Land Contract (LC) Guarantee Program (Cont.)
FSA requires the seller to obtain an escrow agent for the Prompt Payment Guarantee (LCPP) or
a servicing agent for the Standard Guarantee (LCSG) to monitor the land contracts while the
guarantees are in effect. The monitoring responsibilities would include the following:
The escrow agent under the LCPP will:
1. Provide FSA with a copy of the recorded Land Contract Agreement
2. Handle transactions between buyer and seller, including receipt of and submission
of payments
3. Provide FSA evidence of paid property taxes and insurance
4. Send payment due notices to buyer
5. Notify FSA and seller if buyer defaults
6. Service delinquent accounts and make demand on FSA to pay missed installments, taxes,
or insurance
7. Complete and submit semi-annual status reports
8. Perform other duties as required by State law or as specified by buyer and seller.
The servicing agent under the LCSG will:
1. Provide FSA with a copy of the recorded Land Contract Agreement
2. Handle transactions between buyer and seller, including receipt of and submission
of payments
3. Provide FSA evidence of paid property taxes and insurance
4. Perform annual farm inspection, obtain financial statement, income statement, cash flow
budget, and other information needed to perform and provide an annual analysis and
inspection report to the FSA
5. Complete and submit semi-annual status reports
6. Send payment due notices to buyer
7. Notify FSA and seller if buyer defaults
8. Service delinquent accounts and make demand on buyer for amount of default
9. Perform other duties as required by State law or as specified by buyer and seller.
ALL Agents must be bonded and not debarred or suspended from participating with the US
Government.
If you have questions, please contact Tim Reimer, Farm Loan Specialist @ 402-437-5455.
“The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and
activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital
status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information,
reprisal, or because all or part of an individual’s income is derived from any public assistance program.
(Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means
for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s
TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the
Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC
20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642
(English Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal opportunity
provider and employer.”
Page 2