State Director's additional authorizations and guidance.

CFR · 2024-01-01 · US · Title 7

(a) (1) Approve requests for permission to modify bylaws, articles of incorporation, or other rules and regulations of recipients, including changes in rate or fee schedules. Changes affecting the recipient's legal organizational structure must be approved by OGC. (2) Consent to requests by the recipient to incur additional indebtedness, subject to applicable Rural Development instructions and covenants in the loan or grant agreement. (3) Renew existing security instruments. (4) Approve the extension or expansion of facilities and services. (5) Require additional security when: (i) Existing security is inadequate and the loan or security instruments obligate the borrower to give additional security; or (ii) The loan is in default and additional security is acceptable in lieu of other servicing actions. (6) Release properties being sold by the borrower from mortgages securing Rural Renewal loans if the amount of the notes and mortgages given by the purchaser to the borrower equal the present market value and are assigned and pledged to Rural Development, and any money payable to the borrower is applied as an extra payment on the Rural Renewal loan. (7) Approve requests for rights-of-way and easements and any subordination necessary in connection with such requests. (b) (c)

official document · source cfr-2024 · id 7:§ 1951.240