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Saturday, N ovem ber 7, 1959

FEDERAL REGISTER

This will be the date entered in the space all amounts due the loan insurance ac entitled Pinal Payment Received on count have been paid and a satisfaction Form FHA-993, Notice of Receipt of or release of the real estate mortgage is ready to be delivered.
Final Payment on Insured Loan.
3 Recordation of satisfaction and d Loan funds refunded in fu ll after loan closing. I f a borrower decides to Form FHA-366. The satisfaction or re refund in full his loan, he will be re lease of the real estate mortgage will be quired to pay interest on the note ac recorded, and the cost of such recording count from the date of loan closing to will be borne by the borrower, except the date the U.S. Treasury check is re when State law requires the mortgagee mitted to the lender. However, for a to record or file satisfactions or releases loan held by the insurance fund or under and to pay the cost of recording." When a 2f agreement, the borrower will be used, Form FHA-366 will be recorded required to pay interest on the note ac normally along with the satisfaction or count from the date of loan closing to release. The cost of recording Form the date of the receipt for the refund. FHA-366 will not be borne by the Gov In case the loan is evidenced by Form ernment, except when State law requires FHA-240 or Form FHA-360, thé bor the mortgagee to pay such cost. Any rower also will be required to pay a Joan recording costs required to be paid by the insurance charge from the date of loan Government will be paid by voucher.
closing to the date the U.S. Treasury 4 Special instructions. I f State law check is remitted to the lender.
or custom provides for any special e Actions to effect final payment method or requirement for processing or 1 Return of funds in supervised bank executing the satisfaction or release or account. Any Farm Ownership funds Form FHA-366, or if any problems arise remaining in the borrowers supervised as to satisfactions or releases to be ex bank account will be withdrawn and ecuted by out-of-state lenders, the State remitted to the Finance Office for ap Director will issue instructions covering plication on the borrowers note account such special method or requirement.
as a refund prior to the request for a S e c . 3, 50 S t a t . 523, a s a m e n d e d ; 7 U .S .C .
statement of account.
1003
2 Determining balance to be col lected. The County Supervisor will re 366.42 Payment in fu ll from borrow ers funds, refinancing by a new quest the Finance Office to send him lender on a noninsured basis, and Form FHA-835, Certified Statement of sale o f farm outside program except Account, t show all amounts owed on when holder finances purchaser.
the borrowers Farm Ownership account.
f Actions subsequent to final pay This section applies to all cases where ment 1 Satisfaction of mortgage final payment of the insured loan in i By lender. The holder of an in debtedness is to be derived from the sured mortgage which is not held by borrowers funds, the proceeds from re the Government under a trust assign financing with a new lender on a non ment or declaration of trust, upon re insured basis, and the proceeds from the ceiving full payment of the note account, sale of a farm outside the program when will execute the customary form of sat a new lender furnishes the funds. The isfaction or release o f the real estate funds for final payment in such cases mortgage, unless otherwise provided by will be processed through the Finance instructions from the State Director in Office.
certain states using deeds of trust. Upon a Determining balance of indebted request of any holder of an insured mort ness and collection. When the borrower gage, the County Supervisor will furnish is ready to make his final payment, the an appropriate form of satisfaction County Supervisor will, upon receipt of or release previously approved for this Form FHA-835 from the Finance Office, purpose by the Farmers Home Adminis compute the amount necessary to repay tration.
in full the amount owed the holder on the ii By Government. In case of pay note account, any amount owed the loan ment in full of an insured loan for which insurance account, . and the annual the lender holds only the note, orNan in charge for notes on Form FHA-251.
sured loan for which the Government 1 The County Supervisor will collect holds the mortgage under a trust assign from the borrower any amount owed the ment or declaration of trust, the County loan insurance account, the annual Supervisor will execute a satisfaction or charge, if any, and the balance of the release of the real estate mortgage on a principal and interest owed the holder form previously approved for this pur on the note account. He will remit the pose by the. Farmers Home Administra collection to the Finance Office with tion, unless otherwise provided by the Form FHA-37, Receipt for Payment.
Farmers Home Administration in certain 2 Since the Farmers Home Admin States using deeds of trust. Whenever istration is the collection agent for the the Government holds the mortgage holder, the County Supervisor will advise Under a trust assignment or declaration the borrower, purchaser, or new lender, of trust, the satisfaction will show that as the case may be, that the remittance the Government is satisfying the mort for final payment should be made pay gage for itself and as trustee.
able to, or endorsed to, the order of the 2 Form FHA-366, Consent and R e Farmers Home Administration.
lease of Interest of United States In
b Finance Office action 1 Ad sured Farm Ownership Loans. " In case of payment in full of an insured justment of records. Upon receipt of the loan for which the lender holds the mort collection in the Fanance Office, if the gage, the County Supervisor will execute collection pays the account in full, the Form FHA-366. The original will be de Director, Finance Office, will take the livered only after the note account and appropriate action to close the account.

9073
2 Hotice to holder. The Finance Office will send an original and one copy of Form FHA-993A, Notice and Acknowledgment of Final Payment, to the holder for execution and return of the original, together with the canceled promissory note and any other papers indicated on Form FHA-993A, to the County Supervisor.
c County Office action. Upon re ceipt from the holder of the canceled promissory hote and the original of the completed Form FHA-993A, and in the case of an insured loan for which the lender holds the mortgage, also receipt of the real estate mortgage and an in strument of satisfaction or release, the County Supervisor will proceed as fol lows;
1 In the case of an insured loan for which the lender holds the mortgage, the instrument of satisfaction or re lease furnished by the lender in accord ance with 366.41f and Form F H A 366 will be delivered to the borrower, mortgagee, purchaser, or the recorder of deeds and mortgages, as the case may require. The canceled promissory note and the satisfied real estate mortgage will be delivered to the borrower. Any ab stracts of title held by the Farmers Home Administration which are the property of the borrower also will be delivered to the borrower. The County Supervisor will make proper disposition of any prop erty insurance as prescribed in Part 306
of this chapter. The executed original o f Form FHA-993A will be retained in the borrowers case folder. The County Office records will be adjusted to show a paid-in-full account.
2 In the case of an insured loan for which the Government is named as mort gagee in the mortgage or an insured loan for which the Government holds the mortgage under a trust assignment or a declaration of trust, an instrument of satisfaction or release furnished by the County Supervisor in accordance with 366.41 f will be delivered to the bor rower, mortgagee, purchaser, or the recorder of deeds and mortgages, as the case may require. The canceled promis sory note, the satisfied real estate mort gage, and any abstracts of title held by the Farmers Home Administration which are the property of the borrower will be delivered to the borrower. The County Supervisor will make proper disposition of any property insurance as prescribed in Part 306 of this chapter. The execut ed original of Form FHA-993A will be retained in the borrowers case folder.
The County Office records will be ad justed to show a paid-in-full account.
366.43 Payment in fu ll by refinancing with holder on a noninsured basis, or by sale o f farm outside the pro gram to person obtaining a nonin sured loan from holder.

This section applies when final pay ment of the insured loan indebtedness is to be made by refinancing by the holder on a noninsured basis, or by sale o f the farm outside the program to a person obtaining a noninsured loan from the holder in an amount not less than the outstanding balance owed on the in sured note account. In either case, final payment of the note account may be