Code of Federal Regulations (Last Updated: May 6, 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 1951 - Servicing and Collections |
Subpart K - Predetermined Amortization Schedule System (PASS) Account Servicing |
§ 1951.507 - Maintaining borrower accounts.
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(a)
Accounts of active borrowers. The foundation for proper and timely debt payment is sound budgeting and monthly review of income and expenses by the borrower and, as necessary, the District Office staff. Account maintenance, therefore, must begin with initial planning and must be an integral part of ongoing analysis, planning and follow-up management assistance.(b)
Accounts of collection-only borrowers. Collection only accounts will be serviced according to § 1951.7(b) of subpart A of this part.(c)
Notifying borrowers of late fees and past due payments. The Finance Office will automatically notify each borrower of late fees for payments which were unpaid on the 10th day of the month. A copy of the notice will be mailed to the District Office servicing the account.(d)
Subsequent servicing. Delinquent accounts will be serviced according to the respective program requirements. Accounts will also be serviced under subpart B of part 1965 of this chapter.(e)
District Office monitoring. District Offices should review each account at least monthly by accessing the Automated Multi-Housing Accounting System (AMAS) through field office terminals. For projects on PASS, the Management System card will be flagged with an orange signal between Position “5” and “RRH.” Exhibit A-1 of this subpart (available in any FmHA or its successor agency under Public Law 103-354 office) should be used to track payments.