Final answer:
In financial capital markets, a guaranteed lender generally must appraise collateral before liquidating it unless the requirement is waived by the FSA.
Step-by-step explanation:
In the context of financial capital markets and lending, a guaranteed lender may be required to obtain an appraisal of the collateral before proceeding to liquidate it, to determine its current value and ensure that they can recover the owed funds through its sale. However, if the Farm Service Agency (FSA) decides to waive this requirement, the lender may be relieved from the obligation to conduct an appraisal prior to liquidation. This is to ensure that the lending bank or financial institution has a fallback in case the borrower defaults on the loan repayment.