TITLE 7 - AGRICULTURE

SUBTITLE B - REGULATIONS OF THE DEPARTMENT OF AGRICULTURE

CHAPTER XVIII - RURAL HOUSING SERVICE, RURAL BUSINESS - COOPERATIVE SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE

SUBCHAPTER H - PROGRAM REGULATIONS

PART 1951 - SERVICING AND COLLECTIONS

subpart r - RURAL DEVELOPMENT LOAN SERVICING

1951.871 - Post award requirements.

  (a) RDLF intermediaries with undisbursed RDLF loan funds shall be governed by these regulations, the loan agreement, the approved work program, security interests, and other conditions which FmHA or its successor agency under Public Law 103354 may require in awarding a loan.

  (b) Unless otherwise specifically agreed to in writing by the FmHA or its successor agency under Public Law 103354, any loan funds held by an intermediary and any funds obtained from loaning FmHA or its successor agency under Public Law 103354-derived funds and recollecting them that are not immediately needed by the intermediary for an ultimate recipient should be deposited in an interest-bearing account in a bank or other financial institution which will be covered by a form of Federal deposit insurance. Any interest or income earned as a result of such deposits shall be used by the intermediary only for purposes authorized by FmHA or its successor agency under Public Law 103354.

  (c) Intermediaries operating relending programs must maintain separate ledgers and segregated accounts for RDLF funds at all times.

  (d) Reporting requirements shall be those delineated in the loan agreement between the United States and the intermediary and such subsequent requirements as FmHA or its successor agency under Public Law 103354 deems appropriate. The intermediaries must document periodically the extent to which increased employment, income and ownership opportunities are provided to rural residents for each loan made by such intermediary.

  (e) No intermediary may make a loan to an ultimate recipient who has applied for or received a loan from another intermediary unless FmHA or its successor agency under Public Law 103354 provides prior written approval for such loan.

  (f) All loan payments that are due on RDLF loans will be made payable to the Farmers Home Administration or its successor agency under Public Law 103354, using the number assigned, and mailed directly to: Farmers Home Administration or its successor agency under Public Law 103354, Finance Office, FC 35, 1520 Market Street, St. Louis, Missouri 63103.