When liquidating a guaranteed loan, what must the lender present to FSA for approval?

When liquidating a guaranteed loan, the lender must present a liquidation plan to the FSA for approval. This plan is critical as it outlines how the lender intends to dispose of the collateral or recover the funds owed. It details the steps to be taken in the liquidation process, ensuring that the FSA can evaluate the strategy for effective recovery of the loan guarantee. The plan typically includes timelines, inventory of assets, and methods of sale, making it essential for FSA's oversight.

The other options, while they may involve important documentation in the overall loan management process, do not specifically address the requirements for liquidation. An annual financial report offers a broader view of a borrower's financial status rather than focusing directly on the liquidation strategy. Updated loan documentation provides information about the current loan terms and status, but does not provide a clear action plan for liquidation. Similarly, the borrower's repayment history, while useful for understanding past performance, does not lay out the steps necessary to liquidate the loan effectively.