Issuance of the guarantee.

CFR · 2024-01-01 · US · Title 7

(a) The following requirements must be met by the applicant prior to the endorsement of a guarantee by the Secretary. (1) A guarantee agreement suitable in form and substance to the Secretary must be delivered. (2) Bond documents must be executed by the applicant setting forth the legal provisions relating to the guaranteed bonds, including but not limited to payment dates, interest rates, redemption features, pledged security, additional borrowing terms including an explicit agreement to make payments even if loans made using the proceeds of such bond or note is not repaid to the lender, other financial covenants, and events of default and remedies; (3) Prior to the issuance of the guarantee, the applicant must certify to the Secretary that the proceeds from the guaranteed bonds will be applied to fund new eligible loans under the RE Act, to refinance concurrent loans, or to refinance existing debt instruments of the guaranteed lender used to fund eligible loans; (4) The applicant provides a certified list of eligible loans and their outstanding balances as of the date the guarantee is to be issued; (5) Counsel to the applicant must furnish an opinion satisfactory to the Secretary as to the applicant being legally authorized to issue the guaranteed bonds and enter into the bond documents; (6) Outside legal counsel to the applicant, satisfactory to the Secretary, must furnish an opinion satisfactory to the Secretary that the Pledge Agreement creates in RUS's favor a valid per

official document · source cfr-2024 · id 7:§ 1720.8