Definitions.

CFR · 2024-01-01 · US · Title 7

As used in this subpart, the following definitions apply: Unauthorized sale of security. Purchase of security with intent to defraud and without payment of the purchase price to Rural Development; Falsification of assets or liabilities in loan applications; Application for a loan for an authorized purpose with intent to use and use of loan funds for an unauthorized purpose; Decision after obtaining a loan to use and using the funds for an unauthorized purpose and then making false statements regarding their use; By scheme, trick, or other device, covering up or concealing misuse of funds or authorized dispositions of security or EO property or other illegal action; or Any other false statements or representations relating to Rural Development matters. To establish that a criminal act was committed by selling EO property, it is necessary to show that the borrower, at the time the loan agreement or the check on the supervised bank account was signed, intended to sell the property in violation of the loan agreement. The Federal criminal statute of limitations bars institution of criminal action 5 years after the date the act was committed. Unauthorized disposition of even minor items by the borrower will be considered criminal violations. Is delinquent, and the borrower's refusal or inability to pay on schedule, or as agreed upon, is due to lack of diligence, lack of sound farming or other operation, or other circumstances within the borrower's control. Ceases to conduct farming

official document · source cfr-2024 · id 7:§ 1962.4