Collection procedures for voluntary liquidations include:
The Lender will obtain legal counsel as it deems necessary to assure all steps are taken to maximize amount of proceeds received.
When liquidation is scheduled, submit to WHEDA:
· Date of the auction;
· A complete inventory of all assets and all liens against them;
· Complete documentation of how proceeds were applied against the liens; and
· Copy of Judgment if deficiency outstanding before or after liquidation.
The Lender will take prompt action to insure maximum collection on the collateral.
The Lender is responsible for following the sale of the Farmer's property to assure a fair price is received for the collateral securing the CROP loan. Any proceeds obtained as a result of the sale of the collateral securing the CROP loan will be applied toward reducing the outstanding balance of the CROP loan. After the sale, the Lender will submit to WHEDA an inventory of the items sold and the amount received for each.
Once the principal on the Guaranteed Loan becomes ninety (90) days or more past due, the loan must be placed on non-accrual, with all future payments applied to the principal balance. The Lender must notify WHEDA if there are reasons why the loan should not be placed on non-accrual or if it should be removed from non-accrual status.
The Lender is entitled to apply proceeds from the sale of the collateral toward satisfying up to ninety (90) days of accrued interest due from the Farmer.
