Requirements for conveying chattel. The borrower must supply the Agency with the following:
An Agency application form;
A current financial statement. If the borrower is an entity, all entity members must provide current financial statements;
Information on present and future income and potential earning ability;
A bill of sale including each item and titles to all vehicles and equipment, as applicable;
A resolution approved by the governing body that authorizes the conveyance in the case of an entity borrower;
Complete debt settlement application in accordance with subpart B of 7 CFR part 1956 before or in conjunction with the voluntary conveyance offer if the value of the property to be conveyed is less than the debt.
Conditions for conveying chattel. The Agency will accept conveyance of chattel only if:
The borrower has made every possible effort to sell the property voluntarily;
The borrower can convey the chattel free of other liens;
The conveyance is in the Agency's financial interest;
The borrower conveys all chattel securing the FLP loan; and
The borrower has received prior notification of the availability of loan servicing in accordance with subpart C of this part.
Charging and crediting the borrower's account. (1) The Agency will charge the borrower's account for all recoverable costs incurred in connection with the conveyance.
The Agency will credit the borrower's account in the amount of the market value of the chattel.
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