WHEDA will accept a Request for Guarantee Payment (CROP Form 7) prior to the Lender taking the appropriate action listed in this chapter. The claim will not be paid, however, until the Lender pursues all appropriate collection procedures.
Lender must file a written claim with WHEDA for guarantee payment on or before June 30 of the year following the origination of the CROP loan.
The Lender must submit:
· Loan Disbursement Record (CROP Form 5);
· Request for Guarantee Payment (CROP Form 7);
· Payment history;
· Current personal financial statement;
· Current statement of the farming operation's cash flows;
· Statement detailing the final or proposed disposition of collateral proceeds;
· Collateral analysis OR list of lien holders securing the same asset(s) as the CROP loan, lien position and balance of loan(s);
· Explanation of why the Farmer was unable to repay the loan;
· Proof of Claim if filing Bankruptcy; and
· Listing of creditors.
WHEDA will pay to the Lender 90% of the outstanding principal balance of the CROP loan, when satisfied that the Lender has made every reasonable effort to collect the CROP loan. Ineligible disbursements will be excluded from the guarantee payment.
In no event will WHEDA make any such payments prior to November 1 of the year in which the Lender originated the CROP loan.
