---
kind: "section"
citation: "7 C.F.R. § 763.18"
title: "7"
number: "763.18"
heading: "General servicing responsibilities."
url: "https://uscodex.org/cfr/7/763.18"
---

# §763.18. General servicing responsibilities.

- (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) Provide the Agency a copy of the recorded Land Contract;
  - (2) Handle transactions relating to the Land Contract between the buyer and seller;
  - (3) Receive Land Contract installment payments from the buyer and send them to the seller;
  - (4) Provide evidence to the Agency that property taxes are paid and insurance is kept current on the security property;
  - (5) Send a notice of payment due to the buyer at least 30 days prior to the installment due date;
  - (6) Notify the Agency and the seller if the buyer defaults;
  - (7) Service delinquent accounts as specified in [§ 763.20(a)](/cfr/7/763.20.md?p=a);
  - (8) Make demand on the Agency to pay missed payments;
  - (9) Send the seller any missed payment amount paid by the Agency under the guarantee;
  - (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) Perform other duties as required by State law and as agreed to by the buyer and the seller;
- (b) For the standard guarantee plan, the seller must use a third party servicing agent approved by the Agency. The servicing agent will:
  - (1) Provide the Agency a copy of the recorded Land Contract;
  - (2) Handle transactions relating to the Land Contract between the buyer and seller;
  - (3) Receive Land Contract installment payments from the buyer and send them to the seller;
  - (4) Provide evidence to the Agency that property taxes are paid and insurance is kept current on the security property;
  - (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) 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) 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) Send a notice of payment due to the buyer at least 30 days prior to the installment due date;
  - (9) Notify the Agency and the seller if the buyer defaults;
  - (10) Service delinquent accounts as specified in [§ 763.20(b)](/cfr/7/763.20.md?p=b); and
  - (11) **Perform other duties as required by State law and as agreed to by the buyer and the seller.**

## Notes

### Authority

Authority: 5 U.S.C. 501 and 7 U.S.C. 1989.

### Source

Source: 76 FR 75430, Dec. 2, 2011, unless otherwise noted.