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); (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); and (11) Perform other duties as required by State law and as agreed to by the buyer and the seller.