Changes in FSA rules for CCC loan disbursements
ST. PAUL, Minn. -- Currently all FSA offices have a supply of US Treasury checks which they use when handling CCC loan disbursements, balance back checks on repayments when there are multiple names, etc. This procedure will be changing soon. Begi...
ST. PAUL, Minn. -- Currently all FSA offices have a supply of US Treasury checks which they use when handling CCC loan disbursements, balance back checks on repayments when there are multiple names, etc. This procedure will be changing soon. Beginning Dec. 9, 2008, all payments from FSA offices will be processed through the National Payment Service (NPS) located in Kansas City.
Individual producers with lenders that do not wish to have the banks name on the check and the producer utilizes electronic funds transfer (EFT), loan proceeds or refunds will be credited to the producer's account within two work days by EFT. If there are multiple pro-ducers involved, each will receive their portion of the payment by EFT. Interest charges on the transaction will start on the second day after disbursement for loans.
Individual producers with lenders who have checked Box 2 or 3 on the CCC 679 Lien Waiver form requiring the bank's name to appear on the check, will have CCC loan or refund checks disbursed by the NPS. This process will take seven to10 days before the producer will receive the check by mail. If multiple producers operating on a share basis are involved, each producer will receive their portion of the payment via check within the seven- to 10-day period. For joint producers or those with more than one name on the check, including the bank's name, the check will be processed through NPS and will be mailed to the address of the first person listed in FSA records for that operation. Again, the seven- to10-day time-frame applies. Interest charges on the transaction will still start two days after disburse-ment.
For more details on this change or to determine how this change affects your farming op-eration, check with your local county FSA Office.