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.