**Farm Loan Programs Guaranteed Loan Making Checklist**

**\[SEL & CLP Lenders Only\]**

**Always check:**

-   **FTP Site <ftp://199.152.85.199/St_Download/Farm_Loan> under
    Guar_Excel_Files or under Guar_Guides_word for the most current
    revision of this Checklist, mo 2-flp guides, and the excel
    spreadsheets.**

```{=html}
<!-- -->
```
-   **FFAS Employee forms website
    <http://165.221.16.90/dam/ffasforms/forms.html> for the most current
    version of a guaranteed form.**

Name of Applicant
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
TIN/SSN \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of
Spouse\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
TIN/SSN \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Phone \# \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

City/State/Zip\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
County \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Lender Name
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Lndr Phone #\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Lender Contact
Person\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Lndr Fax #­­\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

  ------------- --------- ------------------------------ -------------- ------------- ---------------------- ------- ------------------------------ ---------- --
  Type of       Loan                                     Loan Amount                  Interest rate          \# of                                  Int. Asst. 
  Request       request                                                                                      years                                  (yes/no)   
                filed as                                                                                                                                       
                CLP or                                                                                                                                         
                SEL                                                                                                                                            

  OL/LOC                                                 \$                           \_\_\_\_%\_\_\_(f/v)                                                     

  OL/LN                                                  \$                           \_\_\_\_%\_\_\_(f/v)                                                     

  FO/LN                                                  \$                           \_\_\_\_%\_\_\_(f/v)                                                     

  **Date                  **\_\_\_\_\_\_\_\_\_\_\_\_**                  **Date                                       **\_\_\_\_\_\_\_\_\_\_\_\_**              
  Application                                                           Application                                                                            
  Received**                                                            Complete**                                                                             

  **Date                  **\_\_\_\_\_\_\_\_\_\_\_\_**                  **Date                                       **\_\_\_\_\_\_\_\_\_\_\_\_**              
  entered into                                                          entered into                                                                           
  GLS**                                                                 MAC**                                                                                  
  ------------- --------- ------------------------------ -------------- ------------- ---------------------- ------- ------------------------------ ---------- --

FOR SUBSEQUENT GUARANTEED OPERATING LOAN/LINE OF CREDIT IN THE SAME
OPERATING CYCLE see 2-FLP Par.71 A "Application Requirements". This
section applies only if a Guar OL loan has been closed within the same
cash flow plan year. As a minimum, the lender must provide the
FSA-1980-25, a cover letter, balance sheet, and revised cash flow.

COMPLETE APPLICATIONS: Par.69 (7CFR 762.110)

+---+---------------------+---+---------+---------+----+---------+---+
| * | **Document/**       | * | **Form/ | **Proc  | ** | **A     | * |
| * |                     | * | Ex      | edure** | Re | ction** | * |
| I | **Action**          | C | hibit** |         | sp |         | F |
| t |                     | o |         | *       | ** | *       | i |
| e |                     | p |         | *Ref.** |    | *Date** | l |
| m |                     | y |         |         |    |         | e |
| N |                     | # |         |         |    |         | P |
| o |                     | ' |         |         |    |         | o |
| . |                     | s |         |         |    |         | s |
| * |                     | * |         |         |    |         | * |
| * |                     | * |         |         |    |         | * |
+---+---------------------+---+---------+---------+----+---------+---+

Indicate by use of N/A in the Action Date box when a form is not
required for the type of loan you are processing.

**(Requirements for Loans under \$125,000)**

> See submission table at Par.69.7A (page 5-6). The \$125,000 threshold
> includes any single loan, or package of loans submitted for
> consideration at any one time. A lender must not split a loan into two
> or more parts to meet the threshold thereby avoiding additional
> documentation. Separate \$125,000 thresholds apply to FO and OL (LN or
> LOC combined) loans. An application requesting guarantees of loans of
> different types (FO or OL), each of which is \$125,000 or less, will
> be processed under the requirements of this paragraph. The maximum
> loan package that can be processed under this paragraph is \$250,000.

  ---- --------------------- ---- ---------- ----------- -------- ---------- ----
  1    Loan Narrative/       1               Par.69.5C   Lender              3
       Assessment                                                            

  ---- --------------------- ---- ---------- ----------- -------- ---------- ----

-   Narrative needs to address/include the following:

```{=html}
<!-- -->
```
-   describe farm operation (type of enterprises, adequacy of IT assets,
    labor/management structure, short and long term goals, any proposed
    changes)

-   report any relationships which may cause an actual or potential
    conflict of interest

+--------------------------------------+-------------------------------+
| -   terms of the loan                | -   repayment capacity        |
|                                      |     assessment                |
+--------------------------------------+-------------------------------+
| -   collateral/security assessment   | -   loan purpose(s)           |
+--------------------------------------+-------------------------------+
| -   lender servicing plan            | -   loan agreement            |
|                                      |     requirements              |
+--------------------------------------+-------------------------------+

-   statement how the loan applicant meets the loan eligibility
    requirements or use MO 2-FLP Guide 1

```{=html}
<!-- -->
```
-   Lender may use MO 2-FLP Guide 1, Guaranteed Operating Loan (OL) and
    Guaranteed Farm Ownership (FO) Eligibility, to document the loan
    applicant's general eligibility requirements **OR** the loan
    eligibility requirements must be documented in the loan narrative.

+---+---------------------+---+---------+---------+----+---------+---+
| 2 | Farmer Programs     | 1 | FSA-    | Pa      | Le |         | 3 |
|   | Application         |   | 1980-25 | r.69.5B | nd |         |   |
|   |                     |   |         |         | er |         |   |
|   |                     |   | Rev     |         |    |         |   |
|   |                     |   | 7-      |         |    |         |   |
|   |                     |   | 20-2001 |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+
| C |                     |   |         |         |    |         |   |
| o |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| e |                     |   |         |         |    |         |   |
| n |                     |   |         |         |    |         |   |
| t |                     |   |         |         |    |         |   |
| s |                     |   |         |         |    |         |   |
| : |                     |   |         |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   DO NOT use or accept a Revision date prior to 07-20-2001of the form
    FSA-1980-25 as obtains offset notification.

-   The lender shall complete all applicable items and provide
    supporting documentation where requested.

-   Lender may use own loan application if it contains same information,
    but must attach an executed FSA-1980-25.

-   The application must be signed by both the loan applicant and spouse
    (if applicable) in order to meet privacy act requirements.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Balance Sheet       | 1 | 2-FLP   | Pa      | Le |         | 3 |
|   |                     |   | Guide   | r.69.5D | nd |         |   |
|   |                     |   | 19      |         | er |         |   |
|   |                     |   |         |         |    |         |   |
|   |                     |   | 431-2   |         |    |         |   |
|   |                     |   | or      |         |    |         |   |
|   |                     |   | other   |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   The lender shall provide a balance sheet dated within 90 days of the
    application submission.

+---+---------------------+---+---------+---------+----+---------+---+
| 4 | Cash Flow           | 1 | 2-FLP   | Pa      | Le |         | 3 |
|   | Budget/Projection   |   | Guide   | r.69.5E | nd |         |   |
|   |                     |   | 19      |         | er |         |   |
|   |                     |   |         | Defin   |    |         |   |
|   |                     |   | Excel   | itions/ |    |         |   |
|   |                     |   | Spre    | Exhibit |    |         |   |
|   |                     |   | adsheet | 2       |    |         |   |
|   |                     |   |         | P       |    |         |   |
|   |                     |   | 431-2   | ar.151- |    |         |   |
|   |                     |   | or      | Par.154 |    |         |   |
|   |                     |   | other   |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Lender may use MO 2-FLP Guide 19, FSA guaranteed excel spreadsheet,
    Form 431-2 or cash flow forms ordinarily used by the lender which
    contain the same information.

-   The cash flow must be signed and dated by both the lender and loan
    applicant.

```{=html}
<!-- -->
```
-   The loan applicant's proposed operation must project a [feasible
    plan]{.underline} (1 to 1 balance available/debt repayment margin).

+---+---------------------+---+---------+---------+----+---------+---+
| 5 | D                   | 1 | 2-FLP   | Pa      | Le |         | 3 |
|   | escription/location |   | Guide   | r.69.5F | nd |         |   |
|   | of land farmed.     |   | 19      |         | er |         |   |
|   |                     |   |         |         |    |         |   |
|   |                     |   | 431-2   |         |    |         |   |
|   |                     |   | or      |         |    |         |   |
|   |                     |   | other   |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+
| C |                     |   |         |         |    |         |   |
| o |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| e |                     |   |         |         |    |         |   |
| n |                     |   |         |         |    |         |   |
| t |                     |   |         |         |    |         |   |
| s |                     |   |         |         |    |         |   |
| : |                     |   |         |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   This may be an AD1026 A with the FSA Farm #, legal description, plat
    map, etc.

  ---- --------------------- ---- ---------- ----------- -------- ---------- ----
  6    Credit Bureau Report  1               Par.69.5G   Lender              3

  ---- --------------------- ---- ---------- ----------- -------- ---------- ----

-   [CLP not required to submit with application.]{.underline}

-   For entity applications, a Commercial Credit Report should be
    obtained. Waivers granted on a case-by-case basis.

+---+---------------------+---+---------+---------+----+---------+---+
| 7 | Entity Information  | 1 |         | Pa      | Le |         | 3 |
|   |                     |   |         | r.69.5I | nd |         |   |
|   | (Personal           |   |         |         | er |         |   |
|   | guarantees will be  |   |         |         |    |         |   |
|   | required)           |   |         |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Entity applications must include the following information about
    each entity member:

1.  Name, address, and social security number for [each]{.underline}
    member.

2.  \% Ownership interest in the entity.

3.  A current personal financial statement from [each]{.underline}
    member.

-   If necessary, obtain personal cash flow/family budgets from all
    individual members of the entity to be assured that personal
    obligations can be met.

## 

## Additional Requirements if Interest Assistance Requested

  ---- --------------------- ---- ---------- ----------------- -------- ---------- ----
  8    Interest Assistance   1    2-FLP      Par.223-Par.232   Lender              3
       Requirements               Guide 12                                         

  ---- --------------------- ---- ---------- ----------------- -------- ---------- ----

-   Follow MO NOTICE FLP-078 (2-FLP) dated 9/17/02 regarding, "Interest
    Assistance Requirements."

-   The loan approval official must use 2-FLP Guide 12, "Guaranteed Cash
    Flow Feasible Plan Determination," or similar documentation to
    support the approval of interest assistance.

-   The lender needs to provide:

1.  A copy of the proposed amortized debt repayment schedule for each
    loan which shows principal and interest payments at the full note
    interest rate

2.  A monthly cash flow if IA will be placed on a OL/LOC or annual
    operating loan in order to obtain the average principal balance.

-   If a borrower has multiple loans, interest assistance can be only
    applied to each loan, only to one loan or any distribution the
    lender selects; however, interest assistance is only available on as
    many loans as necessary to achieve a feasible plan.

-   Term limits (Par.224E) - a borrower is limited to 10-years from the
    date of the first FSA-1980-64, Interest Assistance Agreement. What
    is the date of the [first]{.underline} FSA-1980-64 signed?
    \_\_\_\_\_\_ What is the 10-year IA ending date? \_\_\_\_\_\_ For
    any borrower with less than [3-years of interest assistance
    remaining]{.underline}, a typical cash flow must be prepared that
    reflects a feasible plan without interest assistance.

-   Does the loan applicant have any significant non-essential assets
    that do not contribute directly to essential family living or farm
    operating expenses? YES\_\_\_\_\_\_NO\_\_\_\_\_ If so, a new cash
    flow must be prepared assuming that the non-essential assets are
    sold and used for debt reduction. If 100% feasible cash flow can
    then be achieved, then the borrower is NOT eligible for interest
    assistance.

-   The annual review date should match the ending date of the
    borrower's cash flow year or payment date. We expect most annual
    review dates to be between 12/31 and 3/1 and not 1 year from the
    initial loan closing date. The annual review date must be the same
    for ALL interest assistance loans.

-   Terms for Interest Assistance shall not exceed the term of the note
    or life of the security, whichever is less, but cannot exceed 10
    years. The minimum repayment terms for each loan must be as follows:

1.  FO/LN - 20 years from the closing date of the original note. This
    applies to approving IA on an existing loan.

2.  OL/LN -- 7 years

3.  OL/LOC -- scheduled for repayment when income is received.

-   Existing guaranteed loan(s) must be on the similar repayment
    schedule and/or restructured to the above minimum terms before
    interest assistance can be considered.

-   The lender is allowed to change the interest rate on the loan as
    provided in the promissory note.

-   Interest Assistance is **NOT** available for NEW FO/LN loan(s) OR
    any EXISTING guaranteed OL or FO loan(s) approved after 10/1/91 that
    weren't originally obligated with 4% interest assistance.

+---+---------------------+---+---------+---------+----+---------+---+
| 9 | Highly Erodible     | 1 | AD-1026 | Pa      | F  |         | 3 |
|   | Land and Wetland    |   |         | r.69.5H | SA |         |   |
|   | Conservation        |   | A       |         |    |         |   |
|   | Certification       |   | D-1026A |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   FSA needs to check to see if the AD-1026 covers the current crop
    year. If not, contact the lender to obtain.

-   The owned and rented acres as shown on the AD-1026A should match the
    cash flow or the file should be documented to reflect any
    differences.

  ------- -----------------------------------------------------------------
  Note:   In some cases, the lender will submit more information to FSA
          than is required for a CLP and/or for all loans under \$125,000.
          In those cases, the County Office [must take the time to analyze
          the information and utilize it in credit decisions]{.underline}.

  ------- -----------------------------------------------------------------

**COMPLETE APPLICATIONS (continued)**

### 

### Requirements for Loans Over \$125,000

See submission table at Par.69.7A (page 5-6).

  ---- --------------------- ---- ----------- ----------- -------- ---------- ----
  10   Verification          1    RD-1910-5   Par.69.6B   Lender              3
       Non-Farm/Other Income                                                  

  ---- --------------------- ---- ----------- ----------- -------- ---------- ----

-   Lender may submit a) RD-1910-5, b) lender's own form, c) W-2, d)
    earnings statement from employer, or e) any other verification.
    Recommend obtaining the last pay stub of the year to verify non-farm
    income & deductions.

-   [CLP Lenders do not have to submit]{.underline}. Must be maintained
    in lender's file.

+---+---------------------+---+---------+---------+----+---------+---+
| 1 | 3-Yr. Financial     | 1 | 2-FLP   | Pa      | Le |         | 3 |
| 1 | History             |   | Guide   | r.69.6D | nd |         |   |
|   |                     |   | 20      |         | er |         |   |
|   |                     |   |         | P       |    |         |   |
|   |                     |   |         | ar.152- |    |         |   |
|   |                     |   |         | Par.153 |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+
| C |                     |   |         |         |    |         |   |
| o |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| e |                     |   |         |         |    |         |   |
| n |                     |   |         |         |    |         |   |
| t |                     |   |         |         |    |         |   |
| s |                     |   |         |         |    |         |   |
| : |                     |   |         |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   As a minimum, the following is required:

1.  actual farm & non-farm income and expense history data or a complete
    set of Federal and State income tax records with supporting
    schedules

2.  financial statements a/k/a balance sheets

-   Lenders are allowed to use more than 3-years of records.

```{=html}
<!-- -->
```
-   [CLP Lenders do not have to submit]{.underline}. Must be maintained
    in lender's file.

+---+---------------------+---+---------+---------+----+---------+---+
| 1 | 3-Yr. Production    | 1 | 2-FLP   | Pa      | Le |         | 3 |
| 2 | History             |   | Guide   | r.69.6E | nd |         |   |
|   |                     |   | 20      |         | er |         |   |
|   | **SEL ONLY**        |   |         | Par.152 |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+
| C |                     |   |         |         |    |         |   |
| o |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| m |                     |   |         |         |    |         |   |
| e |                     |   |         |         |    |         |   |
| n |                     |   |         |         |    |         |   |
| t |                     |   |         |         |    |         |   |
| s |                     |   |         |         |    |         |   |
| : |                     |   |         |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Actual production records/yields of crops and livestock

  ----------- --------------------- ---- ------------ ----------- -------- ---------- ----
  13          Verification of debts 1    FSA-440-32   Par.69.6C   Lender              3
              \> than \$1,000                                                         

  Comments:                                                                           
  ----------- --------------------- ---- ------------ ----------- -------- ---------- ----

-   Lender may submit a) FSA-440-32, b) lender's own form, or c) any
    other documented verification. Any other documented verification
    could be a phone call to the creditor. It is recommended that
    written verification be obtained when verifying prior liens on
    primary security. At a minimum, the following information must be
    obtained:

+--------------------------------+-------------------------------------+
| -   principal balance          | -   interest balance                |
+--------------------------------+-------------------------------------+
| -   effective date             | -   interest rate                   |
+--------------------------------+-------------------------------------+
| -   daily accrual              | -   amount delinquent               |
+--------------------------------+-------------------------------------+
| -   installment due date and   | -   collateral for such debt        |
|     payment amount             |                                     |
+--------------------------------+-------------------------------------+

-   [CLP Lenders do not have to submit]{.underline}. Must be maintained
    in lender's file.

  ----------- --------------------- ---- ---------- ----------- -------- ---------- ----
  14          Proposed Loan         1    2-FLP      Par.69.6F   Lender              3
              Agreement                  Guide 10                                   

  Comments:                                                                         
  ----------- --------------------- ---- ---------- ----------- -------- ---------- ----

-   Must be signed by applicant and lender. Use 2-FLP Guide 10 as an
    example.

-   Any proposed non-typical loan agreements should be explained in the
    loan narrative.

-   If a SEL lender does not provide a Proposed Loan Agreement, proceed
    with the processing of the application without it and make the Loan
    Agreement a requirement in the FSA-1980-15, "Conditional
    Commitment."

-   [CLP Lenders do not have to submit]{.underline}. Must be maintained
    in lender's file.

+---+---------------------+---+---------+---------+----+---------+---+
| 1 | Construction        | 1 |         | Pa      | Le |         | 6 |
| 5 | Documents           |   |         | r.69.6G | nd |         |   |
|   |                     |   |         |         | er |         |   |
|   | (If applicable)     |   |         |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   If loan funds are to be used for construction/development purposes,
    an SEL lender needs to provide a copy of the plans, a copy of the
    specifications, and a development schedule.

-   [CLP Lenders do not have to submit]{.underline}. Must be maintained
    in lender's file.

  ------- -----------------------------------------------------------------
  Note:   **The Agency may request additional information from
          [any]{.underline} lender or review the lender's loan file as
          needed to make eligibility and approval decisions. (Par.69 B)**

  ------- -----------------------------------------------------------------

**APPLICATION PROCESSING**

Note: A loan applicant must first be loaded into SCIMS before the loan
application information is input into GLS and MAC. Guaranteed
application information is to be input into GLS and this information
will then be automatically downloaded directly into MAC. The SCIMS and
GLS download will remove most of the manual input into MAC. However,
there may be a few fields in MAC that still must be manual input.

**Loan Application Completeness Review (7 CFR 762.110)**

+---+---------------------+---+---------+---------+----+---------+---+
| 1 | Environmental       | 1 | FSA-    | Par.95D | F  |         | 3 |
| 6 | Checklist for       |   | 1940-22 |         | SA |         |   |
|   | Categorical         |   |         | P       |    |         |   |
|   | Exclusions          |   | 2-FLP   | ar.208- |    |         |   |
|   |                     |   | Guide 6 | Par.211 |    |         |   |
|   |                     |   |         |         |    |         |   |
|   |                     |   | 2-FLP   |         |    |         |   |
|   |                     |   | Guide 7 |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   **The guaranteed loan application is not considered to be \"Complete
    Application,\" until the Categorical Exclusion and/or Class I/Class
    II Environmental Assessment has been properly completed and signed
    off on.**

-   Follow MO NOTICE FLP--034, Environmental Assessments and Other
    Environmental Concerns, dated 01-11-2002. It states that 2-FLP Guide
    6, "Environmental Checklist for Guaranteed Loan Making and
    Servicing," will be used for guaranteed loan making actions.

-   When a Class I/Class II Environmental Assessment is required, use
    2-FLP Guide 7, "Sample Environmental Letters."

-   If the NRCS Form MO-CPA-52 clearly documents that the project has no
    affect on historic properties, the State Historic Preservation
    Officer (SHPO) does not have to be contacted by FSA. Must discuss
    with NRCS and determine that the NHPA Section 106 review process has
    been completed and no historic properties are affected by the
    project.

-   Hazardous Waste Consideration. ‑ If real estate is taken as primary
    security, the lender must compete a Transaction Screen Questionnaire
    (TSQ), FSA-851, "Environmental Risk Survey Form," or similar form
    approved by State Environmental Coordinator (SEC). The FSA official
    may need to make a farm visit to complete this item. Documentation
    regarding potential hazardous waste will be documented on Form
    1940‑22 or as a running record entry. When contamination is found,
    the reviewer will contact the SEC for further guidance.

-   See Notice EQ-113, "Environmental Risk Management in Real Estate
    Transactions," dated 9-01-2001.

-   See Notice EQ-112, "Residential Lead-Based Paint (LBP) Hazard
    Reduction," dated 11-30-2001.

-   See MO Notice EQ-49, "Mandatory Flood Insurance and Floodplain
    Development Permits," dated 02-28-2001. As required by the National
    Flood Insurance Reform Act of 1994 (NFIRA), FEMA Form 81-93,
    \"Standard Flood Hazard Determination,\" must be completed when real
    estate is taken either for primary or additional security. The
    completed form should be attached to FSA-1940-22, or included as an
    exhibit to a Class I or Class II Environmental Assessment. For loans
    where real estate is to be taken as either primary or additional
    security, the following statement must be included in the
    Conditional Commitment:

a)  \"Flood insurance will be obtained if it is available on structures
    that are or will be located on a floodplain.\"

-   Complete Form 1940‑22, Environmental Checklist for Categorical
    Exclusions. ‑ The FSA approval official is responsible for
    determining whether an Environmental Impact Statement is needed per
    Instructions 1940.311(c) and 1940.312(c) and will contact the lender
    and loan applicants to provide the necessary information. The FLM
    may need to visit the farm to complete the review required by FmHA
    Instructions 1940‑G. For CLP lenders, the information supplied on
    FSA-1980‑25 and the environmental resources available in the County
    Office should provide enough detail to complete Form 1940‑22 without
    a site visit. Determine if requirements of FmHA Instructions 1940‑G
    are met.

-   Standard Eligible lenders are not required to complete an
    environmental assessment or certification. To speed up application
    processing, CLP lenders are required to make a farm visit and
    complete Part 12 of FSA-1980-25. Part 12, Environment Information
    states that the lender is certifying that \"proper investigations
    have been conducted to support his certification regarding
    floodplains, state water quality standards,
    historical/archaeological sites, wetlands/HEL, and hazardous
    substances. The lender is not certifying compliance or fulfilling
    the complete environmental review process. However, the lender will
    be held responsible for failing to report those apparent
    environmental problems of which the lender was aware. In summary,
    2-FLP Par.208B states that it is the responsibility of the loan
    approval official for assuring that the environmental requirements
    of the (NEPA) and 7 CFR Part 1940, Subpart G are met.

-   When the loan requires State Office level approval authority, the
    Farm Loan Chief must sign the appropriate environmental document as
    the concurring official as per 1940-G, 1940.316(b) page 37.

-   Class I and Class II Environmental Assessments must be submitted to
    the State Environmental Coordinator (SEC) for review,
    recommendations, and approval prior to being submitted to the
    approval official for final determination.

-   If favorable decision, continue with the processing of the loan.

-   If unfavorable decision, notify lender and loan applicant with
    appeal rights as per 1-APP.

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  17   Notification of       1    2-FLP      Par.97A    FSA              4
       Incomplete                 Guide 11                               
       Application                                                       

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   Enter application information into both GLS ("Application Received\"
    and \"Incomplete Application\") and MAC. See Notice FLP-214,
    "Entering Voluntary Information Into MAC and GLS," dated 07-17-2001.

-   The guaranteed loan application is not considered to be \"Complete
    Application,\" until the Categorical Exclusion and/or Class I/Class
    II Environmental Assessment has been properly completed and signed
    off on.

-   If incomplete, [within 5 calendar days call the lender]{.underline}
    and then send the lender a letter listing all of the additional
    information needed, state that the application cannot be processed
    until the additional information is received, and establish a 20
    calendar day deadline to provide. Use the example found in 2-FLP
    Par.97B (page 7-5) or 2-FLP Guide 11, Incomplete Application 1^st^
    Notice.

-   If the necessary information is not received within 20 calendar
    days, send lender a letter and establish another 10-calendar day
    deadline from the date of the letter or the application will be
    withdrawn. Use the example found in 2-FLP Par.97D (page 7-7) or
    2-FLP Guide 11, Incomplete Application 2nd Notice.

-   Automatically withdraw application if information is not received or
    if the Lender does not contact us within 10 days. Update both GLS
    and MAC.

-   **Do not dispose of or destroy any applications/files until further
    notice**.

+----+--------------------+---+---------+---------+----+---------+---+
| 18 | Notification of    | 1 | 2-FLP   | Par.95  | F  |         | 4 |
|    | Complete           |   | Guide   | B       | SA |         |   |
|    | Application        |   | 11      |         |    |         |   |
|    |                    |   |         |         |    |         |   |
|    |                    |   | 2-FLP   |         |    |         |   |
|    |                    |   | Guide 4 |         |    |         |   |
+----+--------------------+---+---------+---------+----+---------+---+

-   The loan approval official should complete 2-FLP Guide 4, "GLS
    Information Worksheet." Enter application information into GLS and
    MAC. Contact S/O before making any lender name and/or address
    changes.

-   Within 5 calendar days, the application shall be reviewed to
    determine if complete. If complete, send the lender a letter
    notifying that the application is complete. Use the example found in
    2-FLP Par.95B (page 7-1) or 2-FLP Guide 11, Complete Application
    Notice.

  ----------- -----------------------------------------------------------------
  **Note:**   **Use the ECOA Paragraph found in 1-FLP, Amendment 8, Par.41C on
              page 3-2.**

  ----------- -----------------------------------------------------------------

  ----- --------------------- ---- ---------- ----------------- ----- ---------- ----
  19    General Eligibility   1    2-FLP      Par.108-Par.111   FSA              3
        Requirements               Guide 1                                       

  ----- --------------------- ---- ---------- ----------------- ----- ---------- ----

**Part 8 Loan Evaluation -- Section 1 Eligibility (7 CFR 762.120)**

-   The loan approval official must use either MO 2-FLP Guide 1,
    Guaranteed Operating Loan (OL) and Guaranteed Farm Ownership (FO)
    Eligibility, or MO 2-FLP Guide 22 SEL-CLP, FSA Guaranteed Loan
    Evaluation/Eligibility Checklist, to document the loan applicant's
    general eligibility requirements or the loan eligibility
    requirements must be documented in the running record.

-   Trusts and Limited Liability Companies have been added to the list
    of the other eligible entities (cooperatives, corporations,
    partnerships, and joint operations.) The trust can be either a
    revocable or irrevocable trust.

-   Entity members cannot themselves be an entity. See Par.111D.

-   Follow MO NOTICE FLP-035 (1951-F) dated 02-19-2002, "Agriculture
    Lender Loan Underwriting Surveys," in documenting the test for
    credit requirement for Farm Credit Services.

-   Check CAIVRS to determine if the loan applicant is delinquent on any
    Federal debt:

```{=html}
<!-- -->
```
-   Follow the Credit Alert Interactive Voice Response System (CAIVRS)
    User's Guide found on the FTP site. Place a copy of the CAIVRS
    status report in the file.

```{=html}
<!-- -->
```
-   Delinquency on a guaranteed loan will not be considered delinquent
    Federal debt.

-   For guaranteed loans approved prior to 07-20-2001, payment of a loss
    claim on a guaranteed loan does not convert the guaranteed debt into
    Federal debt.

```{=html}
<!-- -->
```
-   For guaranteed loans approved after 07-20-2001, any amounts paid by
    FSA on account of the liabilities of the guaranteed loan borrower
    will constitute a Federal debt.

```{=html}
<!-- -->
```
-   Document debt forgiveness (Par.108C):

```{=html}
<!-- -->
```
-   A check of the applicant's record must be made to determine if the
    applicant or anyone who will sign the promissory note has not
    received debt forgiveness on a guaranteed or direct loan. FSA
    regulations prohibit making loan(s) to those applicants who have
    received debt forgiveness (except writedown or under a confirmed
    bankruptcy plan). Borrowers who have received 1951-S writedown or
    2-FLP writedown are eligible [ONLY]{.underline} for an annual
    operating loan.

-   Follow MO NOTICE FLP-315 (2-FLP), \"Verification of Previous Debt
    Forgiveness & Determination of Years of Eligibility for Direct OL,
    Direct FO, and Guaranteed OL Loans,\" dated 1/25/01.

-   Obtain a copy of the ADPS \"LA\" screen under STATUS INQUIRY and
    place a printout in the file.

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  20   Debarment             1               Par.46E    FSA              3
       determination                                                     

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   If you question whether or not a lender has been debarred, you may
    contact the STO to determine whether the lender has been debarred or
    suspended or go to the GSA website at: <http://epls.arnet.gov/>

**Part 8 Loan Evaluation -- Section 2 Loan Purposes and Limitations (7
CFR 762.121(a))**

**Section 3 Loan Terms, Insurance, Inspections, and Fees (7 CFR
762.124(a))**

**Section 4 Credit Decision (7 CFR 762.125)**

+---+---------------------+---+---------+---------+----+---------+---+
| 2 | Evaluate            | 1 | 2-FLP   | Pa      | F  |         | 3 |
| 1 | Application         |   | Guide   | r.122-- | SA |         |   |
|   |                     |   | 22      | Par.124 |    |         |   |
|   |                     |   |         |         |    |         |   |
|   |                     |   | Running | Pa      |    |         |   |
|   |                     |   | Record  | r.135-- |    |         |   |
|   |                     |   |         | Par.138 |    |         |   |
|   |                     |   | 2-FLP   |         |    |         |   |
|   |                     |   | Guide   | Pa      |    |         |   |
|   |                     |   | 12      | r.151-- |    |         |   |
|   |                     |   |         | Par.169 |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Follow MO NOTICE FLP-029 (2-FLP) dated 11-08-2001 regarding
    \"Financing of Integrated Livestock Production.\"

-   Follow MO NOTICE FLP-262 (2-FLP) dated 9/14/00 regarding "Stock
    Value in Cooperative Associations."

-   Follow MO NOTICE FLP-028 (1924-B) dated 11-09-2001 regarding, "2002
    Farm Loan Programs Farm & Home Plan Prices."

-   Document the loan purpose and limitations, loan terms, amount and
    quality of security, and the financial feasibility requirements. The
    loan approval official **must use MO 2-FLP Guide 22 SEL-CLP, "FSA
    SEL/CLP Guaranteed Loan Evaluation / Eligibility Checklist,\" or
    must document in the running record at least the following**:

1.  Is the loan for an authorized loan purposes?
    YES\_\_\_\_\_\_NO\_\_\_\_\_

2.  Within Loan limits (direct loans of same type count against
    guarantee limits)? YES\_\_\_\_\_\_NO\_\_\_\_\_

3.  Acceptable Interest Rates and Terms? YES\_\_\_\_\_\_NO\_\_\_\_\_

4.  Is there sufficient collateral and equity? See Par.166-Par.169 for
    specifics. YES\_\_\_\_\_\_NO\_\_\_\_\_

```{=html}
<!-- -->
```
a.  The lender will obtain a lien on additional security when necessary
    to protect the Agency's interest. Additional security will be
    required if the quality of the security is low, cash flow is below
    average, production capability is suspect, management history is
    limited, or enterprise not firmly established in area.

b.  When refinancing, lender must obtain a lien on all of the collateral
    that secured the debt being refinanced AND must have/maintain the
    same lien position that secured the existing debt.

c.  Chattel-secured guaranteed debt must have higher lien priority than
    chattel-secured non-guaranteed debt held by same lender.

d.  On same collateral, guaranteed loan installment to be paid before
    non-guaranteed loan held by same lender.

e.  Guaranteed loan must be secured by identifiable collateral.

f.  Security exceptions require DAFLP approval. See Par.169B.

```{=html}
<!-- -->
```
5.  Reasonable assurance of feasible plan projection. See
    Par.151-Par.152 for specifics. See subparagraph F, "Feasible Plan"
    in MO NOTICE FLP-078 (2-FLP) dated 09-17-2002.

> a\. Are all debts reflected in the cash flow?
> YES\_\_\_\_\_\_NO\_\_\_\_\_
>
> b\. Are realistic commodity prices used? YES\_\_\_\_\_\_NO\_\_\_\_\_
>
> c\. Are yields realistic and supported by production history?
> YES\_\_\_\_\_\_NO\_\_\_\_\_
>
> d\. Are operating expenses realistic and supported by financial
> history? YES\_\_\_\_\_\_NO\_\_\_\_\_
>
> e\. Are family living expenses realistic? YES\_\_\_\_\_\_NO\_\_\_ If
> suspect/questionable, use 2-FLP Guide 15, "Family Living
> Reconciliation Table."
>
> f\. Does the plan cash flow by a 1 to 1 or 100%?
> YES\_\_\_\_\_\_NO\_\_\_\_\_
>
> g\. Is Interest Assistance required? YES\_\_\_\_\_\_NO\_\_\_\_\_

-   The FLM must ensure that Lenders establish the proper due date of
    annual payments. The proper due date/payment date is when, according
    to the cash flow, the operation receives its income. Payments are to
    be scheduled when the borrower actually plans to receive its income
    and not because it is one year from the loan closing date. (Dairy
    operators and/or contract livestock growers will normally have a
    monthly installment, payments expected from non-farm income will
    need to be paid monthly, and schedule due dates for crop/livestock
    farmers in the month that the crop/livestock is normally sold.)

-   Document leases, contracts, or other agreements entered into by
    applicant which may be pertinent:

```{=html}
<!-- -->
```
-   Obtain a copy or a statement setting forth the terms and conditions
    of the lease, contract, or agreement.

-   All leases shown in the cash flow as a lump sum total must be fully
    explained. A written machinery/equipment lease for more than 1 year
    is considered a capital lease/purchase and a copy must be in the
    lender's and/or Agency's case file.

-   **Leased equipment is not to be appraised and used as basic
    collateral for a guaranteed loan**. If the lease has a
    right-to-purchase agreement, should be taken as additional loan
    collateral.

  ---- --------------------- ---- ---------- ----------------- -------- ---------- ----
  22   Appraisal - Real      1    2-FLP      Par.181-Par.183   Lender              8
       Estate                     Guide 5                                          

  ---- --------------------- ---- ---------- ----------------- -------- ---------- ----

-   Follow MO NOTICE FLP-030 (2-FLP), \"Guaranteed Farm Loan Programs
    Appraisals,\" dated 11-08-2001.

-   The loan approval official should complete a real estate appraisal
    review using 2-FLP Guide 5, "Farm Loan Programs Guaranteed Loan
    Administrative Appraisal Review \[Real Estate Appraisal\]." Complete
    2-FLP Guide 5 for real estate appraisals only. Any questionable
    appraisals should be sent to the FSA Staff Appraiser for a review.

-   Real estate appraisals must follow the requirements of USPAP.

  ---- --------------------- ---- ---------- ----------------- -------- ---------- ----
  23   Appraisal - Chattel   1    2-FLP      Par.181-Par.183   Lender              1
                                  Guide 23                                         

  ---- --------------------- ---- ---------- ----------------- -------- ---------- ----

-   Follow MO NOTICE FLP-030 (2-FLP), \"Guaranteed Farm Loan Programs
    Appraisals,\" dated 11-08-2001.

-   Appraisal reports must be on 2-FLP Guide 23, "Appraisal of Chattel
    Property Worksheet," or any other appraisal forms containing at
    least the same information and the [required
    certifications]{.underline}.

-   Has the appraiser certified that a personal inspection was made of
    ALL the property? YES\_\_\_\_\_\_NO\_\_\_\_\_

-   Lender \"in‑house\" appraisals will need to have the written
    concurrence of both the FLM and DD. Lender \"in‑house\" appraisals
    should not be used when the loan to PMV will exceed a 70% debt to
    basic collateral ratio.

+---+------------------------------------------------------------------+
| N | -   Par.181B states that guaranteed loans may be approved        |
| o |     subject to an acceptable appraisal.                          |
| t |                                                                  |
| e | -   Appraisals are not required when taking additional security  |
| : |     as per Par.181E or for loans of \< \$50,000 if strong equity |
|   |     position exists.                                             |
|   |                                                                  |
|   | -   The lender is responsible for substantiating the             |
|   |     appraiser\'s qualifications. The Lender will obtain FSA\'s   |
|   |     concurrence on the chattel and/or real estate appraiser      |
|   |     prior to any appraisal work being completed.                 |
+---+------------------------------------------------------------------+

**Guaranteed Loan Approval**

+---+------------------------------------------------------------------+
| N | **Applications from CLP lenders must be approved within 14       |
| o | calendar days of receipt of a [complete]{.underline}             |
| t | application.**                                                   |
| e |                                                                  |
| : | **Applications from SEL lenders must be approved within 30       |
|   | calendar days of receipt of a [complete]{.underline}             |
|   | application.**                                                   |
+---+------------------------------------------------------------------+

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  24   Loan Rejection Letter 3    MO Exh 4   Par.244C   FSA              4
                                  of 1-APP                               

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   If the loan cannot be approved, both the applicant and the lender
    will be notified using Missouri Exhibit 4 of 1-APP (Rev. 1) Mo.
    Amend. 8 dated 04-11-2001, Program Appeals, Mediation, and
    Litigation, within 5 calendar days.

-   A loan approval official will not disapprove any loan that exceeds
    that official's approval authority.

-   Rejection letter should contain detailed reasons. The letter must
    reference the 2-FLP Handbook Par number/page as well as the federal
    register 7 CFR number. Call and discuss reasons and alternatives
    with the lender.

-   Follow MO NOTICE FLP-013 (2-FLP), \"Equitable Treatment in
    Processing Loan Applications,\" dated 08-14-2001 for completing
    rejected SDA loan application reviews.

  ---- --------------------- ---- ------------ ---------- ----- ---------- ----
  25   Request for           5    FSA-1940-3   Par.244    FSA              2
       Obligation of Funds                                                 

  ---- --------------------- ---- ------------ ---------- ----- ---------- ----

-   Follow 2-FLP Par.244 A, "Loan Limits." The current limit is
    \$759,000.00 and applies to the total outstanding principal balance
    of all direct and/or guaranteed loans to anyone who will sign the
    promissory note.

-   When determining whether a loan is within a loan approval official's
    authority, follow 1-FLP Par.29 on page 2-14.

-   Certain loan approval authorities have been reserved for SED
    approval. Follow MO Notice FLP-226, "Loan Approval and Servicing
    Authorities," dated 05-23-2000.

-   When the loan exceeds your approval authority, send the loan
    approval official the case file with the following:

a)  Completed FSA-1940-3.

b)  GLS application/loan approval input screens.

c)  Completed FSA-1980-15 and the required attachment 2-FLP Guide 9.

d)  Cover letter with recommendation of approval or rejection.

e)  MO 2-FLP Guide 22 SEL-CLP, "FSA SEL/CLP Guaranteed Loan Evaluation /
    Eligibility Checklist.\"

-   The guaranteed loan can be approved subject to an appraisal. If so,
    the FSA-1980-15 must include the requirement that the guaranteed
    loan cannot be closed until the appraisal has been completed as per
    USPAP requirements and that the PMV is to the amount proposed in the
    FSA-1980-25. SEL lenders must provide a copy of the appraisal and
    should be encouraged to submit this appraisal before loan closing to
    ensure compliance with FSA requirements.

```{=html}
<!-- -->
```
-   [**ONLY** when guaranteed funds are limited]{.underline}, FSA-1940‑3
    can be approved/obligated subject to a favorable environmental
    assessment. However, FSA-1980‑15, Conditional Commitment, cannot be
    issued until a favorable environmental assessment is properly
    completed with no significant environmental impact found.

-   Send a signed copy of the [FSA-1940‑3]{.underline} and the [GLS
    Obligation Request Screen Print]{.underline} to the State Office for
    funding. On the FSA-1940-3, provide the date the guaranteed
    application was considered "[complete]{.underline}". When the
    existing/active guaranteed loans on Finance Office records plus the
    new guaranteed loan exceeds the loan type dollar limitation, send a
    memo to the State Office attached to FSA-1940‑3. The approval
    official must certify the existing and new guaranteed loan(s) will
    not exceed the loan type dollar limitations after the lender closes
    the new guaranteed loan.

-   Follow MO NOTICE FLP-076 (2-FLP), \"Handling Guaranteed Loan
    Applications When Funds Are Not Available,\" dated 09-17-2002.

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  26   Verify obligation -   1               Par.245A   FSA              2
       GLS Obligation                                                    
       Request screen.                                                   

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   Confirm loan obligation. Attach a copy of the "GLS Obligation
    Request" screen to the FSA-1940-3.

-   If funds are NOT available, the form FSA-1980-15 MUST NEVER be
    executed/sent to the lender until verification is received that
    funds have been obligated for the loan by the Finance Office. Send
    the lender a letter (See Par.244E for an example letter) notifying
    of loan approval, that funds are not available, and the application
    will be put on a waiting list based on the date the application was
    considered complete.

+---+---------------------+---+---------+---------+----+---------+---+
| 2 | Conditional         | 3 | FSA-    | P       | F  |         | 2 |
| 7 | Commitment          |   | 1980-15 | ar.245C | SA |         |   |
|   |                     |   |         |         |    |         |   |
|   |                     |   | 2-FLP   |         |    |         |   |
|   |                     |   | Guide 9 |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   If funds are available, send an approval letter with the
    FSA-1980-15, "Conditional Commitment." and the required attachment
    2-FLP Guide 9. The lender must meet ALL of the terms and conditions
    specified in the FSA-1980-15 and 2-FLP Guide 9 before FSA issues the
    FSA-1980-27, Loan Guarantee.

a)  Lender acceptance of conditions / lender proceeds with loan closing.
    Lender can return the signed FSA- 1980-15 indicating the terms are
    acceptable with the loan closing documents

b)  Lender rejection of conditions / conditional commitment loan
    requirements cannot be met by lender ‑ FLM and lender need to
    discuss alternatives. If an agreement can be reached, the
    Conditional Commitment must be modified and the lender notified, in
    writing, of the agreed upon changes. If an agreement cannot be
    reached, send Missouri Exhibit 4 of 1-APP (Rev. 1) Mo. Amend. 8,
    Program Appeals, Mediation, and Litigation, with detailed reasons to
    the lender and loan applicant within 5 calendar days. The letter
    must reference the 2-FLP Handbook Par number/page as well as the
    Federal Register 7 CFR number.

-   Since the FSA-1980-15 and the 2-FLP Guide 9 will be used by FSA in
    the event of a loss claim to determine the responsibilities of the
    lender, the loan approval official must give careful attention to
    its completion. Be specific and in sufficient detail to remove any
    reasonable doubt on all of the FSA loan requirements.

-   2-FLP Guide 9, "Attachment A to FSA-1980-15," - This attachment is
    required for all guaranteed loans. Located in the left-hand column
    of the 2-FLP Guide 9 is a number or the letter \[v\]. In most
    instances, those paragraphs with a number should not be deleted.
    Those paragraphs with the letter \[v\] can be deleted or modified as
    needed. Additional paragraphs or items can also be added as needed.

-   If the loan(s) were approved subject to an appraisal, this must be
    included as a loan closing requirement in the Conditional
    Commitment.

-   If there are buildings located in a flood zone where real estate is
    to be taken as either primary or additional security, the following
    statement must be included in the Conditional Commitment:

a)  Flood insurance will be obtained if it is available on structures
    that are or will be located on a floodplain.

-   To cancel guaranteed obligations the FSA-1940‑10, \"Cancellation of
    Obligation," needs to be sent to the State Office Attn: Farm Loan
    Programs Section for processing through Web GLS (Par.249A).

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  28   Closing Instructions  2               Par.245D   FSA              4
       to Lender                                                         

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   The sample letter found on Page 10-3 under 2-FLP Par.245D can be
    used to notifying the lender that the loan has been approved and
    that funds are available. Provide the following to the lender:

a)  FSA-1980-15, \"Conditional Commitment,\" with the Attachment 2-FLP
    Guide 9.

b)  Blank RD-1980-19, \"Guaranteed Loan Closing Report.\"

c)  Blank FSA-1980-22, \"Lender Certification.\"

d)  Blank 2-FLP Guide 17 (Example of Settlement Statement on Guarantee
    Loans).

e)  (If not previously executed) Blank FSA-1980-38, \"Lender's
    Agreement.\" Must have 06/09/99 revision date.

f)  (For interest assistance loans) Blank FSA-1980-64, \"Interest
    Assistance Agreement.\"

g)  (If loan is to be sold on secondary market) Blank FSA-1980‑36,
    "Assignment of Guarantee."

## [Lender Closes Loan and Submits the Following Items]{.smallcaps}

  ---- --------------------- ---- ---------- ---------- -------- ---------- ----
  29   Guaranteed Loan       3    RD 1980-19 Par.247A   Lender              2
       Closing Report                                                       

  ---- --------------------- ---- ---------- ---------- -------- ---------- ----

-   Form RD 1980‑19, "Guaranteed Loan Closing Report."

a.  FLM will need to review for accuracy and sign.

b.  Support staff will need to process the loan closing transaction
    through GLS.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Lender's            | 1 | FSA-    | P       | Le |         | 3 |
| 0 | Certification       |   | 1980-22 | ar.247A | nd |         |   |
|   |                     |   |         |         | er |         |   |
|   |                     |   | 2-FLP   |         |    |         |   |
|   |                     |   | Guide   |         |    |         |   |
|   |                     |   | 17      |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Form FSA-1980‑22, "Lender\'s Certification," ‑ This form is
    completed by lender before issuance of the FSA-1980‑27, "Loan
    Guarantee." Lender is certifying no major changes have been made in
    the lender\'s loan or line of credit conditions and requirements
    since the issuance of the FSA-1980‑15 (except those approved by FSA
    in writing during the interim.) With this certification the lender
    is to provide the following information:

a)  The lender will provide a new signed POST-CLOSING Financial
    Statement/ Balance Sheet (farm and non-farm) as of the date the
    guaranteed loan is closed.

b)  The lender must provide a detailed loan closing settlement statement
    as of the day of closing. 2-FLP Guide 17, "Example of Settlement
    Statement on Guarantee Loans," may be used as an example.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Lender's Agreement  | 1 | FSA-    | Par.247 | Le |         | 5 |
| 1 |                     |   | 1980-38 |         | nd |         | & |
|   |                     |   |         |         | er |         |   |
|   |                     |   | Rev     |         |    |         | O |
|   |                     |   | 0       |         |    |         | F |
|   |                     |   | 6/09/99 |         |    |         | C |
+---+---------------------+---+---------+---------+----+---------+---+

-   FSA-1980‑38, Lender's Agreement ‑ A current revision (06/09/99) of
    this form must have been executed for all guaranteed loans prior to
    the issuance of the FSA-1980-27, Loan Guarantee. A new lender\'s
    agreement does not need to be executed for each loan. Outstanding
    lender\'s agreements will cover all guarantees issued under that
    agreement. The County Office will maintain a master file containing
    a copy of these agreements in the Operational File, OFC 2-FLP.

-   See MO NOTICE FLP-047 (2-FLP) dated 04-17-2002 regarding,
    "Maintenance of Lender's Agreements."

  ---- --------------------- ---- ---------- ----------- -------- ---------- ----
  32   Loan Agreement        1    2-FLP      Par.69.6F   Lender              3
                                  Guide 10                                   

  ---- --------------------- ---- ---------- ----------- -------- ---------- ----

-   Follow 2-FLP Guide 10, Proposed Loan Agreement. This guide addresses
    the minimum requirements that should be addressed in the lender's
    security documents (promissory note, security agreement, etc.) or be
    addressed in a Loan Agreement.

-   Review the lender's security documents to be assured that if the
    guaranteed borrower is not in compliance with a covenant/condition
    of the Loan Agreement that the loan can be considered to be in
    default and serviced accordingly.

-   Obtain a copy of the signed Loan Agreement. Review the loan
    agreement to ensure that it was completed as per the FSA-1980-15 and
    2-FLP Guide 9.

  ---- --------------------- ---- ---------- ---------- -------- ---------- ----
  33   Promissory note       1               Par.247A   Lender              2

  ---- --------------------- ---- ---------- ---------- -------- ---------- ----

-   Obtain a copy of the signed promissory note(s). Review the
    promissory note to ensure that it was completed as per the
    FSA-1980-15 and 2-FLP Guide 9.

-   Do the loan instruments contain the Highly Erodible Land and Wetland
    Conservation clause? YES\_\_\_\_\_\_NO\_\_\_\_\_

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  34   Collect and submit    1               Par.247A   FSA              2
       guarantee fee                                                     

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   Guarantee Fee (Loan Amount X percent \[%\] of guarantee X
    .01\[1%\]). The fee is to be submitted through the System 36 under a
    Miscellaneous Code of 30.

-   May not be waived unless one of the following conditions exists :

1.  Greater than ½ of the total loan amount is to be used for
    refinancing Agency direct debt.

2.  The loan is an interest assistance loan.

3.  Loans to farmers with an active 30/60/10 beginning farmer
    downpayment direct farm ownership loan.

4.  Greater than ½ of the total loan amount is to be used for loan(s)
    made under the [Missouri First Linked Deposit Program]{.underline}
    and the loan applicant/borrower meets ALL of the State of Missouri
    (NOT FSA's) beginning farmer eligibility requirements under the
    MISSOURI FIRST Linked Deposit Program.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Interest Assistance | 2 | FSA-    | P       | Le |         | 2 |
| 5 | Agreement           |   | 1980-64 | ar.227A | nd |         |   |
|   |                     |   |         |         | er |         |   |
|   |                     |   | Rev     |         |    |         |   |
|   |                     |   | (08     |         |    |         |   |
|   |                     |   | /31/99) |         |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   FSA-1980‑64, Interest Assistance Agreement ‑ This form is obtained
    for each loan approved with Interest Assistance. Agency, lender, and
    borrower shall execute the FSA-1980-64.

-   The original FSA-1980-64 will be provided to the lender and is
    considered an allonge and attached to the promissory note with the
    original FSA-1980-27.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Assignment          | 2 | FSA-    | P       | Le |         | 5 |
| 6 | Guarantee Agreement |   | 1980-36 | ar.247B | nd |         |   |
|   |                     |   |         |         | er |         |   |
|   |                     |   | Rev     | P       |    |         |   |
|   |                     |   | (10     | ar.373- |    |         |   |
|   |                     |   | /31/01) | Par.374 |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Follow Par.373B, Secondary Market Flowchart for guidance when loan
    is being sold on the secondary market.

-   FSA-1980-36, Assignment of Agreement. Rev (10/31/01)

1.  This form is to be used if the lender sells the note to a holder.

2.  The lender can only sell the guaranteed portion of the note and must
    retain the unguaranteed amount.

3.  Obtain the holder\'s name and address.

4.  Most holders will require approval official to execute a
    \"Certificate of Incumbency and Signature\".

5.  OL/LOC loans may not be sold on the secondary market.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Planning and        | 1 |         | P       | Le |         | 6 |
| 7 | Performing          |   |         | ar.247A | nd |         |   |
|   | Development         |   |         |         | er |         |   |
|   |                     |   |         | Par.123 |    |         |   |
|   |                     |   |         | B       |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Lender shall ensure that all project facilities are designed using
    accepted architectural and engineering practices and conform to
    applicable Federal, State, and local codes and requirements.

-   Lender shall ensure the project will be 100% complete and will be
    used for its intended loan purpose in the quality and quantity
    proposed in the application.

-   Lender must protect against mechanics liens.

-   Lender must notify Agency of any scheduled inspections during
    construction.

## [REQUIREMENTS PRIOR TO ISSUING GUARANTEE]{.smallcaps}

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----
  38   Verify loan closing   1    RR         Par.247B   FSA              3
       requirements                                                      

  ---- --------------------- ---- ---------- ---------- ----- ---------- ----

-   Loan Official reviews closing information and verifies compliance
    with regulations.

-   Loan Official shall review and ensure that the lender [has met
    ALL]{.underline} of the terms and conditions specified in the
    FSA-1980-15 and attachment 2-FLP Guide 9 before issuing the
    FSA-1980-27, Loan Guarantee.

-   Check the suitability and accuracy of loan closing documents to
    determine that:

1.  The proper [revision date]{.underline} of the Agency forms were
    used.

2.  The loan instruments contain the Highly Erodible Land and Wetland
    Conservation clause required by Exhibit M of FmHA Instruction
    1940‑G.

3.  The rates, terms, and security are in accordance with the
    FSA-1980-15 and attachment 2-FLP Guide 9.

4.  The loan payments and due dates are correct on the promissory note.

+---+---------------------+---+---------+---------+----+---------+---+
| 3 | Loan Guarantee      | 2 | FSA-    | P       | F  |         | 2 |
| 9 |                     |   | 1980-27 | ar.247B | SA |         |   |
|   |                     |   |         |         |    |         |   |
|   |                     |   |         | P       |    |         |   |
|   |                     |   |         | ar.248B |    |         |   |
+---+---------------------+---+---------+---------+----+---------+---+

-   Prepare the form FSA-1980‑27, Loan Guarantee for each loan.

-   Once the FSA-1980-27 has been issued to the lender, process any
    guaranteed loan fee and input/process the FSA-1980-19 Loan Closing
    Transaction through GLS.

  ---- --------------------- ---- ---------- ----------------- ----- ---------- ----
  40   Update MAC            2               Par.262-Par.267   FSA              2

  ---- --------------------- ---- ---------- ----------------- ----- ---------- ----

-   Enter all of the lender's required reports and/or servicing actions
    as per the terms and conditions of the FSA-1980-15 and attachment
    2-FLP Guide 9

-   Enter into MAC.

1.  Maintain the name and address of lender, lender ID #, branch #, loan
    purpose, type of loan, FSA loan #, lender promissory note loan #,
    loan terms, and follow‑up for maturity date for all loans.

2.  Semiannual FSA-1980‑41, "Status Report," as of March 31^st^ and
    September 30th

3.  Yearly file review. FSA-1980-03, "Annual File Review Checklist For
    SEL and CLP Lenders."

4.  Annual MO 2-FLP Guide 21, "LENDER'S LOAN ANALYSIS DOCUMENTATION."

5.  **(For SEL lenders with an OL/LOC)** the lender must submit the
    following:

```{=html}
<!-- -->
```
a.  Verification that the OL/LOC has been paid down to \$0.00.

b.  Updated MO 2-FLP Guide 20, "SUMMARY OF PAST YEARS HISTORY."

c.  Current signed and dated balance sheet.

d.  Cash flow budget projecting a feasible plan signed by lender and
    borrower.

```{=html}
<!-- -->
```
a.  Written lender certification stating:

-   borrower is in compliance with the provisions of the Loan Agreement

-   previous year income and expenses (farm and non-farm) have been
    accounted for

e.  FSA written concurrence is required. The FLM will respond in writing
    within 14 calendar days.

```{=html}
<!-- -->
```
6.  **(For CLP lenders with an OL/LOC)** the lender must submit the
    following:

```{=html}
<!-- -->
```
a.  Current signed and dated balance sheet

b.  Written lender certification stating:

-   cash flow budget projecting a feasible plan signed by lender and
    borrower

-   borrower is in compliance with the provisions of the Loan Agreement

-   previous year income and expenses (farm and non-farm) have been
    accounted for

c.  FSA written concurrence not required.

d.  Although not required, request lender to provide a copy of the
    signed cash flow.

```{=html}
<!-- -->
```
7.  **(For Interest Assistance Loans)** Within 60 days, the lender will
    provide the following:

-   FSA-1980-24, \"Request for Interest Assistance Payment\".

-   Promissory note history records.

-   To renew interest assistance for an additional subsidy period
    provide the following:

a.  Updated MO 2-FLP Guide 20 - SUMMARY OF PAST YEARS HISTORY

b.  Lender analysis documentation.

c.  Current signed and dated balance sheet.

d.  Cash flow budget signed by lender and borrower. Monthly for OL/LOC
    loans.