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Code of Federal Regulations Title 7. Agriculture § 7.1962.29 Payment of fees and insurance premiums

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(a) Fees.

(1) Security instruments. Borrowers must pay statutory fees for filing or recording financing statements or other security instruments (including Form RD 462–12, or other renewal statements) and any notary fees for executing these instruments. They also must pay costs of obtaining lien search reports needed in properly servicing security as outlined in this subpart. Whenever possible, borrowers should pay these fees directly to the officials giving the service. When cash is accepted by Rural Development employees to pay these fees, Form RD 440–12, “Acknowledgment of Payment for Recording, Lien Search and Releasing Fees,” will be executed. If the borrower cannot pay the fees, or if there are fees referred to in paragraphs (a)(2) and (3) of this section that must be paid by Rural Development, the field office may pay them in accordance to RD Instruction 2024–A, Exhibit D, Program Loan Cost Expenses.

(2) Satisfactions. The borrower must pay fees for filing or recording satisfactions or termination statements unless a State supplement based on State law requires Rural Development to pay them.

(3) Notary fees. Rural Development will pay fees for notary service for executing releases, subordinations, and related documents for and on behalf of Rural Development if the service cannot be obtained without cost.

(b) Insurance premiums. County Supervisors are authorized to voucher for the payment of bills for insurance premiums on chattel security, in accordance with RD Instruction 2024–A (available in any Rural Development Office). Bills may be paid when:

(1) A borrower cannot pay the premiums from the borrower's own resources at the time due;

(2) Anticipated crop income does not materialize which would normally be released for the payment of crop insurance.

(3) It is not practical to process a loan for that purpose;

(4) It is necessary to protect Rural Development’s interests;  and

(5) The amount advanced can be charged to the borrower under the provisions of the security instrument.

Cite this article: - Code of Federal Regulations Title 7. Agriculture § 7.1962.29 Payment of fees and insurance premiums - last updated October 03, 2022 |

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