FSA-2320 Property insurance mortgage clause

Form Approved – OMB No. 0560-0237

Expiration Date: XX/XX/XXXX

This form is available electronically. (See Page 2 for Privacy Act and Paperwork Reduction Act Statements)

FSA-2320 U.S. DEPARTMENT OF AGRICULTURE Position 7 (XX-XX-25) Farm Service Agency PROPERTY INSURANCE MORTGAGE CLAUSE (WITHOUT CONTRIBUTION)

PART A - AGREEMENT

Loss or damage, if any, under this policy, shall be payable, first to (1)

     

     

,

first mortgagee, and balance on, if any, to (2)

     

     

,

second mortgagee, and (3)

     

,

     

third mortgage, as their respective interests may appear under any present or future mortgages, with the right to grant partial release of mortgage without notice to the insurance company, and this insurance, as to the interest of the mortgagees only therein, shall not be invalidated by an act or neglect of the mortgagor or owner of the within-described property, nor by any foreclosure or other proceedings or notice of sale relating to the property, nor by any change in the title or ownership of the property, nor by the occupation of the premises for purposes more hazardous than are permitted by this policy; provided that the mortgagees shall notify the insurance company of any change of ownership or occupancy or increase of hazard which shall come to the knowledge of said mortgagees and, unless permitted by this policy, shall be noted thereon and the mortgagees shall, on demand, pay the premium for such increased hazard for the term of the use thereof; otherwise this policy shall be null and void. This insurance company reserves the right to cancel this policy at any time as provided by its terms, but in such case this policy shall continue in force for the benefit only of the mortgagees for 10 days after notice to the mortgagees of such cancellation and shall then cease, except that if the cancellation notice is issued for nonpayment of premium, the insurance company shall continue the policy in force upon notification from the mortgagees of their intent to pay the premium for the mortgagor or owner. Whenever the insurance company shall pay the mortgagees any sum for loss or damage under this policy, and shall claim that, as to the mortgagor or owner, no liability therefore existed, the insurance company, to the extent of such payment, shall be thereupon legally subrogated to all the rights of the party to whom such payment shall be made, under all securities held as collateral to the mortgage debt, or may at its option, pay to the mortgagees the whole principal due or to grow due on the mortgage, with interest accrued thereon to the date of such payment, and shall thereupon receive a full assignment and transfer without recourse of the mortgage and of all such other securities; but no subrogation shall impair the right of the mortgagees to recover the full amount of its claim. This mortgage clause supersedes any other mortgage clause in or attached to the policy.

Attached to and forming part of Policy No. (4)

     

of the (5)

     

     

Insurance

Company at (6)

     

(7)

     

Name of Borrower

(8)

(9)

     

Agent Signature

Date

FSA-2320 (XX-XX-25) Page 2

PART B – RELEASE OF MORTGAGE INTEREST
It is understood and agreed that the interest of the United States of America, acting through the U.S. Department of Agriculture, Farm
Service Agency (called "Government"), in the property insured hereunder ceased as of (1)					     
and that the Government shall have no interest in any loss or damage to such property occurring hereafter.
(2)	     		(3)	     
	Name of Agency Official			Title of Agency Official
(4)	     		(5)	     

NOTE:

The following statement is made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a - as amended). The authority for requesting the information identified on this form is the Consolidated Farm and Rural Development Act, as amended (7 U.S.C. 1921 et. seq.). The information will be used to determine eligibility and feasibility for loans and loan guarantees, and servicing of loans and loan guarantees. The information collected on this form may be disclosed to other Federal, State, and local government agencies, Tribal agencies, and nongovernmental entities that have been authorized access to the information by statute or regulation and/or as described in the applicable Routine Uses identified in the System of Records Notice for USDA/FSA-14, Applicant/Borrower. Providing the requested information is voluntary. However, failure to furnish the requested information may result in a denial for loans and loan guarantees, and servicing of loans and loan guarantees. The provisions of criminal and civil fraud, privacy, and other statutes may be applicable to the information provided. According to 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 0560-0237. The time required to complete this information collection is estimated to average 10 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 COUNTY FSA OFFICE.

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