Automatic lien accommodations.

CFR · 2024-01-01 · US · Title 7

(a) (b) (c) (1) No default has occurred and is continuing under the Government mortgage; (2) The borrower has delivered to the Administrator, at least 10 business days before the private lender notes are to be executed, a certification and agreement executed by the President of the borrower's Board of Directors, such certification and agreement to be substantially in the form set forth in Appendix A of this subpart, providing that: (i) No default has occurred and is continuing under the Government mortgage; (ii) The principal amount of such refinancing or refunding notes will not be greater than 112 percent of the then outstanding principal balance of the notes being refinanced or refunded; (iii) The weighted-average life of the private loan evidenced by the private lender notes will not exceed the weighted-average remaining life of the notes being refinanced or refunded; (iv) The private lender notes will provide for substantially level debt service or level principal amortization over a period not less than the original remaining years to maturity; (v) Except as provided in the Government mortgage, the borrower has not agreed to any restrictions or limitations on future loans from RUS; and (vi) If the private lender determines that a supplemental mortgage is necessary, the borrower will comply with those procedures contained in paragraph (h) of this section for the preparation, execution, and delivery of a supplemental mortgage and take such additional action as may be requ

official document · source cfr-2024 · id 7:§ 1744.30