Must qualified lenders participate in agricultural State mediation programs?
Yes. A qualified lender must participate if a borrower requests it and a State mediation program, certified under section 501 of the Agricultural Credit Act of 1987, exists in the State where the borrower lives or where the farm operation is located. Qualified lenders must cooperate in any mediation by presenting and exploring all debt restructuring proposals discussed during the mediation and providing information to facilitate the mediation process. If allowed in the State, qualified lenders may, on their own, initiate mediations—but may not require the borrower to participate. Qualified lenders may also never ask for, nor condition loan servicing on, the borrower’s waiving mediation rights.
Related Questions
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