AGR

Agricultural Land

The Agricultural Credit Act of 1987 and related federal law allow some distressed farmers to reacquire or lease agricultural property transferred by foreclosure or deed in lieu of foreclosure to Farm Credit System Institutions, the Secretary of Agriculture, Administrator of Small Business Administration, and Farmers Home Administration. State law may create additional rights.

Requirement

AGRR01 STG

Farm Credit System Institution Foreclosure of D

Rights of first refusal and options by the previous owner to purchase and/or lease the land pursuant to 12 U.S.C. § 2219a.
The Company requires a satisfactory affidavit executed by an authorized officer or employee of the institution that the rights of 12 U.S.C. § 2219a are not applicable (such as with rural housing loans). If 12 U.S.C. § 2219a is applicable, the Company must be furnished an affidavit that (1) the notices required by 12 U.S.C. § 2219a were given, (2) the previous owner did not exercise the right to acquire or lease the land and the rights expired, and (3) no third party (including the previous owner) is in possession of the land. The affidavit must recite the dates of mailing of notice and the response of the previous owner. The affidavit must attach copies of the notices. The Company may then make additional requirements or exceptions.
Comment: If a Farm Credit System Institution (e.g., Farm Credit Banks, Production Credit Associations, or some other agricultural lenders) acquires agricultural real estate (not housing financing), the borrower has the right to repurchase or lease after foreclosure or deed in lieu. The Company must be satisfied that these rights expired.

See Underwriting Manual

AGRR02 STG

Farmland Foreclosure by or Deed in Lieu to Secr

Rights and options to purchase and/or lease the land pursuant to 7 U.S.C. § 1985.
The Company requires a satisfactory affidavit executed by an authorized officer or employee of the Department of Agriculture or related agency or institution that the option to purchase or lease pursuant to 7 U.S.C. § 1985 has expired or that the provisions of that section do not apply. The affidavit also must recite that no third party (including the borrower-owner) is in possession of the land. The Company may then make additional requirements or exceptions.
Comment: If farmland is acquired by the Secretary of Agriculture or Farmers Home Administration, the borrower has the right to reacquire or lease the land.

See Underwriting Manual

AGRR03 STG

Farmland Homestead Property Acquired by Secreta

Rights and options to purchase and/or lease the land pursuant to 7 U.S.C. § 2000.
The Company requires a satisfactory affidavit executed by an authorized officer or employee stating either that the provisions of 7 U.S.C. § 2000 do not apply to the land (such as where Farmers Home Administration made a rural home loan under different laws) or that the rights of the borrower have expired. The affidavit must recite the notices given. The affidavit must attach copies of the notices. The affidavit also must recite that no third party (including the borrower) is in possession of the land. The Company may then make additional requirements or exceptions.
Comment: If the Secretary of Agriculture, Farmers Home Administration, or Administrator of Small Business Administration acquires farmland homestead property (up to 10 acres plus home) by foreclosure or deed in lieu, the borrower may reacquire the land.

See Underwriting Manual

Exception

AGRX01 STG

Farm Credit System Institution Foreclosure or D

Rights of first refusal and options by the previous owner to purchase and/or lease the land pursuant to 12 U.S.C. § 2219a.
Comment: If a Farm Credit System Institution (e.g., Farm Credit Banks, Production Credit Associations, or some other agricultural lenders) acquire agricultural real estate (not housing financing) by foreclosure or deed in lieu, the borrower has the right to repurchase or lease after foreclosure or deed in lieu.

See Underwriting Manual

AGRX02 STG

Farmland and Farmland Homestead Acquired by Sec

Rights and options to purchase and/or lease the land pursuant to 7 U.S.C. § 1985 or § 2000.
Comment: If farmland or farmland homestead is acquired by the Secretary of Agriculture, Small Business Administration, or Farmers Home Administration, the borrower may have the right to repurchase or lease the land.

See Underwriting Manual