Loan terms and conditions.

CFR · 2024-01-01 · US · Title 7

(a) (1) The maturity of the loan or bond used to finance facilities or other capital assets must not exceed the weighted average of the expected remaining useful lives of the assets being financed; (2) The loan or bond must have a maturity of not less than 5 years, except for loans or bonds used to refinance debt that has a remaining maturity of less than 5 years; (3) The principal of the loan or bond must be amortized at a rate that will yield a weighted average life not greater than the weighted average life that would result from level payments of principal and interest; and (4) The loan, or any portion of the loan, may bear either a variable (set annually or more frequently) or a fixed interest rate. (b)

official document · source cfr-2024 · id 7:§ 1717.853