Distribution of payments when a borrower owes more than one type of Agency loan.

CFR · 2024-01-01 · US · Title 7

“Distribution” means dividing a payment into parts according to the rules set out in this section. This section only applies after the County Supervisor determines the amount of proceeds that will be released for other purposes in accordance with the annual plan (Form RD 431-2, “Farm and Home Plan”) and Form RD 1962-1, “Agreement for the Use of Proceeds/Release of Chattel Security.” (a) (i) (ii) (iii) (iv) (2) When the County Supervisor determines it is reasonable to expect that the income which will be available for payment on Agency debts will be sufficient to pay the installments scheduled for the year under the first and second priorities, collections may be distributed so as to avoid unnecessary delinquencies, and regular payments derived from rental or lease of real estate security after approval of foreclosure or voluntary conveyance will be distributed to the real estate lien of the highest priority. (3) Payments will be distributed differently than the priorities provided in this section if accounts are out of balance or a different distribution is needed to protect the government's interest. (4) Any income received from the sale of softwood timber on marginal land converted to the production of softwood timber must be applied on the ST loan(s). (b) (c)

official document · source cfr-2024 · id 7:§ 1951.9