Definitions
Collateral or security property
What is security?
The order in which a loan should be processed
What is complete application in order it was received?
(1) Postsecondary education in agriculture business, horticulture, animal science, agronomy, or other agriculture related fields,
(2) Significant business management experience, or
(3) Leadership or management experience while serving in any branch of the military.
What is farming experience substitutes?
T/F
Youth Loans do not count when determining term limits for OL Loans.
What is true?
At minimum, all FO loans should be secured by...
What is real estate being purchased or improved?
Enterprises which process or market farm commodities, where the majority of the commodities are not produced by the farming operation
What is a non eligible enterprise?
The time period that the incomplete letter needs to be sent within.
What is 7 days?
The applicant's ability to obtain credit at reasonable rates and terms that is sufficient to finance the actual needs from a source other than the agency
What is credit Elsewhere?
T/F
FSA may accept a pledge of a security from a 3rd party.
What is true?
40 years
What is the maximum term limit for FO?
Loan that has a reduced loan application, with modified eligibility, and security requirements
What is a microloan?
The value of loan security, less any prior liens, is at least equal to the loan amount.
When is a loan adequately secured?
- Education
- On the job training
-Farming experience
- Certification of a past participation with an ag related org.
- A self directed apprenticeship
What is Managerial Ability?
Filing of a financing statement, execution of a security agreement, and a promissory note
How to perfect a chattel security lien?
Refinancing debt with a bank or a private lender
What is not an authorized loan purpose for an FO?
FO applicants who do not already own real farm property or who own farm property which does not exceed 30% of the average farm acreage in the county where the property is located
What is a Beginning Farmer?
-Is the basis for determining an appropriate plan of supervision and counseling
- Is developed to provide an analysis of the operation as a whole by its individual characteristics
What is a farm assessment?
- deliberately falsifies information
- intentionally omits information relevant to the loan decision
- does not make every reasonable effort to meet the conditions and terms of any previous FSA loan
- failed to make reasonable effort to resolve delinquencies with other lenders
- failed to file Federal tax returns
What is an applicant not acting in good faith?
Typically repaid in 12 months, but under some circumstances can be repaid in 18 months.
What is an Annual Operating Loan?
Limit the loan request to FSA to no more than 45% of the lesser of the purchase price, the appraised value of the farm, or $667,000
What is a downpayment loan?
in the case of an entity, Is primarily engaged in farming and has over 50% of its projected gross income from all sources from its farming operation.
What is an established farmer?
- Information that does not change, such as college transcripts, will be considered current, and used for future applications.
- Applicant must file a new application
- May not be reactivated
What is a withdrawn application?
the Agency may examine whether the applicant has properly fulfilled its obligations to other parties, including other agencies of the Federal Government.
What is credit history?
What is 10 years?
Term Debt Capital Lease Coverage Ratio (TDCLCR) must be less than 1.10
What affects term limits?