1. Loan Servicing By LSA’s

2. LSA Loan Servicing Cash repayments at 22-CN para 51 Cash repayments at 22-CN para 5122-CN para 5122-CN para 51 –Receive repayment request from producer or agent –Compute repayment amount –If applicable compute denied benefits for PE and PCF –Accept repayment and deposit at CCB –Release EWR’s –Distribute repayment document

3. Denied Benefit Because of PE Each individual designates his share of a ‘permitted entity’ Each individual designates his share of a ‘permitted entity’ Any share of an entity which is not designated may result in a PE factor of less than 1.0000 Any share of an entity which is not designated may result in a PE factor of less than 1.0000 PE factor is applied to LDP’s and loan market gains PE factor is applied to LDP’s and loan market gains Monitor field 17 Monitor field 17

4. Denied Benefit Because of PCF PCF may be less then 1.000 when producer: PCF may be less then 1.000 when producer: –does not provide active personal labor or management –is actively engaged and eligible on a portion of a farm because of landowner provision –is a cash rent tenant and ineligible for payment for the cash rented land Monitor field 18 Monitor field 18

5. Loan Servicing Certificate Redemptions at 22-CN para 52 Certificate Redemptions at 22-CN para 5222-CN para 5222-CN para 52 –Not subject to payment limit –Not reported to IRS unless IRS directs FSA to do otherwise –Prepare CCC 694-2 for producer signature –Agents execute CCC-605 Part E –Accept repayment and deposit to CCB –Release receipts –Distribute repayment document

6. Loan Servicing (Cont’d) Maturity date notification letter in 22-CN para 53E Maturity date notification letter in 22-CN para 53E Charges due on forfeited loans in para 54 Charges due on forfeited loans in para 54 –Statement of charges from COPS –Send producer notification and collect –If not paid after 30 days, refer to county office LSA document examples LSA document examples LSA document examples LSA document examples

7. Offsets for CCC Claims Offsets triggered by field 67 of CMA process record Offsets triggered by field 67 of CMA process record Applicable to loans and LDP’s Applicable to loans and LDP’s Offsets have priority over assignments Offsets have priority over assignments If lien holders won’t sign waiver, producer is ineligible If lien holders won’t sign waiver, producer is ineligible Contact the admin county office Contact the admin county office

8. Assignments Applicable to LDP’s only Applicable to LDP’s only Triggered by field 68 Triggered by field 68 Locate the assignment Locate the assignment Issue applicable amounts to assignee Issue applicable amounts to assignee Notify admin county office Notify admin county office

9. Reports Section 1614 per 1-CMA para. 555 Section 1614 per 1-CMA para. 555 –Next submission due Oct 15 Federal Funding Accountability and Transparency Act of 2006 Federal Funding Accountability and Transparency Act of 2006

10. Pop Quiz

11. Can a producer redeem an ELS loan with a certificate?

12. No

13. Can a producer assign loan proceeds?

14. No