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In the context of the completed form FSA-2040, the correct answer pertains to the sale of normal income security that is not specifically listed on the form. This means that if a borrower decides to sell certain types of income-producing assets that were not explicitly included in the original FSA-2040 submission, they can do so without needing prior approval from the lending authority.

The policy behind this is to facilitate transactions related to income security that are routine and do not pose a significant risk to the loan agreement or the lender’s interest in the security. These types of transactions are generally understood to be part of the borrower’s normal operating procedures, thus making the requirement for prior approval unnecessary.

On the other hand, changes that involve altering the amount of proceeds released or situations involving sales after annual installments are likely to have more significant implications for the terms of the loan and the lender’s interests. Such changes are more closely tied to the overall structure of the loan and could affect repayment, collateral value, and risk assessment, which is why they require prior approval.