Code of Federal Regulations (Last Updated: April 5, 2024) |
Title 7 - Agriculture |
Subtitle B - Regulations of the Department of Agriculture |
Chapter XVIII - Rural Housing Service, Rural Business-Cooperative Service, Rural Utilities Service, and Farm Service Agency, Department of Agriculture |
SubChapter H - Program Regulations |
Part 1943 - [Reserved] |
Subpart A - Direct Farm Ownership Loan Policies, Procedures, and Authorizations |
§ 1943.43 - Subsequent FO loans.
Latest version.
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A subsequent FO loan is a loan made to a borrower who is currently in debt for an FO loan.
(a) A subsequent loan may be made for the same purpose and under the same conditions as an initial loan.
(b) The subsequent loan will be processed in the same manner as an initial loan.
(c) A new real estate mortgage will not be necessary provided:
(1) All the land which will serve as security for the loan is described on the present real estate mortgage and
(2) The real estate mortgage has a future advance clause and a State supplement provides authority for using such a clause and
(3) The required lien priority is obtained with the existing mortgage and future advance clause.