Source: http://azrefs.org/rd-instruction-1956-b-table-of-contents.html
Timestamp: 2018-10-19 20:50:13
Document Index: 356341346

Matched Legal Cases: ['arts 101', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1962', 'art 1962', '§ 1956', '§1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', 'art 12', '§ 1956', 'art 1951', '§ 1956', '§ 1956', '§ 1956']

Rd instruction 1956-b table of Contents
Yüklə 92.22 Kb.
ölçüsü 92.22 Kb.
RD Instruction 1956-B
Subpart B - Debt Settlement - Farm Loan Programs and Multi-Family Housing
1956.51 Purpose. 1
1956.52 - 1956.53 [Reserved] 1
1956.54 Definitions. 1
1956.55 - 1956.56 [Reserved] 2
1956.57 General provisions. 2
(a) Application of policies. 2
(b) Information needed for debt settlement. 3
(c) Negotiating a settlement. 4
(d) Disposition of property. 4
(e) Proceeds from the disposal of security prior to
approval of a debt settlement offer. 4
(f) [Reserved] 4
(g) Settlement when legal or investigative action has
been taken, recommended, or is contemplated. 4
(h) Advice from OGC. 6
(i) Settlement of claims against estates. 6
(j) Joint debtors. 6
(k) Settlement where debtor owes more than one
type of Agency loan. 7
(l) No previous debt forgiveness. 7
1956.58 - 1956.65 [Reserved] 7
1956.66 Compromise and adjustment of nonjudgment debts. 7
(a) FLP debts. 7
(b) Housing debts (both Single-Family and Multi-Family) 9
(c) Unsecured debts. 9
1956.67 Debts which the debtor is able to pay in full
but refuses to do so. 9
1956.68 Compromise or adjustment without debtor's
1956.69 [Reserved] 11
(05-14-15) PN 476
1956.70 Cancellation. 11
(a) With application. 11
(b) Without application. 11
(c) Signature of debtor cannot be obtained. 13
1956.71 Settling uncollectible recapture receivables. 14
1956.72 - 1956.74 [Reserved] 14
1956.75 Chargeoff. 14
(a) Judgment debts. 14
(b) Nonjudgment debts. 14
1956.76 - 1956.83 [Reserved] 15
1956.84 Approval or rejection. 15
1956.85 Payments and receipts. 15
(a) Servicing office handling. 15
(b) Finance Office handling. 16
1956.86 Reporting to the Internal Revenue Service (IRS). 17
1956.87 - 1956.95 [Reserved] 17
1956.96 Delinquent adjustment agreements. 17
1956.97 Disposition of promissory notes. 17
1956.98 [Reserved] 18
1956.99 Exception authority. 18
1956.100 OMB control number. 29
Exhibit A - Settlement of Farm Loan Programs Debts
This subpart delegates authority and prescribes policies and procedures for settlement of debts owed to the United States under the Farm credit loan programs of the Farm Service Agency (FSA) and the Multi-Family Housing (MFH) program of the Rural Housing Service (RHS). It also applies to Nonprogram (NP) loans secured by MFH property of the RHS. Settlement of claims against recipients of grant funds for reasons such as the use of funds for improper purposes is also covered under this subpart. Settlement of claims against third party converters, and Economic Opportunity (EO) loans is authorized under the Federal Claims Collection Standards, 4 CFR Parts 101-105. This subpart does not apply to RHS direct Single Family Housing (SFH) loans or RHS NP loans secured by SFH property, or to the Rural Rental Housing, Rural Cooperative Housing, and Farm Labor Housing Programs.
§§ 1956.52 - 1956.53 [Reserved]
DISTRIBUTION: WSAL Account Servicing
§ 1956.54 (Con.)
Debt forgiveness. For the purposes of servicing Farm Loan Programs loans, debt forgiveness is defined as a reduction or termination of a direct FLP loan in a manner that results in a loss to the Government. Included, but not limited to, are losses from a writedown or writeoff under RD Instruction 1951-S, debt settlement, after discharge under the provisions of the bankruptcy code, and associated with release of liability. Debt cancellation through conservation easements or contracts is not considered debt forgiveness for loan servicing purposes.
Debtor. The borrower of funds under any of the Agency programs. This includes co-signors, guarantors and persons or entities that initially obtained or assumed a loan. Debtor also includes grant recipients.
Housing programs. All programs and claims arising under programs administered by RHS under Title V of the Housing Act of 1949.
Servicing office. The office that is responsible for the account.
Settlement. The compromise, adjustment, cancellation, or chargeoff of a debt owed to the respective Agency. The term "settlement" is used for convenience in referring to compromise, adjustment, cancellation, or chargeoff actions, individually or collectively.
§§ 1956.55 - 1956.56 [Reserved]
(a) Application of policies. All debtors are entitled to impartial treatment and uniform consideration under this subpart. Accordingly, Agency personnel charged with any responsibility in connection with debt settlement will adhere strictly to the authorizations, requirements, and limitations in this subpart, and will not substitute individual feelings or sympathies in connection with any settlement.
§ 1956.57 (Con.)
(b) Information needed for debt settlement. A debtor requesting debt settlement must submit complete and accurate information from which a full determination of his or her financial condition can be made. This should include where applicable, but is not limited to, obtaining Form RD 1910-5, "Request for Verification of Employment," debtors providing expense verification, verifying farm program benefits (Farm Service Agency or Commodity Credit Corporation payments), and examining county records to determine what other assets the debtor has or recently disposed of. When an FSA debtor is continuing to farm, Form FSA 431-2, "Farm and Home Plan," must be obtained. Credit reports will be obtained on all FLP debt settlements, except cases legally without merit. For housing debt settlements, credit reports will only be obtained if the debtor has not provided complete financial information. Credit reports should be obtained on entities and the individuals of the entity. The credit report will be obtained without a charge to the borrowers. Also, where a spouse is not a codebtor, the spouse's income will be considered in meeting family living expenses. If it appears that a debtor will not be able to pay in full and the indebtedness is eligible for settlement under this subpart, action should be taken, if possible, to avoid unnecessary litigation to enforce collection. If the debt is eligible for settlement, the debt settlement authorities should be explained and the privileges thereof extended to the debtor. The information obtained from the debtor should be documented on Form RD 1956-1, "Application for Settlement of Indebtedness." (Revised 05-14-15, PN 476.)
(c) Negotiating a settlement. County Supervisors may approve or reject compromises, adjustments, cancellations, or chargeoffs of SFH debts (to include recapture receivables), regardless of the amount. District Directors and County Supervisors cannot approve other debt settlement actions; therefore, other than SFH debt settlements, they will make no statements to a debtor concerning the action that may be taken upon a debtor's application. In negotiating a settlement, all of the factors which are pertinent to determining ability to pay will be discussed to assist the debtor in arriving at the proper type and terms of a settlement. The present and future repayment ability of a debtor, the factors mentioned in this subpart, and any other pertinent information will be the basis of determining whether the debt should be collected in full, compromised, adjusted, canceled, or charged off. It is impossible in cases eligible for debt settlement to forecast accurately the debtor's future repayment ability over a long period of time; consequently, the period of time during which payments on settlement offers are to be made should not exceed 5 years. Debtors have the right to make voluntary settlement offers in any amount should they elect to do so. Adjustment offers will not be approved in any case unless there is reasonable assurance that the debtor will be able to make the payments as they become due.
(d) Disposition of property. Security may be retained by the debtor only under the conditions specified in § 1956.66 of this subpart.
(e) Proceeds from the disposal of security prior to approval of a debt settlement offer. A debtor is not required to have disposed of the security prior to application for debt settlement for a loan to be settled. However, if a debtor has disposed of security prior to applying for debt settlement, proceeds from the disposed security must first be applied on the debtor's account, irrespective of an application for debt settlement unless the conditions specified in § 1956.66 of this subpart are met.
(f) [RESERVED] (Revised 05-14-15, PN 476.)
(g) Settlement when legal or investigative action has been taken, recommended, or is contemplated.
§ 1956.57(g) (Con.)
(1) Debts cannot be settled:
(i) If the matter has been referred either to the Office of the Inspector General (OIG) under § 1962.49(a) of Subpart A of part 1962, or to the Office of the General Counsel (OGC) because of suspected criminal violation, or criminal prosecution is pending because of an illegal act committed by the debtor in connection with the debt or the security for that debt, the procedure outlined in paragraph (g)(3) of this section will be followed, unless, the OIG has declined to investigate the matter or OGC has advised otherwise, or the case is in the hands of the United States Attorney.
(ii) If a request for referral to the United States Attorney to institute a civil action to protect the interest of the Government has been made by the Agency.
(3) When a claim has been referred to, or a judgment has been obtained by the United States Attorney, and the debtor requests settlement, the employee in charge of the account will explain to the debtor that the United States Attorney has exclusive jurisdiction over the claim or judgment, that the Agency has no authority to agree to a settlement offer when the United States Attorney's file is not closed, and that if the debtor wishes to make a compromise or adjustment offer when the United States Attorney's file is not closed, it will be submitted with any related payment directly to the United States Attorney for a decision on the settlement offer.
(j) Joint debtors. Settlements may not be approved for one joint debtor unless approved for all debtors. "Joint debtors" includes all parties (individuals, partnerships, joint operators, cooperatives, corporations, estates) who are legally liable for payment of the debt.
(2) A separate Form RD 1956-1 will be completed by each debtor, unless the debtors are members of the same family and all necessary financial information on each debtor can be shown clearly on a single application. Separate applications will be sent to the State Office as a unit.
(3) If one debtor applies for compromise, adjustment, or cancellation, or if the debt is to be charged off, and the other debtor(s) is deceased or has received a discharge of the debt in bankruptcy, or the whereabouts of the other debtor(s) is unknown, or it is impossible or impracticable to obtain the signature of the other debtor(s), Form RD 1956-1 or Form RD 1956-2 (for housing loans) "Cancellation or Charge-off of FmHA Indebtedness," will be prepared by showing at the top of the form the name of the debtor requesting settlement, followed by the name of the other debtor.
§ 1956.57(j)(3) (Con.)
For example, "John Doe, joint debtor with Bill Doe, deceased," "John Doe, joint debtor with Sam Doe, discharged in bankruptcy," "John Doe, joint debtor with Mary Doe, impossible or impracticable to obtain signature," as appropriate. In addition to the information concerning settlement of the debt by the applicant, information which justifies settlement of the debt as to the debtor(s) not joining in the application will be shown on Form RD 1956-1, or
RD 1956-2 for housing loans.
(k) Settlement where debtor owes more than one type of Agency loan. It is not the policy to settle any loan indebtedness of a debtor who is also indebted on another Agency loan and who will continue as an active borrower. In such cases, the facts will be fully documented in Part VIII of Form RD 1956-1.
(l) No previous debt forgiveness. Debt settlement may not be approved for any direct Farm Loan Programs loan if the borrower has received debt forgiveness on any other direct loan as defined in §1956.54 of this Instruction.
§§ 1956.58 - 1956.65 [Reserved]
Nonjudgment debts which the debtor is unable to pay may be compromised or adjusted in accordance with applicable provisions of this section, and the debtor may retain the security property, if any. Application will be made on Form RD 1956-1 by the debtor; or if the debtor is unable to act, by another party having legal authority to act for the debtor. Collection of a lump sum offer may be deferred until the debtor is advised that the offer is approved. Upon full payment of the approved compromise or adjustment amount, the Agency will release the debtor from liability by delivering the note(s) to the debtor stamped "Satisfied by compromise or adjustment."
§ 1956.66(a) (Con.)
(i) Statement of indebtedness owed on any prior liens.
Statements will be retained in the debtor's file.
§ 1956.66(a)(3) (Con.)
(b) Housing debts (both Single-Family and Multi-Family).
Nonjudgment secured debts may be compromised or adjusted as follows:
(2) A compromise offer must at least equal the value of the security as determined by FmHA (less any prior liens) plus any additional amount FmHA determines the debtor is able to pay based on a current financial statement.
(3) An adjustment offer must meet the requirements of paragraph (b)(2) of this section, except the debt (or the amount offered) is to be scheduled for payment over the shortest period FmHA determines is feasible based on the debtor's financial resources, but not to exceed 5 years.
(c) Unsecured debts. Unsecured debts considered under this paragraph are most frequently account balances remaining after the debtor has sold security property to another party/entity, the security has been liquidated through foreclosure, or FmHA has accepted a deed in lieu of foreclosure, and the borrower was not released from liability. An offer to compromise or adjust an unsecured debt must represent the maximum amount FmHA determines the debtor can pay based on a current financial statement and other information available to FmHA. An adjustment offer is to be scheduled for payment over the shortest period FmHA determines is feasible, but not to exceed 5 years.
Debts which the debtor may have the ability to pay in full but has refused to do so may be compromised or adjusted in the following situations on Form RD 1956-1:
§ 1956.67 (Con.)
Debts of a living debtor may be compromised or adjusted if it is impossible or impracticable to obtain a signed application and all other requirements of this section applicable to compromise or adjustment with a signed application have been met. Form RD 1956-1 will show:
(a) With application. The debt or any extension thereof on Farmer Programs debts do not have to be due and payable under the terms of the note or other instrument, or because of acceleration by written notice prior to the date of application. Debts due the FmHA may be canceled upon application of the debtor, or if a debtor is unable to act, upon application of a guardian, executor, or administrator, subject to the following conditions:
(1) The FmHA employee in charge of the account furnishes a report and favorable recommendation concerning the cancellation.
(b) Without application. Debts due the FmHA may be canceled upon a report and the favorable recommendation of the employee in charge of the account in the following instances:
§ 1956.70(b)(1) (Con.)
(2) Disappeared debtors. The debt may be canceled without application where the debtor has no known assets or future debt-paying ability, has disappeared and cannot be found without undue expense, and there is no existing security for the debt. Reasonable efforts will be made to locate the debtor. These efforts will generally include contacts, either in person or in writing, with postmasters, motor vehicle licensing and title authorities, telephone directories, city directories, utility companies, State and local governmental agencies, other Federal agencies, employees, friends, and credit agency skip locate reports, known relatives, neighbors and County Committee members. Also, the debtor's loan file should be reviewed carefully for possible leads that may be of assistance in locating the debtor. The efforts made to locate the debtor, including the names and dates of contacts, and the information furnished by each person, will be fully documented in the appropriate space on Form RD 1956-1 or Form RD 1956-2 for housing loans.
§ 1956.70(b) (Con.)
(i) Chapter 7 Bankruptcy cases will be documented with a copy of the "Discharge of Debtor" order(s) by the court for all obligors.
(c) Signature of debtor cannot be obtained. Debts of a living debtor may be canceled if it is impossible or impracticable to obtain a signed application and the requirements in paragraph (a) of this section concerning cancellation with application have been met or if the debt has been discharged in bankruptcy and there is no security. Form RD 1956-1 will state:
§ 1956.70(c) (Con.)
The settlement of uncollectible recapture receivables will be fully documented on Form RD 1956-1 and the form retained in the case file. A memorandum will be sent to the Finance Office: Accounts Settlement Unit (it is not necessary to send a copy of Form RD 1956-1) to remove the receivable stating the type of debt settlement action taken.
§§ 1956.72 - 1956.74 [Reserved]
(a) Judgment debts. Subject to the provisions of § 1956.57(g)(3), judgment debts may be charged off by use of Form RD 1956-1 or Form
RD 1956-2 for housing upon a report and favorable recommendation of the employee in charge of the account provided:
(2) The requirements of § 1956.70(b)(2) have been met, or two years have elapsed since any collections were made on the judgment and the debtor(s) has no equity in property on which the judgment is a lien or on which it can presently be made a lien.
(b) Nonjudgment debts. Debts which cannot be settled under other sections of this subpart may be charged off using Form RD 1956-1 or Form RD 1956-2 for housing loans without the debtor's signature subject to the following provisions:
(2) When the OGC advises in writing that the claim is legally without merit,
§ 1956.75(b) (Con.)
(3) Even though the Agency considers the claim to be valid, when efforts to induce voluntary payments are unsuccessful and OGC advises in writing that evidence necessary to prove the claim in court cannot be produced, or
(4) When the employee in charge of the account recommends the chargeoff and has made the following determinations on the basis of information in the Agency’s official files or from other informed reliable sources:
(A) Unable to pay any part of the debt and has no apparent future debt repayment ability as specified in
§ 1956.66(a); or
(c) For debts identified as being part of an unsecured claim under a confirmed Chapter 11 plan, the chargeoff will be documented with a copy of the organization plan, a copy of the court order confirming the plan, and an opinion by OGC that the order confirming the plan discharged the debtor of liability on the unsecured part of the debt. For FLP debts, refer to RD Instruction § 1956.70(b)(3) of this subpart which state that the unsecured claim shall be canceled. Ordinarily, the FLP unsecured claim will be canceled unless Regional OGC advises that a chargeoff is appropriate.
§§ 1956.76 - 1956.83 [Reserved]
§ 1956.84 Approval or rejection. (Revised 05-14-15, PN 476.)
See Exhibit A and 7 FLP, Part 12.
(a) Servicing office handling.
§ 1956.85(a) (Con.)
(1) An application with which the debtor offers a lump-sum payment in compromise, or with which the debtor offers an initial payment on an adjustment offer, will be accompanied by the payments required at the time such application is filed in the servicing office.
(2) Except as provided in paragraph (a)(3) of this section, payments offered by debtors in settlement of debts will be deposited and transmitted as required in Subpart B, C, and K of Part 1951 of this chapter.
(3) Checks or check transmittal letter containing restrictive notations such as "Settlement in full" or "Payment in full," or in those exceptional instances when the debtor refuses to sign the Form RD 1956-1 in connection with a compromise offer, will be forwarded to the State Office where they will be retained until approval or rejection of the offer. The use of restrictive notations will be discouraged to the fullest extent possible.
(b) Finance Office handling.
(1) All payments evidenced by Form RD 451-2, "Schedule of Remittances," bearing the legend "Compromise Offer" or "Adjustment Offer," will be held in the Deposits Fund Account by the Finance Office until notification is received from the State Office of the approval or rejection of the offer. In cases of approved offers, remittances will be applied in accordance with established policies, beginning with the oldest loan included in the settlement, except that when the request for settlement includes loans made from different revolving funds the Finance Office will prorate the amount received, on the basis of the total principal balance due the respective revolving funds. Upon notification of a rejection of a debtor's offer and receipt of a request from the State Director for a refund, the Finance Office will refund to the debtor, in care of the employee in charge of the account, the amount held in the Deposits Fund Account representing a rejected compromise or adjustment offer.
(2) When a debtor's adjustment offer is approved, the accounts involved will not be adjusted in the records of the Finance Office until all payments have been made. Form RD 1956-1 will be held in a suspense file pending payment of the full amount of the approved offer. The original Form RD 1956-1 in approved cases will be retained in the Finance Office.
§ 1956.86 Reporting to the Internal Revenue Service (IRS).
Pursuant to a requirement of the Internal Revenue Service (IRS), RHCDS, RBCDS, RUS, and CFSA will report to the IRS debts which have been determined to be uncollectible. After reporting the debt to IRS, no further efforts to collect the debt will be made. The Finance Office will report to the IRS on IRS Form 1099-C, "Cancellation of Debt," any debt settled through cancellation, compromise, or adjustment.
§§ 1956.87 - 1956.95 [Reserved]
A 90-day extension for making the payments may be given by the Agency when the circumstances of the case justify an extension. A decision not to extend the time for making payments is not appealable. If the debtor is delinquent under the terms of the adjustment agreement and is likely to be financially unable to meet the terms of the agreement, the Agency may cancel the existing agreement and process a different type of settlement more consistent with the debtor’s repayment ability, provided the facts in the case justify such action. The cancellation of an adjustment agreement is appealable. If an agreement is cancelled, any payments received shall be retained as payments on the debt owed at the time of the adjustment agreement.
(a) Notes evidencing debts settled by completed adjustments, completed compromise with or without signature, or canceled with signature will be returned to the debtor or to the debtor's legal representative. The original and copies of the notes will be stamped "Satisfied by Approved Compromise," "Satisfied by Approved Cancellation," or "Satisfied by Completed Adjustment Offer." In such cases, the security instrument(s) will be released of record according to State law.
§ 1956.97 (Con.)
(b) Notes evidencing debts canceled without application will be
placed in the debtor's case folder and disposed of pursuant to RD Instruction 2033-A. However, if the debtor requests the notes, they may be stamped "Satisfied By Approved Cancellation" and returned.
(c) Notes evidencing charged off debts will be retained in the servicing office and will not be stamped or returned to the debtor. They will be destroyed 6 years after charged off pursuant to RD Instruction 2033-A.
The Administrator may, in individual cases, make an exception to any requirement or provision of this subpart which is not inconsistent with the authorizing statute or other applicable law if the Administrator determines that application of the requirement or provision would adversely affect the Government's interest. The Administrator will exercise this authority only at the request of the State Director and on the recommendation of the appropriate program Assistant Administrator. Requests for exceptions must be made in writing by the State Director and supported with documentation to explain the adverse affect on the Government's interest, propose alternative courses of action, and show how the adverse affect will be eliminated or minimized if the exception is granted. Any settlement actions approved by the Administrator under this section will be documented on Form RD 1956-1 and returned to the State Office for submission to the Finance Office. FSA Administrator Exception request will be submitted in accordance with 5-FLP, subparagraph 4B. (Revised 05-14-15, PN 476.)
The collection of information requirements in this regulation have been approved by the Office of Management and Budget and assigned OMB control number 0575-0118.
Public reporting burden for this collection of information is estimated to vary from 15 to 20 minutes per response, with an average
of 20 minutes per response including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer, OIRM, Room 404-W, Washington, D.C. 20250; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, D.C. 20503.
Attachment: Exhibit A (available in any Rural Development/FSA office)
Settlement of Farm Loan Programs Debts
This exhibit contains the procedures for reviewing accounts (including youth loans) prior to approval of a debt settlement or release of liability which will result in a loss to the Government.
A complete application submitted by a borrower for compromise, adjustment, cancellation or release of liability shall consist of
RD 1956-1, "Application for Settlement of Indebtedness," and the supporting documentation required to complete questions 11B through 11H of FSA 1956-10, "Debt Settlement or Release of Liability Checklist."
II. Service Center Responsibilities.
Service Center officials shall submit the following to the District Director (DD) within 30 days of receipt of a complete application:
A. Transmittal memorandum with the local servicing official’s recommendation.
B. RD 1956-1.
C. FSA 1956-10 and supporting documentation for cases involving compromise, adjustment, cancellation, or release of liability.
D. Servicing office files.
E. For release of liability cases – Form RD 1965-8, "Release From Personal Liability," with County Committee recommendation on FSA 440-2, "County Committee Certification or Recommendation." (Revised 05-14-15, PN 476.)
(06-02-10) SPECIAL PN
III. District Director Responsibilities.
The DD will review the case file and sign FSA 1956-10 then forward the documentation required under Part II to the State Office. The only exception to this requirement is when the actual debt settlement or release of liability was negotiated and approved by the Department of Justice (DOJ).
The DD must forward complete applications for compromise, adjustment, cancellation, or release of liability to the State Office within 60 days of receipt.
IV. State Office Responsibilities.
A. All debt settlement and release of liability cases will be reviewed thoroughly by a State Office Farm Loan Programs official using
FSA 1956-10 which was forwarded by the DD.
B. The State Settlement Review Committee (SSRC) will review all debt settlement and release of liability cases before approval by the State Executive Director (SED) or recommendation to the appropriate approval official (such as the Administrator or DOJ).
The SSRC will consist of at least two members including the Farm Loan Chief and a member of the State Farm Loan Programs staff. The recommendation of the SSRC will be noted on FSA 1956-10
Complete applications for compromise, adjustment, cancellation, or release of liability must be acted upon by the State Office within 90 days of receipt.
V. Debt Settlement and Release of Liability Requiring Administrator’s Approval.
When debt settlement or release of liability is recommended for accounts requiring the Administrator’s approval, the SED will forward the following documents to the Administrator:
A. A memorandum from the SED recommending approval.
C. When applicable, a legal opinion from the Regional Attorney addressing the statute of limitations.
D. FSA 1956-10 signed by the SSRC.
E. Case file which includes documentation supporting FSA 1956-10.
F. For release of liability cases - Form RD 1965-8.
G. Additional information as may be required by the Administrator.
If the SED is unable to recommend debt settlement or release of liability, the SED should reject the application and provide the borrower with informal review and appeal rights.