RD Instruction 2033-A

Table of Contents

Page 1

(Revision 1)

PART 2033 - RECORDS

Subpart A - Records Management In Rural Development Field Offices

## [TABLE OF CONTENTS]{.underline}

[Sec]{.underline}. [Page]{.underline}

2033.1 Purpose. 1

2033.2 \[Reserved\] 1

2033.3 Authority and responsibility. 1

\(a\) Authority. 1

\(b\) Responsibility. 1

2033.4 Definitions. 1

2033.5 Types of records. 4

\(a\) Official records. 4

\(b\) Unofficial records/nonrecord material. 6

\(c\) Electronic records. 6

2033.6 Records filing and maintenance requirements. 9

\(a\) Filing. 9

\(b\) Filing equipment. 10

\(c\) File maintenance. 10

2033.7 Program case folders (applicant/borrower). 15

\(a\) Applications/preapplications. 15

\(b\) Conditional commitment applications. 16

\(c\) Loan docket folder. 17

2033.8 Maintenance of active borrower case folders. 17

\(a\) Arrangement of materials within folders. 17

\(b\) Maintenance of borrower case folders requiring

\"special handling.\" 23

2033.9 Removal of material from \"active\" borrower

case folders (individual and association). 29

(04-09-97) PN 275

RD Instruction 2033-A

Table of Contents

Page 2

(Revision 1)

[Sec]{.underline}. [Page]{.underline}

2033.10 Closed borrower case folders. 30

\(a\) Determining \"closed\" borrower case folders. 30

\(b\) Maintenance and disposition of \"closed\" borrower

case folders. 31

2033.11 Section 504 housing assistance borrowers. 33

\(a\) Section 504 borrower list. 33

\(b\) Maintenance and disposition. 33

2033.12 Destroying official record material. 34

2033.13 Authority for disposition of Rural Development records. 34

2033.14 - 2033.50 \[Reserved\] 34

Exhibit A - \[RESERVED\]

Exhibit B - TABLE OF CONTENTS FOR ASSOCIATION - TYPE BORROWER CASE

FILES

Exhibit C - MAINTENANCE OF PROGRAM RECORDS ENTERED TO THE AUTOMATED

DISCREPANCY PROCESSING SYSTEM (ADPS)

## oOo 

RD Instruction 2033-A

PART 2033 - RECORDS

Subpart A - Records Management in Rural Development Field Offices

§2033.1 [Purpose]{.underline}.

This Instruction prescribes the policies, procedures, and methods for
maintaining and managing Rural Development, formerly Farmers Home
Administration (RD), records in State, District, and County Offices. The
use of the Rural Development Operational Records Manual is mandatory and
should be used in conjunction with this Instruction.

§2033.2 \[Reserved\]

§2033.3 [Authority and responsibility]{.underline}.

\(a\) [Authority]{.underline}. Federal regulations require Rural
Development to make and preserve records containing adequate and proper
documentation of the organization, functions, policies, decisions,
procedures, and essential transactions of the Agency, and are designed
to furnish the information necessary to protect the legal and financial
rights of the Government and persons directly affected by Rural
Development activities.

\(b\) [Responsibility]{.underline}. State Directors, District Directors,
and County Supervisors are responsible for maintaining adequate
documentation of all official transactions including those shown in
Attachments 1 and 2 of Exhibit C of this Instruction. Chiefs of
Administrative Programs (CAPs)/Administrative Officers (AOs) are
responsible for training office staffs in the application of this
Instruction and for a continuing review of records management activities
in offices within their State. They are also responsible for keeping the
State Director, District Director, and County Supervisor advised on
records management problems and, when circumstances warrant, contacting
the National Office, Support Services Division (SSD), General Services
Branch (GSB) for clarification, correction, or necessary additions to
this Instruction. The National Office, Records Unit will conduct
periodic reviews to ensure implementation of the requirements of this
Instruction.

§2033.4 [Definitions]{.underline}.

[Applicant]{.underline}. Any person or legally recognized group of
persons or other legal entity seeking Rural Development program
assistance through written applications, for certain subsequent loans,
or by oral request.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

DISTRIBUTION: WSAL Administrative Services

Records

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(04-09-97) PN 275

RD Instruction 2033-A

§2033.4 (Con.)

[Association borrower]{.underline}. Associations, organizations,
cooperations

(co-ops), municipalities, water districts, authorities, or any other
legal entity not eligible as an individual person for Rural Development
program assistance, and all Business and Industry (B&I) borrowers
(including individual) and Multi-Family Housing (MFH) borrowers who
executed a loan agreement.

[Block]{.underline}. One or more chronological segments of cutoff, or
closed, records that are in the same series and are dealt with as a unit
for disposition purposes.

[Case folder]{.underline}. The one or more file folders, envelope
jackets, mailing tubes, or other filing devices containing the total
cumulative official records concerning an applicant/borrower.

\(1\) The \"initial\" case folder contains the records needed for
routine servicing of borrower accounts.

\(2\) A \"continuation\" case folder is an additional folder begun when
necessary to hold infrequently used records or to provide for an
increased volume of material.

[Closed case folder]{.underline}. The one or more folders on a borrower
who is classified as \"paid up\" or \"otherwise satisfied\" and no
longer has an obligation to, or unresolved legal action pending with,
Rural Development.

[Disposal authority]{.underline}. Legal approval empowering an Agency to
transfer permanent records to the National Archives or carry-out the
disposal of temporary records.

[Electronic records]{.underline}. Any record that is created, used,
maintained, transmitted, and disposed of in electronic form. Such
records may be stored in computer memory (random access memory) or
flexible disks. Offices may or may not have nonrecord paper copies of
electronic records. Electronic records are also referred to as
machine-readable records because they require machine processing for
conversion to human-readable form. Examples of these types of records
include those on magnetic tapes, disks and drums, video files, optical
disks, and floppy disks.

[Essential Rural Development records]{.underline}. Designated files or
documents requiring special protective measures in the event of fire,
flood, tornado, civil disorder, or other disruptive emergency situation.

[Federal Records Center (FRC)]{.underline}. A facility for the low-cost
storage and servicing of records pending their disposal or transfer to
the National Archives.

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RD Instruction 2033-A

§2033.4 (Con.)

[File break/File cutoff]{.underline}. Breaking or ending files at
regular intervals, usually at the close of a fiscal or calendar year, to
permit their disposal or transfer in complete blocks and for
correspondence files, to permit the establishment of new files.

[Individual borrower]{.underline}. An individual person receiving Rural
Development program assistance; [EXCEPT]{.underline} those individuals
receiving B&I program assistance or who executed an MFH loan agreement.

[Nonrecord material]{.underline}. Informational type material made or
acquired for convenient reference purposes consisting of reader files;
extra copies of documents; reference publications in the format of
books, pamphlets, and factsheets; commercial advertising matter; rough
drafts; personal papers; or any similar material maintained solely for
the user\'s benefit.

[Office]{.underline}. This means State, District, and County Offices.

[Position filing]{.underline}. A method of filing functionally related
records in a predetermined position within a file folder.

[Records]{.underline}. Includes all books, papers, maps, photographs,
machine-readable materials, or other documentary materials, regardless
of physical form or characteristics, made or received by an agency of
the United States Government under Federal law or in connection with the
transaction of public business and preserved or appropriate for
preservation by that agency or its legitimate successor as evidence of
the organization, functions, policies, decisions, procedures,
operations, or other activities of the Government or because of the
informational value of data in them. Library and museum material made or
acquired and preserved solely for reference or exhibition purposes,
extra copies of documents preserved only for convenience of reference,
and stocks of publications and of processed documents are not included.

[Records disposition]{.underline}. Removal and destruction as wastepaper
or by shredding, burning, or other suitable disposal methods of records
exceeding established retention periods. (Note: Destruction methods must
not compromise the confidentiality of information contained in the
records.)

[Records inventory]{.underline}. The actual physical inventory measured
in cubic foot volume, of ALL \"official\" records maintained in an
office.

[Retention period]{.underline}. The legally established period of time
which must elapse before a record is eligible for disposition.

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RD Instruction 2033-A

§2033.4 (Con.)

[Supervisor]{.underline}. State Director, District Director, and County
Supervisor.

[Table of Contents/Processing Checklist]{.underline}. These two items
are used interchangeably and refer to an optionally designed State index
form used in borrower case folders to assist in identifying the exact
location of a specific record.

[Temporary folder]{.underline}. A substitute folder placed in the files
during the prolonged absence of a regularly maintained case folder to
hold records accumulated during the interim period. (Note: Temporary
folders should be frequently reviewed to preclude the loss or
misplacement of the official case folder.)

§2033.5 [Types of records]{.underline}.

\(a\) [Official records]{.underline}. For the purpose of this
Instruction, the term \"official record\" means the \"record copy\" of
all documentary material regardless of physical form or characteristics,
prepared, received, or processed which indicates the policies,
procedures, decisions, and essential transactions of an office in its
conduct of Rural Development programs. The requirement concerning the
maintenance and disposition of procedural issuances are given in RD
Instructions 2006-A and 2006-B. Official records are divided into the
following categories:

\(1\) [Program records]{.underline}. Includes case folders on applicants
and borrowers (Individual and Association) and \"essential Rural
Development records.\"

\(i\) The \"official\" case folder for an applicant/borrower will be
maintained by the office having primary responsibility for processing
and; servicing a specific type of program assistance. (e.g., State
Offices normally administer B&I programs; District Offices administer
MFH and Community Facilities (CF) programs; County Offices administer
ALL other programs and usually serve as the initial contact point for
persons seeking Rural Development program assistance.) This requirement
does not preclude the necessary programmatic interchange of case folders
and information between the various office levels and Office of the
General Counsel (OGC). However, the responsible office supervisor shall
ensure that the \"official\" case folder contains ALL information
concerning an applicant/borrower.

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RD Instruction 2033-A

§2033.5(a)(1) (Con.)

\(ii\) An \"essential Rural Development record\"

\(A\) Is the original of any document or record which provides evidence
of indebtedness or obligation to Rural Development and includes, but is
not limited to, the following items:

([1]{.underline}) Original Promissory Notes.

([2]{.underline}) Original Consolidation MFH Promissory Notes.

([3]{.underline}) Original Renewal Promissory Notes.

([4]{.underline}) Assumption Agreements.

([5]{.underline}) Accelerated Repayment Agreements.

([6]{.underline}) Grant Agreements.

([7]{.underline}) Stock Certificates.

([8]{.underline}) Charged-off Notes (see RD Instruction 1956-B\
or 1956-C).

([9]{.underline}) Valuable Documents (see RD\
Instruction 2018-E).

([10]{.underline}) Cost Voucher Documents (see RD

Instruction 2024-A).

([11]{.underline}) Subsidy Repayment Agreements.

([12]{.underline}) Used and unused receipt books (Form\
RD 451-1, \"Acknowledgment of Cash Payment\").

\(B\) These items require maximum protection at all times and, will
remain in a \"locking-type\" file cabinet except when in actual use.

\(2\) [Operational records]{.underline}. Office files maintained under
multi-digit file code subject headings, established by using the \"1900
and 2000\" series \"Table of Contents\" and contain official records
material necessary for the functional management of general program,
fiscal, personnel, and administrative operations.

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(04-09-97) PN 275

RD Instruction 2033-A

§2033.5(a) (Con.)

\(3\) [Personnel records]{.underline}. Official Personnel Folders (OPF)
and associated material. These folders are subject to Office of
Personnel Management (OPM) regulations. Instructions for filing,
maintenance, and disposition of these records are contained in Federal
Personnel Management Regulations, Department Personnel Management
Regulations, and directives issued by the National Office, Human
Resources (HR) as required.

\(4\) [Regulative records]{.underline}. Regulative records contain
rules, regulations, instructions, procedures, and similar directive type
material issued by the National Office, State Office, Finance Office,
National Finance Center, or other Federal, State, or local regulative
source. Procedures for filing, maintenance, and disposition of this type
of material are usually contained within the specific publication.

\(5\) [Unnumbered letters]{.underline}. Unnumbered letters will be used
to provide general information to two or more Rural Development
employees or offices. These letters will not be used to establish,
change, or modify authorized directives. To provide uniformity in filing
throughout the Agency, unnumbered letters will be filed by broad program
areas in chronological order within a binder or folder. The expiration
date and category for filing will appear in the bottom left and bottom
right corners of the first page, respectively. The three categories are
Housing Programs, Community/Business Programs, and Administrative/Others
Programs.

\(b\) [Unofficial records/nonrecord material]{.underline}. Information
type material made or acquired for convenient reference purposes
consisting of reader files; extra copies of documents; reference
publications in the format of books, pamphlets, and factsheets;
commercial advertising matter; rough drafts; personal papers; or any
similar material maintained solely for the user\'s benefit. Such
material will not be made a part of the \"official\" files, and
maintenance and disposition will be the option of the user.

\(c\) [Electronic records]{.underline}. Electronic records are subject
to the same laws and regulations as paper records and will be maintained
and disposed of in accordance with this Instruction, Departmental
Regulations, and the National Archives and Records Administration (NARA)
guidelines.

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RD Instruction 2033-A

§2033.5(c) (Con.)

\(1\) [Determining record material]{.underline}. In determining record
material, use the following criteria:

\(i\) Is the record identified in the Agency records control schedule or
other Agency regulations?

\(ii\) Will the electronic copy serve as the official documentation of
the transaction?

\(iii\) If the answers to paragraphs (c)(1)(i) and (ii) of this section
are yes, then the records should be properly identified and maintained
in accordance with this Instruction. It should be labeled with the file
code, record name, brief description of the record, dates of
origination, revision(s), and retention period to assure easy
accessibility for future use of the file.

\(2\) [Indexes]{.underline}. Indexes will also be established in a
manner which will allow the ready retrieval of the material whenever
necessary throughout the authorized retention period. The indexes will
include the following:

\(i\) Name of organization unit responsible for the data.

\(ii\) The file series.

\(iii\) The time covered by the records.

\(iv\) Name of the equipment used to create the record.

\(3\) [Nonrecord material associated with electronic
records]{.underline}. Guidelines will not be established for the
retention of nonrecord material. This material will be created solely
for the purpose of convenience and reference, and will not be made a
part of the official indexes. Nonrecord material will be disposed of by
the user when no longer needed for reference purposes. They may include
the following types of information:

\(i\) Reader file copies of correspondence.

\(ii\) Tickler, follow-up, or suspense copies of correspondence.

\(iii\) Identical duplicate copies of all documents maintained in the
same file.

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RD Instruction 2033-A

§2033.5(c)(3) (Con.)

\(iv\) Extra copies of printed or processed materials, official copies
of which have been retained for record purposes.

\(v\) Superseded manuals and other directives maintained outside the
office that is responsible for retaining them.

\(vi\) Materials documenting such fringe activities of agencies as
employee welfare activities and charitable fund drives.

\(vii\) Routing slips.

\(viii\) Working papers.

\(ix\) Drafts of reports and correspondence.

\(x\) Transmittal sheets.

\(xi\) Blank forms.

\(xii\) Transcribed stenographic materials.

\(xiii\) Correspondence and other records of short term value that,
after action has been completed, have neither evidentiary nor
informational value, such as requests for publications and
communications on hotel reservations.

\(xiv\) Information copies of correspondence and other papers on which
no documented administrative action is taken.

\(4\) [Disposal of electronic records]{.underline}. As with the paper
version, electronic records must be disposed of in a timely manner.
Because of the relatively small space required to store electronic
records, they are subject to be held longer than the authorized
retention period. However, because of legal ramifications, records
eligible for disposition must be completely removed from the system.
They may be removed or disposed of by erasing or overwriting, not merely
deleting the information from the system. Electronic records MUST not be
kept beyond the authorized retention periods. Permanent electronic
records will be maintained in accordance with the requirements of NARA
regulations. They will be converted to paper, microfilm, or other media
approved by the Archivist of the United States for retiring purposes.
Such records, along with adequate documentation and adjunct files to
permit access to them, will be transferred to the National Archives as
soon as possible after it is determined that their purposes have been
served. For assistance in retiring electronic records, contact the
National Office, SSD.

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RD Instruction 2033-A

§2033.6 [Records filing and maintenance requirements]{.underline}.

\(a\) [Filing]{.underline}. Official records contain legal evidence of
all transactions between Rural Development and the persons with which it
conducts business. Therefore, the following rules must be applied to
filing operations:

\(1\) Withholding documents or records from the official files is
prohibited. [ANY]{.underline} exception to this policy requires National
Office approval.

\(2\) Removal or transfer of official records from Rural Development
custody is prohibited except as expressly provided for in this
Instruction, or in accordance with National Office approval obtained
incident to a specific removal or transfer action. (Note: Records
transmitted to OGC for programmatic review and approval are considered
to be within Rural Development custody.)

\(3\) Theft, falsification, mutilation, or unauthorized destruction of
official records by Rural Development employees is punishable under
public law.

\(4\) Loss, theft, damage, or destruction of official records by fire,
water, vandalism, civil disorder, or other disruptive situation will be
immediately reported by telephone and by followup letter through the
State Director to the National Office, for advice and guidance
concerning the actions to be taken.

\(5\) Oral or written information of a confidential nature that may come
to an employee\'s knowledge must neither be revealed to nor discussed by
any person except when the employee\'s official duties require
dissemination. This includes, but is not limited to, information
obtained by employees from any source concerning the personal and
financial affairs of applicants/borrowers, fellow employees, or other
persons involved in Rural Development activities.

\(6\) Procedures governing the availability of official records for
public access and use are prescribed in RD Instructions 2015-E

and 2018-F. Office employees are expected to be familiar with the
restrictions of RD Instructions 2015-E and 2018-F in order to avoid
violation of procedures. (Caution: Records requested by the general
public must be [RETAINED]{.underline} until the request is fully
processed even though the established retention requirements may have
been met.)

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(04-09-97) PN 275

RD Instruction 2033-A

§2033.6(a) (Con.)

\(7\) The requirements for retention and destruction of official records
prescribed in this Instruction are mandatory and will not be changed
without prior National Office approval.

\(b\) [Filing equipment]{.underline}. Procedures for ordering filing
equipment are prescribed in RD Instruction 2024-C. The various types of
equipment and authorized use are specified below:

\(1\) [Filing cabinets]{.underline}.

\(i\) Letter-size four or five drawer file cabinets will be used by
County Offices for filing all official records.

\(ii\) Legal-size four or five drawer file cabinets may be used by State
and District Offices for filing \"association-type\" applicant/borrower
case folders.

\(iii\) Locking-type fire proof filing cabinets/safes will be used by
offices for filing and protection of \"essential Rural Development
records\" and other sensitive materials.

\(2\) [Open-shelf file units]{.underline}.

\(i\) [Three-shelf unit]{.underline}. Offices may use this unit for
Rural Development Procedure Manuals, continuation folders, closed
borrower case folders, or any other purpose which best meets the need of
the office.

\(ii\) [Five-shelf unit]{.underline}. This unit may be used for storing
and maintaining preprinted forms and similar materials. Forms are
normally stocked in numerical order; however, it is recommended that the
most frequently used forms be placed on the more accessible shelves.

\(3\) [Map and plan files]{.underline}. These units are available in 9-
or 27-tube configurations and should be used for filing \"as built
plans,\" \"project maps,\" \"plot plans,\" or similar engineering type
records.

\(c\) [File maintenance]{.underline}. Office supervisors will establish
and maintain files in locations most convenient to the primary users.
One or more persons should be delegated primary responsibility for daily
maintenance of a given segment of files. State Offices will prepare a
State Supplement showing file codes, file station locations, and the
person(s) responsible for a particular group of records. New personnel
should be adequately trained and become thoroughly familiar with all
office activities prior to being assigned to filing operations.

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RD Instruction 2033-A

§2033.6(c) (Con.)

\(1\) [Alphabetical filing]{.underline}.

\(i\) File names of individuals by surname first, the given name next,
and the middle name(s) or initial(s) last. A dual surname, such as
\"Garcia-Valdex,\" should be filed by the first surname.

\(ii\) File names of associations and organizations, including
municipalities, as written in their legal or official title. Words such
as \"the,\" \"of,\" \"for,\" or \"and\" should not be considered in
determining correct file sequence.

\(iii\) Consider names beginning with prefixes, such as \"Mc,\" \"O,\"
or \"Van\" as one word and file alphabetically as written, beginning
with the first letter.

\(iv\) File abbreviations as though written in full.

\(2\) [Cross reference and chargeout]{.underline}.

\(i\) Use Form RD 2033-1, \"X-Reference Card,\" to indicate the exact
file location of a folder when the label identification has been
changed, such as a name change or when a folder is moved to another
location.

\(ii\) Use Form RD 2033-2, \"Out Card,\" as a substitute for a folder
whenever there is a need to record which office employee is using a
specific folder. When the folder is returned remove Form RD 2033-2 from
the files. Review \"Out Cards\" periodically to prevent loss or
misplacement of the regular file.

\(3\) [Folder maintenance requirements]{.underline}.

\(i\) [Operational-files]{.underline}. Use \"right cut\" four-position
letter size folders for operational record files. Material may be filed
in these folders using \"position filing,\" divider sheets to separate
by fiscal year (FY) or office designation, or any other method to
arrange material for ease in record usage and disposition.

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(04-09-97) PN 275

RD Instruction 2033-A

§2033.6(c)(3) (Con.)

\(ii\) [Case folders]{.underline}. Use right-tab letter size folders for
all four-position and eight-position applicant/borrower case folders.
Use four-position folders for operating-type credit-only borrowers, and
eight-position folders for real estate and organization-type borrowers.

\(iii\) [Continuation folders]{.underline}. Use \"continuation folders\"
to hold infrequently used documents or when the volume of material
warrants separation from the \"initial\" folder. When this is done, the
\"initial\" folder is considered as the \"1 of \_\_\_\_\_\" folder, the
first continuation folder as the \"2 of \_\_\_\_\_\" folder, and will
continue on depending on the total number of folders. Continuation
folders may be filed as a separate series apart from the active files.

\(iv\) [Temporary folders]{.underline}. Use a \"temporary folder\" to
replace and accumulate material whenever it becomes necessary to remove
a regularly maintained folder for an extended period of time, such as
transmittal to the Regional Attorney, State Office, National Office, or
other loan or servicing action. Temporary folders should be frequently
monitored to prevent loss or misplacement of the original folder.

\(v\) [Labeling]{.underline}. Label each folder with sufficient
information to adequately identify the folder contents.

\(A\) Borrower case folder labels should include: Name of the borrower,
coborrower, case number, project number of MFH loans, borrower\'s
classification of \"active,\" \"collection-only,\" or \"judgement,\"
program type, and folder continuation number when applicable.

\(B\) Operational file folder labels should include: alpha-numeric file
code number and subject heading, and should also show Fiscal Year (FY),
office, or other subdivision information. Labels may be color-coded,
preprinted, different sizes, or any combination thereof; to separate and
identify various file segments by office, project, program, type of
borrower, FY, or any manner which best serves office needs. CAPs/AOs
should encourage uniform labeling systems throughout each State.

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RD Instruction 2033-A

§ 2033.6(c)(3) (Con.)

\(vi\) [Position filing]{.underline}. Position filing within a folder is
the segregated arranging of functionally related material in a
predetermined folder position. The \"filing position\" is the specific
place where records are fastened within a folder. The top inside left
cover is designated as position \"1;\" the bottom inside left cover is
position \"2;\" the top inside right cover, or the top of the insert
leaf in eight-position folders, is position \"3;\" the remaining file
positions \"4\" through \"8\" are designated by continuing this
sequence. (Revised 08-23-06,\
PN 401.)

\(vii\) [Folder arrangement]{.underline}. File folders may be arranged
in any manner which best serves office needs. (Note: Different record
series should be maintained as separate identifiable groups.) For
example: Essential Rural Development records; OPFs; and other types of
confidential information such as audit reports, employee investigations,
and employee financial interest statements must be maintained in
\"locking-type\" file cabinets. Pending applications/preapplications
should be separated from \"active\" borrower files. Active borrower
files should be separated from \"closed\" borrower files. Closed
borrower files, continuation folders, or other files, which are
infrequently used, may be maintained in the less accessible file space
and should be properly and adequately identified. These folders may be
filed in alphabetical order or further divided by program type, project,
processing stage, District or County Office designation, or other means
for control and identification purposes.

\(viii\) [Removal of records]{.underline}. In order to maximize the use
of filing space and equipment, records eligible for disposal, as
prescribed in this Instruction, MUST be removed from all filing
equipment. Offices having access to additional storage space may
transfer inactive or long term records to such space, providing these
areas are frequently monitored to prevent excessive accumulation of
unneeded material. Supervisors responsible for official borrower case
folders shall ensure that all participating offices are notified when
disposition of official borrower case folders takes place, in order that
the participating offices may dispose of related materials.

## 13

## (Revision 1)

(04-09-97) PN 275

RD Instruction 2033-A

§ 2033.6(c)(3) (Con.)

\(ix\) [Transfer of records]{.underline}. Records that are closed or
inactive BUT must be maintained for regulatory or legal purposes, may be
retired to the FRC. However, the following retentions must be met before
the records are eligible to be retired. Financial records must be at
least 3 FYs old. Borrower case files labeled \"Loss to the Government\"
must have a retention of 3 FYs following the FY in which the loan is
closed, and contract files must be retained in the office 1 FY after the
case is closed before retiring to the FRC. States should coordinate the
retiring process directly with the FRC serving their area. The office
having custody of the records is responsible for preparing the Standard
Form (SF)-135, \"Records Transmittal and Receipt,\" and preparing the
records for transfer to the FRC. (See Forms Manual Insert (FMI).) The
SF-135, SF-135A, \"Records Transmittal and Receipt (Continuation),\" and
any attachments must be forwarded to the National Office, Records
Officer, for prior approval before submitting to the FRC. General
preparation instructions are on the back of the form. Preparation
instructions are supplemented as follows:

\(A\) Insert record group for Rural Development (96).

\(B\) Insert disposal authorities for operational files (found in the
last column, of the Operational Records Manual).

\(C\) Insert disposal authority for borrower case folders (found in the
Operational Records Manual).

\(D\) Insert disposal date (calculate date from established retention
period).

\(x\) [Retrieval of transferred records]{.underline}. Transferred
records may be retrieved from the FRC by submitting Optional Form
(OF)-11 \"Reference Request - Federal Records Centers.\" (See FMI.)
Request for such records should be made through the State Office. To
readily identify a file retrieved from the FRC the office should flag
the record or box of records to indicate such.

## 14

## (Revision 1) 

RD Instruction 2033-A

§ 2033.7 [Program case folders (applicant/borrower)]{.underline}.

Each office shall establish and maintain an \"official record\" case
folder, for each applicant/borrower receiving program assistance, for
which the office has primary program processing and servicing
responsibility. Because of the necessary and/or frequent interchange of
applicant/borrower information between the various office levels,
offices may establish duplicate applicant/borrower informational folders
to accommodate certain kinds of record information. Such folders, when
established, must be clearly identified as \"duplicate\" case folders
and contain the originating office\'s identification. \"Official
record\" folders must be filed as a separate series.

\(a\) [Applications/preapplications]{.underline}.

\(1\) [Pending applications]{.underline}. File pending applications as a
separate series in one or more A-Z sets of third-cut folders generally
preceding the \"active\" borrowers\' case folders. Keep the application
and related material together as a single assembly of papers. Establish
separate folders for individual applicants at the discretion of the
office supervisor. Establish separate folders for association
applicants. File pending applications as a single alphabetical group or
subdivided by those program type, processing step, packager, project,
district or county designation, or any combination thereof best serving
office needs. Maintain applications which have been rejected, withdrawn,
canceled, or expired as prescribed in paragraph (a)(2) of this section.

\(2\) [Rejected, withdrawn, canceled, or expired
applications]{.underline}. Remove the application and related papers
from the \"pending\" file series and maintain as follows:

\(i\) Return such documents as plat maps, plans, specifications,
engineering data, feasibility studies, etc., to the applicant, PROVIDED
these documents are not needed as a basis for rejection.

\(ii\) For applicants indebted to Rural Development (individual or
association), file the \"rejected\" or \"withdrawn\" application and any
remaining material in the existing borrower case folder. Mark the face
of the application \"REJECTED or WITHDRAWN (date).\" If the application
involved a \"grant only\" or \"combination loan and grant,\" include the
word \"GRANT\" when marking the application. See § 2033.10(b)(4)(iii)
and (iv) of this Instruction for disposition of these case folders.

## 15

## (Revision 1)

(04-09-97) PN 275

RD Instruction 2033-A

§ 2033.7(a)(2) (Con.)

\(iii\) For applicants not indebted to Rural Development (individual or
association), file \"loan only\" applications in a REJECTED, WITHDRAWN,
CANCELED, or EXPIRED series A-Z file. File \"grant only\" or
\"combination loan and grant\" applications in a separate A-Z file
series. Dispose of these applications as follows:

\(A\) Destroy individual \"loan only\" applications 2 FYs\
and 1 month after the end of the FY in which the application was
rejected, withdrawn, canceled, or expired; or 1 FY after the end of the
FY in which final action was taken on an application involving an
appeal, investigation, or litigation, whichever is later.

\(B\) Destroy individual \"grant only,\" and \"combination loan and
grant\" applications 3 FYs after the end of the FY in which the
application was rejected, withdrawn, canceled, or expired; or 1 FY after
the end of the FY in which final action was taken on an investigation or
litigation, whichever is later.

\(C\) Destroy association \"loan only,\" \"grant only,\" and
\"combination loan and grant\" applications as prescribed for
\"individual\" applications in paragraphs (a)(2)(iii)(A) and (B) of this
section, EXCEPT when the same association makes more than one
application. In this event, retain actual applications until 2 FYs and 1
month after the end of the FY in which the last application was
rejected.

\(b\) [Conditional commitment applications]{.underline}. Documents
accumulated in accordance with HB-1-3550 will be segregated into two
categories and maintained as follows: (Revised 01-23-03, SPECIAL PN.)

\(1\) [Master file]{.underline}. Establish a four-position folder under
the name and address of the commitment applicant. This folder\
will contain the records and information required by HB-1-3550. A
separate folder may be established for each project. Records in these
folders may be destroyed 2 FYs after the FY in which final action has
been taken on all conditional commitments covered by the application.
(Revised 01-23-03, SPECIAL PN.)

## 16

## (Revision 1) 

RD Instruction 2033-A

§2033.7(b) (Con.)

\(2\) [Individual dwelling folder]{.underline}. Establish an
eight-position folder for each dwelling covered by the commitment
application. Label this folder with the name of the commitment applicant
and the address or block and lot number of the specific dwelling. This
folder will contain the required information supplied by the commitment
applicant. When a qualified applicant applies for a loan to purchase a
home on which a conditional commitment has been issued, this folder
becomes the applicant\'s borrower case folder with the label changed
accordingly.

\(3\) [Return of documents]{.underline}. If the commitment applicant\'s
application is withdrawn or rejected; or the conditional commitment for
any dwelling is not issued, is canceled, or expires; return the plans,
specifications, and related materials concerning the dwelling and/or
property to the commitment applicant. Any remaining material will be
kept in the commitment applicant\'s master folder.

\(c\) [Loan docket folder]{.underline}. For loans that need to be
submitted to the State Office for approval, fasten all forms and other
documents in the designated positions, EXCEPT documents to be signed by
the loan approving official and of documents to be submitted to the
Finance Office. The original and copy(ies) of documents to be signed in
the State Office will be kept together in order for the name and title
of the approving official to be typed thereon. (Revised 08-23-06, PN
401.)

§2033.8 [Maintenance of active borrower case folders]{.underline}.

\(a\) [Arrangement of materials within folders]{.underline}. Records are
arranged within borrower case folders by using the \"position filing\"
method, for the eight different categories of items or transactions.
Fasten material filed in case folders to the prescribed filing position
using metal fasteners. (Revised 08-23-06, PN 401.)

\(1\) Use a \"Table of Contents\" or \"Processing Checklist\" as
prescribed in Exhibit B of this Instruction in each \"association-type\"
loan folder showing the location of each document. Divider sheets (blank
paper, with or without tabs) may be used within a filing position to
separate specific types of records, or within a case folder to separate
records accumulated for different borrowers. When divider sheets are
used to differentiate between borrowers, a brief statement of the former
borrower\'s account status should be entered on the divider sheet.

## 17

## (Revision 1)

(04-09-97) PN 275

RD Instruction 2033-A

§2033.8(a) (Con.)

\(2\) File all documents in the designated position EXCEPT when the
volume, size, or unique subject matter requires separation for better
maintenance purposes. In these circumstances, place a divider sheet in
the position where the material would normally be filed and identify the
continuation folder, envelope jacket, mailing tube, or other area where
the material is located. Listed below, in paragraphs (i) through (viii)
of this paragraph, are examples of files which may be maintained
separately:

\(i\) [Appeal hearing file]{.underline}: Containing tape recordings,
hearing notes, transcripts, and associated appeal hearing information.

\(ii\) [Appraisal file]{.underline}: Including plat maps, plans,
photographs, bound reports, or similar material.

\(iii\) [Bond document files]{.underline}: When Bond Counsel is used, as
prescribed in RD Instruction 1942-A, §1942.19, bond transcript documents
will be kept intact as received from Bond Counsel. Correspondence to and
from Bond Counsel will also be placed in this file.

\(iv\) [Construction and engineering file]{.underline}: Containing
plans, specifications, copies of contracts, engineering drawings, and
similar construction information.

\(v\) [Feasibility studies]{.underline}: Containing reports, statistical
data, market studies, brochures, bound documents, and similar
information.

\(vi\) [Litigation files]{.underline}: For cases involving litigation,
such as bankruptcy or other legal action which generate large volumes of
evidentiary type material.

\(vii\) [Rights-of-way files]{.underline}: When volume warrants, contain
material establishing evidence or rights-of-way. Documents, except Forms
RD 442-21, \"Right-of-Way Certificate,\" and\
RD 442-22, \"Opinion of Counsel Relative to Rights-of-Way,\" may be
returned to the borrower when all necessary permits have been obtained
and recorded.

\(viii\) [Multi-Family Housing files]{.underline}: Because of the volume
associated with these files, separate eight-position folders will be
established as follows and disposition conducted as shown below, in
paragraphs (A) through (D) of this paragraph:

## 18

## (Revision 1) 

RD Instruction 2033-A

§2033.8(a)(2)(viii) (Con.)

\(A\) [Loan File]{.underline}:

Containing preapplication, application, and closing documents;
assumption documents; consolidation documents; reamortization documents;
prepayment documents, etc.

> POSITION \"1\" - Processing checklists; security agreements; financing
> statements; lien searches.
>
> POSITION \"2\" - Loan obligations documents; copies\
> of promissory notes, assumption agreements, and reamortization
> requests and agreements; interest credit and rental assistance
> requests and agreements; supervised bank accounts for other than
> construction; check requests and evidence of check receipts;
> consolidation forms.
>
> POSITION \"3\" - Preapplication and application information; initial
> operating budget, utility allowance, management plan/agreement;
> running records up to the operational stage; District Director
> recommendation letter and State Office response; prepayment requests
> and supporting documentation.
>
> POSITION \"4\" - Correspondence up to the date when the project is
> operational.
>
> POSITION \"5\" - Organizational documents and regulations; options;
> real estate instrument; loan agreements; title information; mortgage
> title insurance; closing instructions and other closing records.
>
> POSITION \"6\" - Construction information prior to start of
> construction.
>
> POSITION \"7\" - Property insurance; position fidelity bonds.
>
> POSITION \"8\" - Appraisal with all attachments; site information.

RETAIN UNTIL ACCOUNT IS SATISFIED.

## 19

## 

(04-09-97) PN 275

RD Instruction 2033-A

§2033.8(a)(2)(viii) (Con.)

\(B\) [Construction File]{.underline}:

Containing plans, specifications, bid documents, copies of contracts,
partial pay estimates, supervised bank account information, cost
information, cost certification, and similar construction information.

Monthly construction inspections. RETAIN 3 YEARS AFTER FINAL INSPECTION
AND THEN DESTROY. THE FINAL INSPECTION WILL BE RETAINED UNTIL THE
ACCOUNT IS SATISFIED.

Preliminary plans and specifications. Return to borrower when final
plans and specifications are approved.

Final plans and \"as built\" plans and specifications. RETAIN 10 YEARS
AFTER THE EXPIRATION OF BUILDERS WARRANTY.

Partial pay estimates. RETAIN 3 YEARS AFTER COST CERTIFICATION IS
ACCEPTED AND THEN DESTROY.

> POSITION \"1\" - Interim lender letter; Deposit Agreement and
> supervised bank account records.
>
> POSITION \"2\" - Partial pay estimates and pay requests; construction
> inspections; cost certification.
>
> POSITION \"3\" - Change orders and running records.
>
> POSITION \"4\" - Preconstruction conference report; construction
> contract; correspondence.
>
> POSITIONS \"5-8\" - As needed for bid documents and continuation of
> material in Positions \"1\" through \"4.\"

Material may be moved to position \"6\" of the \"Loan File\" when
construction is 100 percent complete if material is not too bulky.

EXCEPT AS NOTED, RETAIN UNTIL ACCOUNT IS SATISFIED.

## 20

##  

RD Instruction 2033-A

§ 2033.8(a)(2)(viii) (Con.)

\(C\) [Current Servicing File]{.underline}: (Revised 02-24-05, SPECIAL
PN.)

Containing copy of loan agreement and affirmative fair housing marketing
plan; supervisory visit reports, compliance reviews, and site visits;
budgets and utility allowances; annual reports, audits, and annual
analyses; current management plan and management agreement; notice of
evictions; correspondence and running records; problem case reports and
corresponding correspondence.

Form RD 3560-7, \"Multiple Family Housing Project Budget/Utility
Allowance.\" RETAIN A 3-YEAR HISTORY OF APPROVED BUDGETS.

Notice of evictions. RETAIN 3 YEARS AFTER TENANT VACATES AND THEN
DESTROY.

Supervisory visit reports, site visits, and compliance reviews. RETAIN
LAST THREE SUPERVISORY VISIT REPORTS, SITE VISITS, AND COMPLIANCE
REVIEWS.

Annual reports, audits, and annual analysis. RETAIN LAST THREE ANNUAL
REPORTS, AUDITS, AND ANNUAL ANALYSIS. RETAIN CURRENT AND PREVIOUS ENERGY
AUDIT.

Note: If an account is a problem case or an investigation or audit is in
process, do not destroy material until problem is resolved or the
investigation/audit is closed.

> POSITION \"1\" - Copy of loan agreement; affirmative fair housing
> marketing plan; management plan; management agreement; financial
> statement; security agreement; project and pet rules.
>
> POSITION \"2\" - If desired, a copy of promissory notes; assumption
> agreements; interest credit agreements; rental assistance agreements;
> reamortization agreements; consolidation forms; conversion to
> Pre-Amortization Schedule System (PASS) forms.

## 21

## (Revision 1)

(04-09-97) PN 275

RD Instruction 2033-A

§ 2033.8(a)(2)(viii)(C) (Con.)

> POSITION \"3\" - Running records.
>
> POSITION \"4\" - Correspondence.
>
> POSITION \"5\" - Annual reports; audits; year-end reports; energy
> audits; 2 percent Operation and Maintenance (O&M) return
> documentation; budget; utility allowance; rent change documentation.
>
> POSITION \"6\" - Supervisory visit reports; compliance reviews; site
> visit reports.
>
> POSITION \"7\" - If desired, a copy of insurance policies.
>
> POSITION \"8\" - Problem case information.

Material from the servicing file may be moved to a continuation folder
until eligible for disposition when no longer applicable to current
operations.

EXCEPT AS NOTED, RETAIN UNTIL ACCOUNT IS SATISFIED.

\(D\) [Monthly Report File]{.underline}:

Containing the Monthly Reports, Tenant Certifications, Project
Worksheets, and correspondence dealing with the monthly reports.

Form RD 3560-8, \"Tenant Certification.\" RETAIN TENANT CERTIFICATION
UNTIL 3 YEARS OLD AND THEN DESTROY. (Revised 02-24-05, SPECIAL PN.)

Form RD 3560-29A, \"Multiple Family Housing Statement of Payment Due.\"
RETAIN IN BATCH FORM AND DESTROY AFTER 30 DAYS IF NO APPEALS OR WAIVER
OF LATE FEES.\
(Revised 02-24-05, SPECIAL PN.)

Form RD 3560-29, \"Notice of Payment Due Report.\" RETAIN A 3-YEAR
HISTORY OF PROJECT WORKSHEETS. (Revised 02-24-05, SPECIAL PN.)

M2A Screens: RETAIN UNTIL THE PAYMENT HAS BEEN PROCESSED AND IS INCLUDED
IN AUTOMATED MULTI-FAMILY ACCOUNTING SYSTEM (AMAS) HISTORY AND THEN
DESTROY.

## 22

## (Revision 1) 

RD Instruction 2033-A

§2033.8(a)(2)(viii)(D) (Con.)

> POSITION \"1\" - Project worksheets and M2A screens. (Optional; may be
> batch retained until disposition.)
>
> POSITION \"2\" - Tracking logs.
>
> POSITION \"3\" - Running record.
>
> POSITION \"4\" - Correspondence concerning project worksheets;
> payments; and tenant certifications.
>
> POSITION \"5\" - Monthly Reports; letter waiving monthly reports;
> letter reinstating monthly reports.
>
> POSITION \"6\" - Expired Tenant Certifications. (Optional; may be kept
> in binders for each project until disposition.)
>
> POSITION \"7\" - Master tenant list.
>
> POSITION \"8\" - Current Tenant Certifications. (Optional; may be kept
> in binders for each project until disposition.)

EXCEPT AS NOTED, RETAIN UNTIL ACCOUNT IS SATISFIED.

\(b\) [Maintenance of borrower case folders requiring \"special
handling]{.underline}.\"

\(1\) [Appeal cases]{.underline}. For borrowers who have made an appeal,
mark the face of the case folder \"APPEALED (date).\" Destroy these
folders 1 FY after the end of the FY in which the final action was taken
on the appeal (provided the 25-month retention for rejected or withdrawn
application has been met) or destroy 1 FY after the case folder is
considered closed, whichever is later.

## 23

## 

(04-09-97) PN 275

RD Instruction 2033-A

§2033.8(b) (Con.)

\(2\) [Assumption transaction]{.underline}. In assumption transactions,
establish a new folder for the \"transferee\" and place a Form RD 2033-1
under the \"transferor\'s\" name in the \"active\" case folder series.
Any needed loan servicing or legal documents, such as security
instruments, title opinions, copies of notes, affidavits of borrower and
seller, latest appraisal, etc., in the \"transferor\'s\" folder will be
refiled in the \"transferee\'s\" folder. Insert divider sheets where
necessary. Any remaining material in the transferor\'s file will be
considered \"closed\" provided all Rural Development loan indebtedness
has been satisfied.

\(3\) [Asset sales]{.underline}. Label case folders for borrowers
involved in the Asset Sale \"FY_Asset Sale\" and remove them to a
separate location from the active files. These files, even though
considered \"closed\" will not be destroyed for a period of 2 FYs from
the FY in which the borrower\'s loan(s) was sold or subsequently
assigned during a loan substitution. After the borrower\'s case folders
are retained for a period of 2 FYs, the case folders are considered
closed and, as they will have already met the retention period for
\"closed\" borrower files are now eligible for disposition. If a
borrower case file is returned to Rural Development during the\
2-year retention period, the case file will be removed from the Asset
Sale location and returned to \"active\" file status.

\(4\) [Collection-only or judgement]{.underline}. In the event
transferors of title by voluntary conveyance, assumption, or through
foreclosure action are reclassified to collection-only or judgement, a
new case folder for the transferor will be established for the final
collection and/or settlement of indebtedness. Only the essential account
servicing material and pertinent correspondence will be transferred from
previous folder(s). A cross-reference to the transferee will be inserted
in Position \"3\" of this new folder.

\(5\) [Litigation, claims, and information requests]{.underline}. Case
folder(s) for borrowers who are or may be involved in legal action,
employee\'s fiscal liability action, Tort Claims, Freedom of Information
or Privacy Act requests, will be marked \"DO NOT DESTROY\" on the face
of the folder(s) at the time of notification by the State Director or
National Office. These records will be retained until notification is
received from the State Director or National Office to remove the \"DO
NOT DESTROY\" legend.

## 24

##  

RD Instruction 2033-A

§2033.8(b) (Con.)

\(6\) [Loss to the Government]{.underline}.

\(i\) A borrower case file in which a financial loss to the Government
occurred, will be screened at the time the case is closed, to determine
if the loss can be used as a basis for the denial of future credit. The
following criteria will be used when screening the borrower case file
and will be applied to all programs.

\(A\) If the borrower acted in bad faith by not following agreements,
approved financial plans, making unauthorized capital expenditures, and
failure to carry out supervisory and/or financial management practices
agreed to in writing.

\(B\) If there has been an Office of the Inspector General (OIG)
investigation or audit or an OGC opinion that clearly demonstrates the
Agency experienced a loss due to misrepresentation, fraud, conversion,
or criminal activities and it has been determined that the loss will not
be recovered.

\(C\) Poor financial and/or production management.

\(D\) Poor credit history.

\(ii\) If documents in the case file meet any of the criteria in
paragraph (b)(6)(i) of this section, the file will be retained for a
period of 7 FYs. Those cases that have resulted in a loss to the
Government but do not meet the criteria in paragraph (b)(6)(i) of this
section, will be retained for a 3 FYs period and then destroyed.

\(A\) Records to be retained specifically for Single Family Housing
(SFH) loan programs include:

([1]{.underline}) Copy of the most recent appraisal.

([2]{.underline}) Copy of the OIG or audit report, if applicable.

([3]{.underline}) Documentation reflecting full amount of the loan;
i.e., Promissory Note or Form RD 1940-1, \"Request for Obligation of
Funds.\"

## 25

## 

(04-09-97) PN 275

RD Instruction 2033-A

§2033.8(b)(6)(ii)(A) (Con.)

([4]{.underline}) Form RD 1956-1, \"Application for Settlement of
Indebtedness,\" if applicable.

([5]{.underline}) Printed copy of the Account Information (AI) screen as
of the date of settlement, conveyance to Rural Development, or
foreclosure.

([6]{.underline}) Running case record documentation reflecting problem
loan servicing and whether or not the loss was due to reasons beyond the
borrower\'s control (such as economic conditions).

\(B\) Records to be retained specifically for the B&I guaranteed and
direct loan programs include:

([1]{.underline}) Any final bankruptcy opinions and/or foreclosure
documents.

([2]{.underline}) Any OGC opinions pertinent to the situation.

([3]{.underline}) Any security agreements, Uniform Commercial Code (UCC)
filings.

([4]{.underline}) Corporate financial statements for the last 3 years.

([5]{.underline}) Credit reports.

([6]{.underline}) Form RD 449-1, \"Application for Loan and Guarantee.\"

([7]{.underline}) Form RD 449-2, \"Statement of Collateral,\" at
inception of loan and a \"Statement Regarding the Collateral\" to be
liquidated.

([8]{.underline}) Form RD 449-4, \"Statement of Personal History.\"

([9]{.underline}) Form RD 449-29, \"Project Summary \-- Business and
Industrial Loan Division.\"

([10]{.underline}) Form RD 449-34, \"Loan Note Guarantee.\"

([11]{.underline}) Form RD 449-39, \"Field Visit Review (Business and
Industrial Loans).\"

## 26

##  

RD Instruction 2033-A

§ 2033.8(b)(6)(ii)(B) (Con.)

\(12\) Form RD 3560-33 or RD 3560-34, "Loan Agreement." (Revised
02-24-05, SPECIAL PN.)

\(13\) Form RD 1980-59, \"Quarterly Delinquent/Problem Loan Report,\"
for the last year of operation.

\(14\) Front page of appraisal reports at loan inception and at the time
of liquidation.

\(15\) Lender\'s payment ledgers.

\(16\) Personal financial statements of guarantors for the last 3 years.

\(C\) Records to be retained specifically for the Community Programs
(CP) guaranteed and direct loan programs include:

([1]{.underline}) Any OGC opinions pertinent to the situation.

([2]{.underline}) Copies of Guide 22 of RD Instruction 1942-A or other
written evidence signed by the borrower which reflects failed
agreements.

([3]{.underline}) Copy of bond transcript or ordinance.

([4]{.underline}) Correspondence reflecting problem loan servicing by
Agency.

([5]{.underline}) Documentation on appeals.

([6]{.underline}) Final loss settlement checklist.

([7]{.underline}) Final report of loss.

([8]{.underline}) Form RD 1942-43, \"Project Summary Community
Facilities (Other Than Utility-Type Projects),\"\
RD 1942-45, \"Project Summary - Water and Waste Disposal and Other
Utility Type Projects,\" or the Automated Community Facilities Project
Summary (Revised 03-19-03, PN 357.)

([9]{.underline}) Form RD 1956-1.

([10]{.underline}) Grant agreement.

## 27

(Revision 2)

(04-09-97) PN 275

RD Instruction 2033-A

§ 2033.8(b)(6)(ii)(C) (Con.)

([11]{.underline}) Lender\'s loan agreement.

([12]{.underline}) OIG investigation or audit that clearly demonstrates
misrepresentation, fraud, or criminal activities.

([13]{.underline}) Problem/delinquent servicing reports for the last
year of operation.

([14]{.underline}) Running record reflecting problem loan servicing by
Agency.

([15]{.underline}) Specimen bond.

([16]{.underline}) Unauthorized assistance determinations with related
documentation.

\(iii\) Guaranteed loan losses at this time are not significant in most
County Offices, therefore, the entire guaranteed file should be
maintained for either 3 or 7 years.

\(7\) [MFH prepayment reports]{.underline}. The loan files for prepaid
loans will be considered \"closed\" and will be destroyed as noted in §
2033.10 of this Instruction. However, a file with the borrower\'s name,
case number, project number, and the notation \"PREPAID LOAN\" will be
kept through the expiration of the restricted use period and will
contain the following: prepayment request, prepayment report and
supporting documentation, release of mortgage with the prepayment
restrictions, if applicable, and any other documentation in reference to
the prepayment and any subsequent actions.

\(8\) [Property acquisition]{.underline}. When property is taken into
Government inventory, the former borrower\'s case folder(s) should be
identified to reflect the acquisition action. The case folder(s) may be
continued in the \"active\" case folder series or relocated to a
separate series for future processing and servicing activities as
specified in RD Instruction 1955-B. If the case folders are relocated, a
\"cross-reference\" should be maintained in the \"active\" file series
under the former borrower\'s name. Acquired property case folders will
be considered \"closed\" as prescribed in\
§ 2033.10(a)(3) of this Instruction.

\(i\) If acquired real estate is leased while in Government inventory,
file the records on the lessee in the former borrower\'s initial case
folder. Insert divider sheets where required. Enter the lessee\'s name
in pencil on the folder label and establish Form RD 2033-1 under the
lessee\'s name in the \"active\" case folder series.

## 28

## (Revision 2) 

RD Instruction 2033-A

§ 2033.8(b)(8) (Con.)

\(ii\) If acquired real estate is sold for cash, relabel the former
borrower\'s case folder(s) with the name of the purchaser. Maintain the
folder(s) in the \"active\" borrower series, under the purchaser\'s
name, until the redemption period, if applicable, has expired.

\(iii\) If acquired real estate is sold on credit basis, establish a new
folder for the purchaser. Material in Positions \"6\" and \"8,\" and any
other needed records in the former borrower\'s case folder(s), will be
refiled in the purchaser\'s folder. Until final payment is made,
maintain Form RD 2033-1 under the former borrower\'s name in the
\"active\" case folder series.

\(iv\) If acquired real estate is sold as individual parcels, the former
borrower\'s case folder(s) and the parcel purchaser\'s records will be
maintained in a manner best serving the needs of the office.

§ 2033.9 [Removal of material from \"active\" borrower case folders
(individual and association)]{.underline}.

Official record material should not be removed from an \"active\"
borrower case folder and destroyed until the entire case folder is
considered \"closed\" and becomes eligible for disposition, except as
provided in §2033.8(a)(2)(viii) of this Instruction. The increasing
number of appeals, claims, audits, investigations, legal actions, and
public information requests requires maintenance of all information
concerning a borrower\'s account(s). Through the proper use of
\"continuation folders\" and by relocating such folders to the less
active file space or other storage facilities, offices should be able to
maintain and manage official record accumulations with a minimum of
problems. Offices incurring records maintenance or storage problems
should contact the CAP/AO for guidance and assistance. Storage problems
which cannot be resolved by field offices will be referred to the
National Office, Records Unit. All \"active\" borrower case folders
should be reviewed at least once every 5 years. During this review,
remove and destroy [extra]{.underline} or [duplicate]{.underline} copies
of forms. Interim construction drawings, specifications, and similar
type materials should be returned to the borrower. Also, during this
review, relocate any \"inactive\" record material to \"continuation
folders.\" Upon completion of the review of a borrower\'s case
folder(s), enter the FY in which the review was conducted, in pencil, on
the folder label following the last 5-year review. (Revised 08-23-06, PN
401.)

## 29

## (Revision 2)

## (04-09-97) PN 275 

## RD Instruction 2033-A

§ 2033.10 [Closed borrower case folders]{.underline}.

\(a\) [Determining \"closed\" borrower case folders]{.underline}.

\(1\) When a borrower (active, collection-only, debt settlement, or
judgement) is reclassified \"paid up\" by payment-in-full, payment of
approved settlement amount, or \"otherwise satisfied,\" as prescribed in
RD Instruction 404.1, and no longer has an obligation to or unresolved
legal action pending with Rural Development, the one or more case
folders are considered \"closed.\"

\(2\) Guaranteed loans will be considered \"closed\" when the
requirements of any \"guarantee\" document have been terminated and all
obligations due Rural Development or the lender have been paid in full
or otherwise satisfied.

\(3\) In acquired property cases, the former borrower\'s case folder(s)
will not be considered \"closed\" until the redemption period, if any,
has expired.

\(4\) Grant-only or combination loan and grant case folders.

\(i\) Section 504 Rural Housing grant-only or combination loan and grant
case folders are considered \"closed\" 3 FYs after the end of the FY in
which the Section 504 Repayment Agreement is signed, or when the loan is
satisfied, whichever is later.

\(ii\) Farm Labor Housing grant-only or combination loan and grant case
folders are considered \"closed\" 50 years after the year in which the
grant is made. However, if there is a default under the obligations of
the Labor Housing grant agreement and the grant agreement is terminated
by the Government, the case folder will be considered \"closed\" only
when the Government\'s requirements are satisfied.

> \(iii\) Industrial Development, Community Facilities, and Water and
> Waste Disposal Development grant-only or combination loan and grant
> case folders are considered \"closed\" ONLY when all of the grantee\'s
> grant obligations, as shown in any grant agreement, have been
> satisfied, subordinated, released, or terminated, provided the loan
> has been paid in full or otherwise satisfied. For Community Facilities
> grants used to acquire or improve real property or purchase equipment,
> the record retention period is based on the useful life of the
> property or equipment, or until the property or equipment is replaced,
> sold, transferred, or is of little or no value, as required by 7 CFR
> 3015, 3016, or 3019 in effect at the time and which may be
> subsequently modified.\
> (Revised 07-19-99, SPECIAL PN.)

## 30

## (Revision 2) 

RD Instruction 2033-A

§2033.10(a)(4) (Con.)

\(iv\) Self-Help Technical Assistance and Comprehensive Areawide Water
and Sewer Planning grants are considered \"closed\" at the end of 5
years after all funds have been properly accounted for, conditions of
the grant agreement have been met, and the plan is serving the purpose
for which it was developed. Documentation in the case folder must
indicate that these conditions have been met.

\(v\) Technical Assistance and Training grants are considered \"closed\"
3 FYs after the end of the FY in which the project is completed, as
shown in any grant agreement.

\(vi\) Section 533 Housing Preservation grants are considered \"closed\"
either 3 FYs after the expiration of the grant agreement for assistance
to homeowners or 3 FYs after the expiration of the owner agreement for
assistance to rental properties or co-ops.

\(b\) [Maintenance and disposition of \"closed\" borrower case
folders]{.underline}.

\(1\) [Labeling]{.underline}. Concurrent with determining a borrower\'s
case folder to be \"closed,\" label the folder with the legend \"CLOSED
CASE 19\_\_\" with the FY entered in the blank space. Additional
information will be entered on the label of \"closed\" loan cases which
have resulted in a loss to the Government and cases remaining subject to
compliance review.

\(i\) For \"closed\" loan case folders which have resulted in a loss to
the Government, add \"LOSS TO GOVERNMENT.\" (See paragraph (b)(4)(ii) of
this section for disposition information.)

\(ii\) For recipients of development grants for water and waste disposal
(no loan involved) which remain subject to compliance review after the
closing, add \"SUBJECT TO COMPLIANCE REVIEW\" on the label of the case
folder.

## 

## 

## 

## 

## 

## 

## 

## 31

## 

## 

## (04-09-97) PN 275 

RD Instruction 2033-A

§2033.10(b) (Con.)

\(2\) [Return of documents]{.underline}. When an account is \"closed,\"
check the case folder(s) for legal documents (deeds, leases, title,
opinions, abstracts, insurance policies, waterstock or grazing
certificates) or soil maps and plans prepared by the National Resources
Conservation Service (NRCS), and final or \"as built\" plans and
specifications. These materials should be returned to the borrower as
they will have served their purpose in Rural Development account
servicing. When returning documents use Form RD 140-4, \"Transmittal of
Documents,\" or other written means for establishing a record of their
return.

\(3\) [Filing \"Closed\" case folders]{.underline}. \"Closed\" case
folders for which destruction is authorized in paragraph (b)(4) of this
section should be arranged by name in one or more series according to
office needs, but kept separate from \"active\" borrower case folders.

\(4\) [Disposition]{.underline}.

\(i\) Destroy \"closed\" case folders with the legend \"CLOSED\
CASE 19\_\_,\" 1 FY after the end of the FY in which closed.

\(ii\) Destroy loan case folders (meeting criteria in §2033.8(b)(6)(i)
of this Instruction) labeled \"LOSS TO GOVERNMENT,\" 7 FYs after the end
of the FY in which closed. Destroy other \"Loss to the Government\"
folders 3 FYs after the FY in which closed.

\(iii\) Destroy "closed" case folders marked \"APPLICATION REJECTED OR
WITHDRAWN,\" [25 months]{.underline} after the application was rejected
or withdrawn, or 1 FY after the case folder is considered \"closed,\"
whichever is later.

\(iv\) Destroy \"closed\" case folders marked \"GRANT APPLICATION
REJECTED,\" 3 FYs after the end of the FY in which the grant-only or
combination loan and grant application was rejected, or 1 FY after the
end of the FY in which the case folder is considered \"closed,\"
whichever is later.

\(v\) Destroy \"closed\" case folders marked \"APPEALED\" 1 FY after the
end of the FY in which the final action was taken on the appeal
(provided the 25-month retention period for a rejected or withdrawn
application has been met), or 1 FY after the case folder is considered
\"closed,\" whichever is later.

## 32

##  

RD Instruction 2033-A

§2033.10(b)(4) (Con.)

\(vi\) Retain \"closed\" case folders for grants, subject to civil
rights\' compliance review, until compliance reviews are no longer
required as prescribed in RD Instruction 1901-E. To prevent the
inadvertent destruction of these folders during the review period,
maintain them as a separate, clearly identified group.

\(vii\) Retain \"closed\" case folders marked \"DO NOT DESTROY\" until
permission to destroy is received from the State Director or National
Office.

\(5\) [Destruction and Salvage]{.underline}. When destroying official
borrower case folders, offices may use any method which will ensure
complete obliteration of confidential record information. Reusable
folders should be salvaged for future use.

§2033.11 [Section 504 housing assistance borrowers]{.underline}.

The total amount outstanding of Section 504 loan will not exceed
\$20,000. The total amount of a Section 504 grant to any individual
recipient will not exceed \$7,500, including any prior Section 504 grant
assistance. Combination loan and grant assistance will not exceed
\$27,500.

\(a\) [Section 504 borrower list]{.underline}. A list of borrowers,
arranged by county, who have received Section 504 assistance will be
retained in the operational file folder 1944 - \"Section 504 Loans
and/or Grant Borrower List.\" This list will include the following
information recorded at the time a Section 504 loan and/or grant is
made.

\(1\) Borrower or grantee(s) name, address, and case number.

\(2\) Name of co-owner/grantee(s), if any.

\(3\) Amount of the loan and/or grant.

\(4\) Date loan and/or grant was made.

\(b\) [Maintenance and disposition]{.underline}. Section 504 housing
assistance case folders will be maintained, closed, and disposed of in
accordance with §§2033.8 and 2033.10 of this Instruction. The
maintenance of the borrower list will permit destruction of closed
Section 504 assistance case folders as prescribed in §2033.10(b)(4) of
this Instruction.

## 33

## (Revision 1)

(04-09-97) PN 275

RD Instruction 2033-A

§2033.12 [Destroying official record material]{.underline}.

All materials eligible for destruction MUST be promptly destroyed. The
following destruction methods may be used.

\(a\) Destroy file material as trash. This may be done by the office or
by services available through public refuse disposal facilities.

\(b\) Sell or donate as waste paper.

\(c\) Donate to nonprofit groups collecting waste paper for recycling
purposes, providing no storage, transportation or other costs, or the
possible disclosure of confidential information, is involved.

§2033.13 [Authority for disposition of Rural Development
records]{.underline}.

No official records may be destroyed without approval by the NARA,
General Services Administration, and the General Accounting Office.

§§2033.14 - 2033.50 \[Reserved\]

Attachments: Exhibits A \[Reserved\], B, and C.

## oOo

## 34

## (Revision 1) 

RD Instruction 2033-A

Exhibit B

Page 1

## TABLE OF CONTENTS FOR ASSOCIATION-TYPE BORROWER CASE FILES

A processing checklist may be used in lieu of a Table of Contents
provided the location of each document in the case(s) is shown on the
checklist. If a processing checklist is not used, the State Director
will issue as a State Form a Table of Contents (prepared on one side of
page only) to cover all National forms, State forms, and unnumbered
items classified to each of the eight file positions in the borrower
case folder(s). Separate Tables of Contents may be prepared for each
association-type loan, such as Business and Industrial, Rural Rental
Housing, and Water and Waste Disposal, listing only those forms and
documents pertaining to the specific type loan. Example:

## TABLE OF CONTENTS (ALL POSITIONS)

## (File in position 1 as top item of initial folder)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(4\) (5)

\"X\" or Remarks or

\(1\) (2) (3) Tab No. Continu-

Form No. Description of Record Initial ation

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_[Folder]{.underline}\_\_\_\_\_[Folder]{.underline}\_\_\_

SF 424.1, \"Application for Federal

Assistance (For Non-Construction),\" or

SF 424.2, \"Application for Federal

Assistance (For Construction)\" 3 X

RD 140-4 Transmittal of Documents 4 X

RD 400-1 Equal Opportunity Agreement 6 X

RD 400-4 Assurance Agreement 3 X

RD 402-1 Deposit Agreement 2 X

RD 426-1 Valuation of Buildings 7 X

Envelope

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_[Jacket
1 of 2]{.underline}

[Explanation of Columns]{.underline}:

\(1\) State Office will enter form numbers in numerical order.

\(2\) State Office will enter the title of form or description of
unnumbered items. Unnumbered items will be listed following numbered
forms.

\(3\) State Office will enter file position.

\(4\) The office responsible for maintaining the office borrower case
folder will enter \"X\" when item is placed in initial folder, or if
\"Tabs\" are used, enter tab number.

(4-11-90) SPECIAL PN

RD Instruction 2033-A

Exhibit B

Page 2

\(5\) Offices will enter description of other container(s) when a given
item is not kept in the initial folder or an item is transferred to a
continuation folder. This column may also be used by the responsible
office, State Office, or National Office for other pertinent
information, such as initialing and dating by reviewing officials.

## oOo 

RD Instruction 2033-A

Exhibit C

Page 1

## MAINTENANCE OF PROGRAM RECORDS ENTERED TO THE

## AUTOMATED DISCREPANCY PROCESSING SYSTEM (ADPS)

This exhibit provides the records maintenance and internal control
requirements for source/input and other documents that support
transactions processed to ADPS via the Agency\'s field office terminal
system. Additionally, it provides standards for the timely and accurate
manuscription and discrepancy correction of ADPS transactions to measure
field office performance.

I. [Document Processing]{.underline}.

A. Completed authorized source/input documents will be used to support
all transactions. For internal control and audit trail purposes, there
must be a clear record of responsibility for both the authorizing and
the inputting of each transaction. The approving official of the related
ADPS transaction, e.g., County Supervisor, Program Chief, or his/her
delegate, must sign and date the appropriate authorizing form or input
document, whether or not there is a signature block for the Agency
representative. When there is no related authorizing form or input
document, e.g., check requests, personnel should generate printouts of
the completed ADPS input screen immediately after all data is entered
and the screen prompt displays \"Transaction has been updated.\" This
screen printout will be signed and dated by the approving official or
his/her delegate and maintained as the authorizing input document. Field
office personnel who enter transactions to process must also notate
their name, ADPS block number, and current processing date on the
source/input document. When a screen printout is used as the transaction
input document, as with check requests, the user identification number
of the employee entering the transaction, the ADPS block number, and the
process date will be displayed on the screen printout; inputting
personnel do [not]{.underline} need to add this information to the
printout.

B. Until transactions process, field offices should file the
source/input documents or input screen printouts by processing date in
an ADPS Unprocessed Transaction Pending File. Each workday, ADPS Option
1, \"Discrepancy Processing - Oldest Within Jurisdiction,\" or Option 2,
\"Discrepancy Processing by Case Number or Property Identification,\"
will be accessed to determine the transactions that have processed or
rejected. If the transactions are not displayed, the related
source/input documents or screen printouts will be removed from the
pending file and placed in the appropriate case folders.

C. Discrepancies should be corrected and the related source/input
document annotated with the corrected information, as appropriate. This
includes system generated discrepancies, e.g., cost items. For
discrepancies where there are no source/input documents, input screen

(04-19-95) PN 244

RD Instruction 2033-A

Exhibit C

Page 2

printouts reflecting the corrected information should be generated. The
approving official (or his/her delegate) must sign and date the new
screen printouts. Attach previous screen printout to new screen
printout. The source/input documents or screen printouts should be filed
by processing date in the ADPS Unprocessed Transaction Pending File.
Upon verification of the discrepancies processed by accessing ADPS
Options 1 or 2, the related source/input documents or new screen
printouts will be removed from the pending file and placed in the
appropriate case folders. The previous screen printouts will be
destroyed.

D. If field offices route manuscripted or discrepancy transactions to
the Finance Office or mail documents to the Finance Office, District
Offices, or State Offices for processing, the sending offices will
retain the original or copies of the source/input documents, input
screen printouts, and transmittal letters, as appropriate, in an ADPS
Unprocessed Transaction Pending File by date sequence. For routed
transactions, the field offices will access ADPS Option 2 to determine
the transactions that have been processed. If the transactions are not
displayed, the related source/input documents or screen printouts will
be removed from the pending file and placed in the appropriate case
folders. For documents mailed, the field offices will access the ADPS
status screens (unless superseded by State Office guidelines) to
determine whether the transactions have been processed. Upon
verification of the transactions processed, the related source/input
documents or screen printouts will be removed from the pending file and
placed in the appropriate case folders.

E. When District or State Offices enter transactions for other field
offices, personnel entering the transactions must notate their name,
ADPS block number, and current processing date on the source/input
documents. When there are no related source/input documents, input
screen printouts should be generated. (If an input screen printout is
used as the only input document, personnel entering the transactions are
not required to notate their name, ADPS block number, and current
processing date on the printout.) The approving official or his/her
delegate must sign and date the source/input document or screen
printout. The source/input documents and screen printouts will be filed
by processing date in an ADPS Unprocessed Transaction Pending File. Upon
verification of the transactions processed by accessing ADPS Options 1
or 2, the related source/input documents or screen printouts will be
filed by processing date in an ADPS Processed Transaction File.

F. If it is necessary to process transactions using OK-to-apply codes
that require authorization justifying their use, the reasons for use
must be indicated on the source/input documents or input screen
printouts, as appropriate. The reason must explain the unique
conditions, terms, or

RD Instruction 2033-A

Exhibit C

Page 3

coding on the transaction or account that make use of the OK-to-apply
code necessary. Do not use the general descriptions in the ADPS
documentation as reasons. For internal control purposes, the approving
official must initial and date the reason for use. The OK-to-apply codes
that require authorization are identified in attachment 1 of this
exhibit and the ADPS field office detail transaction and discrepancy
codes manuals. District

and State Offices should monitor the use of OK-to-apply codes by using
the FOCUS report titled DS04, \"Use of OK-to-Apply Codes.\"

G. If it is necessary to use action pending codes (APCs) identifying the
reasons for delays in processing transactions and the APCs do not
specifically describe the circumstances that require their use, e.g.,

APC FG - Other, the reasons for use must be clearly indicated on the
source/input documents or input screen printouts, as appropriate. If
additional APCs are needed to identify specific conditions that
frequently occur and result in not being able to meet transaction
processing timeframes, field offices may request new APCs on Form RD
2006-21, \"Information Systems Management (ISM) Request for Changes to
User Documentation.\" FOCUS Reports DSO3, \"Report of Manuscripted
Transactions by Jurisdiction Code, Transaction Code, and Borrower Case
Number,\" and DSO1, \"Aging of Discrepancies in Field Office
Jurisdictions,\" may be used to monitor the appropriate use of APCs.
Also, Report Code 533, \"Analysis of Submitted/Rejected Transactions by
Jurisdiction Code,\" Report Code 534, \"Analysis of Submitted/Rejected
Transactions by Operator ID,\" and Report Code 535, \"Analysis of
Submitted/Rejected Transactions by State Code,\" identify the APCs of
transactions which have been routed to the Finance Office.

II\. [Transaction Timeliness]{.underline}

A. Transactions should be processed within 5 or 10 calendar days of the
effective dates. For source/input documents prepared at the field
office, 5 calendar days are permissible for processing, e.g., loan
obligation. For source/input documents prepared external to the field
offices, 10 calendar days are permissible for processing, e.g., loan
closing. Three additional days are added to the 5 or 10 calendar day
timeframes for transactions mailed to District or State Offices for
processing. An exception to the 5/10 day standard is allowed for
Transaction Code 8M, \"Limited Resource Loan Review.\" Reviews performed
during the month are considered timely if processed by the fifth day of
the following month. Attachment 1 to this exhibit shows the timeframes
in which transactions should be processed. If discrepancies occur, the
transactions should be corrected within 5 or 14 calendar days of the
initial rejection dates. For discrepancies due to suspend codes on the
borrower accounts, 14 days are allowed for correction.

(04-19-95) PN 244

RD Instruction 2033-A

Exhibit C

Page 4

B. District and State Offices should monitor the timely processing of
transactions by using the FOCUS reports titled DSO3, \"Report of
Manuscripted Transactions by Jurisdiction Code, Transaction Code, and
Borrower Case Number,\" and DSO1, \"Aging of Discrepancies in Field
Office

Jurisdictions.\" The following timeliness rate criteria will be used for
evaluating jurisdictional performance levels on a monthly basis:

[Timeliness Rate]{.underline} [Performance Level]{.underline}

More than 95 percent Superior

80-95 percent Acceptable

Less than 80 percent Unacceptable

C. To ensure timely initial processing of transactions or correction of
discrepancies, the field offices should:

o Train a minimum of two office employees to process transactions.

o Require loan closing agents to return closing information on the

dates the loans are closed.

o Process data as of the effective or receipt dates of the related

loan making/servicing actions or the next workday thereafter.

o Use APCs when it is necessary to delay initial processing or

discrepancy correction.

III\. [Transaction Accuracy]{.underline}.

A. To ensure that transactions are processed accurately, field offices
should use the ADPS manuals to review exception conditions,
premanuscripting validations, and processing procedures for the specific
transactions being processed. Monitoring accurate processing of data can
be performed by using Report Codes 533, \"Analysis of Submitted/Rejected
Transactions by Jurisdiction Code;\" 534, \"Analysis of
Submitted/Rejected Transactions by Operator ID;\" and 535, \"Analysis of
Submitted/Rejected Transactions by State Code.\" The following accuracy
rate criteria will be used for evaluating jurisdictional performance
levels on a monthly basis:

[Accuracy Rate]{.underline} [Performance Level]{.underline}

More than 90 percent Superior

85-90 percent Acceptable

Less than 85 percent Unacceptable

B. Processing procedures to minimize discrepancies include the
following:

o Validate data as the source/input documents are prepared.

RD Instruction 2033-A

Exhibit C

Page 5

o For source/input documents prepared or approved external to the

field offices responsible for processing the transactions,

validate the data upon receipt of the source/input documents.

o Process data as of the effective or receipt dates of the

source/input documents or the next workday thereafter.

o Perform validations on discrepancy transactions to minimize

additional discrepancies.

IV\. [Document Retention]{.underline}.

Forms and screen printouts will be retained by position in the case
folders in accordance with exhibit A of this Instruction. The retention
requirements for the folders will govern the entire contents. At the end
of the retention periods, all documents containing sensitive borrower

information should be destroyed by shredding or other method which
renders the material unreadable.

## oOo

(04-19-95) PN 244

Exh C, Attachs 1 & 2 in PDF ONLY.