Conservation Loan Program - Direct Loan Servicing - Special

FSA-2535 Date of Modification: (12-31-07)

CONSERVATION CONTRACT

INSTRUCTIONS FOR PREPARATION

Purpose: This form is used to enter into an agreement with the borrower for debt relief for conservation purposes. The agreement or Conservation Contract sets out the consideration or debt relief to be granted for specific conservation purposes. After it is signed by all parties, it is to be filed or record in the public records according to state law. An Acknowledgement space has been provided if a notary is needed for the filing/recording.
Handbook Reference: 5-FLP	Number of Copies: Original and two signed copies
Signatures Required: Borrower and Authorized Agency Official. A Notary signature may be needed, if required for filing/recording purposes, according to applicable state law.
Distribution of Copies: Original is filed/recorded. If not retained by the filing/recording body, the original will be maintained in the official agency casefile. If retained, a signed copy will be kept by the agency and a copy will be provided to the borrower.
Automation-Related Transactions: (Instructions for writers: provide only the information required, i.e. ADPS TC 3K. If no automation actions are required, insert N/A) ADPS

All items are completed by the agency, reviewed by the borrower and both the agency and the borrower sign the document.

Fld Name / Item No.	Instruction
1(a) Date	Enter the date in MONTH DD, YYYY format.
1(b) Borrower Name(s)	Enter the name of the borrower(s). All parties that executed the promissory note(s) or assumption agreement(s), unless they have been released from liability for the debt, should be included in this Contract.
2-3 Standard Covenants and Authorities	Read
4A Amount of Original Note	Enter the amount of the Original Note that will receive debt relief by the execution of the Conservation Contract.
4B Date	Enter the date of the original note described in Item 4A.
4C Principal Amount Canceled	Enter the amount of principal debt that will be canceled as a result of the Conservation Contract.
4D Interest Amount Canceled	Enter the amount of interest that will be canceled as a result of the Conservation contract.
5	Read
6(a), (b), & (c) Terms	Enter the length of the contract in number of years. This will be same in all three blanks.
6(d) Expiration	Enter the expiration date of the contract. This date will be the MONTH DD of the contract, extended by the number of years entered in 6(a), (b), and (c) above.
7 Legal Description	Enter the legal description of the land to be covered by the contract. If additional space is needed, enter “See attached legal description” and then attach the legal description of the property encumbered by the contract.
8 Grantor’s reservations	Read
9 Grantor’s Obligations	Read
10 Compatible Uses	Read and check either (a) or (c). If (a) is checked, complete (b).
10(a)	If the property has existing roads at the time of the contract, check this box.
10(b)	If Item 10(a) is checked, enter in brief language, a description of where the existing road network may be more fully described. Examples may be – “contained in the legal description attached”, “county road maps”, “public record”, “attached aerial photographs” etc.
10(c) No Existing Roads	Checkk this box if there is no existing road network on the property encumbered by the contract.
11-12 Grantee’s rights and general provisions	Read
13A-16B Borrower’s Name	Enter borrowers’ name.
13B-16B Signature	Enter borrowers’ signature.
13C-16C Date	Enter the date borrower signs the form.
17A Authorized Agency Official Name	Enter the name of the Authorized Agency Official.
17B Title	Enter the title of the Authorized Agency Official.
17C Signature	Enter the signature of the Authorized Agency Official.
17D Date	Enter the date the Authorized Agency Official signs the form.

ACKNOWLEDGEMENT:

FILING/RECORDING REQUIRED: Some states require this form be notarized to be recorded or filed of public record. The Agency requires that this document be either recorded or filed of public record according to state laws. Specific notary information can be added to the form in the Acknowledgement section.

Contact the State Office if additional guidance is needed.

Page 3