Reamortization.

CFR · 2024-01-01 · US · Title 7

(a) (1) The account is delinquent and cannot be brought current within one year while maintaining a reasonable reserve; (2) The borrower has demonstrated for at least one year by actual performance or has presented a budget which clearly indicates that it is able to meet the proposed payment schedule; (3) The amount being reamortized is within the State Director's loan approval authorization; and (4) There is no extension of the final maturity date. (b) (1) Current budget and cash flow prepared on RD 442-2, schedules 1 and 2, or similar form; (2) Current balance sheet and income statement; (3) Exhibit A of this subpart, appropriately completed; (4) Form RD 1951-33, “Reamortization Request,” completed in accordance with § 1951.223(c)(3) of this subpart, when applicable; and (5) Any other necessary supporting information. (c) (1) Reamortizations will be perfected in accordance with OGC closing instructions. (2) When debt instruments are being modified or new debt instruments executed, bond counsel or local counsel, as appropriate, must provide an opinion indicating any effect on Rural Development's security position. The Rural Development's approval official must determine that the government's interest will remain adequately protected if the security position will be affected. (3) (4) (i) The procedure may consist of a new debt instrument or agreement for the total Rural Development indebtedness, including the delinquency, or a new instrument or agreement whereby the borrower

official document · source cfr-2024 · id 7:§ 1951.223