Making changes in the planned development.

CFR · 2024-01-01 · US · Title 7

The borrower may request changes in the planned development in accordance with this section. (a) (1) The change is for an authorized purpose and within the scope of the original proposal. (2) Sufficient funds are deposited in the borrower's supervised bank account or with the interim lender, as appropriate, to cover the contemplated changes when the change involves additional funds to be furnished by the borrower. (3) The change will not adversely affect the soundness of the operation or the Agency's security. If uncertain as to the probable effect the change would have on the soundness of the operation or Agency security, the County Supervisor will obtain advice from the District Director on whether to approve the change. (4) If a surety bond has been provided on the full amount of the construction contract, the aggregate amount of all contract change orders on Form RD 1924-7, “Contract Change Order,” or other acceptable form will not exceed 20 percent of the original contract amount. Change orders for contracts on which a surety bond has been provided which increases the original contract amount by more than 20 percent may only be approved if additional surety is provided in the full revised amount of the contract. For purposes of this paragraph, letters of credit and deposits are not considered surety. (5) Change orders for contracts on which letters of credit or deposits have been provided on the full amount of the contract which will increase the original contract amount

official document · source cfr-2024 · id 7:§ 1924.10