Qualifications.

CFR · 2024-01-01 · US · Title 7

(a) (1) Demonstrate that the FFB loan was outstanding on July 2, 1986; (2) Prepay the FFB loan by: (i) Using a private loan with the existing loan guarantee; (ii) Using internally generated funds; or (iii) Using a combination of a private loan with the existing loan guarantee and internally generated funds; and (3) Certify that any savings resulting from such prepayment will be passed on to its customers, or used to improve the financial strength of the borrower in cases of financial hardship. (b) (1) Be a private legally organized lender, or a lender established pursuant to the Farm Credit Act of 1971, as amended; (2)(i) Be subject to credit examination and supervision by either an agency of the United States or a state and be in good standing with its licensing authority and have met the requirements, if any, of licensing, lending and loan servicing in the state where the collateral for the Loan is located; (ii) Be a financially viable lender; or (iii) Be a trust administered. by an entity meeting the requirements of paragraph (b)(2) (i) or (ii) of this section; and (3) Have the capability to adequately service the private loan either by using its own resources or by contracting for such resources with a financially viable lender. Under no circumstances may the borrower or an affiliate of the borrower service the private loan. A qualified lender may participate out each private loan to entities other than a Government agency, the borrower, or an affiliate of the borrower, p

official document · source cfr-2024 · id 7:§ 1786.28