(a) The Agency will authorize a withdrawal from the supervised bank account for an approved purpose after ensuring that:
(1) Sufficient funds in the supervised bank account are available;
(2) No loan proceeds are disbursed prior to confirmation of proper lien position, except to pay for lien search if needed;
(3) No checks are issued to ``cash;'' and
(4) The use of funds is consistent with the current farm operating plan or other agreement with the Agency.
(b) A check must be signed by the borrower with countersignature of the Agency, except as provided in paragraph (c) of this section. All checks must bear the legend ``countersigned, not as co-maker or endorser.''
(c) The Agency will withdraw funds from a supervised bank account without borrower counter-signature only for the following purposes:
(1) For application on Agency indebtedness;
(2) To refund Agency loan funds;
(3) To protect the Agency's lien or security;
(4) To accomplish a purpose for which such advance was made; or
(5) In the case of a deceased borrower, to continue to pay necessary farm expenses to protect Agency security in conjunction with the borrower's estate.