Under certain circumstances, may a lender release guaranteed loan security without prior written approval of FSA?

A lender may indeed release guaranteed loan security without prior written approval from the Farm Service Agency (FSA) under specific circumstances, indicating that there are provisions within the regulations allowing for such flexibility. This typically relates to scenarios where a lender takes steps to protect their interests while fulfilling the terms of the loan agreement without unnecessarily delaying processes or transactions that benefit the borrower.

For instance, a lender may need to act swiftly in case of a sale of collateral or to facilitate a refinancing arrangement that does not adversely affect the loan's security. The intent is to strike a balance between protecting the government's interest and the practical needs of the borrower, which can sometimes necessitate such actions without cumbersome bureaucratic delays. This aspect illustrates the lender's responsibility not only to manage their risk but also to act in the best interest of their clients, as long as they adhere to FSA guidelines and the initial loan obligations.