Farm Loan Programs - Direct Loan Servicing - Regular

Farm Loan Programs - Direct Loan Servicing - Regular

FSA2025INS_09-21-10[1]

Farm Loan Programs - Direct Loan Servicing - Regular

OMB: 0560-0236

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FSA-2025 Date of Modification: (09-21-10)



Notice of Approval, Terms and Conditions

and

Borrower Responsibilities

INSTRUCTIONS FOR PREPARATION

Purpose:

The form is used to provide the FSA applicant notification that their assumption request or request for a shared appreciation payment agreement has been approved and of the terms and conditions of that approval. This form also provides the borrower responsibilities as an FSA borrower. The applicant will review, sign and return the document to indicate their agreement with the loan terms and borrower responsibilities.

Handbook Reference:

4-FLP, and 5-FLP

Number of Copies:

Original and Two

Signatures Required:

Original and copy signed by the Authorized Agency Official and borrower.

Distribution of Copies:

Send original and one signed copy to the borrower for signature. Suspense copy retained in case file. After the borrower signs the Acceptance and returns the form, the suspense copy can be destroyed.

ADPS/DLS/FBP/GLS Related Transactions (complete this field only when needed and provide only the information required, i.e. ADPS Transaction 3K): DLS/MAC



Fld Name /
Item No.

Instruction

Date

Enter the date the Notice will be mailed.

Name and Address

Enter the name and address of the applicant for mailing purposes.


Mail Information

This form should be sent certified. Certified mail information, including the tracking number can be entered in this section. The borrower must respond within 15 days and certified mailing will assist in making sure the borrower receives the notice.

Request Approval

Enter the type of request being approved, either loan assumption or shared appreciation payment agreement.

Approval Date

Enter the date the request is approved.

Part A – Terms and Conditions

1

Amount

Identify either assumption or amortization and enter the amount of the assumption or amortization.

2

Purpose

Enter the purpose of the request being approved. I.e., “Purchase of property through assumption of debt.” Individual identification of loans assumed can be clarified here - i.e., “Assumption of loan #XX-XX in the amount of $XXX,XXX, and loan #XX-XX in the amount of $XXX,XXX”


Or “Shared Appreciation Payment Agreement”

Fld Name /
Item No.

Instruction

3

Interest Rate

Identify either assumption or shared appreciation payment agreement and enter the interest rate.

4

Term

Enter the term of the new loan.


5

Collateral

Enter the collateral that is required for loan approval.

6

Insurance

No entry required.

7

Expiration

No entry required.

8

Additional Requirements and Comments

Enter any additional requirements or comments pertaining to the approval.

Part B- Borrower Responsibilities

1

Changes in Operation

No entry necessary.

2

Record-keeping

No entry necessary.

3

Releases and Sales

No entry necessary.

4

Payments

No entry necessary.

5

Security

No entry necessary.

6

Graduation

No entry necessary.

Part C – Agency Approval

1

Office name

Enter either “this office” or the specific office name. (I.e., Anytown FSA County Office)

2

County Office Address

Enter the county office address.

3

Agency Telephone Number

Enter the Agency telephone number.

Fld Name /
Item No.

Instruction

4A

Authorized Agency Official Name

Enter (type or print) the name of the authorized agency official approving the action.

4B

Signature

Enter the signature of the authorized agency official approving the action.

4C

Title

Enter the title of the authorized agency official approving the action.

Part D – Certification and Acceptance


The applicant must select one of the optional statements on the Certification and Acceptance, either agreeing or disagreeing and requesting a meeting. If the applicant does not sign and return the Certification the request for assumption or amortization will be withdrawn.

1A-4A

Name

Enter (type or print) the name of the applicant(s).

1B-4B

Signature

The applicant will enter their signature.

1C-4C

Date

Enter the date the applicant(s) sign the Certification.

Contact State Office if additional guidance is needed.


Page 5

File Typeapplication/vnd.openxmlformats-officedocument.wordprocessingml.document
File TitleInstructions for RD1927-0008
Authorcquayle
File Modified0000-00-00
File Created2021-01-23

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