect, or mitigate any damage to properties having HA significance. | ||||
| 7:7:12.1.2.7.11.3.1.8 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.260 Coordination with other agencies. | RHS | (a) When other Agencies are directly involved in any undertaking that requires a historical and archeological assessment, the State Director will contact the Agencies concerned to determine if a joint assessment will be prepared and whether a single lead Agency will assume primary responsibility for preparing the assessment. (b) When a lead Agency is agreed upon other than FmHA or its successor agency under Public Law 103-354, FmHA or its successor agency under Public Law 103-354 will provide that Agency with information about its respective areas of responsibility. Assessments will indicate Agency participation and concurrence. (c) When FmHA or its successor agency under Public Law 103-354 program activities are planned that primarily supplement those of the SCS, USDA, such as watershed projects, resource conservation and development measures, and irrigation and drainage projects, the SCS will be designated as the lead Agency. | ||||
| 7:7:12.1.2.7.11.3.1.9 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | F | Subpart F—Procedures for the Protection of Historical and Archeological Properties | § 1901.261 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.11.5.1.1 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.501 Purpose. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 72 FR 64121, Nov. 15, 2007; 80 FR 9868, Feb. 24, 2015] | This subpart prescribes policies and procedures for Rural Development certificates of beneficial ownership and insured notes. This subpart is inapplicable to Farm Service Agency, Farm Loan Programs. | |||
| 7:7:12.1.2.7.11.5.1.2 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.502 Policy. | RHS | [51 FR 24301, July 3, 1986] | It is the current policy to sell all certificates of beneficial ownership to the Federal Financing Bank for financing activities from the Agricultural Credit Insurance Fund and the Rural Development Insurance Fund. Sales from the Rural Housing Insurance Fund will be made to the Federal Financing Bank to the extent necessary to service certificates of beneficial ownership held by the Federal Financing Bank. Sales in excess of those needed for servicing requirements will be made to the public. In addition to sales, this subpart provides policy for the servicing of outstanding certificates of beneficial ownership, insurance contracts, and insured notes held by investors. | |||
| 7:7:12.1.2.7.11.5.1.3 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.503 Definitions. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9868, Feb. 24, 2015] | (a) As used in §§ 1901.505, 1901.507, 1901.508 and 1901.509 the following definitions will apply: (1) Announcement of sale. Any notice of terms and conditions respecting a sale of certificates. (2) Certificate. A certificate of beneficial ownership issued by Rural Development under this subpart. (3) Director, Finance Office. The Director or the Insured Loan Officer of the Finance Office of Rural Development. (4) Rural Development. The United States acting through the Rural Housing Service, the Rural Utilities Service, or the Rural Business-Cooperative Service or their successor agencies. (5) Finance Office. The office which maintains the Rural Development finance records. It is located at 1520 Market Street, St. Louis, Missouri 63103. (Phone: 314-425-4400) (6) Fixed period. Any time interval (preceding an option period) during which the insured holder is not entitled to require Rural Development to purchase the insured note, as specified in the insurance agreement. (7) Insurance agreement. The entire contract evidencing and setting forth the terms and conditions of Rural Development insurance of the payment for the insured note. The insurance agreement with respect to any particular loan may be evidenced by Form RD 440-5, “Insurance Endorsement (Insured Loan),” RD 440-30, “Insurance Endorsement (Insure Loans),” or any other form or forms prescribed by the National Office and executed by an authorized official of Rural Development. It may include such provisions as, for example, an agreement of Rural Development to purchase or repurchase the loan, or to make supplementary payments from the insurance fund. (8) Insurance fund. The Agricultural Credit Insurance Fund authorized by section 309 of the Consolidated Farm and Rural Development Act, the Rural Development Insurance Fund authorized by section 309A of the Consolidated Farm and Rural Development Act, or the Rural Housing Insurance Fund authorized by section 517 of title V of the Housing Act of 1949. (9) Insured holder. The current own… | |||
| 7:7:12.1.2.7.11.5.1.4 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.504 Authorities and responsibilities. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9868, Feb. 24, 2015] | The Administrator will approve all methods of Rural Development financing and major changes in existing methods. The Director, Finance Office, is responsible for servicing of all certificates of beneficial ownership and insured notes issued by the Finance Office, the Federal Reserve Bank of New York for the servicing of insurance contracts, and the Federal Reserve banks for certificates of beneficial ownership for which the Reserve banks are Rural Development's fiscal agents. | |||
| 7:7:12.1.2.7.11.5.1.5 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.505 Certificates of beneficial ownership in Rural Development loans. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9868, Feb. 24, 2015] | (a) Special trust of loans —(1) Establishment of special trusts. From time to Rural Development will place in special trusts unmature loans evidenced by notes or other instruments. Loans may be placed into or removed from a special trust, but there will always be maintained in such trusts loans on which the unpaid amount is at least equal to the face value of the outstanding unmature certificates evidencing beneficial ownership in such special trust as provided in paragraph (a)(2) of this section. (2) Beneficial ownership of special trusts. To permit interested persons to acquire a beneficial ownership of loans comprising a special trust established under paragraph (a)(1) of this section, Rural Development will sell certificates which will evidence beneficial ownership of an interest in the special trust to the extent of the face value of such certificates. Rural Development will own an interest in special trusts equal to the amount by which the unpaid principal amount of loans comprising the trusts exceeds the face value of all outstanding certificates evidencing beneficial ownership in such trusts. (b) Sale of certificates. Rural Development will offer certificates for sale from time to time on such terms and conditions it may deem appropriate. Sales made by the Finance Office shall be made by its Director. No sale in excess of $1 million will be made to any one investor without prior approval of the Associate Administrator or his designee. The terms and limitations of sales are subject to change from time to time, and may be obtained from the Finance Office. (1) Form of certificates. The certificates may be interest-bearing or non-interest-bearing. The certificates may be made payable to the bearer or registered holder thereof, and will be negotiable. The certificates will be issued in denominations specified in the invitations for bid or other announcement of sale. (2) Issue date and maturity date of certificates. The certificates will be issued on such dates and mature on such dates as specifi… | |||
| 7:7:12.1.2.7.11.5.1.6 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.506 Book-entry procedure for Rural Development securities—issuance and redemption of certificate by Reserve bank. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9868, Feb. 24, 2015] | (a) Authority of Reserve bank. Each Reserve bank is hereby authorized in accordance with the provisions of this subpart to: (1) Issue book-entry Rural Development securities by means of entries on its records which shall include the name of the depositor, the amount, the securities title (or series) and maturity date. (2) Effect conversions between book-entry Rural Development securities and definitive Rural Development securities. (3) Otherwise service and maintain book-entry Rural Development securities. (4) Issue a confirmation of transaction in the form of a written advice (serially numbered or otherwise) which specifies the amount and description of any securities (that is, the securities title (or series) and the maturity date) sold or transferred and the date of the transaction. (b) Scope and effect of book-entry procedure. (1) A Reserve bank as fiscal agent of the United States acting on behalf of Rural Development may apply the book-entry procedure provided for in this subpart to any Rural Development securities which have been or are hereafter deposited for any purpose in accounts with it in its individual capacity under terms and conditions which indicate that the Reserve bank will continue to maintain such deposit accounts in its individual capacity, notwithstanding application of the book-entry procedure to such securities. This paragraph shall be applicable but not limited to Rural Development securities deposited: (i) As collateral pledged to a Reserve bank (in its individual capacity) for advances by it. (ii) By a member bank for its sole account. (iii) By a member bank held for the account of its customers. (iv) In connection with deposits in a member bank of funds of States, Municipalities, or other political subdivisions. (v) In connection with the performance of an obligation or duty under Federal, State, Municipal, or local law, or judgments or decrees of courts. (2) The application of the book-entry procedure under paragraph (b)(1) of this section shall not detract from or adv… | |||
| 7:7:12.1.2.7.11.5.1.7 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.507 Certificates of beneficial ownership by the Rural Development Finance Office. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9869, Feb. 24, 2015] | (a) Orders and payment. Orders for investment in certificates may be placed with the Finance Office by mail, telephone, or in person. Payment for purchase of certificates may be made by a wire transfer to the Federal Reserve Bank of St. Louis for credit to the Farmers Home Administration or its successor agency under Public Law 103-354, by a certified check or bank draft payable to the Farmers Home Administration or its successor agency under Public Law 103-354. The rate of interest paid on the certificate will be the rate in effect on the date the Finance Office receives the payment. (b) Registration. (1) The registration used must express the actual ownership of a certificate and may not restrict the authority of the owner to dispose of it in any manner. Rural Development reserves the right to treat the registration as conclusive ownership. Request for registration must be clear, accurate, and complete, and include the appropriate taxpayer identifying number or social security number. (2) The registration of all certificates owned by the same person, organization, or fiduciary should be uniform with respect to the name of the owner and, in case of fiduciary, the description of the fiduciary capacity. Individual owners should be designated by the names by which they are ordinarily known or under which they do business, preferably including at least one full given name. The name of an individual may be preceded by an applicable title, as, for example “Mrs.”, “Mr.”, “Miss”, “Ms.”, “Dr.”, or “Rev.”, or followed by a designation such as “M.D.”, “D.D.”, “Sr.”, or “Jr.”, Any other similar suffix should be included when ordinarily used or when necessary to distinguish the owner from another member of his family. The address should include, where appropriate, the name and street, route, or any other location feature, and zip code. (3) If an erroneously inscribed certificate is received, it should not be altered in any respect. Rural Development should be given full particulars about the error and asked to furnish… | |||
| 7:7:12.1.2.7.11.5.1.8 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.508 Servicing of insured notes outstanding with investors. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9869, Feb. 24, 2015] | The Director, or the insured loan officer of the Finance Office, is authorized in connection with the sale of any insured note to execute required documents on behalf of Rural Development and to take other appropriate action, including, but not limited to, acknowledging notice of sale of an insured note, or requiring an insured holder to sell an insured note to Rural Development in connection with any voluntary conveyance or foreclosure, or transfer related to liquidation of the borrower's account or any other servicing action so related. Upon recommendation by the State Director that purchase of an insured note is necessary for any servicing action not related to liquidation of the borrower's account, authorization may be given by the National Office to request the Director, Finance Office, to require a holder to sell an insured note to Rural Development. (a) Assignments —(1) Effective date of assignment. When an insured note is sold by a private holder to a private buyer, notice of such sale executed by the seller must be given to and acknowledged by Rural Development in order for the sale to be binding on Rural Development, as to Rural Development, the effective date of the sale will be the acknowledgment date specified in the acknowledgement of notice executed by Rural Development. (2) Assignment to Rural Development at request of Rural Development. At any time Rural Development considers it necessary for proper servicing of the loan, Rural Development may require, in writing, a private holder to sell an insured note to Rural Development. (3) Assignment to Rural Development at option of holder. A private holder at any time during the option period may require, in writing, Rural Development to purchase an insured note. (4) Price. If Rural Development is the buyer of an insured note, the price will be the par value as of the effective date of the sale. In other cases, the price will be determined by an agreement between the parties. (b) Sale of insured notes by private holders to private buyers. … | |||
| 7:7:12.1.2.7.11.5.1.9 | 7 | Agriculture | XVIII | H | 1901 | PART 1901—PROGRAM-RELATED INSTRUCTIONS | K | Subpart K—Certificates of Beneficial Ownership and Insured Notes | § 1901.509 Loss, theft, destruction, mutilation, or defacement of insured notes, insurance contracts, and certificates of beneficial ownership. | RHS | [41 FR 51799, Nov. 24, 1976, as amended at 80 FR 9869, Feb. 24, 2015] | (a) Block sale insurance contracts. The Associate Administrator is authorized in connection with block sale insurance contracts to authorize the Rural Development's fiscal agent to establish requirements for issuance of a replacement insurance contract when the original issued by the Federal Reserve Bank of New York (Rural Development's fiscal agent) is lost, stolen, destroyed, mutilated, or defaced. When a block sale insurance contract is lost, stolen, or destroyed, a duplicate may be issued to the registered holder upon receipt of an acceptable certificate of loss and an indemnity bond without surety. The certificate of loss should include the legal name and present address of the owner and address when issued, if different from the present address; the capacity of person certifying, if other than owner; the identity of the insurance contract, including series number, contract number, denomination, issue date, and form of inscription of registry, and the full statement of circumstances of loss. All available portions of an insurance contract that is mutilated, defaced, or partially destroyed should be submitted to the Federal Reserve Bank of New York (Rural Development's fiscal agent) for determination as to whether a duplicate insurance contract can be issued without a certificate of loss and posting of an indemnity bond. In the event the holder of a block sales insurance contract obtains possession of the underlying notes, the requirements of paragraph (b) of this section apply. (b) Notes and certificates of beneficial ownership sold by County Office and Finance Office. The Director, or the insured loan officer of the Finance Office, is authorized on behalf of the Government, in connection with insured notes or certificates of beneficial ownership sold through the Rural Development Finance Office to require indemnity bonds from a noteholder when a note or certificate is lost, stolen, destroyed, mutilated, or defaced while in the custody of the holder or his designee. When a note or certificate of benefic… | |||
| 7:7:12.1.2.7.12.1.1.1 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.1 General. | RHS | [70 FR 59225, Oct. 12, 2005, as amended at 80 FR 9869, Feb. 24, 2015] | This subpart prescribes the policies and procedures in establishing and using supervised bank accounts, and in placing Multi-Family Housing (MFH) reserve accounts in supervised bank accounts. 7 CFR part 2018, subpart D, provides the procedures Servicing Officials should follow in ordering loan and grant disbursements. This subpart is inapplicable to Farm Service Agency, Farm Loan Programs. (a) Borrowers referred to in this subpart include both loan and grant recipients. They are referred to as “depositors” in the deposit agreements hereinafter described. References herein and in deposit agreements to “other lenders” include lenders and grantors other than Rural Development. (b) Banks and savings associations referred to in this subpart are those in which deposits are insured by the FDIC. (c) Credit unions referred to in this subpart are those in which deposits are insured by the NCUA. (d) Financial institutions as referred to in this subpart include banks, savings associations, and credit unions which are covered by the proper insurance coverage cited in paragraphs (b) and (c) of this section. (e) Supervised bank accounts referred to in this subpart are bank, savings association, or credit union accounts established through deposit agreements entered into between the borrower, the United States of America acting through Rural Development, and the Financial Institution on Form RD 402-1, “Deposit Agreement”. (f) Form RD 402-1 provides for the deposit of funds in a supervised bank account to ensure the performance of the borrower's obligation to Rural Development in connection with a loan and/or grant. (g) “Interest-Bearing Deposit Agreement” (Exhibit B of this subpart), provides for the deposit of loan or grant funds that are not required for immediate disbursement in specified interest-bearing deposits, and it is executed in conjunction with Form RD 402-1. (h) Servicing officials referred to in this instruction include county supervisors, district directors, local supervisors, area supervisors, and Nationa… | |||
| 7:7:12.1.2.7.12.1.1.10 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.10 Withdrawals. | RHS | [46 FR 36106, July 14, 1981, as amended at 54 FR 47959, Nov. 20, 1989; 70 FR 59227, Oct. 12, 2005; 80 FR 9870, Feb. 24, 2015] | (a) The Servicing Official will not countersign checks on the supervised bank account for the use of funds unless the funds deposited by the borrower from other sources were cash deposits, checks which the Servicing Official knows to be good, or deposited checks which have cleared. (b) Withdrawals of funds deposited under the applicable deposit agreement are permitted only by order of the borrower and countersignature of authorized Rural Development personnel, or upon written demand on the financial institution by the State Director. (c) Upon withdrawal or maturity of interest-bearing accounts established through the use of an Interest-Bearing Deposit Agreement, such funds will be credited to the supervised bank account established through the use of Form RD 402-1. (d) The issuance of checks on the supervised bank account will be kept to the minimum possible without defeating the purpose of such accounts. When major items of capital goods are being purchased, or a limited number of relatively costly items of operating expenses are being paid, or when debts are being refinanced, the checks will be drawn to the vendors or creditors. If minor capital items are being purchased or numerous items of operating and family living expenses are involved as in connection with a monthly budget, a check may be drawn to the borrower to provide the funds to meet such costs. (1) A check will be issued payable to the appropriate payee but will never be issued to “cash.” The purpose of the expenditure will be clearly shown on Form FmHA or its successor agency under Public Law 103-354 402-2 and indicated on the fact of the check. When checks are drawn in favor of the borrower to cover items too numerous to identify, the expenditure will be identified on the check, as “miscellaneous.” (2) Ordinarily, a check will be countersigned before it is delivered to the payee. However, in justifiable circumstances, such as when excessive travel on the part of the borrower or Servicing Official would be involved, or purchase would be preven… | |||
| 7:7:12.1.2.7.12.1.1.11 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.11 Servicing Office records. | RHS | [70 FR 59228, Oct. 12, 2005] | A record of funds deposited in a supervised bank account will be maintained on Form RD 402-2 in accordance with the Forms Manual Insert. The record of funds provided for operating purposes by another creditor or grantor will be on a separate Form RD 402-2 so that they can be clearly identified. | |||
| 7:7:12.1.2.7.12.1.1.12 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | §§ 1902.12-1902.13 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.12.1.1.13 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.14 Reconciliation of accounts. | RHS | [70 FR 59228, Oct. 12, 2005] | (a) A checking account statement will be obtained periodically in accordance with established practices in the area. If the checking statement does not include sufficient information to reconcile the account (the name of the payee or the check number and the amount of each check; i.e., a negotiable demand draft drawn on a financial institution), the original cancelled check or either a copy or other reasonable facsimile of the cancelled check must be provided to the Servicing Office with the statement. Checking account statements will be reconciled promptly with Servicing Office records. The person making the reconciliation will initial the record and indicate the date of the action. (b) All checking account statements and, if necessary, original cancelled checks or either a copy or other reasonable facsimile of the cancelled checks will be forwarded immediately to the borrower when bank statements and Servicing Office records are in agreement. If a transmittal is used, Form RD 140-4, “Transmittal of Documents”, is prescribed for that purpose. (c) If the financial institution did not return the original cancelled check(s) to the Agency with the statements, and Rural Development has a need for the original cancelled check(s), the financial institution, upon request by the Agency, will furnish to the Agency the requested original cancelled check(s) or a certified copy or other reasonable certified facsimile of the cancelled check(s) and will provide this service to Rural Development with no fees being assessed the Agency or the Depositor's account for the service. | |||
| 7:7:12.1.2.7.12.1.1.14 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.15 Closing accounts. | RHS | [46 FR 36106, July 14, 1981, as amended at 53 FR 231, Jan. 6, 1988; 54 FR 47196, Nov. 13, 1989; 66 FR 1569, Jan. 9, 2001; 70 FR 59228, Oct. 12, 2005; 80 FR 9870, Feb. 24, 2015] | When Rural Development loan or grant funds and those of any other lender or grantor have all been properly expended or withdrawn, Form RD 402-6 may be used to give Rural Development's consent (and of another lender or grantor, if involved) to close the supervised bank account in the following situations: (a) When Rural Development loan funds in the supervised bank account of a borrower have been reduced to $100 or less, and a check for the unexpended balance has been issued to the borrower to be used for authorized purposes. (b) For all loan accounts, after completion of authorized loan funds expenditures, and after promptly refunding any remaining unexpended loan funds on the borrower's loan account with Rural Development or another lender, as appropriate. (c) Promptly upon death of a borrower, except when the loan is being continued with a joint debtor, when a borrower is in default and it is determined that no further assistance will be given, or when a borrower is no longer classified as “active.” (1) Deceased borrowers. (i) Ordinarily, upon notice of the death of a borrower, the District Director or the County Supervisor will request the State Director to make demand upon the bank for the balance on deposit and apply all the balance after payment of any bank charges to the borrower's Rural Development indebtedness. When the State Director approves continuation with a survivor, the supervised bank account of deceased borrower may be continued with a remaining joint debtor who is liable for the loan and agrees to use the unexpended funds as planned, provided: (i) Ordinarily, upon notice of the death of a borrower, the Servicing Official will request the State Director to make demand upon the bank for the balance on deposit and apply all the balance after payment of any bank charges to the borrower's Rural Development indebtedness. When the State Director approves continuation with a survivor, the supervised bank account of a deceased borrower may be continued with a remaining joint debtor who is liable … | |||
| 7:7:12.1.2.7.12.1.1.15 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.16 Request for withdrawals by State Director. | RHS | [46 FR 36106, July 14, 1981, as amended at 80 FR 9870, Feb. 24, 2015] | When the State Director is requested to make written demand upon the financial institution for the balance on deposit in the supervised bank account, or any part thereof, the request will be accompanied by the following information. (a) Name of borrower as it appears on the applicable Deposit Agreement. (b) Name and location of financial institution. (c) Amount to be withdrawn for refund to another lender of any balance that may remain of funds received by the borrower from such lender as a loan or grant, or under a subordination agreement or other arrangement between the Rural Development, the other lender, and the borrower. (d) Amount to be withdrawn, excluding any service charges, for a refund due to Rural Development. (e) Other pertinent information including reasons for the withdrawal. | |||
| 7:7:12.1.2.7.12.1.1.16 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | §§ 1902.17-1902.49 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.12.1.1.17 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.50 OMB control number. | RHS | [70 FR 59228, Oct. 12, 2005] | The reporting and recordkeeping requirements contained in this regulation have been approved by the OMB and have been assigned OMB Control Number 0575-0158. | |||
| 7:7:12.1.2.7.12.1.1.2 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.2 Policies concerning disbursement of funds. | RHS | [70 FR 59225, Oct. 12, 2005] | (a) Generally, loan and grant disbursements may be requested on an as needed basis, thereby reducing the need for supervised bank accounts. For all construction loans and those loans using multiple advances, only the actual amount to be disbursed at loan closing will be requested through the automated systems. Subsequent disbursements will be ordered as needed. However, supervised bank accounts may be used in certain circumstances. For example: (1) When a construction loan is made and the construction is substantially completed, but a small amount is being withheld pending completion of landscaping or some similar item. In this case, funds not disbursed may be placed in a supervised bank account for future disbursement as appropriate. (2) When a large number of checks will be issued in the construction of a dwelling or other development. In such cases, loan and grant disbursements will be requested in accordance with 7 CFR part 2018, subpart D as necessary, deposited in a supervised bank account, and disbursed as necessary to suppliers, sub-contractors, etc. (3) Association loan and grant funds made on a multiple advance basis may be deposited in a supervised bank account when required by State statutes or when determined necessary by the loan approval official. (4) Supervised bank accounts may be used when needed as defined in paragraph (a)(5) of this section to ensure the correct expenditures of all or a part of loan and grant funds, borrower contributions, and borrower income. Such accounts will be limited in amount and duration to the extent feasible through the prudent disbursement of funds and the prompt termination of the interests of Rural Development and other lenders when the accounts are no longer required. (5) When it is determined by the Servicing Official that special supervision is needed in the management of the borrower's finances, funds may be deposited in a supervised bank account. This supervisory technique will be used for a temporary period to help the borrower learn to properly manage … | |||
| 7:7:12.1.2.7.12.1.1.3 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.3 Procedures to follow in fund disbursement. | RHS | [46 FR 36106, July 14, 1981, as amended at 53 FR 26588, July 14, 1988; 53 FR 35670, Sept. 14, 1988; 54 FR 39727, Sept. 28, 1989; 70 FR 59226, Oct. 12, 2005] | (a) The Servicing Official will determine during loan approval the amount(s) of loan or grant disbursement(s)—full or partial—and will process the request to the appropriate automated system in accordance with 7 CFR part 2018, subpart D. (b) When Treasury check(s) are delivered to the Servicing Official, the Servicing Official will make sure that the name of the borrower and the amount(s) of check(s) coincide with the request on file. The Servicing Official should be sure that the check is properly endorsed to ensure payment to the intended recipient. Examples of such restrictive endorsements are: (1) “For Deposit only to Account No. (Number of Construction Account) of ( Name of Borrower ) in ( Name of Financial Institution ).” (2) “Pay to the order of (3rd party payee)”—(Contractor, Developer, Sub-Contractor, Building Supply House, etc.) for the purpose of __________. (c) When necessary, and only under the circumstances listed in § 1902.2, the Servicing Official will establish, or cause to be established, a supervised bank account. Funds deposited in a supervised bank account are to be recorded and accounted for on Form RD 402-2, “Statement of Deposits and Withdrawals”. | |||
| 7:7:12.1.2.7.12.1.1.4 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.4 Establishing MFH reserve accounts in a supervised bank account. | RHS | [59 FR 3778, Jan. 27, 1994, as amended at 69 FR 69104, Nov. 26, 2004; 70 FR 59226, Oct. 12, 2005; 70 FR 73347, Dec. 12, 2005; 80 FR 9869, Feb. 24, 2015] | (a) General requirements. All MFH borrowers required to maintain reserve accounts must place the reserve accounts in a supervised bank account(s) which meets the following requirements: (1) Countersignature requirements. The reserve account must require that any funds withdrawn be countersigned by an authorized government official. (2) Restrictions on collateral. The financial institution holding the reserve account must ensure that the funds are not pledged or taken as security without the Agency's prior consent. (3) Interest bearing. The reserve account funds are encouraged to be maintained in an interest-bearing account. The “Interest-Bearing Deposit Agreement” set out in Exhibit B of this subpart is not required to be used for reserve accounts. (4) Restricted investments. Reserve funds must be placed in investments authorized in 7 CFR part 3560, subpart G. The authorized investments are deemed to be of acceptable risk such that the potential for any loss is minimal. (5) Financial institutions. The reserve account must be maintained in authorized financial institutions set out in 7 CFR part 3560, subpart G; e.g., banks, savings associations, credit unions, brokerage firms, mutual funds. Generally, any financial institution may be used provided invested or deposited funds are insured to protect against theft and dishonesty. The reserve account funds need not be Federally insured, but must be otherwise covered by non-Federal insurance against theft and dishonesty. (6) Rules where multiple projects are involved. A reserve account(s) must be maintained for each borrower. When a borrower owns multiple projects, reserve accounts may be established for each project. A single reserve account may also be established by a borrower owning multiple projects, provided the conditions set out in 7 CFR part 3560. subpart G are met. (7) Term. Reserve accounts are expected to be kept for the full term of the loan. (b) Deposits and account activity statements —(1) Deposits. Generally, Rural Development… | |||
| 7:7:12.1.2.7.12.1.1.5 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.5 [Reserved] | RHS | |||||
| 7:7:12.1.2.7.12.1.1.6 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.6 Establishing supervised bank accounts. | RHS | [46 FR 36106, July 14, 1981, as amended at 53 FR 231, Jan. 6, 1988; 70 FR 59227, Oct. 12, 2005; 77 FR 41258, July 13, 2012] | (a) Each borrower will be given an opportunity to choose the financial institution in which the supervised bank account will be established, provided the financial institution is a member of the FDIC or NCUA, as applicable. (b) When accounts are established, it should be determined that: (1) The financial institution is fully informed concerning the provisions of the applicable deposit agreement, (2) Agreements are reached with respect to the services to be provided by the financial institution including the frequency and method of transmittal of checking account statements, and (3) An agreement is reached with the financial institution regarding the place where the counter-signature will be on the checks. (c) When possible, Servicing Officials will make arrangements with financial institutions to waive service charges in connection with supervised bank accounts. However, there is no objection to the payment by the borrower of a reasonable charge for such service. (d) For each borrower, if the amount of any loan and grant funds, plus any borrower contributions and funds from other sources to be deposited in the supervised bank account will exceed the maximum amount insurable by the Federal government, the financial institution will be required to pledge collateral for the excess over that limit before the deposit is made (see § 1902.7 of this subpart). If the supervised bank account is a joint account, any amount over the maximum amount insurable by the federal government must be collateralized. (e) Only one supervised bank account will be established for any borrower regardless of the amount or source of funds, except for Rural Rental Housing loans where separate accounts will be established for each project. (f) When a supervised bank account is established, an original and two copies of the applicable Deposit Agreement and the Interest-Bearing Deposit Agreement (Exhibit B of this subpart), when applicable, will be executed by the borrower, the financial institution, and a Servicing Office employee. T… | |||
| 7:7:12.1.2.7.12.1.1.7 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.7 Pledging collateral for deposit of funds in supervised bank accounts. | RHS | [46 FR 36106, July 14, 1981, as amended at 53 FR 231, Jan. 6, 1988; 53 FR 24437, June 29, 1988; 56 FR 50648, Oct. 8, 1991; 70 FR 59227, Oct. 12, 2005; 77 FR 41258, July 13, 2012] | (a) Funds in excess of the maximum amount insurable by the Federal government, per financial institution, deposited for borrowers in supervised bank accounts, must be secured by pledging acceptable collateral with the Federal Reserve Bank (FRB) in an amount not less than the excess. If the supervised bank account is a joint account, any amount over the maximum amount insurable by the federal government must be collateralized. (b) As soon as it is determined that the loan will be approved and the applicant has selected or tentatively selected a financial institution for the supervised bank account, the Servicing Official will contact the financial institution to determine: (1) That the financial institution selected is insured by the FDIC (banks and savings associations) or NCUA (credit unions). (2) Whether the financial institution is willing to pledge collateral with the FRB under 31 CFR part 202 (Treasury Circular 176) to the extent necessary to secure the amount of funds being deposited in excess of the FDIC or NCUA insurance limit. (3) If the financial institution is not a member of the Federal Reserve System, it will be necessary for the financial institution to pledge the securities with a correspondent bank who is a member of the System. The correspondent bank should contact the FRB informing them they are holding securities pledged for the supervised bank account under 31 CFR part 202 (Treasury Circular 176). (c) If the financial institution agrees to pledge collateral, the Servicing Official should complete RD Form Letter 1902-A-2, “Designated Financial Institution—Collateral Pledge”, in an original and two copies: The original for the National Office, Policy and Analysis Division; the first copy for the State Office; and the second copy for the Servicing Official. The Rural Development Form Letter 1902-A-2 should be forwarded to the National Office, Policy and Analysis Division, at least 30 days before the date of loan closing. (d) The National Office, Policy and Analysis Division, will arrange fo… | |||
| 7:7:12.1.2.7.12.1.1.8 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.8 Authority to establish and administer supervised bank accounts. | RHS | [70 FR 59227, Oct. 12, 2005] | Servicing Officials are authorized to establish supervised bank accounts, deposit loan checks and other funds, countersign checks, close accounts, and execute all forms in connection with supervised bank account transactions and redelegate this authority to a person under their supervision who is considered capable of exercising such authority. State Directors will make written demand upon the bank for withdrawals outlined in § 1902.16. | |||
| 7:7:12.1.2.7.12.1.1.9 | 7 | Agriculture | XVIII | H | 1902 | PART 1902—SUPERVISED BANK ACCOUNTS | A | Subpart A—Supervised Bank Accounts of Loan, Grant, and Other Funds | § 1902.9 Deposits. | RHS | [46 FR 36106, July 14, 1981, as amended at 70 FR 59227, Oct. 12, 2005; 80 FR 9869, Feb. 24, 2015] | (a) Deposit by Rural Development personnel. (1) Checks made payable solely to the Federal Government or any Agency thereof, and a joint check when the Treasurer of the United States is a joint payee, may not be deposited in a supervised bank account. (2) Rural Development personnel will accept funds for deposit in a borrower's supervised bank account ONLY in the form of: A check or money order endorsed by the borrower “For Deposit Only;” a check drawn to the order of the financial institution in which the funds are to be deposited; a loan check drawn on the U.S. Treasury; or a Rural Development electronic funds transfer disbursement. (i) A joint check that is payable to the borrower and Rural Development will be endorsed by the Servicing Official as provided in 7 CFR part 1951, subpart B, Exhibit B, section 4. (ii) Ordinarily, when deposits are made from funds which are received as the result of consent or subordination agreements or assignments of income, the check should be drawn to the order of the financial institution in which the supervised bank account is established or jointly to the order of the borrower and Rural Development. All such checks should be delivered or mailed to the Servicing Office. (3) If direct or insured loan funds or borrower contributions are to be deposited in a supervised bank account, such funds will be deposited on the date of loan closing after it has been determined that the loan can be closed. However, if it is impossible to deposit the funds on the day the loan is closed due to reasons such as distance from the financial institution or banking hours, the funds will be deposited on the first banking day following the date of loan closing. (4) Grant funds will be deposited when such funds are delivered. (5) When funds from any source in the form of cash, check, or money order are deposited by Rural Development personnel in a supervised bank account, a deposit slip will be prepared in an original and two copies with distribution as follows: Original to the financial instit… | |||
| 7:7:12.1.2.7.16.1.1.1 | 7 | Agriculture | XVIII | H | 1924 | PART 1924—CONSTRUCTION AND REPAIR | A | Subpart A—Planning and Performing Construction and Other Development | § 1924.1 Purpose. | RHS | [53 FR 35679, Sept. 14, 1988, as amended at 72 FR 64122, Nov. 15, 2007] | This subpart prescribes the basic Agency policies, methods, and responsibilities in the planning and performing of construction and other development work for insured Rural Housing (RH), single unit Labor Housing (LH). It also provides supplemental requirements for Rural Rental Housing (RRH) loans, Rural Cooperative Housing (RCH) loans, multi-unit (LH) loans and grants, and Rural Housing Site (RHS) loans. This subpart is inapplicable to Farm Service Agency, Farm Loan Programs. |
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