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| Basically your right, but there were times when banks failed, and customers didn't have the cash flow or enough equity to please FDIC on paper, so loans were not readily picked up and so FDIC liquidated the loan because of the time constraint put on them. Iowa public tv showed an Iowa farmer rancher having to sell his heard off back in the 80s, giving him more than enough to pay off the loan. You could tell he had put a lot of time and effort into his herd. It was hard to watch on tv (the documentary). Stanley and Eldon Slangal had FDIC show up in the middle of the night near Sargent NE to load cattle out in the middle of the night, with no papers (Feb 1987). It just kinda leaves a person a little gun shy from being too indebted to anyone. I can think of at least two more instances, where hard times for banking and farming crossed, caused some ruff patches for others. | |
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Banks calling in Ag loans ?
