FL PT Guide

44

OL

41

FO

43

EM

30

CL

initial

a loan is classified as \_________ when a borrower has no outstanding loans of the same type.

subsequent

A \___________ is a loan that is closed when the borrower has outstanding loans of the same type.

guaranteed

If the borrower has an outstanding direct loan, it is not considered when determining initial or subsequent status for a \___________________ loan.

50

in addition to the obligation number, when a loan is closed it is assigned a loan number. Guaranteed loans are numbered \___________ and higher.

essential

\_____________ FLP records are the originals of any documents or records that provide evidence of indebtedness or obligation to FSA. These items require maximum protection at all times and must be filed in locked, fire resistant file cabinets.

running record

The \____________ is official documentation that references contacts with, or about, the applicant or borrower.

1

Chattel security information is filed in position \________

2

promissory note and debt information is filed in position \________

3

application, financial and general information is filed in position \________

4

routine correspondence is filed in position \________

5

real estate information is filed in position \________

6

construction information is filed in position \________

7

property insurance and real estate tax records is filed in position \________

8

appraisals is filed in position \________

continuation folders

use \______________ to hold infrequently used documents or when the volume of material warrants separation from the initial folder

DLS

\________ is the required system for loan making and servicing information and activities.

GLS

FSA's accounting tool for the guaranteed loan program.

ADPS

a terminal application system that allows users to process FLP accounting transactions and view borrower or acquired property information.

CAIVRS

web-based program used to pre-screen applicants to determine their credit status with the Federal Government.

eDALR$

program assists employees in determining debt restructuring options for FLP borrowers who are delinquent or financially distressed.

supervised bank account

an account with a financial institution established through a deposit agreement entered into between the borrower, FSA, and the financial institution. Only used when necessary to ensure that loan or security proceeds are used according to the farm operating plan, an agreement to use proceeds, or other agreement with FSA

appraisal

\___________ are an integral part of determining whether there is adequate security to support a loan or servicing action.

FSA

\_____ is responsible for costs associated with obtaining an appraisal associated with direct loan making and loan servicing activities.

The applicant/borrower

\_______________ is responsible for costs associated with appealing or negotiating FSA appraisals.

PLCE (program loan cost expense)

e expenditures that relate to loan making, loan servicing, inventory property activities and the provisions of the Promissory Note and Security Agreement for the preservation and protection of any security for the loan

60-day

Year end analysis must be within the \______________ period after the borrower's production cycle ends. Borrowers must be prioritized according to need, with the greatest need cases being addressed first.

FLPRA (farm loan programs risk assessment)

the primary tool that FLP uses for ongoing reviews and oversight of field office operations. valuates FLP using a risk-based approach and provides the framework for evaluating FLP management and oversight by State Offices and FLP delivery by Service Centers.

guaranteed

Through FSA's \_____________ loan making and servicing programs, lenders are able to extend credit to family farm owners or operators who do not qualify for standard commercial loans.

SEL

the basic level of participation in the guaranteed loan program is as a \_________.

CLP

the mid-level participation in the guaranteed loan program is as a \___________.

PLP

the top level of participation a lender can hold in the guaranteed loan program is as a \___________.

OLs

\_____________________ may be used to purchase items needed for a successful farm operation, including livestock and farm equipment; to pay annual operating expenses and family living expenses; and to refinance debts under certain conditions.

LOCs

may be used to finance annual operating and family living expenses and to purchase feeder livestock. Loan funds are typically revolving (i.e., loan funds can be advanced, repaid and readvanced throughout the year). The refinancing of carryover expenses from prior years and other non-currentyear's debts/expenses is prohibited. Only current year operating debt can be refinanced with one.

FOs

may be used to purchase farmland, construct or repair buildings and other fixtures, develop farm land to promote soil and water conservation, or refinance debt incurred for FSA authorized farm and home purposes.

CLs

may be used for any conservation activities included in a conservation plan including: installation of conservation structures to address soil, water, and related resources; establishment of forest cover; installation of water conservation measures; establishing or improvement of permanent pasture and refinancing debt incurred for any authorized purpose

7 years

the repayment period of an OL cannot exceed \_________.

5 years

no advance on a LOC can be made after \_______, of the date of the loan guarantee, and the final due date must be within 7 years of the date of the loan guarantee.

40 years

The repayment period of an FO cannot exceed\_________.

30 years

The repayment period of a CL cannot exceed \___________.

90%

For most loans, the maximum percentage of guarantee is \______________.

GLS (guaranteed loan system)

is an information management system used by FSA and Rural Development (RD). This system was designed to account for all loan making and loan servicing activities for the Guaranteed Loan Program

Market Placement Program

is designed to:
• assist qualified existing direct loan borrowers and new direct loan applicants in obtaining a guaranteed farm loan from a commercial lender
• reduce the number of direct loans FSA makes, which reduces FSA costs while still meeting the credit needs of the farmer
• help new lenders become familiar with FSA lending standards and, therefore, serves a marketing function for the Guarantee Loan Program.

same operating cycle

A subsequent OL within the \______________ does not require a complete application submission. Only those items that have changed from the original application must be submitted, such as cash flow.

30 calendar days

SEL: Complete applications will be approved or rejected, and the lender notified in writing, no later than \_____________ after receipt.

14 calendar days

CLP: Complete applications will be approved or rejected, and the lender notified in writing, no later than \____________ after receipt.

14 calendar days

PLP: Complete applications will be approved or rejected, and the lender notified in writing, no later than\_______________ after receipt.

14 calendar days

Complete application will be approved or rejected, and the lender notified in writing, no later than \_________ after receipt.

deobligation

\____________ f the entire loan amount is required if the lender was unable to obtain the required lien position on security and therefore was unable to complete the closing of the loan

IA Program

enables lenders to provide credit to operators of family farms who lack the financial resources to meet standard repayment terms, as compared to other operators of similar operations.

IA

\____ is intended to assist farmers who have low production or suffered the effects of a natural disaster or adverse economic conditions.

beginning farmers

\__________ are also specifically targeted by FSA for increased assistance because of their inability to access private credit programs

guaranteed loans

lenders are responsible to service \_______________ just as they service the rest of their loan portfolio, including collection of payments, security accounting and reamortization of loans.

90 calendar days

The lender must perform an annual financial analysis of the borrower's operation within \_____________ of the end of the borrower's operating cycle.

partial release

A \________ is the release of a portion of the security used as collateral for a loan.

emergency advance

An \________________ may become necessary if an unexpected event has caused expenses to exceed the original budgeted amount, and it is necessary to protect against loss of the loan security. The \_______________ must be used for authorized operating loan expenses and cannot be used to pay a carryover of an existing line of credit (LOC) or annual operating expenses for a subsequent year.

consolidation

The term \______________ means to combine the outstanding principal and interest balances of two or more OLs or LOCs.

30 days

a guaranteed loan is in default if the borrower is \_______ past due on a payment or in violation of provisions of the loan documents.

rescheduling

The term "\__________________" " involves changing the payment terms of a loan, such as the interest rate or term in years of a note or LOC agreement. The new repayment schedule must be based on the borrower's ability to repay over the maximum loan term or life of the security. A loan does not have to be in default before this happens

15 years

OL notes must be rescheduled over a period not to exceed \______________ from the date of rescheduling.

40 years

FO and existing SW ) loans may be amortized over the remaining term of the note or rescheduled with an uneven payment schedule over a period not to exceed \______from the date of the original note.

OL LOC

An \________ must be rescheduled over a period not to exceed 7 years from the date of the rescheduling or 10 years from the date of the original note, whichever is less.

30 years

CL will be amortized over the remaining term or rescheduled with an uneven payment schedule. The maturity date cannot exceed\______ from the date of the original note.

capitalization of interest

when the outstanding accrued interest at the time of restructuring is added to the outstanding principal balance to make the new principal balance of the loan.

deferral

\________ postpones the payment of principal and interest on a CL, FO, OL, or LOC to accommodate a temporary inability of the borrower to make scheduled payments.

150 days

An estimated loss claim must be submitted by all lenders no later than \___________ after the payment due date unless the account has been completely liquidated and then the final loss claim must be filed.

final loss claim

lenders may submit a \_______________ when the security has been liquidated and all proceeds have been received and applied to the account.

deferral

The \__________ postpones the payment of principal and interest on a CL, FO, OL, or LOC to accommodate a temporary inability of the borrower to make scheduled payments.

direct loan

A distinguishing characteristic of FSA's \______________ programs is credit counseling and oversight.

12 months

Loans for annual operating expenses are normally due within \____________ or no more than 18 months.

youth OL

available to applicants at least 10 but not yet 21 years of age at time of loan closing.

45%

loans made under the FO downpayment program will not exceed \_________ of the lesser of the purchase price, appraised value of the farm or ranch to be acquired or $667,000 (subject to direct FO dollar limit).

5%

applicants for an FO downpayment loan must provide a minimum down payment of \_____________ of the purchase price.

60 calendar days

Each complete direct loan application request must be approved or disapproved by the loan approval official, and the applicant(s) notified in writing of action taken, not later than \___________ after receipt of a complete application.

production and financial management

all direct loan applicants are required to take borrower training in \___________________ unless the requirement is waived.

feasible plan

a \________________ is a plan based on the applicant/borrower's records that show the farming operation's actual production and expenses.

20 business days

if a treasury check is issued the loan must be closed within \____________ from the date the funds are received or the funds will be cancelled or returned.

5 years

The effective period for a UCC-1 is \______________

4 years and 6 months

the follow-up date for a UCC-1 is \_________________ from the filing date

security agreement

check that the \______________________ includes a list of all accounts, deposit accounts, goods, supplies, inventories, etc., that may serve as security, or a statement similar to the following: "All contract rights, chattel paper, documents, accounts and general intangibles, whether now or hereafter existing or acquired, any right to performance, entitlements to payment in cash or in kind, or other benefits under any current or future governmental program."

1 workday

Within \______ after loan closing, the closing agent must return completed and executed copies of loan closing instructions, the executed original promissory note, and all other documents required for loan closing, except the recorded security instruments, to the FSA agency official.

limited resource interest rate

borrowers unable to obtain cash flow at the Agency's regular rates and terms may be offered a \____________.

regular payments

payments applied to the borrower's loan that reduce the amount remaining on the next scheduled installment.
typically derived from the following:
• Sale of normal income security; e.g., crops, livestock
offspring.
• Sale of farm products.
• Lease income, including mineral lease signing bonus. • Program or disaster-related disbursements from USDA or crop insurance.
• Nonfarm income.

extra payments

payments applied to the borrower's loan that reduce the overall indebtedness of the loan but do not reduce the amount remaining on the next scheduled installment. They are derived from:
• sale of basic chattel security other than normal income security
• sale of real estate security
• refinance of Agency debt
• insurance proceeds from claims that were not used to repair or replace security
• refunds of duplicate disaster program benefits to be applied on an Emergency Loan (EM)
• refund of unused advanced loan funds
• any transaction that results in a loss in the value of any Agency basic security.

2 years

All chattels are inspected at least once every \_____________.

borrowers

\_______________ are responsible for paying insurance premiums and taxes on the real estate security to the proper authorities when they become due

insurance payment

If a loss occurs, FSA may agree to let the borrower use the \______________ to replace or repair property.

homestead protection

is the owner's or prior owner's (in the case of repossession by FSA) right to lease with an option to purchase the principal residence and up to 10 acres of adjoining land which secured an FLP direct loan.

market value buyout

A \______________ occurs when the borrower pays FSA the value of the security and the remaining debt is written off. The borrower will have 90 days from the date of FSA notification to complete the buyout.

bankruptcy

the legal means for a borrower to obtain relief from debts, either by partial write-off and reorganization or complete discharge of the debt.

Chapter 7

straight bankruptcy liquidation

Chapter 11

business reorganization form of bankruptcy

Chapter 12

family farm reorganization bakruptcy

chapter 13

wage earner reorganization form of bankruptcy

civil action

\_______________ will be pursued when collection efforts of the Government have failed. This protects the interests of, and minimizes potential losses to, the Government when all other reasonable efforts have failed.

voluntary conveyance

a method of liquidation of security property by which title to security is transferred to the Government and the Government assumes the responsibility for disposing of the property.

chattel property

Every effort is made to avoid acquiring \_______________