Realizing that no one likes to write checks every month to pay bills due and also knowing that Village and Town Clerks do have many other responsibilities, USDA Rural Development (Rural Utilities Service) is offering to new and existing borrowers the opportunity to participate in the Agency’s "Preauthorized Debit (PAD) Program". The PAD payment process eliminates the need to write checks, saves the expense of mailing payments or visits to a local office and allows the borrower the certainty of when the payment is applied.

It is amazing how many accounts become "flagged" for the oversight of not including the "nine cents" or change after the decimal point. Also, when the payment responsibility is turned over to a new person, it may take a couple of months for him/her to realize a payment is due. This loss of institutional capacity could result in a delinquency to this federal agency.

The PAD process is a payment method in which you authorize funds to be withdrawn electronically from your bank account on the exact day that your installment is due. If you are a borrower, you presently are receiving notification of when your payment is due and the amount of principal and interest due. You will continue to receive that notice.

To make this happen for you, you will have to sign an "Authorization Agreement for Preauthorized Payments" (Standard Form 5510) available from any of the USDA Rural Development Local Service Offices or call me at 315-477-6427 for assistance.

It is the goal in New York State to have at least 30% of eligible water and waste loans participating in the PAD process. The program is good for you and is offered as a service to eliminate needless delinquency due to oversight and personnel transition.

I truly look forward to your participation in the program and as always, I am available to discuss this issue and/or others at your convenience. Please consider this payment option.