Regulacje i polityka gospodarcza · 10.11.1999

Farm Loan Programs Account Servicing PoliciesServicing Shared Appreciation Agreements

The Farm Service Agency (FSA) is proposing to amend the Shared Appreciation Agreement and the servicing of Shared Appreciation Agreements. The Shared Appreciation Agreement ensures that FSA shares in any appreciation of real estate security when a farm borrower has received a writedown of a portion of his or her FSA debt. The amount due can be paid in full or amortized when the Shared Appreciation Agreement matures or is triggered during the term of the agreement. The changes will allow the value of some capital improvements made during the term of the Shared Appreciation Agreement to be deducted from recapture, change the maturity period of future Shared Appreciation Agreements from 10 years to 5 years, and reduce the interest rate on Shared Appreciation loans to the Farm Program Homestead Protection rate. These changes will give borrowers an opportunity to repay a portion of the FSA debt that was written off, while still ensuring that the Government promptly recaptures some appreciation of the collateral. This rule will also improve Agency security during the term covered by the Shared Appreciation Agreement.