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(6) Other general farm operating expenses.
(7) Home operating expenses.
(c) Real estate restoration loans. Loans may be made to eligible farmers, for a period of not to exceed 20 years or a shorter period consistent with the borrower's anticipated ability to repay, or the useful life of the security, whicnever is the lesser, at an interest rate of four percent per annum for major repairs or replacements to real property destroyed or damaged in whole or in part by floods or windstorms. Such loans may include funds for the following purposes:
(1) Leveling land clearing of debris.
(2) Major repairs or replacements of drainage, irrigation or flood control systems.
(3) Major repairs or replacements of farm buildings.
(4) Major repairs or replacements of fencing, orchards, windbreaks or other farm improvements and facilities.
(5) Expenses incidental to the making of the loan.
$ 390.4 Making of loans. FW loans will be made under existing FSA procedures except as otherwise provided in this part.
(a) Applications. (1) Applications for either type of FW loan will be made on Form FSA-663 (Revised), “Application for Flood and Windstorm Restoration Assistance." No other form of application will be required under this program.
(2) Applications will be referred by the FSA supervisor to the county FSA committee for its consideration and determination of the applicant's eligibility and for recommendations on the type and amount of the loan needed. In determining eligibility, the committee will be guided by policies and instructions governing the Flood and Windstorm Restoration Program.
(3) Certain applications, particularly among applications for real estate res, toration loans, will contemplate repairs or replacements requiring engineering services. In any such case, a request for the services of the district engineer's staff should be made through the proper channels. The office of the district engineer will provide required surveys, plans, specifications, contract docu
ments and supervision, at appropriate times where such engineering services are determined to be necessary.
(b) Preparation and processing of loan dockets. Dockets for either type of FW loan will be prepared on the same forms and in the same number of copies and will be processed and case numbers assigned in the same manner as standard RR loans except as follows:
(1) All forms will be prominently marked "Restoration Loans.”
(2) Form FSA-663 (Revised) “Appli. cation for Flood and Windstorm Restoration Assistance,” will be prepared in an original and two copies; the original will be included in the loan docket, and forwarded to the regional director from the Finance area office upon certification of the loan voucher; one copy will be given to the applicant and one copy retained in the county office. (See also $ 390.5 (c) (1) (ii).)
(3) Form FSA-664, “Flood and Windstorm Restoration Loan Agreement,” will be required for both types of FW loans and prepared and distributed in the same manner as the loan agreement for standard RR loans, except both an original and one copy must be included in the docket where two or more advances are required under one loan agreement.
(4) Form FSA-FI 5 (Revised) "Public Voucher" must include information to distinguish whether the advance is the result of "flood" or "windstorm” damage. This will be shown by typing the word “Flood" or the word “Windstorm" in the space on the form for "Remarks." (Where the voucher provides for advances for both flood and windstorm damage the amount for each must be shown in this space.)
(5) Where refinancing is involved a narrative statement must be included in the application, Form FŞA-663. (See § 390.3 (a) (1) (ii).)
(c) Loan approval. (1) Loan applications under this program exceeding $10,000 to a borrower but not exceeding $15,000, will require the approval of the Administrator and should be forwarded to the Assistant Administrator, with the recommendation of the regional director.
(2) Regional directors are hereby au. thorized to approve FW loans in amounts not to exceed an aggregate of $10,000 to a borrower under this program. This authority may be redele
gated in writing to an appropriate member of the regional director's staff, with a copy of the delegation to the appropriate Finance area office.
(3) Individual district FSA supervisors and associate district FSA supervisors may be delegated authority in writing by the regional director to approve FW loans, except those involving “refinancing" ($ 390.3 (b) (5)) amounts not in excess of $5,000 with a copy of the delegation to the appropriate Finance area office. The authority delegated to district and associate district FSA supervisors will constitute a limitation on the aggregate amount of FW loans to a borrower that may be approved by such employees under this program.
(4) Individual FSA supervisors may be delegated authority in writing by district FSA supervisors to approve FW loans, except those involving "refinancing" ($ 390.3 (b) (5)) in amounts not in excess of $2,500, with a copy of the delegation to the appropriate finance area office. The delegated loan approval authority will represent the aggregate amount of FW loans for any borrower which may be approved by an FSA supervisor under this program.
(d) Security. Loans will be secured in the first instance and security will be maintained to a degree of reasonable adequacy, usually by liens on the property purchased or produced with loan funds.
(1) Real estate restoration loans. Real estate restoration loans will be secured by liens on the real estate unless other collateral security is offered which is determined to be reasonably adequate. Liens on real estate may be junior liens: Provided, That the outstanding indebtedness against the real estate, plus the amount of the FW loan, will not exceed the value of the realty and the total indebtedness appears to be within the debt-paying ability of the applicant and arrangements are made so that the tenure of the applicants will be reasonably secure. In all cases of loans of $1,000 or more, the title will be approved by the regional attorney or å mortgagee title insurance policy issued by a company approved by the Solicitor's office shall be furnished. In cases of loans under $1,000, there will be included in the docket Form FSA-665, “Owner's Affidavit”, Form FSA-LE 238, “Third Party Affidavit”, or Form FSA-RP 70,
"Tract Data Obtained from Public Records”, completed and signed by either the FSA supervisor, county recorder, county treasurer, an abstractor or other appropriate person or official. The applicant must pay all costs in connection with the title insurance policy or the preparation and continuance of the abstract or other expense necessary in the furnishing of proper title evidence and the costs of recording, but the Government may advance money necessary for this purpose by including sufficient funds in the loan. It will be the responsibility of the regional attorney to prepare appropriate instructions for the obtaining of title evidence, the closing of loans and the obtaining of a mortgagee title insurance policy if required.
(2) Production restoration loans. Production restoration loans will be secured by a first lien on all property purchased and the best lien obtainable on property repaired (except real estate) or crops produced with loan funds. It is anticipated that such liens will ordinarily represent reasonably adequate security, however, in those cases in which the major portion of the loan funds are advanced for items not customarily made subject to a lien, additional security may be required by the approving official in order to establish a situation of reasonable adequacy. In cases where liens are taken on property being repaired or on property representing additional security, junior liens will be acceptable provided the borrower owns a mortgageable equity in such property.
(3) Other security. Other security, such as assignments of farm income, may be required by the approving offcial where it appears necessary for the protection of the Government's interests in the orderly retirement of the FW loan.
$ 390.5 Grants policies and procedures. Grants made under this program will be identified as FW grants.
(a) Grant policies. (1) Grants may be made to eligible applicants only in cases such as those for which grants are provided under the regular FSA program or where grants are necessary to carry out the purposes of this program. Such grants may be made only to the extent that necessary advances of funds under this appropriation beyond the amount which could be loaned to any applicant with a reasonable probability that such loan could be repaid.
(2) Grants may not be made:
(i) Under this appropriation in an aggregate amount in excess of $1000 to any individual recipient. Generally the amount of grant to any individual applicant should not exceed the amount necessary to meet the subsistence needs of the family.
(ii) To make repayments on any indebtedness to any creditor.
(iii) For major real estate improvements.
(iv) For goods or services which the applicant can supply out of his own current resources or out of available income, or where the debt paying ability of the applicant will justify a loan for the purpose.
(v) For purposes which would permit a family to divert income, which should otherwise be used to meet its needs, for the payment of excessive debts or inequitable rental. (In other words, grant funds must not be used in such a way as to accrue indirectly to the unjustified benefits of creditors.)
(3) A determination of the best estimate of the amount which could be loaned to any applicant with a reasonable probability that such loan could be repaid must be made upon the considered judgment of the county FSA committee and FSA employees. The FSA supervisor will assemble all factual information he is able to obtain for the use of the committee as a basis for the exercise of its judgment. Form FSA-663 will be useful in recording this information.
(4) Grant checks should be mailed to the recipient in care of the FSA supervisor. The FSA supervisor will, thereafter, mail or deliver such checks to the recipients. Where it is advisable to make the grant in multiple advances, subsequent payments to several recipients may be included on the same voucher, Form FSA-FI 58.
(b) Grant approval. In cases where an FW loan and an FW grant are recommended for the same applicant the authority delegated herein shall not be exercised unless the approving officer's authority is broad enough to approve both the particular loan and the par
docket will be forwarded to the Assistant Administrator through the office of the regional director with his analysis and recommendation.
(2) Regional directors are hereby authorized to approve grants in amounts not to exceed an aggregate of $500 to an applicant and to redelegate in writing to individual associate district FSA supervisors and individual FSA supervisors authority to approve grants in amounts not to exceed an aggregate of $300 to an applicant. Copies of such redelegations will be forwarded to the District FSA Supervisor and appropriate Finance area office.
(3) District FSA supervisors are hereby authorized to approve grants in amounts not to exceed an aggregate of $300 to an applicant.
(c) Grant procedures. Grants made under this program will be designated FW grants. Forms used for the making of FW grants must show whether such grants are made because of "flood" damage or “windstorm” dainage.
(1) Form FSA-663 (Revised), "Application for Flood and Windstorm Restoration Assistance" will be used to show the need for and the type and amount of FW grant which may be recommended. If for any reason the anticipated operations for this year will vary from operations which can reasonably be expected over the period of debt repayment, adjusted figures reflecting an expected average year's operation during the period of debt repayment should be shown in the column headed “Expected Av. Yr." in $ 390.6. The proper number of years to figure debt repayment will be dependent upon such factors as: the useful life of items to be purchased with FW advances, the amount and kind of other debts owed by the applicant, the likelihood of future hazards on this farm and other pertinent factors. A narrative justification will be required in $ 390.7 for all applications involving a grant.
(i) County FSA committees will clearly designate over their signatures in the space provided for this purpose, the amount of FW grant recommended.
(ii) Where grant advances are recommended it will be necessary to prepare an extra copy of this form submitting an original and one copy to the finance area office. An original and two copies to the finance area office, are necessary where multiple grant ad
(1) Applications for grants exceeding $500, will be referred to the Administrator of the Farm Security Administration. In all such cases the complete
recommended. (See also $ 390.4 (b) (2))
(2) Form FSA-FI 58, "Public Voucher for Direct Relief, Stricken Agricultural Area", will be prepared in an original and three copies for all ts approved or recommended for approval. The original and two copies will be included in the docket. One copy will be retained in the county FSA office to be held until the “paid copy” is received from the Treasury Disbursing office. The word “Flood” or “Windstorm” will be typed in column "4" of this voucher. Where both types of grants are made to a single applicant on the same voucher, the amount to be charged to each type should be shown in column "4" and the total advance for both types shown as a single item in column “6”.
$ 390.6 Supervision and loan servicing-(a) Supervision. It is not contemplated that FW borrowers and grant recipients will be given the type of detailed supervision of farm and home practices and operations characteristic of the RR program. However, there may be situations where financial assistance would not be advisable unless supervision of farm and home operations is provided. The county FSA committee, in passing upon the eligibility of each applicant, will determine whether such supervision is necessary. When any FW borrower requests supervisory assistance of the type ordinarily given under the RR program, provision will be made for the extension of supervisory services within the limits of available personnel. Only in cases designated for “supervision" by county FSA committees and where the FSA supervisor and the FSA committee determine that extra precaution is necessary, may the loan or grant funds be placed in a supervised bank account to insure that such funds are used for the purposes authorized.
(b) Loan servicing. FW loans will be serviced under the procedures and with forms applicable to standard RR loans except as provided herein. FSA officials who are delegated similar authority with respect to RR loans are hereby authorized to do all acts necessary and incidental to the making, servicing, renewing and collecting of all FW loans, subject to monetary restrictions and other restrictions applicable to similar acts under the RR program. FSA officials who are similarly authorized to
act under the RR program are likewise authorized to accept, record, release and satisfy instruments of security for all FW loans subject to monetary restrictions and other restrictions imposed under the RR program. Specific exceptions to these general authorizations are as follows:
(1) Partial release of security may be granted under procedures applicable to standard RR loans but only for the following purposes:
(i) Repayments on FW loans.
(ii) Exchange (including sale and repurchase) of security better suited to the future needs of the borrower.
(iii) For the protection and maintenance of remaining security.
(iv) For payment of emergency expenses essential to the welfare of the family.
(v) (The following authority may be exercised only with respect to crops, livestock products and livestock, produced for sale.) For general farm and home expenditures after annual maturities on the FW loans have been paid; or, prior to such payment where there is assurance that annual maturities will be paid.
(2) The renewal of FW loans will be accomplished on the same forms and handled under the same general procedures applicable to standard RR loans except that real estate restoration loans or production restoration loans will not be combined with any other type of loan. Separate renewal notes will be required for each of these loan types, although such a renewal may include several loan advances of the same type.
$ 390.7 Reports. Borrowers obtaining loans from the 1943 appropriation, formerly identified as “FR borrowers" will henceforth be identified as "FW borrowers". Likewise loans formerly identified as "FR" loans will henceforth be identified as "FW” loans. FSA borrowers who suffer flood or windstorm damage in 1944 are eligible for FW loans within the limitations set forth in this part but will retain their present classification of FSA borrowers.
(a) Finance area offices will prepare as of the last day of each month reports by States showing:
(1) The number of FW loans and amount (by loan types segregated as to "Flood restoration loans" and "windstorm restoration loans" separately) of FW loan funds obligated, the total amount advanced such borrowers, the amount of principal and interest repaid and the balance of principal and interest unpaid.
(2) The number of FW grants and amount of FW grant funds obligated (segregated as to “flood grants”, and "windstorm grants") and the total amount advanced such recipients.
(b) Regional directors will prepare on the 10th of each month, a report by States based on applications processed through the finance area offices during
the preceding month, showing the number of FW applications involving funds for each of the purposes indicated in $ 390.3 (b) and (c) and the total amount of funds for each of the purposes indicated in these paragraphs.
(c) FSA supervisors in designated counties will provide on Form FSA-322:
(1) The number of FW applications received during the month, and the number of FW applications on hand at the end of the month. (Monthly)
(2) The number of families receiving FW assistance. (Quarterly)