Farm Credit Borrower Relief, System Reform and Local Control Act of 1987

[AI summary unavailable — showing source text] Farm Credit Borrower Relief, System Reform and Local Control Act of 1987 - Title I: Interest Rate Reduction - Provides for: (1) a mandatory two-year interest rate reduction of at least seven percent on all Farm Credit System (System) loans; (2) an additional reduction of up to two points, upon a borrower's written request, to be funded by applying up to one-half of each borrower's stock against interest otherwise due; and (3) a five-year guarantee of borrower stock. Title II: Borrower Relief: Forbearance and Restructuring - Amends the Farm Credit Act of 1971 to require all banks and associations to have a forbearance program providing for loan extensions, deferrals, or late payments to delinquent borrowers who meet specified criteria. Prohibits foreclosure if a borrower is making efforts to repay a loan, is taking care of the property, and has the capacity to work out of debt. Provides: (1) that a borrower must have at least 30 days' written notice before a foreclosure action is filed against him; and (2) a ten-day right to appeal such action. Requires System institutions to make efforts to permit a borrower in a foreclosure or voluntary liquidation action to retain ownership or po…