Guaranteed Farm Loan Programs

Instructions For FSA-2251

LENDER’ S GUARANTEED LOAN PAYMENT TO USDA

Lenders use this form to transmit any funds due USDA when USDA has purchased a part or all of the guaranteed portion of the loan. This includes USDA’s pro-rata share of any payments received from the borrower or any funds received by the lender in the process of liquidation. The distribution of the funds between interest and principal should be in the same proportion as the lender’s application to the borrower’s account; however, the lender’s application to the borrower’s account should have been applied to interest first and any remaining balance to principal.

Submit the original of the completed form in hard copy or facsimile to the appropriate RD servicing office. Features for transmitting the form electronically are available to those customers with access credentials only.  If you would like to establish online access credentials with USDA, follow the instructions provided at the USDA eForms web site.

Lenders must complete Items 1 through 8 (except Item 8B), Item 12 and Item 14.

Fld Name / Item No.	Instruction
1 Case No	Enter the Borrower’s Case Number. Show the state and county code and the borrower’s Social Security or Internal Revenue Service Tax Identification Number.
2 Lender ID No	Enter the lender’s Internal Revenue Service Tax Identification Number. Fill all leading zeros.
3 Loan No	Enter the USDA assigned Loan Number.
4 Branch No	Enter the USDA assigned Branch Number.
5 Borrower Name	Enter the Borrower’s Name - Abbreviate when necessary.
6 Lender Name	Enter the Lender’s Name - Abbreviate when necessary.
7 Receivable No	Enter the applicable Receivable Number. (Assigned by Finance Office at time of purchase.)
8 Date Paid Through to USDA	Enter the date through which the accompanying payment pays accrued interest on USDA held portion of loan.
9 Amount of Principal Payment	Enter USDA’s pro-rata share of funds received and applied to principal on the borrower’s loan (e.g. payments from the borrower or proceeds from rent, escrow balances, sale of collateral, etc.).
10 Amount of Interest Payment	Enter USDA’s pro-rata share of funds received and applied to the interest on the borrower’s loan (e.g. payments from the borrower or
11 Total Remittance	Enter the total of items 9 and 10.
13 Payment Code	Enter the applicable payment code. Code 01 is used when the loan payment is to be applied toward the regular balance of principal and/or interest. Code 02 is used when the loan payment is to be applied toward the deferred principal and/or interest balance based on an approved agreement between USDA, the lender, and the borrower.
15 Authorized Lender’s Signature	Enter authorized Lender’s signature.
16 Title	Enter the title of the representative signing the document.
17 Date	Enter today’s date.

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