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delegations have been made should, as soon as practicable, review existing delegations to their subordinates for the purpose of determining if any changes should be made or recommended.

(d) Execution of delegation forms. (1) Wherever authority has been vested in an official with a provision that such authority, or any part thereof, may be redelegated to one or more subordinate and no other form of delegation is specified, the following form will be used with such modification as may be necessary. Officials must observe any limitations placed upon their power to redelegate and must see that the delegate is bonded, if the authority requires a bond, or meets any other requirements. Pursuant to authority vested in me

by (title)

(document reference) I hereby delegate to

(name) (location) authority to

(description of authority so dele


gated, containing any necessary limitations) in accordance with applicable regulations and procedure. This delegation shall be effective as of

and shall

(date) continue in effect during his incumbency, unless revoked or otherwise modified in writing.

(Add any necessary approvals)

(2) In regional and other field offices unless otherwise provided, delegations of authority, revocations, or modifications thereof will be prepared and signed in an original and two copies for distribution: Original to the delegate (in district and county offices file in delegate's personnel folder), two copies to the Regional Director, one of which will be filed in the delegate's personnel folder (Regional Communications and Records Section), the other will be transmitted to the Finance Area Manager if fiscal matters are involved in the delegation; otherwise the other copy may be destroyed.

(3) In the national office, delegations of authority, revocations, or modifications thereof will be prepared in an original and two copies, plus such additional copies as may be needed for distribution to affected offices. Distribution will be as follows: Original to the delegate; one

copy to the delegate's personnel folder (Communications and Records Section); one copy for the originating office file; one copy to each office or division affected.

§ 320.2 Designation of Acting Regional Directors. (a) Each Regional Director is hereby authorized to designate individual members of his staff to act for him during his temporary absence from his official headquarters, and may delegate to such individuals any and all rights, privileges, and powers including the authority to execute documents concerned therewith, vested in the Regional Director, with the exception of authorities delegated directly to him by authorized Departmental or other Government oficials other than FSA officials, the redelegation of which is expressly prohibited and which may in the Regional Director's absence be exercised by previously designated individuals.

(b) Designations, as provided above should be made preferably to an Assistant Regional Director; may cover any temporary absence of the Regional Director during a specified iod or cover only a single absence; may cover all rights, privileges and powers of the offcial or may be limited; must be made in writing, indicating the individual by name and title and specifying the period during which the designation will be effective; and may be revoked, in writing, at any time.

(c) The Regional Director may designate more than one individual and the order of succession between them. This may be accomplished by a single comprehensive delegation (see suggested form) or by separate delegations which indicate the order of succession by showing in each, the officials whose absence will make the delegation operative for the respective individuals.

(d) The following is a suggested form of designation. If the delegation is to be limited, the Regional Director will substitute the description of the functions to which the delegation is limited for the phrase "all rights, privileges, and powers (including the authority to execute all instruments in connection therewith) vested in me", in this form.

Pursuant to the authority vested in me as Regional Director of the Farm Security Administration for Region I hereby desig


(and (name)

(title) in the absence of both and myself, I further designate

(name) to act as Regional Director dur(title) ing my absence from duty at the regional office and I hereby delegate to such Acting Director, all rights, privileges, and powers (including the authority to execute all instruments in connection therewith) vested in me. This designation and delegation shall be effective as of

and shall con

tinue in effect until and including

Regional Director, Region

(e) The above-described form of designation and any revocation thereof will be prepared in an original and two copies plus such additional copies as may be needed for distribution to affected offices. Distribution will be made as follows: Original to the designated individual; one copy to the Finance Area Manager; one copy for filing in the Regional Communications and Records Section of the BM Division and one copy to each office affected.

(f) The designated individual will sign all documents under such an authorization with his own signature over his temporary title, “Acting Regional Director."

Subchapter G-Farm Ownership

PART 361-DELEGATIONS Sec. 361.11 Delegations of authority. (Amend

ed] § 361.11 Delegations of authority.

(b) *

(10) Final payment of FO loans-(i) Authorization. Regional directors are authorized to accept final payment of FO loans and to execute necessary releases. This authority may be redelegated to Assistant Regional Directors, FO, or Chiefs of FO Loan Making and Servicing Sections.

(ii) Submitting application to regional director. (a) When an FO borrower has indicated his intention to pay his loan in full, the FSA Supervisor will advise the Regional Director, by letter, of the borrower's intention. (This will not be necessary if payment is to be made from the proceeds of a sale which has been approved previously by the Administrator or the Regional Director.) The source of funds from which the payment is to be made will be indicated; it will also be indicated whether the borrower is to remain on the farm and continue farming operations, or, if not, whether the property will continue to be operated as a family-type farm. If the Regional Director approves the acceptance of final payment he will so advise the FSA Supervisor.

(b) At the time that the FSA Supervisor requests the Regional Director's approval for the acceptance of final payment, he will request the Finance Area

Office, by letter, to inform him of the unpaid balance of principal and interest of the borrower's account as of the approximate date the borrower expects to make payment, and the daily accrual of interest thereafter. In this letter he will state the date and amount of the last collection received from the borrower, also the schedule number of Standard Form No. 1044, "Schedule of Collections", on which the remittance was scheduled.

(iii) Preparation of receipt. Final payment of the account will be indicated on Form FSA-FI 37, "Receipt for Payment”, by inserting immediately above the collector's signature on the yellow, salmon, pink and blue copies the following: “Loan Type

Fully Paid". (iv) Surrender of notes. Upon receipt, from the U. S. Treasury Regional Disbursing Office, of the accomplished copy of Standard Form No. 1044 covering the remittance which paid the account in full, the Finance Area Office will immediately prepare Form FSA-597, “Statement of Fully Paid Notes", in triplicate. The original and first copy will be forwarded to the Communications and Records Section in the Finance Area Office city and the second copy will be filed in the Loan Accounting Section. The receipt of Form FSA-597 in the Regional Communications and Records Section will be recognized as authority to surrender the note. The Regional Communications and Records Section will stamp the note with a paid-in-full legend, attach it to the original of Form FSA-597 and forward it to the regional office, attention FO Division (or, in regions with small case loads, the FO Loan Making and Servicing Section). The copy will be filed in the borrower's case folder.

(v) Satisfactions. Upon receipt of Form FSA-597 and the stamped note in the regional office, appropriate entries will be made on the Kardex records and the Regional Attorney will be requested to prepare the satisfaction. The stamped note, the original of Form FSA597 and the original and one copy of the executed satisfaction (or two copies if state laws require recording or filing by the mortgagee) will be forwarded to the FSA Supervisor. The original of Form FSA-597 will be filed in the borrower's case folder in the collecting office and the stamped note delivered promptly to the borrower. (The regional office will issue instructions to collecting officials as to the length of time paid notes and satisfactions should be held for actual delivery to the borrower pending final clear

ance of the collection item, when the final payment is in a form other than a Treasury check, cashier's check or money order.) The original satisfaction will be delivered to the borrower for recording or filing if desired, and the copy will be retained in the collecting office. However, if state laws require recording or filing by the mortgagee and two copies have been supplied by the regional office, the original will be recorded or filed by the collecting official and a copy delivered to the borrower. (For instructions with respect to payment of fees, see paragraph VIII D of FSA Instruction 462.2.) 1

(vi) Prior releases confirmed. All releases heretofore executed by Regional Directors or their delegatees upon final payment of FO loans are hereby confirmed. [Subparagraph (10) added Jan. 20, 1944, 9 F.R. 824]

Subchapter J-Miscellaneous Farm Assistance



VISED) Sec. 390.1 General. 390.2 Eligibility. 390.3 Loan policies and purposes. 390.4 Making of loans. 390.5 Grants policies and procedures. 390.6 Supervision and loan servicing. 390.7 Reports.

AUTHORITY: $$ 390.1 to 390.7, inclusive, issued under 57 Stat, 542.

SOURCE: $$ 390.1 to 390.7, inclusive, contained in FSA Instruction 471.1, Revised, June 2, 1944, 9 F.R. 6117.

$ 390.1 General. In July of 1943 Congress made available to the Secretary of Agriculture a fund of $15,000,000 for assistance to farmers whose property was destroyed or damaged by floods in 1943. Current legislation has made available the unused balance of this fund for assistance to farmers whose property was destroyed or damaged by floods or windstorms in 1944. The Secretary of Agriculture has designated the Farm Security Administration as the Agency to administer the Flood and Windstorm Restoration Program.

(a) Purpose of program. The Flood and Windstorm Restoration Program will provide assistance to farmers in designated counties, who, because of

damage or destruction of property by such floods or windstorms, will not be in a position to continue agricultural production needed in the war unless credit and/or grants are made available from this source. The purpose of this program is to correct situations which appear reasonably to have resulted from such floods or windstorms and to enable eligible farmers, (1) to resume or continue agricultural production in 1944, or (2) to make arrangements for such production in 1945.

(b) Scope of program. The Flood and Windstorm Restoration Program will be restricted to counties designated by the Secretary of Agriculture. No activity will be initiated in any county until the regional director of the Farm Security Administration has been officially notified of such designation by the Secretary of Agriculture. Regional directors will submit recommendations for the designation of counties and will include information regarding the date and extent of damage and whether such damage was caused by flood or windstorm or both to the Office of the Administrator for referral to the Secretary of Agriculture.

(c) Local assistance from other agencies. Although the actual making of

1 Not filed with the Division of the Federal Register.

loans and grants and the servicing of loans will be the responsibility of the FSA, there will be a need, particularly at the county level, for the full cooperation and assistance of other agricultural agencies and representatives War Boards, representatives of other agricultural credit sources (Federal, State, and local), and other community leaders can furnish valuable advisory assistance, publicity, and other services. It will be particularly important in administering the grant program for FSA supervisors to cooperate fully with the National Red Cross, and local welfare agencies in order to prevent the duplication of relief and in such other respects as may be appropriate and consistent with this instruction.

$ 390.2 Eligibility. Any farm owner or any farm operator (including tenants and sharecroppers) whose farm lies in a designated county and whose property was destroyed in whole or in part by floods or windstorms in 1944 will be eligible to apply for financial assistance under this program, Provided, Such applicants are unable to obtain credit elsewhere at reasonable terms, and Provided further, That such financial assistance is necessary to resume or continue agricultural production in 1944 or 1945, except that owners other than owner-operators are not eligible to receive grants. Final determination of the eligibility of individual applicants will be made by County FSA Committees. (Farmers who suffered only from flood damage in 1943 are eligible to receive flood restoration loans only until June 30, 1944.)

$ 390.3 Loan policies and purposes. (a) Two types of loans, “production restoration loans" and "real estate restoration loans," (see paragraphs (b) and (c) of this section) will be available to applicants under this program. Loans made under this program will be identified as FW loans. Recipients of loans will be identified as FW borrowers.

(1) Refinancing. (i) No indebtedness secured by a mortgage upon real estate will be refinanced under this program. Indebtedness other than real estate debt may be refinanced with FW loans in exceptional cases if such refinancing becomes necessary by reason of flood or windstorm damage and is essential to the resumption or continuance of production and then, only after such debts have been properly adjusted.

(ii) Loans including amounts for refinancing must be supported by a signed narrative statement explaining the circumstances of the individual case which makes refinancing necessary as a last resort. Such statement should be prepared by an FSA supervisory official having personal knowledge of the case. The narrative statement should explain:

(a) The action taken by an FSA employee or committeeman to obtain a subordination agreement, non-disturbance agreement, extension agreement or other form of debt adjustment.

(6) Why such refinancing is essential to the applicant's future farming operations.

(c) Whether the value of essential security property which is being refinanced, or the value of the applicant's equity in property which is in jeopardy, is equal to or greater than the amount recommended for refinancing.

(2) Debt adjustment. There will be many situations under this program where the damage or loss resulting from floods or windstorms will have created circumstances that prohibit the orderly liquidation of existing debts and, therefore, necessitate a careful and thorough adjustment of debts.

(i) Real estate debts. In those situations where the existing indebtedness on real estate merits adjustment to justify the additional credit necessary to restore the land to production, efforts should be made to induce creditors to (a) reduce the amount of such indebtedness, (b) extend the terms thereof, or (c) otherwise, satisfactorily adjust the indebtedness to the debt-paying ability of the applicant by any combination of these or other methods.

(ii) Other debts. In those situations where the adjustments of debts other than real estate debts is essential to the resumption or continuance of production, efforts should be made to induce creditors to adjust debts through reduction, extension or other appropriate methods, to within the reasonable debtpaying ability of the applicant. If it appears necessary to refinance such debts, the amount recommended for refinancing must not exceed the sum of a conservative estimate of the borrower's ability to repay annually, multiplied by the number of years over which repayment should be extended (this may not, in any case, exceed 10 years), or in the case of secured debts a conservative estimate of the value of the security, whichever is the lesser.

(3) Alternative protective actions. In those situations where adjustment of debts appears desirable but may not be vitally essential to the resumption or continuance of production, alternative measures may be followed for the protection of the Government's and the applicant's interests:

(i) Subordination agreements may be obtained from secured creditors, either real estate or nonreal estate, in lieu of debt reductions where it appears that ultimate repayment of the total debt could be made without serious financial injury to the applicant.

(ii) Nondisturbance agreements may be obtained from either secured or unsecured creditors (real estate or nonreal estate debts) in those instances where it appears that the applicant will be able to either repay or place himself in a safe financial position provided he is not disturbed during an ample period of time.

(4) Protective tenure improvements. There may be some situations where contract purchasers of land and mortgagors with small equities will desire to make so-called permanent improvements to real estate which are necessitated by flood or windstorm damage and which appear essential to bringing about production of essential agricultural commodities in 1944 or 1945. In passing upon these loan applications, due consideration must be given to the approximate cost of such improvements in relation to the borrower's equity in the land. If it appears that the borrower may, through foreclosure, cancelation of contract, or otherwise, fail to realize the reasonable value of the expenditure, the loan should not be made, unless the mortgagee or title owner of the real estate (a) assumes liability for the amount loaned for such improvements, or (b) agrees that the improvements may be removed in the event of termination of the contract or foreclosure of the mortgage, or (c) agrees to compensate the borrower for the residual value of the improvements at the time of termination. If the applicant is a tenant the same tests must be followed, and the loan for such improvements must not be made unless the mortgagee or title owner of the real property will agree (a) to become liable for the amount loaned

to make the improvements, or (b) to permit the removal of the improvements at the termination of the lease, or (c) to pay for the residual value of such improvements at the termination of the lease, or (d) to extend the period of the tenure sufficient to enable the applicant to obtain full utilization of the cost of the improvement.

(b) Production restoration loans. Loans may be made to eligible applicants, for a period of not to exceed 10 years or a shorter period consistent with the borrower's anticipated ability to repay, or the useful life of the security, at an interest rate of five percent per annum for production needs including repairs or replacement of equipment, livestock, minor repairs and replacements on real estate, and other needs essential to the resumption or continuance of production. In those states in which the chattel mortgage will not be capable of extension over the entire repayment period of the loan, the installment due under the note for the year when the lien, created by a chattel mortgage, is to be terminated must be the aggregate of the normal installment for that year and the normal installments for all subsequent years. The borrower should be advised that the note will be renewed or extended to provide for payments over the desired period of the loan if the action is justified and if a new chattel mortgage is given by the borrower immediately preceding the end of the statute period covering security adequate to justify the renewal or extension. In all cases in which the property to be purchased consists of movable property which can be made the subject of a chattel mortgage, a chattel mortgage should be obtained. The regional attorney should be requested to prepare instructions concerning the taking of mortgages on chattels to be affixed to the real estate. Production restoration loans may include funds for the following purposes:

(1) Purchase of feed, seed and fertilizer.

(2) The repair or purchase of machinery and farm and home equipment.

(3) Purchase of livestock.

(4) Minor real estate repairs or replacement of buildings, fences, and other farm improvements and facilities.

(5) Refinancing of adjusted debts other than real estate debts.

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