FLOT EXAM QUESTIONS WITH COMPLETE SOLUTIONS
GUARANTEED PASS BRAND NEW 2025
Financial planning and analysis of an operation is important
because
A. It is a requirement of all guaranteed lenders
B. It tells how much debt we are required to write down
C. It tells FSA personnel when an operation should be liquidated
D. The borrower is able to make better decisions regarding the
utilization of assets, operational efficiency, expense allocation,
and capital investments to improve business performance -
ANSWER - > D. The borrower is able to make better decisions
regarding the utilization of assets, operational efficiency,
expense allocation, and capital investments to improve
business performance
With the exception of accounts in default, a co-borrower may
be released from liability after a final divorce settlement when
the...
Select ALL
A. Divorce decree states that the co-borrower is not
responsible for payments
B. Co-Borrower conveys his/her rights to the security
C. Remaining party can show repayment for the debt - ANSWER
- > All
,A subordination may be granted under the following
conditions, except to
A. Acquire or develop land for farming purposes
B. Convert wetlands for farm production
C. Provide pollution controls
D. Provide fencing and drainage - ANSWER - > B. Convert
wetlands for farm production
Insurance proceeds from a claim on real estate security losses
may be used
Select ALL
A. To make the annual installment on the loan that is secured
by that property
B. To make repairs on the real estate security
C. As an extra payment on the loan that is secured by that
property
D. For essential farm operating and family living expenses -
ANSWER - > B. To make repairs on the real estate
C. As an extra payment on the loan that is secured by that
property
A borrower sells chattel property that is security for a direct
loan and does not report it to the FSA office. This is the first
time this borrower has made an unauthorized disposition.
What is the first action to be taken?
A. Send FSA-2510 and FSA-2511
B. Send FSA- 2514 and FSA-2515
,C. Make a written request for restitution from the borrower by
sending Exhibit 31
D. Demand the purchaser to pay FSA the same amount he paid
to the borrower - ANSWER - > C. Make a written request for
restitution from the borrower by sending Exhibit 31
A year- end analysis would not be required for.. - ANSWER - > A
borrower who refinanced all of his FSA direct loans with FSA
guaranteed loans last year.
FLP regular payments are applied in the following order
A. Principal, accrued interest, recoverable costs
B. Deferred mortgage payment, accrued interest, principal,
recoverable costs
C. Recoverable costs, principal, accrued interest
D. Recoverable costs, accrued interest, principal - ANSWER - >
D. Recoverable costs, accrued interest, principal
The "as is" market value of a farm is $80,000. The direct FO loan
that is secured by this farm has a remaining balance of $97,000.
Unpaid real estate taxes on the farm total $5,000. An eligible
applicant wishes to purchase the farm and assume the FSA
debt. What would the amount of the assumption be? -
ANSWER - > $75,000
There must always be a current Form FSA- 2040, "Agreement
for use of Proceeds and Security", in the file of a borrower with
a loan secured by chattels. T/F - ANSWER - > True
, A Farm Loan Officer who has successfully completed the FLP
training program may release proceeds from the sale of
chattels by recording the action on a FSA-2045, "Record of the
Disposition of FSA Security/Release of Proceeds" when this
authority has been delegated by the FLM. T/F - ANSWER - >
True
Proceeds from the sale of normal income security are the only
type of security sale proceeds which may be released for
essential family living or farm operating expenses. T/F -
ANSWER - > True
The estate of a decease borrower may continue with the
borrower's loans. T/F - ANSWER - > False
A subordination of FSA chattel security can be considered to
allow a borrower who has previously received a debt write
down to obtain needed credit from another lender. T/F -
ANSWER - > True
Which of the following loan accounts would be appropriate
candidates for graduation?
A. Borrowers accounts that are classified as "commercial" or
"standard"
B. All Accounts
C. Youth Loan borrowers over the age of 18
D. Borrowers that have accounts with limited resource rates
GUARANTEED PASS BRAND NEW 2025
Financial planning and analysis of an operation is important
because
A. It is a requirement of all guaranteed lenders
B. It tells how much debt we are required to write down
C. It tells FSA personnel when an operation should be liquidated
D. The borrower is able to make better decisions regarding the
utilization of assets, operational efficiency, expense allocation,
and capital investments to improve business performance -
ANSWER - > D. The borrower is able to make better decisions
regarding the utilization of assets, operational efficiency,
expense allocation, and capital investments to improve
business performance
With the exception of accounts in default, a co-borrower may
be released from liability after a final divorce settlement when
the...
Select ALL
A. Divorce decree states that the co-borrower is not
responsible for payments
B. Co-Borrower conveys his/her rights to the security
C. Remaining party can show repayment for the debt - ANSWER
- > All
,A subordination may be granted under the following
conditions, except to
A. Acquire or develop land for farming purposes
B. Convert wetlands for farm production
C. Provide pollution controls
D. Provide fencing and drainage - ANSWER - > B. Convert
wetlands for farm production
Insurance proceeds from a claim on real estate security losses
may be used
Select ALL
A. To make the annual installment on the loan that is secured
by that property
B. To make repairs on the real estate security
C. As an extra payment on the loan that is secured by that
property
D. For essential farm operating and family living expenses -
ANSWER - > B. To make repairs on the real estate
C. As an extra payment on the loan that is secured by that
property
A borrower sells chattel property that is security for a direct
loan and does not report it to the FSA office. This is the first
time this borrower has made an unauthorized disposition.
What is the first action to be taken?
A. Send FSA-2510 and FSA-2511
B. Send FSA- 2514 and FSA-2515
,C. Make a written request for restitution from the borrower by
sending Exhibit 31
D. Demand the purchaser to pay FSA the same amount he paid
to the borrower - ANSWER - > C. Make a written request for
restitution from the borrower by sending Exhibit 31
A year- end analysis would not be required for.. - ANSWER - > A
borrower who refinanced all of his FSA direct loans with FSA
guaranteed loans last year.
FLP regular payments are applied in the following order
A. Principal, accrued interest, recoverable costs
B. Deferred mortgage payment, accrued interest, principal,
recoverable costs
C. Recoverable costs, principal, accrued interest
D. Recoverable costs, accrued interest, principal - ANSWER - >
D. Recoverable costs, accrued interest, principal
The "as is" market value of a farm is $80,000. The direct FO loan
that is secured by this farm has a remaining balance of $97,000.
Unpaid real estate taxes on the farm total $5,000. An eligible
applicant wishes to purchase the farm and assume the FSA
debt. What would the amount of the assumption be? -
ANSWER - > $75,000
There must always be a current Form FSA- 2040, "Agreement
for use of Proceeds and Security", in the file of a borrower with
a loan secured by chattels. T/F - ANSWER - > True
, A Farm Loan Officer who has successfully completed the FLP
training program may release proceeds from the sale of
chattels by recording the action on a FSA-2045, "Record of the
Disposition of FSA Security/Release of Proceeds" when this
authority has been delegated by the FLM. T/F - ANSWER - >
True
Proceeds from the sale of normal income security are the only
type of security sale proceeds which may be released for
essential family living or farm operating expenses. T/F -
ANSWER - > True
The estate of a decease borrower may continue with the
borrower's loans. T/F - ANSWER - > False
A subordination of FSA chattel security can be considered to
allow a borrower who has previously received a debt write
down to obtain needed credit from another lender. T/F -
ANSWER - > True
Which of the following loan accounts would be appropriate
candidates for graduation?
A. Borrowers accounts that are classified as "commercial" or
"standard"
B. All Accounts
C. Youth Loan borrowers over the age of 18
D. Borrowers that have accounts with limited resource rates
