Title Examination Standards
Chapter 1, App.
Chapter 23. Judgment Liens, Execution and Attachment
§23.10. Rural Homestead Property Subject to Mortgages of the Farm Service Agency, aka Farmers Home Administration, or Small Business Administration; Homestead Protection Rights.

1. B. The examiner should be furnished satisfactory evidence, that, in compliance with the applicable statutes, regulations and cases, the Farm Service Agency, or Small Business Administration, has either obtained waivers from the borrower and other protected entities, or has complied with the appropriate notice procedures, and that all administrative appeal rights, if any, have been exhausted.

   Authority: 7 U.S.C.A. § 2000 (Consolidated Farm and Rural Development Act, Pub. L. No. 87-128 (August 8, 1961), tit. VII, § 352, as amended by Food Security Act of 1985, Pub. L. No. 99-198 (December 23, 1985), tit. VII, § 1321, 99 Stat. 1532, and by Agricultural Credit Act of 1987, Pub. L. No. 100-233 (January 6, 1988), tit. VII, § 614, 101 Stat. 1675); 7 C.F.R. § 1951.911; see also 15 U.S.C.A. §§ 631 et seq . (Small Business Act). Comment: See Comment to Standard 23.9 regarding a possible affidavit to evidence Farm Service Agency compliance of record.

A , After December 23, 1985, homestead real estate subject to mortgages of the Farm Service Agency, previously known as the Farmers Home Administration, [all subsequent references to the Farm Service Agency shall incorporate this reference to said agency's previously having been know as the Farmers Home Administration,] or of the Administrator of the Small Business Administration with respect to property subject to farm program loans made under the Small Business Act (15 U.S.C.A. § 631 et seq.), for any of the purposes authorized for loans under subtitles A or B of the Consolidated Farm and Rural Development Act (7 U.S.C.A. §§ 1921 et seq .) may be subject to certain homestead protection rights in favor of the owner/borrower.

History: The Food Security Act of 1985, P.L. 99-198, and the Agricultural Credit of 1987, P.L. 100-233, created certain homestead protections in favor of rural home borrowers from the Farmers Home Administration and the Small Business Administration. The 1991 Report of the Title Examination Standards Committee proposed new standard 12.9 to assist examiners with respect to such situations encountered in the chain of title, 62 O.B.A.J. 3269 (1991). The proposal was approved by the Real Property Section on November 14, 1991, and adopted by the House of Delegates on November 15,1991, 62 O.B.A.J. 3531 (1991).