Application evaluation.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) The extent to which the proposed provisions indicate the applicant will be able to repay the guaranteed bonds; (2) The adequacy of the proposed provisions to protect the Federal government, based upon items including, but not limited to the nature of the pledged security, the priority of the lien position, if any, pledged by the applicant, and the provision for an orderly retirement of principal such as an amortizing bond structure or an internal sinking fund; (3) The applicant's demonstrated performance of financially sound business practices as evidenced by reports of regulators, auditors and credit rating agencies; (4) The extent to which the applicant is subject to supervision, examination, and safety and soundness regulation by an independent Federal or state agency; (5) The extent of concentration of financial risk that RUS may have resulting from previous guarantees made under section 313A of the RE Act; (6) The extent to which providing the guarantee to the applicant will help reduce the cost and/or increase the supply of credit to rural America, or generate other economic benefits, including the amount of fee income available to be deposited into the Rural Economic Development Subaccount, maintained under section 313(b)(2)(A) of the RE Act (7 U.S.C. 940c(b)(2)(A)), after payment of the subsidy amount; and (7) The geographic or economic distribution of funds made available through this program or use of such funds to advance rural development infrastructur

official document · source cfr-2024 · id 7:§ 1720.7