Review of limited resource FO, OL, and SW loans.

CFR · 2024-01-01 · US · Title 7

(a) (b) (2) The County Supervisor should consider: (i) The borrower's income and repayment record during the preceding years; (ii) The projections shown on the most recent Farm and Home Plan or other similar plan or operation acceptable to RD, in light of the previous year's projected figures and actual figures; (See subpart B of part 1924 of this chapter) (iii) Whether improved production practices have been or need to be implemented; (iv) The borrower's progress as a farmer; and (v) All other factors which the County Supervisor believes should be considered. (3) The Farm and Home Plan projections for the coming year must show that the “balance available to pay debts” exceeds the amount needed to pay debts by at least 10 percent before an increase in interest rate is put into effect. Borrowers that continually purchase unplanned items without the County Supervisor's approval will have the interest rate on their loans increased to the current rate for that loan type. Borrowers that fail to provide the County Supervisor with the information needed to conduct the analysis required in subpart B of part 1924 of this chapter will have their interest rate on their loan increased to the current rate for the OL, FO, or SW (4) The County Office will be responsible for scheduling and completing the reviews. (5) Borrowers who have received a deferral under Subpart S of this part will not have the interest rate increased on their limited resource loans during the deferral period. (c) (2)

official document · source cfr-2024 · id 7:§ 1951.25