# 7 CFR § 1955.109: Processing and closing (CONACT)

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.109

## Section

- **Citation:** 7 CFR § 1955.109
- **Heading:** Processing and closing (CONACT)
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 7—Agriculture > Subtitle B—Regulations of the Department of Agriculture > CHAPTER XVIII—RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE SERVICE, AND RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE > SUBCHAPTER H—PROGRAM REGULATIONS > PART 1955—PROPERTY MANAGEMENT > Subpart C—Disposal of Inventory Property > Consolidated Farm and Rural Development Act (CONACT) Real Property

## Text

(a) Determining repayment ability and creditworthiness. If a credit sale is involved, the applicant must furnish necessary financial information to assist in determining repayment ability and creditworthiness. Information regarding eligibility, planned development and total operations will be provided the same as for the respective type of FSA loan. Purchasers requesting credit on ineligible terms, except for C&BP, will be handled in accordance with subpart J of part 1951 of this chapter. For C&BP, information will be provided which is similar to an application including financial information required for the respective loan program to establish financial stability, creditworthiness and repayment ability.
(b) [Reserved]
(c) Form of payment. Payments at closing will be in the form of cash, cashier's check, certified check, postal or bank money order, or bank draft made payable to the Agency.
(d)-(e) [Reserved]
(f) Earnest money. Earnest money, if any, will be used to pay purchaser's closing costs with any balance of the costs being paid by the purchaser. Any excess earnest money will be credited to the purchase price or recognized as a part of the purchaser's downpayment.
(g) Closing and reporting sales. Title clearance, loan closing and property insurance requirements for a credit sale will be the same as for a program loan, except the property will be conveyed by Form RD 1955-49, in accordance with § 1955.141(a) of this subpart.
(h) Classification. Credit sales on ineligible terms for C&BP will be classified as NP loans and serviced accordingly.
(i) [Reserved]
(j) Form RD 1910-11, “Applicant Certification, Federal Collection Policies for Consumer or Commercial Debts.” The County Supervisor or District Director must review Form RD 1910-11 “Applicant Certification, Federal Collection Policies for Consumer or Commercial Debts,” with the applicant, and the form must be signed by the applicant.
[53 FR 35780, Sept. 14, 1988, as amended at 54 FR 29333, July 12, 1989; 58 FR 52652, Oct. 12, 1993; 60 FR 34455, July 3, 1995; 62 FR 44401, Aug. 21, 1997; 68 FR 61332, Oct. 28, 2003]

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- [7 CFR § 1955.111 § 1955.111 Sale of real estate for RH purposes (housing).](https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.111.md)
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-7-1955.109. Check the current official text before relying on it. Not legal advice.