Deceased borrowers.

CFR · 2024-01-01 · US · Title 7

Immediately on learning of the death of any person liable to the Agency, the County Supervisor will prepare Form RD 455-17, “Report on Deceased Borrower,” to determine whether any special servicing action is necessary unless the County Supervisor recommends settlement of the indebtedness under subpart B of part 1956 of this chapter. If a survivor will not continue with the loan, it may be necessary to make immediate arrangements with a survivor, executor, administrator, or other interested parties to complete the year's operations or to otherwise protect or preserve the security. (a) (1) Probate or other administration proceedings have been started or are contemplated. (2) The debts owed to the Agency are inadequately secured and the state has other assets from which collection could be made. (3) The Agency's security has a value in excess of the indebtedness it secures and the deceased obligor owes other debts to the Agency which are unsecured or inadequately secured. (4) The County Supervisor recommends continuation with a survivor who is not liable for the indebtedness or recommends transfer to, and assumption by, another party. (5) The County Supervisor recommends, but does not have authority to approve liquidation. (6) The County Supervisor wants advice on servicing the case. (b) (1) Such proceedings will not be started by other parties; (2) The Agency's interests could best be protected by filing a proof of claim in such proceedings, and (3) Public administrators or oth

official document · source cfr-2024 · id 7:§ 1962.46