Lien subordination for rural development investments.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) The borrower must be current on all of its financial obligations and be in compliance with all provisions of its mortgage and loan agreement with RUS; and (2) In the judgment of RUS, the borrower must be able to repay all of its outstanding debt, and the security for all outstanding loans made to the borrower by RUS, including loans guaranteed by RUS, must be adequate, after taking into account the proposed subordination or release of lien. (c) (1) A statement from the borrower requesting the lien subordination or release of lien. (2) A certification by an authorized official of the borrower that the borrower is current on all of its financial obligations and is in compliance with all provisions of its mortgage and loan agreement with RUS; (3) A description of the facilities or other purposes to be financed and the projected effects on economic development and employment in rural areas; (4) The borrower's financial and statistical report, the data in which shall not be more than 60 days old when the complete application is received by RUS; (5) If requested by RUS, a long-range financial forecast providing financial projections for at least 10 years, in form and substance satisfactory to RUS, which demonstrates that the borrower's system is economically viable and that the borrower will be able to repay all of its outstanding debt and meet all other financial obligations; (6) A discussion of the borrower's compliance with RUS requirements on accounting, financial r

official document · source cfr-2024 · id 7:§ 1717.858