Transfer and assumptions.

CFR · 2024-01-01 · US · Title 7

(a) All transfers and assumptions will be approved in writing by Rural Development. Such transfers and assumptions will be to an eligible applicant. (b) Transfers and assumptions will be considered without regard to § 1980.451 (d) of this subpart. (c) The borrower will submit to Rural Development Form RD 449-4 for the required character evaluation prior to the execution of the Assumption Agreement. (d) Available transfer and assumption options to eligible borrowers include the following: (1) The total indebtedness may be transferred to another borrower on the same terms. (2) The total indebtedness may be transferred to another borrower on different terms not to exceed those terms for which an initial loan can be made. (3) Less than the total indebtedness may be transferred to another borrower on the same terms. (4) Less than the total indebtedness may be transferred to another borrower on different terms. (e) In any transfer and assumption case, the transferor, including any (1) Rural Development must determine that the transferor and any guarantors have no reasonable debt-paying ability considering their assets and income at the time of transfer. (2) The Rural Development County Committee must certify that the transferor has cooperated in good faith, used due diligence to maintain the collateral against loss, and has otherwise fulfilled all of the regulations of this subpart to the best of borrower's ability. (f) Any proceeds received from the sale of secured property before

official document · source cfr-2024 · id 7:§ 1980.476