USDA HB-1-3555, Chapter 17 (Regular Servicing -), § 17.5

usda-hb-3555-17-5

USDA Handbook HB-1-3555 section 17.5. Full verbatim section text, substring-verified against snapshot 481dcf71d80912ba.

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Verbatim provisions from USDA HB-1-3555, Chapter 17 (Regular Servicing -), § 17.5 — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

USDA HB-1-3555, Chapter 17 (Regular Servicing -), § 17.5

Effective 2025-04-14 · USDA chapter revision · Procedure Notice 637

INSURANCE PROCEEDS [7 CFR 3555.252] When insurance funds remain after payments for all repairs, replacements, and other authorized disbursements have been made and the repairs have been inspected in accordance with Agency construction requirements noted in Chapter 12 of this Handbook, the funds must be applied in the following order: 1. Prior liens (including past-due property taxes); 2. Past-due amounts (requires written consent from borrower); 3. Protective advances; and 4. Released to the borrower if the servicer’s debt is adequately secured.

Source: USDA HB-1-3555, Chapter 17 (Regular Servicing -), § 17.5 · source URL · snapshot 481dcf71d80912ba

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