Security.

CFR · 2024-01-01 · US · Title 7

(a) (1) For Corporations and limited liability entities, the loan and loan/grant combinations must be secured by all assets of the Awardee. (i) RUS must be given an exclusive first lien, in form and substance satisfactory to RUS, on all assets of the Awardee, including all revenues. (ii) RUS may share its first lien position with one or more lenders on a (iii) Applicants must submit a certification that their prior lender or lienholder on any Awardee assets has already agreed to sign the RUS' standard intercreditor agreement or co-mortgage found on the Agency's web page. (iv) RUS will not share a lien position on assets with any related party or affiliate of the Awardee. (2) For Tribal entities and municipalities, RUS will develop appropriate security arrangements. (3) Unless otherwise approved by RUS in writing, all property and facilities purchased with award funds must be owned by the Awardee. (b) (1) The government must be provided an exclusive first lien on all grant funded assets during the service obligation of the grant, and thereafter any sale or disposition of grant assets must comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, codified in 2 CFR part 200. Note that this part will apply to ALL grant funds of an Awardee, regardless of the entity status or type of organization. (2) All Awardees must repay the grant if the project is sold or transferred without receiving written approval from RUS during the s

official document · source cfr-2024 · id 7:§ 1740.44