Graduation of non-Farm Credit programs borrowers.

CFR · 2024-01-01 · US · Title 7

(a)-(b) [Reserved] (c) (d) [Reserved] (e) (2) Borrowers must provide evidence of their ability or inability to graduate within 30 days for RH borrowers, and 90 days for group type borrowers, after the date of the request. The Agency may allow additional time for good cause, for example when a borrower expects to receive income in the near future for the payment of accounts which would substantially reduce the amount required for refinancing, or when a borrower is a public body and must issue bonds to accomplish graduation. (3) If a borrower is unable to graduate the full amount of the loan, the borrower must furnish evidence to the Agency, showing: (i) The names of other lenders contacted; (ii) The amount of loan requested by the borrower and the amount, if any, offered by the lenders; (iii) The rates and terms offered by the lenders or the specific reasons why other credit is not available; and (iv) The purpose of the loan request. (4) The difference in interest rates between the Agency and other lenders will not be sufficient reason for failure to graduate if the other credit is available at rates and terms which the borrower can reasonably be expected to pay. An exception is made where there is an interest rate ceiling imposed by Federal law or contained in the note or mortgage. (5) The Agency will notify the borrower in writing if it determines that the borrower can graduate. The borrower must take positive steps to graduate within 15 days for individual loans and 60 days

official document · source cfr-2024 · id 7:§ 1951.263