7 CFR §763.18

1. (a)For the prompt payment guarantee plan, the seller must use a third party escrow agent approved by the Agency. The escrow agent will:
   1. (1)Provide the Agency a copy of the recorded Land Contract;
   2. (2)Handle transactions relating to the Land Contract between the buyer and seller;
   3. (3)Receive Land Contract installment payments from the buyer and send them to the seller;
   4. (4)Provide evidence to the Agency that property taxes are paid and insurance is kept current on the security property;
   5. (5)Send a notice of payment due to the buyer at least 30 days prior to the installment due date;
   6. (6)Notify the Agency and the seller if the buyer defaults;
   7. (7)Service delinquent accounts as specified in § 763.20(a);
   8. (8)Make demand on the Agency to pay missed payments;
   9. (9)Send the seller any missed payment amount paid by the Agency under the guarantee;
   10. (10)Notify the Agency on March 31 and September 30 of each year of the outstanding balance on the Land Contract and the status of payment; and
   11. (11)Perform other duties as required by State law and as agreed to by the buyer and the seller;
2. (b)For the standard guarantee plan, the seller must use a third party servicing agent approved by the Agency. The servicing agent will:
   1. (1)Provide the Agency a copy of the recorded Land Contract;
   2. (2)Handle transactions relating to the Land Contract between the buyer and seller;
   3. (3)Receive Land Contract installment payments from the buyer and send them to the seller;
   4. (4)Provide evidence to the Agency that property taxes are paid and insurance is kept current on the security property;
   5. (5)Perform a physical inspection of the farm each year during the term of the guarantee, and provide an annual inspection report to the Agency;
   6. (6)Obtain from the buyer a current balance sheet, income statement, cash flow budget, and any additional information needed, perform, and provide the Agency an analysis of the buyer's financial condition on an annual basis;
   7. (7)Notify the Agency on March 31 and September 30 of each year of the outstanding balance on the Land Contract and the status of payment;
   8. (8)Send a notice of payment due to the buyer at least 30 days prior to the installment due date;
   9. (9)Notify the Agency and the seller if the buyer defaults;
   10. (10)Service delinquent accounts as specified in § 763.20(b); and
   11. (11)Perform other duties as required by State law and as agreed to by the buyer and the seller.