General.

CFR · 2024-01-01 · US · Title 7

(a) (2) This subpart and subpart S of this part apply only to debt to be secured under the mortgage, the issuance of (b) (2) It is also the policy of RUS to provide effective and timely assistance to borrowers in promoting rural development by subordinating RUS's lien for financially sound rural development investments under the conditions set forth in § 1717.858. (c) (1) The value of the added assets compared with the amount of new debt to be secured; (2) The value of the assets already pledged under the mortgage, and any effects of the proposed transaction on the value of those assets; (3) The ratio of the total outstanding debt secured under the mortgage to the value of all assets pledged as security under the mortgage; (4) The borrower's ability to repay debt owed to the Government, as indicated by the following factors: (i) Revenues, costs (including interest, lease payments and other debt service costs), margins, Times Interest Earned Ratio (TIER), Debt Service Coverage (DSC), and other case-specific economic and financial factors; (ii) The variability and uncertainty of future revenues, costs, margins, TIER, DSC, and other case-specific economic and financial factors; (iii) Future capital needs and the ability of the borrower to meet those needs at reasonable cost; (iv) The ability of the borrower's management to manage and control its system effectively and plan for future needs; and (5) Other factors that may be relevant in individual cases, as determined by RUS. (d)

official document · source cfr-2024 · id 7:§ 1717.850