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Disaster set-aside can be used to circumvent the servicing available under the Agency's primary loan servicing authorities.

A. True
B. False

1 Answer

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Final answer:

The statement that disaster set-aside can be used to circumvent the servicing available under the Agency's primary loan servicing authorities is false. Disaster set-asides are supplementary and do not replace the primary servicing options.

Step-by-step explanation:

Disaster set-aside programs are designed to provide financial relief to farmers or landowners who have been impacted by natural disasters. These set-asides can allow for a portion of a loan to be set aside during the recovery period. However, it is false that a disaster set-aside can be used to circumvent the servicing available under the Agency's primary loan servicing authorities. Instead, disaster set-asides should be seen as a supplementary option available in times of need, which operates alongside the standard loan servicing options rather than replacing or circumventing them.

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