Q: FSA is refusing to endorse a check for crop sale unless it goes into supervised acct. Holding income hostage.
We opened a supervisory account with the Farm Service Agency last year on a voluntary basis. Now, they are refusing to endorse a check for part of a crop sale unless it goes into this account that has been idle for probably a year. Is this legal? They don't have a claim to the money, so I don't see how. When questioned, I was first told it was in my loan paperwork. When I asked to be shown the clause, I was told it's "probably" in my security agreement. When I asked to be shown the clause, I was met with "we have the right", but they are refusing to release our money to us. What recourse do we have?
A: First, read your loan agreement and the security agreement and any other contracts you have with FSA or any other parties that might be involved, such as the party that wrote the check. If you are still certain they have no right require you to run funds through a supervised account, then you should consult with an attorney who will ask you more detailed questions.
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