FSA-2221 Interest Assistance Payment

This form is available electronically.

Form Approved - OMB No. 0560-0155

FSA-2221

U.S. DEPARTMENT OF AGRICULTURE
Farm Service Agency

(Proposal 9)

INTEREST ASSISTANCE AGREEMENT
See Page 2 for Privacy Act and Burden Statements.

PART A - BACKGROUND INFORMATION
1. Borrower's Name and Address (Including ZIP Code)

2. Borrower's FSA Case Number

3. Lending Institution's Name and Address (Including ZIP Code)

4. Lender's Tax Identification Number

5. Type of Loan:
OL

OL-LOC

7. Principal Amount of Loan or Line of Credit Ceiling 8. Loan Number

6. Loan Closing Date

$

PART B - CONDITIONS OF INTEREST ASSISTANCE
1. Effective Dates
This agreement is effective beginning (a)
DATE (MM-DD-YYYY)

and expires on (b)

DATE (MM-DD-YYYY)

.

2. Rate of Interest Assistance
In consideration of the lender's reduction of the interest charged the borrower's account, the United States of America, acting thorough the Farm
.
Service Agency of the United States Department of Agriculture (FSA) pursuant to the Consolidated Farm and Rural Development
Act agrees that
in accordance with and subject to the conditions and requirements in this agreement it will reimburse interest to the lender at a maximum of 4
percent per annum of the average daily principal balance, subject to limitations in FSA regulations. The full amount of interest assistance
payments made by FSA to the lender will be passed on to the borrower.
The initial period of this agreement begins (c)
3. Interest Rates

and ends (d)
DATE (MM-DD-YYYY)

DATE (MM-DD-YYYY)

The lender may charge a fixed or variable interest rate which is specified in this agreement during the term of the interest assistance agreement.
The type of rate must be the same as the type of rate in the underlying note.
The interest rate that the lender will charge will be clearly indicated in the request for interest assistance. If a variable rate is charged, it will comply
with 7 C.F.R. Section 762.
4. Interest Assistance Payments
FSA payments made in connection with interest assistance will be calculated using the average daily principal balance.
5. Annual Interest Assistance Claims and Payment
The initial interest assistance claim will be prepared by the lender using Form FSA-1980-24, "Request for Interest Assistance Payment" within 12
months after the ending date of the initial period specified in this agreement. The borrower must meet eligibility requirements in 7 C.F.R. Section 762
to renew interest assistance for subsequent claim periods. Subsequent claims will be filed by the lender within 12 months after the ending date of the
claim period. Claims not filed within 1 year of the ending date of the claim period will not be paid, and the amount due the lender will be permanently
forfeited.
6. Beginning Farmer Request for Continuation of Interest Assistance
This agreement may be renewed for up to an additional five years if at the expiration date in paragraph 1, the Borrower is a beginning farmer, as
defined in 7 C.F.R. Section 762.102, and meets all the requirements of 7 C.F.R. Section 762.150. To request the extension, the Lender will submit the
documentation outlined in 7 C.F.R. Section 762.150.
7. When Interest Assistance Payments Cease
For cases when FSA purchases a portion of the loan, interest assistance payments on the loan will cease. Interest assistance payments will cease
upon termination of the loan guarantee, upon reaching the expiration date set forth in this agreement or upon cancellation by the Government.
Interest assistance payments shall cease upon the assumption or transfer of the loan if the transferee was not liable for the debt at the time the
assistance was granted in accordance with 7 C.F.R. Section 762.150. The lender shall complete Form FSA-1980-24 to request payment for the
interest assistance through the date of the transfer or assumption of the guaranteed loan.
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable,
sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived
from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA,
Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal
opportunity provider and employer.

FSA-2221 (Proposal 9) Page 2
PART B - CONTINUED CONDITIONS OF INTEREST ASSISTANCE
8. Cash Flow
The lender must document that a feasible plan is not possible without reducing the interest rate on the borrower's loan, with the debt scheduled over the
maximum term typically used by lenders for similar type loans, within the limits in 7 C.F.R. Section 762.124. A borrower's new guaranteed loan is
eligible for interest assistance if the applicant needs interest assistance to achieve a feasible plan. If significant changes in the borrower's cash flow
budget are anticipated after the initial 12 months, then the typical cash flow budget must demonstrate that the borrower will still have a feasible plan,
following the anticipated changes, with or without interest assistance. Feasible plan and cash flow budget are defined in 7 CFR Section 762 and must
be calculated in accordance with that part.
9. Cancellation of Interest
Lender certifies that the amount of interest reduction on the borrower's account will be canceled as it becomes due.
10. Regulatory Changes
This agreement is subject to the present regulations of the FSA and its future regulations not inconsistent with the provisions of this agreement.
11. Cancellation
The interest assistance agreement is incontestable except for fraud or misrepresentation of which the lender has actual knowledge at the time this
agreement is executed or for which the lender participates in or condones.
12. Excessive Interest Assistance
The Government may amend or cancel this agreement and collect from the lender any amount of payment granted as a result of incomplete or inaccurate
information, computation errors, or other circumstances which resulted in interest assistance payment that the lender was not entitled to receive.
13. Access to Lender's Files
Upon request by FSA, the lender will permit representatives of FSA (or other agencies of the U.S. Department of Agriculture) to inspect and make
copies of any of the records of the lender pertaining to FSA guaranteed loans. Such inspection and copying may be made during regular office hours of
the lender, or any other time the lender and FSA find convenient.
To the extent permitted by law and the supervisory agency, the lender agrees to allow FSA access to audit findings by the lender's supervising agency
when examining interest assistance claims.
PART C - CERTIFICATIONS
1A. Name of Borrower

1B. Signature of Borrower

1C. Date

2A. Name and Title of Lender's Representative

2B. Signature of Lender's Representative

2C. Date

3A. Name and Title of Authorized FSA Official

3B. Signature of Authorized FSA Official

3C. Date

NOTE: The following statements are made in accordance with the Privacy Act of 1974 (5 USC 552a): the Farm Service Agency (FSA) is authorized by the Consolidated
Farm and Rural Development Act (7 USC Part 1921 et seq.), and the regulations promulgated thereunder, to solicit the information requested on this agreement. The
information requested is necessary for FSA to determine eligibility for credit or other financial assistance, service your loan, and conduct statistical analyses.
Supplied information may be furnished to other Department of Agriculture agencies, the Department of the Treasury, the Department of Justice or other law
enforcement agencies, the Department of Defense, the Department of Housing and Urban Development, the Department of Labor, the United States Postal Service,
or other Federal, State, or local agencies as required or permitted by law. In addition, information may be referred to interested parties under the Freedom of
Information Act (FOIA), to financial consultants, advisors, lending institutions, packagers, agents, and private or commercial credit sources, to collection or servicing
contractors, to credit reporting agencies, to private attorneys under contract with FSA or the Department of Justice, to business firms in the trade area that buy chattel
or crops or sell them for commission, to Members of Congress or Congressional staff members, or to courts or adjudicative bodies. Disclosure of the information
requested is voluntary. However, failure to disclose certain items of information requested, including your Social Security Number or Federal Tax Identification
Number, may result in a delay in processing this agreement or its rejection.
Under the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it
displays a valid OMB control number. The valid OMB control number for this information collection is 0560-0155. The time required to complete this information
collection is estimated to average 15 minutes per response, including the time for reviewing instructions searching existing data sources gathering and maintaining the
data needed, and completing and reviewing the collection of information. RETURN THIS COMPLETED FORM TO YOUR LOCAL FSA OFFICE.