392 Sale of abstracts of title. Watershed loans. Loans to Indian, and permittees and lessees on Indian trust lands SUBCHAPTER A-GENERAL REGULATIONS PART 300-ADMINISTRATIVE Subpart A-Effective Date of the Consolidated Sec. 300.1 Effective date. Subpart B-Delegations of Authority General. 300.11 300.13 300.14 State Office staff and County Office 300.15 Effect on other regulations. § 300.1 Effective date. The Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1921), is hereby made effective on October 15, 1961, except (a) as to its authorizations to make and sell insured loans with 42 Subpart B-Delegations of Authority AUTHORITY: §§ 300.11 to 300.15 issued under sec. 116, Orders of Acting Sec. of Agri., Dec. 24, 1953, Oct. 10, 1957 (19 F.R. 74, 22 F.R. 8188), as amended. SOURCE: 300.11 to 300.15 appear at 24 F.R. 7719, Sept. 25, 1959. Redesignated at 26 F.R. 10031, Oct. 26, 1961. § 300.11 General. The authorities contained in this part apply to all assets, functions, and programs now or hereafter administered or serviced by the Farmers Home Administration, 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, Emergency Crop and Feed Loan Offices of the Farm Credit Administration, Soil Conservation Service in connection with water conservation and utilization projects, Puerto Rico Hurricane Relief Commission and successor agencies in connection with Puerto Rican hurricane relief loans to individuals, State Rural Rehabilitation Corporations, the United States of America or its officials as trustee of the assets of State Rural Rehabilitation Corporations, Regional Agricultural Credit Corporations. Defense Relocation Corporations, land leasing and purchasing associations, and other similar 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. The following officials of the Farmers Home Administration, in accordance with applicable laws, are severally authorized, for and on behalf of and in the name of the United States of America or the Farmers Home Administration, to do and perform all acts necessary in connection with making, insuring, servicing, and collecting loans, advances, and other indebtedness, and obtaining, servicing, and enforcing security and security instruments related thereto: the Deputy Administrator; each Assistant Administrator; each Deputy Assistant Administrator; the Director, National Finance Office; each Deputy Director, National Finance Office; the Director, Operating Loan Division; the Director, Real Estate Loan Division; the Director, Water Resources Loan Division; and each State Director within the area of his jurisdiction; and in the absence or disability of any such official, the person acting in his position; and the delegates of any such official. This authority includes but is not limited to 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) Sell or otherwise dispose of real estate or interests therein, and execute and deliver quitclaim deeds, easements, right-of-way conveyances, and other instruments to effectuate such sale or disposition. (f) Compromise, adjust, cancel. release, charge off, and liquidate indebtedness, including modification of contracts and other instruments. (g) Consent to sale or assignment of, or sell or assign, direct or insured loans and security instruments, and execute any necessary assignments, endorsements, reinsurance agreements, or other instruments in connection therewith. (h) Approve and accept transfers of security property or interests therein to the United States of America, and approve and consent to transfers of security property or interests therein to other parties. (i) Accelerate and declare entire real estate indebtedness due and payable, foreclose or request foreclosure of real estate security instruments by exercise of power of sale or otherwise, and bid for and purchase at any foreclosure or other sale, or otherwise acquire real property pledged, mortgaged, conveyed, attached, or levied upon to collect indebtedness, and accept title to any property so purchased or acquired. (j) Execute agreements to purchase or repurchase insured loans and security instruments. (k) Request loan checks from lenders for loans to be insured, insure loans by execution of insurance endorsements, and endorse promissory notes in connection with insurance of loans. (1) Execute, make, and deliver, or approve suspensions, releases or terminations of assignments of income, renewals, extensions, partial and full releases and satisfactions of security and personal or indemnity liability for indebtedness, waivers, subordination agreements, severance agreements, affidavits, acknowledgments, certificates of residence, evidence of consent, and other instruments or documents. (m) Require and accept further or additional security. (n) Accelerate and declare entire chattel indebtedness due and payable, and foreclose or request foreclosure of chattel security instruments by exercise of power of sale or otherwise. (0) Bid for and purchase at any foreclosure or other sale, or otherwise acquire personal property pledged, mortgaged, conveyed, attached, or levied upon to collect indebtedness, and accept title to any property so purchased or acquired. (p) Take possession of, maintain, and operate security or acquired real or personal property or interests therein, sell or otherwise dispose of such personal property, and execute and deliver contracts, caretaker's agreements, leases, and other instruments in connection therewith, as appropriate. (q) Execute proofs of loss on insurance contracts and endorse without recourse loss payment drafts and checks. (r) Issue, publish, and serve notices and other instruments. (s) File or record instruments, whether separate instruments, or by making marginal entries, or by use of other methods permissible under State law. § 300.13 State Office staff and County Office employees. The following officials and employees of the Farmers Home Administration, in accordance with applicable laws, for and on behalf of and in the name of the United States of America or the Farmers Home Administration, are also severally authorized within the area of their respective jurisdictions to perform the acts specified in paragraphs (k) to (s), both inclusive, of § 300.12: Chief, Program Operations; Chief, Real Estate Loans; Chief, Operating Loans; Program Loan Officer; Real Estate Loan Officer; and Operating Loan Officer; each Territorial Supervisor, County (including Parish) Supervisor, Assistant County Supervisor, Emergency Loan Supervisor, Assistant Emergency Loan Supervisor, or other supervisor or assistant supervisor; and in the absence or disability of any such employee, the person acting in his position. All deeds, releases, satisfactions, subordination agreements, severance agreements, consents, waivers, assignments, declarations of trust, and other instruments affecting title to real or personal property heretofore executed by officials or employees of the agencies or other entities referred to in § 300.11 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. § 300.15 Effect on other regulations. This part supersedes the Administrator's Order of August 20, 1948 (13 F.R. 5139, 9377), but does not revoke or modify any other delegation or redelegation, instruction, procedure, or regulation issued by, or under authority of, the Administrator of the Farmers Home Administration. This part prescribes the policies and procedures for receiving and processing loan applications and for informing applicants and other interested individuals relative to the services of the Farmers Home Administration and credit available from other credit sources. (a) The County Supervisor is responsible for seeing that all persons making inquiry about Farmers Home Administration services are given information relative to such services. (b) Wherever the term "applicant" appears herein, it shall be construed to mean applicant family. (c) Receiving and processing applications for subsequent Operating loans, Soil and Water Conservation loans to associations, subsequent Emergency loans, and Special Livestock loans will be handled in accordance with Parts 342, 354, 381, and 384,' respectively, of this chapter. § 301.2 Receiving applications. Applications for Farmers Home Administration assistance will be filed in the County Office serving the area in which the farm to be operated or improved is located; however, if an applicant for an Emergency loan will operate two or more farm units in different counties, his application ordinarily will be filed in the County Office serving the county in which he resides. (a) The filing of written applications should be encouraged even though funds may not be currently available since applications will be considered in the order received. (b) Form FHA-197, “Application for FHA Services," will be used by all applicants unless otherwise provided in the authorities referred to in paragraph (c) of § 301.1. (c) Supervisory personnel will discuss with each applicant the type(s) of assistance that appears best suited to his particular needs. If after discussing with the applicant his credit needs it appears that he may be able to obtain credit to meet his needs from some other credit source, the County Supervisor should inform him of the availability of such credit and provide him with needed assistance in contacting the credit agency. § 301.3 Processing applications. (a) Applications will be investigated and submitted to the County Committee for consideration and otherwise processed in the order received except as modified by veterans' preference policies. The County Supervisor will verify the information furnished by the applicant and assemble additional information needed to evaluate properly the applicant's qualifications and credit needs. The County Supervisor will furnish the County Committee before the application is considered, as a minimum, information on the following: (1) The applicant's reputation for honesty and meeting his obligations. This will include specific information as 1 Part 384 was superseded by Part 381 of this chapter, 26 F.R. 4504, May 25, 1961. to the experiences and opinions of others concerning the applicant and the sources of the information. (2) The applicant's financial condition in relation to the requirements of local creditors, and the efforts that have been made and the results of the applicant's efforts to obtain credit to meet his needs from other credit sources. If the applicant has obtained financing from other creditors in substantial amounts, careful consideration should be given to the possibility of his being able to continue to obtain credit from such sources. (3) If the applicant will operate the farm, specific information concerning his farm training and experience. (4) For Operating loans, the size and quality of the particular farm which the applicant will operate, the approximate acreages of crop and pasture lands, the types and conditions of buildings, and the suitability of the farm for the proposed type farming operations. For other types of loans, any available information as to the suitability of the applicant's farm. (5) The other resources available to the applicant and the approximate amount of credit which will be required. (6) Any adverse health conditions. (b) The County Supervisor will analyze the applicant's loan request, giving careful consideration to his experience, abilities, resources, and credit needs, and will tentatively determine which type(s) of Farmers Home Administration loans will most effectively meet the applicant's needs. (c) After tentatively determining which type(s) of loan(s) will most effectively meet the applicant's needs, the County Supervisor will present the application to the County Committee for consideration. The Committee will interview applicants whenever it is considered necessary for arriving at proper recommendations. This will be done by having the applicant appear at the Committee meeting. After the interview with the applicant is completed and all pertinent facts have been considered, the Committee, in the absence of the applicant, will take action on the application. (d) The County Supervisor will take the following action immediately after the County Committee's decision regarding the applicant's qualifications: (1) If the Committee action is favorable, the County Supervisor will proceed promptly in accordance with the applicable loan processing instructions. When favorable action has been taken on an application, the applicant will be notified. Care should be exercised to be sure that the applicant understands that Committee action does not constitute approval of his loan. In notifying the applicant of favorable Committee action, the County Supervisor also, when practicable, will arrange a meeting with the family to proceed with developing the loan docket. (i) In the case of a Farm Ownership applicant who has not selected a farm but who, in the opinion of the County Committee, is otherwise eligible, the County Supervisor will notify the applicant that preliminary action has been taken on his application but final action will be delayed until he has located and obtained an option on a satisfactory farm. In such a case further loan processing actions will not be taken until the applicant has located a farm. (ii) In the case of tenant applicants for Operating and Emergency loans, who have not yet leased a farm at the time the application is presented to the Committee, but who, in the opinion of the Committee, are otherwise qualified, the County Supervisor will notify the applicant that final Committee action will be delayed until further information is received concerning the farm to be operated. (2) When the applicant has been determined eligible for assistance but it is found that a sound loan cannot be made, the discussion between the County Supervisor and the applicant should result in a clear understanding of the reasons why a loan cannot be made. A brief letter confirming the discussion and conclusions should be sent. (3) If the Committee's action is unfavorable, the County Supervisor will notify the applicant in writing specifically of the actions taken and the reasons therefor and will extend an invitation to call at the County Office for the purpose of discussing in detail with the County Supervisor the reasons for the rejection and, when appropriate, the corrective actions the applicant may take to qualify. (e) Those applications received when loan funds are not available for processing loans will be investigated and presented to the County Committee for consideration. Applicants who are ineligible will be advised accordingly. Those for whom Committee action is favorable will be notified that funds are presently exhausted but that their applications will be held for consideration until funds are available. When funds become available for processing loans to such applicants, they will be notified by letter that funds are available. Such notice to the applicant will also provide that he should advise the County Office within 15 days if he is still interested in obtaining the loan originally applied for; otherwise, his application may be withdrawn. If the applicant still indicates a desire to obtain a loan, the County Supervisor will review the application with him and if there have been any significant changes that would affect the eligibility of the applicant, the County Supervisor will obtain necessary current information and present the application to the County Committee for reconsideration. (f) Applications will remain in effect until withdrawn, disapproved, expired, or the loan is made. An applicant may voluntarily withdraw his application at any time. When a loan will not be made for such reasons as the applicant's obtaining credit from another source, lack of further interest on the part of the applicant, or similar justifiable reasons, the applicant will be so notified and advised that his application will be considered withdrawn unless the County Office receives a notice within 15 days that he desires further consideration. (g) Applications for Farm Ownership loans received during any fiscal year will remain active during the remainder of that financial year and the subsequent fiscal year unless withdrawn or disapproved or unless the loan is closed. During June of each year, the County Committee in consultation with the County Supervisor will select from the expiring applications those applicants who appear to be eligible and who may wish to renew their applications. The County Supervisor will notify the applicant that it will be necessary to file a new application if he wishes further consideration for a Farm Ownership |