---
kind: "section"
citation: "7 C.F.R. § 761.54"
title: "7"
number: "761.54"
heading: "Withdrawals from a supervised bank account."
url: "https://uscodex.org/cfr/7/761.54"
---

# §761.54. Withdrawals from a supervised bank account.

- (a) The Agency will authorize a withdrawal from the supervised bank account for an approved purpose after ensuring that:
  - (1) Sufficient funds in the supervised bank account are available;
  - (2) No loan proceeds are disbursed prior to confirmation of proper lien position, except to pay for lien search if needed;
  - (3) No checks are issued to “cash;” and
  - (4) The use of funds is consistent with the current farm operating plan or other agreement with the Agency.
- (b) A check must be signed by the borrower with countersignature of the Agency, except as provided in [paragraph (c)](#c) of this section. All checks must bear the legend “countersigned, not as co-maker or endorser.”
- (c) The Agency will withdraw funds from a supervised bank account without borrower counter-signature only for the following purposes:
  - (1) For application on Agency indebtedness;
  - (2) To refund Agency loan funds;
  - (3) To protect the Agency's lien or security;
  - (4) To accomplish a purpose for which such advance was made; or
  - (5) In the case of a deceased borrower, to continue to pay necessary farm expenses to protect Agency security in conjunction with the borrower's estate.

## Notes

### Authority

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

### Source

Source: 72 FR 63285, Nov. 8, 2007, unless otherwise noted.