B-223816: Jun 17, 1988

Miscellaneous Topics - Agriculture - Agricultural Loans - Default - Interest - Waiver The Farmers Home Administration (FmHA) appears to have broad statutory authority that would allow it to terminate the accrual of interest on the guaranteed portion of defaulted loans. FmHA may only terminate the accrual of interest on loans in limited circumstances if the borrower is eligible for such a debt redu...

B-223816: Jun 17, 1988

The Farmers Home Administration (FmHA) requested a decision regarding its authority to administratively terminate interest accrual on the guaranteed portion of defaulted loans. GAO held that, while FmHA had statutory authority to terminate interest accrual on defaulted loans, the regulations it adopted to implement the statute restricted that authority. Accordingly, FmHA may terminate guaranteed l...