If an institution determines that a loan has become distressed, the institution must notify the borrower of the right to submit an application to restructure the loan. If a restructuring application is denied, the institution must provide, in writing, both the reason for denial and an opportunity for a review. The right of first refusal becomes applicable when an institution elects to sell all or a portion of an acquired agricultural property. This right generally applies to real estate acquired by the System institutions, either through foreclosure or by voluntary conveyance of the property by the borrower in lieu of foreclosure. Under this borrower right, the institution must notify the previous owner of its decision to sell the property and the property's appraised market value.
Similar rights apply to the leasing of acquired property.
FCS Institutions Please refer to our Privacy Policy for important information that should be read before proceeding further.