FLOT EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE WITH 100, Exams of Nursing

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FLOT EXAM QUESTIONS AND

ANSWERS WITH COMPLETE

SOLUTIONS VERIFIED LATEST

UPDATE WITH 100% CORRECT

ANSWERS 2025 RATED A+

Financial planning and analysis of an operation is important because A. It is a requirement of all guaranteed lenders B. It tells how much debt we are required to write down C. It tells FSA personnel when an operation should be liquidated D. The borrower is able to make better decisions regarding the utilization of assets, operational efficiency, expense allocation, and capital investments to improve business performance CORRECT ANSWER>>>> D. The borrower is able to make better decisions regarding the utilization of assets, operational efficiency, expense allocation, and capital investments to improve business performance With the exception of accounts in default, a co-borrower may be released from liability after a final divorce settlement when the... Select ALL A. Divorce decree states that the co-borrower is not responsible for payments B. Co-Borrower conveys his/her rights to the security C. Remaining party can show repayment for the debt CORRECT ANSWER>>>> All A subordination may be granted under the following conditions, except to A. Acquire or develop land for farming purposes

B. Convert wetlands for farm production C. Provide pollution controls D. Provide fencing and drainage CORRECT ANSWER>>>> B. Convert wetlands for farm production Insurance proceeds from a claim on real estate security losses may be used Select ALL A. To make the annual installment on the loan that is secured by that property B. To make repairs on the real estate security C. As an extra payment on the loan that is secured by that property D. For essential farm operating and family living expenses CORRECT ANSWER>>>> B. To make repairs on the real estate C. As an extra payment on the loan that is secured by that property A borrower sells chattel property that is security for a direct loan and does not report it to the FSA office. This is the first time this borrower has made an unauthorized disposition. What is the first action to be taken? A. Send FSA-2510 and FSA- 2511 B. Send FSA- 2514 and FSA- 2515 C. Make a written request for restitution from the borrower by sending Exhibit 31 D. Demand the purchaser to pay FSA the same amount he paid to the borrower CORRECT ANSWER>>>> C. Make a written request for restitution from the borrower by sending Exhibit 31 A year- end analysis would not be required for.. CORRECT ANSWER>>>> A borrower who refinanced all of his FSA direct loans with FSA guaranteed loans last year.

A subordination of FSA chattel security can be considered to allow a borrower who has previously received a debt write down to obtain needed credit from another lender. T/F CORRECT ANSWER>>>> True Which of the following loan accounts would be appropriate candidates for graduation? A. Borrowers accounts that are classified as "commercial" or "standard" B. All Accounts C. Youth Loan borrowers over the age of 18 D. Borrowers that have accounts with limited resource rates E. Conservation Loans CORRECT ANSWER>>>> A. Borrowers accounts that are classified as "commercial" or "standard" The Agency may continue collection activity on a delinquent borrower who has been called to active military service under Treasury Offset, Administrative Offset and/or Treasury cross- servicing authorities CORRECT ANSWER>>>> False Any request for Administrator's exception to any servicing requirement or policy, must be made by the: A. SED B. FLC C. FLM/FLO/SFLO D. Borrower CORRECT ANSWER>>>> SED What changes to a completed form FSA-2040, "Agreement for the Use of Proceeds and Security", do not require prior approval by an FSA servicing official? SELECT ALL THAT APPLY A. Sale of normal income security that is not listed on the FSA B. Changes in the amount of proceeds to be released

C. Sale of normal income security transpiring after annual FSA installment have been paid. CORRECT ANSWER>>>> A. Sale of normal income security that is not listed on the FSA 2040 C. Sale of normal income security transpiring after annual FSA installment have been paid When FSA pays a direct borrower's real estate taxes by vouchering them, the amount paid by FSA will... SELECT ALL A. Be charged to the borrower's account B. Be paid to the borrower C. Be amortized over the number of months for which taxes are paid D. Bear interest at rate in effect on initial loan or for the loan with the earliest promissory note secured by the security and still outstanding CORRECT ANSWER>>>> A. Be charged to the borrower's account D. Bear interest at rate in effect on initial loan or for the loan with the earliest promissory note secured by the security and still outstanding A borrower brings in the proceeds from the sale of basic security for his FSA loan and has no replacement for this security. These proceeds should be applied as a/an... A. Refund to the loan B. Regular payment on the loan C. Extra payment on the loan D. Offset payment CORRECT ANSWER>>>> C. Extra payment on the loan A new security Agreement must be prepared: A. Annually B. when significant changes in collateral occur

A delinquent guaranteed line of credit may be rescheduled over a period not to exceed 7 years from the date of rescheduling or 10 years from the date of the original note, whichever is less. T/F CORRECT ANSWER>>>> True When a guaranteed loan is being liquidated, a lender, with exception of a PLP lender (unless the PLP Lender's Agreement requires it), must present a liquidation plan to FSA for approval. T or F? CORRECT ANSWER>>>> True A CLP or PLP guaranteed lender is required to provide FSA with a copy of their annual analysis report of the borrower's farming operation. T/F CORRECT ANSWER>>>> False What percentage of a CLP lender's guaranteed loan portfolio must be reviewed on an annual basis? A. 20 B. 10 C. 30 D. 50 CORRECT ANSWER>>>> A. 20 Only SELs are required to submit supporting documentation when submitting a final loss claim. T/F CORRECT ANSWER>>>> False Under certain circumstances, a lender may release guaranteed loan security without prior written approval of FSA. T/F CORRECT ANSWER>>>> True An individual who is obligated on a guaranteed loan can only be released of liability when their loan is paid in full. T/F CORRECT ANSWER>>>> False An emergency advance can be made under a line of credit when the advance will be used for authorized loan purposes, the financial benefit to the lender and the Government from the

advance will exceed the amount of the advance, and the loss of crops or livestock is imminent unless the advance is made. T/F CORRECT ANSWER>>>> True Once a line of credit is in place with a CLP lender, written concurrence from an FSA agency official is not required for advances made on the line of credit in subsequent years. T/F CORRECT ANSWER>>>> True FSA must respond to the lender's liquidation plan within ____ days A. 45 B. 14 C. 30 D. 20 CORRECT ANSWER>>>> D. 20 When a guaranteed loan is in liquidation, the lender is required to provide a report to FSA on the status of the liquidation at least every ____ days. A. 30 B. 45 C. 60 D. 90 CORRECT ANSWER>>>> C. 60 A delinquent guaranteed term operating loan (OL) that is rescheduled must be repaid over a period not to exceed ____ years. A. 5 B. 10 C. 15 D. 20 CORRECT ANSWER>>>> C. 15

C. Secretary of Agriculture D. County Committee CORRECT ANSWER>>>> A. President B. State Committee C. Secretary of Agriculture If a suitable inventory property is advertised for sale and the Agency is not successful in its efforts to sell the property to a beginning farmer/rancher or socially disadvantaged applicant within 135 days of acquisition, what is the next action to be taken by the Agency? A. The property is conveyed to a Federal or State Agency for conservation B. The property will be offered for public sale by sealed bid or auction to the highest bidder C. An exception is requested from the National Office to advertise the property for lease D. The property is re-advertised for sale to a beginning farmer/rancher or socially disadvantaged applicant CORRECT ANSWER>>>> B. The property will be offered for public sale by sealed bid or auction to the highest bidder A borrower should be provided with notification of availability of primary loan servicing by certified mail ___ days after the direct loan account becomes past due. A. 90 B. 45 C. 180 D. 60 CORRECT ANSWER>>>> A. 90 When an acceptable bid is not received for surplus property through the sealed bid sales process, and the SED enters into negotiation, what parties should be involved in the negotiation?

A. Only the people who submitted bids B. All interested parties, including all previous bidders C. All bidders who have requested FSA credit D. Just the highest bidder CORRECT ANSWER>>>> B. All interested parties, including all previous bidders A direct farm loan account can be accelerated when a borrower: Select All A. Becomes 90 days delinquent, has received all applicable servicing notices and all appeals have been concluded B. Becomes 90 days past due, has received all applicable servicing notices, all appeals have been concluded and the State and National civil rights reviews have been completed. C. Becomes 180 days past due, has received all applicable servicing notices, all appeals have been concluded and the State and National civil rights reviews have not been completed D. Fails to graduate, all appeals have been concluded and civil rights reviews have been completed. CORRECT ANSWER>>>> B. Becomes 90 days past due, has received all applicable servicing notices, all appeals have been concluded and the State and National civil rights reviews have been completed. D. Fails to graduate, all appeals have been concluded and civil rights reviews have been completed

A delinquent borrower is sent FSA-2510 and FSA- 2511 by certified mail, return receipt requested. An incomplete application is then delivered on the 61st day (60th day was a workday) after the certified receipt date. What action should the servicing official take? A. Review the application and immediately contact the borrower to request the information needed to complete the application B. Document that an incomplete application was received and send FSA-2525 and FSA- 2526 to the borrower C. Notify the borrower that the information needed to complete the application must be received within 15 days D. Proceed with immediate liquidation of the account CORRECT ANSWER>>>> B. Document that an incomplete application was received and send FSA-2525 and FSA- 2526 to the borrower The authorized agency official must track notifications and servicing activities for borrowers whose accounts are being processed for primary loan servicing by use of.. A. Web AgCredit B. eDALR$ C. The office monthly planning calendar D. DLS- Special Servicing and FSA- 2580 CORRECT ANSWER>>>> D. DLS- Special Servicing and FSA- 2580 The FSA servicing office has received legal notice that an FLP borrower has filed for Chpt 7 Bankruptcy. Which of the following actions would be acceptable? A. Immediately accelerate the account

B. Contact the borrower to remind him/her of the payment due date C. Provide notice of all available servicing options to the borrower's attorney with a copy to the borrower D. Do nothing until the first meeting of creditors CORRECT ANSWER>>>> C. Provide notice of all available servicing options to the borrower's attorney with a copy to the borrower Calculations of Farm Loan Programs Primary Loan Servicing debt restructuring actions (types and amounts) on all FLP loans (based on best available financial information) is accomplished through: A. Web AgCredit B. DLS- Special Servicing C. eDALR$ D. A farm business plan CORRECT ANSWER>>>> C. eDALR$ The amount of prior liens against a property should not be considered when evaluating whether a FLP property should be taken into inventory. T/F CORRECT ANSWER>>>> False When a qualified beginning farmer/rancher applicant is selected to purchase an inventory property and no loan funds are available : A. The property should be leased to the applicant for no longer than 18 months B. the applicant must secure other financing or forfeit purchasing the property C. the applicant is notified that they can never purchase the property D. the county office should sell the property as surplus CORRECT ANSWER>>>> A. the property should be leased to the applicant for no longer than 18 months

Normal income security proceeds for essential owner withdrawals, family living expenses, and farm operating expenses will be released until. A. The account is accelerated B. Primary loan servicing notices are sent C. All appeals have been concluded D. A new plan is developed CORRECT ANSWER>>>> A. The account is accelerated A Farm Ownership loan with a term of 30 years was closed on May 3, 2004 and reamortized on November 28, 2018. What is the maximum number of years over which the remaining debt can be amortized? A. 16 B. 30 C. 25 D. 40 CORRECT ANSWER>>>> C. 25 The term of a deferral will be based on the post deferral business plan that results in Select All A. the greatest improvement over the first year cash available to service FLP debt B. the shortest possible deferral period C. the longest possible deferral period D. the deferral term requested by the borrower CORRECT ANSWER>>>> A. The greatest improvement over the first year cash available to service FLP debt

B. the shortest possible deferral period What is a conditional commitment CORRECT ANSWER>>>> informs lender that the guarantee request has been approved and the loan may be closed What is a Loan Guarantee CORRECT ANSWER>>>> A document that is attached to the promissory note to evidence the Government's commitment to reimburse the lender What is a Lender's Agreement? CORRECT ANSWER>>>> Establishes the lender's and Agency's rights and responsibilities relating to the making and servicing of guaranteed loans What is a Loan Agreement CORRECT ANSWER>>>> Signed by the borrower, it outlines the terms and conditions under which the loan will be made A lender proposes to make a guaranteed FO loan to a corporation made up of 4 individuals each owning 25% of the corporation. The promissory note must be signed by: Select ALL A. The officer of the corporation designated in the entity's bylaws to sign debt instruments in the name of the corporation B. All officers of the corporation C. All stockholders of the corporation as individuals D. All stockholders of the corporation, as officers and as individuals CORRECT ANSWER>>>> A. The officer of the corporation designated in the entity's bylaws to sign debt instruments in the name of the corporation C. All stockholders of the corporation as indivduals A lender proposed a $125,000 guaranteed OL to refinance operating debt carried over from previous years. The security would be a lien on equipment valued at $220,000 including a

A $40,000 LOC application is received from a SEL lender. The cash flow budget must be based on an average of the last five years financials and production history. T/F CORRECT ANSWER>>>> False A CLP lender submits an application for an applicant who has direct loans with FSA. The repayment capacity is 126% and security is 64% loan to value. A review of the application shows that the lender has no included a VISA debt that is on the applicant's most recent farm business plan. The VISA debt is $1,084 with annual payments of $360. You should.... A. Call the lender before approving the loan, documenting in the file that the debt is not material to the loan repayment or security. B. Send the lender an incomplete application letter C. Reject the application D. Amend the application yourself since the payment is small CORRECT ANSWER>>>> A. Call the lender before approving the loan, documenting in the file the debt is not material to the loan repayment or security. The final maturity date of a guaranteed line of credit cannot exceed ___ years from the date of the promissory note or line of credit agreement is signed. A. 3 B. 5 C. 7 D. 15 CORRECT ANSWER>>>> C. 7 The percentage of guarantee for a guaranteed CL to a non-beginning, non-SDA farmer is: A. 70% B. 75% C. 80%

D. 85% CORRECT ANSWER>>>> C. 80%

In a guaranteed line of credit cases, the cash flow budgets prepared by an SEL or CLP lender must be based on three years of proven financial and production history. T/F CORRECT ANSWER>>>> False A lender proposes to secure the unguaranteed portion of a loan with bank CDs, owned by the borrower's parents. This is authorized. T/F CORRECT ANSWER>>>> False FSA has a direct OL with an outstanding balance of $70k and a first lien on breeding livestock as security. A lender proposes a guaranteed OL for $100,000 with a second lien on livestock as security for the guaranteed OL. The livestock is valued at $220,000. This is authorized. T/F CORRECT ANSWER>>>> True A lender proposes a $250,000 term guaranteed operating loan for a former FSA borrower who had the balance of a direct loan settled by a compromise offer on May 8th, 1994. The reason for the settlement was beyond the borrower's control. This is authorized. T/F CORRECT ANSWER>>>> True What appraisers meet FSA qualifications to complete appraisals for guaranteed loan transactions of greater than $250,000? A. State Licensed Appraiser B. State Certified General Appraiser C. State Certified Residential Appraiser D. Certified Licensed Appraiser CORRECT ANSWER>>>> B. State Certified General Appraiser FSA Guaranteed loans are not considered as Federal debt, when considering Federal debt delinquency, in assessing an applicant's eligibility for the loan. T/F CORRECT ANSWER>>>> True