Final answer:
The statement is true; lenders must generally present a liquidation plan to the FSA for approval when liquidating a guaranteed loan, with certain exceptions for PLP lenders.
Step-by-step explanation:
When considering the statement, "When a guaranteed loan is being liquidated, a lender, with the exception of a PLP lender (unless the PLP Lender's Agreement requires it), must present a liquidation plan to FSA for approval," the correct answer would be a) True. A Preferred Lender Program (PLP) lender may not need to submit a liquidation plan depending on the terms of their agreement. However, typically, lenders must seek approval of their liquidation plan from the Farm Service Agency (FSA) before proceeding with the liquidation of a guaranteed loan. This process ensures that the FSA agrees with the methods by which the lender intends to recover the funds that were lent out.