The Lender will secure each FARM loan in accordance with normal, prudent agricultural lending practices distinct from WHEDA's guarantee. Sufficient collateral must be in place to cover the value of the FARM loan. The security instruments supporting the collateral must be completed correctly and properly filed or recorded.
In the event that a Production Money Security Interest or a Livestock Purchase Money Priority Interest takes priority over the WHEDA FARM loan, notify WHEDA immediately of the change in lien position.
The Lender may not subordinate, release or assign to a third party any collateral securing a FARM loan without written consent from WHEDA.
